Oracle's Larry Ellison has gotten crushed on his Tesla investment this year

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Oracle co-founder Larry Ellison disclosed a $1 billion stake in Tesla in late December. It's now worth about $580 million.

the purchase of 3 million shares in the electric car maker at the end of December, Tesla's stock has plunged 42%, which would make the company the worst performer in the S&P 500 this year if it were in the index. Ellison is Tesla's second-biggest individual holder, behind only CEOThe stock's drop, tied to Tesla's store closings and layoffs, Musk's clash with regulators and trade tensions between the U.S.

But Ellison's investment in Tesla was not entirely about financial gain. At the end of 2018, Tesla added Ellison and former Kellogg executive Kathleen Wilson-Thompson to the board as part of a settlement with the SEC, which had challenged Musk's statement on Twitter that he had "secured" funding to take the company private at $420 a share.

Ellison expressed his bullishness on the company in October, when he revealed that Tesla was his second largest investment at a meeting with financial analysts. No analyst asked about Tesla, but he felt compelled to mention it. "I'm very close friends with Elon Musk, and I'm a big investor in Tesla," Ellison said. "And so Tesla had a good day. And I think Tesla has a lot of upside. Do you know the most popular car by revenue in the United States over the last three months? The number one car in the United States by revenue. The Tesla Model 3 outsold in revenue – forget about Ford and GM, they weren't even close – outsold Honda and Toyota.

Ellison, who started Oracle in 1977, can easily afford the loss. With a net worth of over $57 billion, thanks to his

 

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Who cares

Larry pays 333 per share for Tesla ( 1 billion dollars divided by 3 million shares.)

No fundamental change in automotive design = fail.

elonmusk Can you convince Larry to buy more Tesla shares or invest into Tesla? If I were Larry, I would double down my investment.

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