America's 'Big Three' passive funds now own more of Tesla than CEO Elon Musk does, report says

• America's "Big Three" passive investing funds own more of Tesla than founder Elon Musk does, per the FT.
• BlackRock, Vanguard and State Street have a combined 13.58% stake in the US electric-car maker.
• Musk has dumped billions of dollars in Tesla stock to fund his $44 billion acquisition of Twitter.

Elon Musk now owns less stock in Tesla, the EV maker he founded, than America's "Big Three" passive-investing funds have, the Financial Times has reported.

The combined holdings of the index fund industry's three giants — BlackRock, Vanguard and State Street — make up a 13.58% stake in Tesla, it found.

Vanguard funds own 6.85% of Tesla, adding up to the second-biggest shareholder, while BlackRock and State Street funds have a 3.6% and 3.13% stake, respectively.

Meanwhile, Musk holds about 13% of the carmaker's stock, according to the Bloomberg Billionaires Index.

The billionaire has been dumping shares in Tesla, largely to fund his $44 billion acquisition of Twitter but also to cover tax bills and service debts. He has disposed of nearly $40 billion worth of Tesla stock in less than 14 months, helping drive a steep slide in the automaker's stock price last year.

Tesla shares have shot up about 69% this year so far, as investor optimism about stocks grows. But they still trade far below their peak price above $400, hit in November 2021.

Still, that gain could be good news for the "Big Three" fund providers, given the vast majority of their holdings in Tesla are likely in passively managed funds, per the FT.

The most popular passive funds have a portfolio of shares that mirrors a stock index — typically a broad benchmark like the S&P 500. The goal is to match the market, not beat it.

Musk, along with Ark Invest's Cathie Wood, has criticised passive management's dominance of the investing world in the past, saying it's prevented investors from enjoying massive gains in Tesla stock.