Billionaires Are Dropping Tesla Stock and Buying This TSX Stock in Bulk

Tesla (NASDAQ:TSLA) has long been viewed as one of the most widely held stocks among billionaire investors. There’s a good reason for that view. The company is at the bleeding edge of electric vehicles (EVs) and is about to transition into humanoid robots. But the tide is shifting, and billionaires are leaning towards a TSX stock.

Here’s why.

As volatility rises, margins tighten, and competition intensifies, billionaire-run funds have quietly reduced their exposure to Tesla. Concurrently, there’s a different kind of stock, a tech-focused TSX stock that has been attracting their attention.

Why are billionaires trimming Tesla?

Tesla’s story has always been tied to high expectations, rapid growth, and intense volatility. That combination helped attract billionaire investors looking for that huge upside.

Turning to 2026, that environment has changed. Tesla faces margin pressure from price cuts, rising competition from global EV makers, and a more challenging macro backdrop.

This has led many billionaire-run hedge funds to reduce exposure to Tesla.

Another factor is valuation. Tesla’s stock has experienced significant volatility from its peak, even by its own standards. The stock is down 11% year to date but remains up over 60% in the trailing 12-month period.

While it remains a major player in the EV space, Tesla’s premium valuation leaves less room for error. Billionaires rotate when they see a shift in risk/reward dynamics. Tesla’s recent performance has made it less compelling as a high‑beta bet.

Add in rising uncertainty around demand, regulatory scrutiny, and the company’s evolving product roadmap, and it becomes clear why some of the world’s most sophisticated investors are trimming their positions.

This doesn’t mean Tesla is disappearing from billionaire portfolios. Instead, it’s more about the stock no longer commanding the same level of conviction.

That opens the door for a different kind of tech leader to take its place.

Shopify has become a magnet for billionaire investors

Shopify (TSX:SHOP) has emerged as one of the most attractive destinations for billionaire capital. The company has hit global brand recognition, which is a milestone that few Canadian tech companies have ever achieved

In fact, Shopify has become so widely used and so deeply embedded in the online economy that its name has effectively become a verb. That kind of cultural and commercial relevance is exactly what billionaire investors look for in long‑term compounders.

What draws them in is Shopify’s business model. Unlike Tesla, which relies on manufacturing, supply chains, and capital‑intensive operations, Shopify is asset‑light and high‑margin. Shopify’s revenue comes from subscriptions, payments, merchant services, and a growing ecosystem of tools that help businesses operate online.

In recent years, Shopify has also made significant strides in profitability. The company has shifted from prioritizing growth to disciplined cost management and improved operating efficiency.

That transition strengthened Shopify’s financial profile and made it even more appealing to billionaire investors. In other words, it’s hard not to be intrigued by the TSX stock and how it has grown.

Over the trailing 12-month period, Shopify’s stock has risen 28%.

The long-term growth runway that billionaires are betting on

What truly sets Shopify apart is its long‑term potential. E‑commerce penetration continues to rise globally, and Shopify remains one of the most dominant platforms enabling that shift.

More importantly, Shopify’s ecosystem continues to expand. Shopify has expanded into other bolt-on solutions in recent years, such as payments, AI‑powered tools, and merchant services that deepen customer relationships and increase switching costs.

Shopify’s platform supports millions of merchants worldwide, from small businesses to major global brands in nearly every country on the planet. As more commerce moves online, Shopify stands to capture a growing share of that activity.

Another often-dismissed point is merchant stickiness. Once a business builds its operations on Shopify, switching platforms becomes costly and disruptive. That creates a durable, recurring revenue base and predictable long‑term growth.

Final thoughts on buying this TSX stock over Tesla

The rotation from Tesla to Shopify reflects a broader trend away from high‑volatility, capital‑intensive growth to scalable, profitable platforms.

Shopify offers the long‑term compounding potential that billionaire investors seek, and its growing institutional ownership reflects that.

For investors looking to follow the moves of billionaire‑run funds, Shopify stands out as one of the most compelling TSX stocks being accumulated today.

The post Billionaires Are Dropping Tesla Stock and Buying This TSX Stock in Bulk appeared first on The Motley Fool Canada.

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Fool contributor Demetris Afxentiou has positions in Shopify. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Tesla. The Motley Fool has a disclosure policy.