Saudi Arabia's Public Investment Fund (PIF) has hedged most of its 4.9% stake in Tesla Inc. with the assistance of JP Morgan Chase & Co, the Financial Times reported on Monday.
The program, which was used by sovereign wealth fund after the market close on January 17, is supposed to protect PIF from exposure if the stock falls while also capping potential gains, FT stated.
A day after the program was put in place, Tesla announced it was cutting its workforce by 7%, making its stock plummet.
Following the report on Monday, the automakers shares traded 1.30% in the red at 12:23 pm ET.
