Canada’s CPP Investments Ups Stake in Apple, Reduces Tesla Shares

As we move further into 2023, Canada’s largest public pension fund, Canada Pension Plan Investment Board (CPP Investments), is making bold moves it seems. In a pivot towards the tech industry, the fund has significantly increased its stake in Apple while simultaneously slashing investments in electric vehicle (EV) leader Tesla and other EV manufacturers, reports Barron’s (via Tesla North).

Data revealed that CPP Investments procured an additional 255,943 Apple shares in Q1 2023, raising its total holdings to 760,518 shares. In stark contrast, the fund cut down its investments in renowned EV companies, including a marked reduction in Tesla shares.

CPP Investments’ Tesla shares slid from 959,728 at the end of 2022 to 454,055 by the close of Q1 2023. Investments in other EV companies like NIO, XPeng, and Li Auto were also significantly reduced.

This strategic shift could be attributed to Apple’s outstanding stock market performance. Apple’s shares skyrocketed by 27% in Q1, outshining the 7% rise in the S&P 500 index. The trend continued into Q2, with Apple’s shares rising by an impressive 6.4%, as compared to the index’s 2.3%.

Meanwhile, Tesla’s stocks exhibited a 68% leap in Q1 2023, only to stumble in Q2 with a decline of 6.9%. This turbulent performance in the EV sector might have influenced CPP Investments’ decision to pivot towards Apple.

Back in February, CPP sold 85% of its Apple stake and bought about 600,000 Tesla shares in the process. Now it seems to be flip-flopping somewhat.

CPP Investments, holding assets worth roughly $571 billion CAD as of March 31, did not comment on these investment adjustments said Barron’s. These significant shifts in holdings underscore the fund’s responsive approach to the fluctuating dynamics in the tech and EV sectors. It’s your money at work, folks!