Billionaire Investor Shifts Focus from Tesla to Alibaba Amid Strategic Portfolio Rebalancing

Philippe Laffont's Coatue Management executed a significant portfolio pivot in Q3 2025, slashing its Tesla position by 15% while aggressively expanding its Alibaba stake. The $41 billion fund disposed of 307,780 TSLA shares, extending a divestment trend that has seen 64% of its peak position liquidated since March 2023. This retreat comes despite Tesla's monumental appreciation—shares have multiplied tenfold since Coatue's initial 2020 investment.

Concurrently, Laffont deployed capital into Alibaba with conviction, boosting the position by 130% through acquisition of 1.128 million shares. The MOVE aligns with BABA's accelerating cloud revenue growth (26% YoY to $4.66B) and sustained triple-digit expansion in AI product lines. At 16x forward earnings, Alibaba presents a valuation gap versus AI peers despite its technological traction.

Market observers note Tesla's reliance on non-core income streams—40% of Q3 pre-tax profits derived from regulatory credits and interest income—may have influenced Coatue's rotation. The reallocation underscores institutional preference for cash-generative tech plays with clear AI monetization pathways over automotive exposure.