Billionaire Investor Stanley Druckenmiller Just Slashed His Fund's Stake in Tesla by 50% and Quadrupled Its Position in Another AI Stock Up 2,800% Since Its IPO

Group 1: Stanley Druckenmiller's Investment Strategy - Stanley Druckenmiller has a remarkable investment track record, generating average annual returns of 30% over 30 years, including 12 years at George Soros's Quant Fund [1] - In the first quarter, Druckenmiller reduced his position in Tesla by about 50% and significantly increased his stake in an AI stock that has risen 2,800% since its IPO [2][3] - Druckenmiller emphasizes valuation in his investment decisions, having previously sold Nvidia when its valuation became unsustainable [6] Group 2: Tesla's Performance and Challenges - Tesla's stock experienced significant gains following Donald Trump's election, but those gains diminished in the first quarter due to struggles in its core EV business and concerns over Musk's political involvement [3][4] - The company faces increasing competition in China, particularly from BYD, which has captured significant market share [8] - Future initiatives, such as full-self-driving technology and Optimus robots, are critical for maintaining Tesla's high valuation [7][8] Group 3: Taiwan Semiconductor's Growth and Position - Duquesne Capital Management quadrupled its position in Taiwan Semiconductor, purchasing an additional 491 million shares in the first quarter [10] - Taiwan Semiconductor is a leading manufacturer of GPUs and produces Nvidia's next-generation Blackwell chips, with Nvidia's CEO praising its manufacturing capabilities [11] - The company reported solid earnings and expects AI-related revenue to double this year, guiding for mid-20s revenue growth in 2025 [13]