Leo KoGuan, a major individual shareholder of Tesla (TSLA, Financial), announced a reduction in his holdings of the automaker due to concerns over potential market sell-offs. He is reallocating some of the proceeds into U.S. government bonds, specifically 3-month Treasury bills. KoGuan cited the need to hedge his portfolio against a possible market crash reminiscent of 1929, driven by massive government debt and fiscal deficits.
This move marks a significant shift for KoGuan, who had previously been a staunch supporter of Tesla and its CEO, Elon Musk. In 2021, during a market upswing, KoGuan had expressed ambitions to increase his Tesla holdings until his net worth reached at least $100 billion. As of May, KoGuan owned 27.7 million Tesla shares, representing about 0.9% of the company, contributing significantly to his $13.5 billion fortune.
