(Bloomberg) — Tesla Inc. shares are poised to extend losses after the electric-car maker’s largest shareholder behind Elon Musk cut its stake.

The stock slumped 6.7{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} to $417.54 at 6:02 a.m. New York time in premarket trading, having fallen 5.8{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} on Wednesday after Baillie Gifford & Co. disclosed that it reduced its holding to 4.25{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} of Tesla’s shares from 7.67{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} in February. With the sale, the Edinburgh-based firm is now Tesla’s fourth-biggest investor, according to data compiled by Bloomberg.

Baillie Gifford needed to reduce the holding because of guidelines that restrict the weight of a single stock in client portfolios, Dow Jones reported on Wednesday, adding that the firm intends to remain a significant holder “for many years,” and could increase its holding in the event of “serious setbacks” in the share price.

Tesla shares have more than quintupled this year, fueled by a better-than-expected performance in China and growing anticipation that the company will be included in the S&P 500 Index. The stock’s addition to the gauge “may be announced by the end of this week,” Credit Suisse analyst Dan Levy wrote in a note to clients Tuesday.

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Tesla Set to Extend Declines After Leading Investor Cuts Stake