Billionaire Philippe Laffont Just Sold 15% of Coatue's Tesla Stake and More Than Doubled His Position in One of Wall Street's Cheapest Artificial Intelligence (AI) Stocks

Core Insights - Philippe Laffont, the billionaire head of Coatue Management, is actively adjusting his investment strategy in the AI sector while reducing his stake in Tesla [4][5][9]. Tesla - Laffont reduced his stake in Tesla by 15%, selling over 3.12 million shares since March 31, 2023, which represents 64% of Coatue's position [8][9]. - Tesla's stock has increased nearly tenfold since Laffont's initial investment, and the company delivered approximately 1.8 million EVs annually in 2023 and 2024 [6]. - Concerns about Tesla's pricing strategy, competitive pressures, and reliance on unsustainable income sources like regulatory credits are influencing Laffont's decision to sell [10][11][12][13]. Alibaba - Laffont significantly increased his investment in Alibaba, purchasing 1,128,826 shares, marking a 130% increase in his holdings [15]. - Alibaba dominates China's e-commerce market with a 44% share of online retail sales, benefiting from a growing middle class [17]. - The company's AI cloud infrastructure is a key growth area, with AI-related product revenue experiencing triple-digit year-over-year growth for eight consecutive quarters [19][20]. - Alibaba's shares are valued at about 16 times forward-year earnings, which is lower than many AI-focused companies, making it an attractive investment opportunity [20].