Billionaire Hedge Fund Shifts from Palantir to Tesla Amid EV Market Flux

Millennium Management, led by Israel Englander, executed a surprising portfolio pivot in Q3, liquidating 91% of its Palantir position while aggressively expanding its Tesla stake. The move comes despite Tesla's 8.5% delivery decline in 2025, highlighting a calculated bet on the automaker's refreshed Model Y and Juniper platform potential.

Palantir's extreme valuation—trading at 110 times sales—made it the S&P 500's most expensive stock, possibly triggering Millennium's exit. Meanwhile, Tesla's second-half annualized delivery rate of 1.83 million vehicles suggests underlying resilience, with U.S. Model 3 sales actually growing 17.6% year-to-date.

Englander's contrarian play follows Millennium's 39-percentage-point outperformance against the S&P 500 over three years. The fund added 311,000 Tesla shares while dumping 4.5 million Palantir shares, repositioning from speculative tech to a proven growth compounder with 27,300% returns since IPO.