Key Points: As of Wednesday, the Scottish Mortgage Investment Trust cut its SpaceX position to 11.1% of total assets, down from 15% on September 30. The fund, managed by Baillie Gifford, said in its half-year report released on Friday that it had fully exited its remaining Tesla stake in April, achieving a 13x return on its original investment. A major early backer has now sold all of its Tesla shares and significantly reduced its SpaceX holdings, cashing in on two long-term, high-conviction bets.
The London-listed closed-end fund Scottish Mortgage Investment Trust (SMT-GB) disclosed on Friday that, as of Wednesday, SpaceX accounted for 11.1% of its total assets, compared with 15% on September 30. That holding helped the trust achieve a net asset value return of 31.5% for the six months ended September. In its half-year results announcement, the trust also said it had sold all of its remaining Tesla holdings in April of this year, ending an investment that began in 2013.
SpaceX investment delivers massive gains
The Scottish Mortgage Investment Trust first invested in SpaceX in December 2018, when Musk's rocket company was valued at about $31 billion; by 2021, the fund had invested a cumulative total of roughly $200 million. As SpaceX's rocket launch business and satellite network expanded, the value of that investment surged substantially. When SpaceX listed in June of this year, its market value at one point accounted for about a quarter of the trust's portfolio. Since then, as post-listing lock-up periods were phased out, the trust gradually reduced its holdings, but said it remains very bullish on SpaceX's growth prospects. "Choosing to trim after a company lists, while still retaining a large position, reflects the importance of balancing strong conviction in a sector with disciplined portfolio management," the Scottish Mortgage Investment Trust said. SpaceX was the main driver of the trust's performance during the reporting period, contributing 8 percentage points of return to the portfolio. For the six months ended September 30, the trust's total net asset value return reached 31.5%, compared with the benchmark ALLW-GB's return of 16% over the same period; the trust's share price return was 33.8%. Proceeds from reducing the SpaceX stake also helped the trust repay borrowings and lower its leverage level.
Complete exit from Tesla
Selling off Tesla marked another high-return conclusion for this trust, which invests in a mix of public and private high-growth companies around the world and follows a long-term philosophy. The fund's July portfolio update showed it had invested a cumulative total of about $470 million in Tesla, realizing about $6.2 billion in profits over 13 years. "Since first investing in 2013, the investment delivered a 13x capital return. But we believe the current share price already largely reflects growth expectations for its autonomous driving and robotics businesses," the trust said on Friday. The trust also noted that competition in Tesla's core automotive business continues to intensify, especially from the Chinese market. On Thursday, Tesla and SpaceX shares plunged about 9% and 11%, respectively, with the combined market value of the two companies evaporating more than $420 billion from Tuesday's close. Investors are concerned that after the midterm elections, Musk may face a new round of congressional scrutiny, and his companies could face stricter regulation. The Scottish Mortgage Investment Trust is one of several UK investment trusts that bet early on SpaceX; such products are equivalent to closed-end funds in the U.S. market. Another Baillie Gifford fund, EDIN-GB, came under a short-selling attack in 2025 from hedge fund Saba Capital, and its outsized gains on SpaceX became a focal point in that multi-round battle.
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