Canada Pension Plan Sells 85% of Apple Stake, Buys Tesla Instead

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Canada Pension Plan Investment Board, or CPP Investments, manages the largest earnings-related social insurance program in the country—Canada Pension Plan—which is one pillar of retirement income for those that contribute to it.

CPP Investments recently disclosed (via Barron’s) in a filing with the U.S. Security and Exchange Commission (SEC) about its sale and purchases of various stocks, that make up the fund worth $536 billion CAD as of December 31, 2022.

Some of the biggest moves in Q4 was CPP selling off 85% of its stake in Apple while picking up shares of Tesla and other electric vehicle makers in China.

Just like in Q3, CPP reduced its shares in Apple, but in Q4 it sold 3 million shares, now holding 504,575 shares of the iPhone maker. Shares of Apple are up 18% year-to-date and up 1.36% in the past month.

While in Q3, CPP reduced its EV holdings, it reversed course in Q4, increasing its stake in Tesla by 160% by purchasing 590,861 more shares, now holding just under 1 million at 959,728. Tesla shares have started to recover from 2022 lows and are up 15% in the past month.

CPP also increased its stake in Chinese electric automakers NIO and Li Auto, purchasing 2.2 million American depositary receipts and 536,797 depositary receipts, respectively. These depository receipts are certificates issued by U.S. banks that hold shares in a foreign stock.

As for other notable share purchases in Q4 by CPP? There were 1.38 million shares of Telus Corporation purchased, along with 1.04 million Rogers Communications Inc. shares and 898,570 shares of BCE Inc., the major telecoms in Canada.