Thiel Macro Liquidates Trillion-Dollar AI Holdings in Tesla and Microsoft

Thiel Macro, the hedge fund managed by Palantir co-founder Peter Thiel, fully divested its holdings in Tesla (TSLA) and Microsoft (MSFT) during the fourth quarter. This exit marks a dramatic shift in asset allocation, as the two companies represented 73% of the fund's total portfolio in the preceding quarter. Tesla's core electric vehicle business has encountered significant turbulence, losing market share across major geographies. The company has been hampered by the elimination of federal EV tax credits and the imposition of tariffs on imported auto parts. While CEO Elon Musk is pivoting toward humanoid robots and a robotaxi network—with Morgan Stanley estimating a trillion-dollar U.S. autonomous ridesharing market by 2032—these technologies are not expected to drive consequential sales in the immediate term. Microsoft has also faced investor skepticism regarding its AI monetization strategy. The stock plummeted nearly 25% in the first three months of the year, marking its worst quarterly performance since 2008. Despite reporting a 160% increase in paid seats for Microsoft 365 Copilot, the stock remains 32% below its record high as the market questions the pace of AI-driven growth. While Thiel has exited these positions, many Wall Street analysts continue to view both stocks as undervalued. The divergence between Thiel's liquidation and analyst optimism highlights the current tension between long-term AI potential and near-term execution risks in the tech sector.