DoubleLine Capital Owns Tesla Motors Shares As It Could 'Change Society'

 

NEW YORK (TheStreet) –– DoubleLine Capital's Jeffery Gundlach has been a huge fan of Tesla Motors (TSLA) , saying the company could "change society," and according to source, has extended that passion to owning shares in the Palo Alto, Calif.-based automaker.

Sources confirmed that DoubleLine, which had more than $56 billion in assets under management at the end of September, hold shares in the electric-vehicle maker in its DoubleLine Equities Growth Fund (DBEGX) .

In an interview on CNBC on Monday, Gundlach mentioned that Tesla's future lies in its battery technology rather than its cars. "It's the batteries. It's all about the batteries," Gundlach said Monday in an interview with CNBC's Sara Eisen. "I think they can ultimately change society if they pursue battery technology that really creates the ability to store enough energy that you could, say, run a house on, get yourself off the grid."

Tesla is building out its Gigafactory in Reno, Nevada, which the company states will help cut the cost of batteries used for its electric vehicles by at least 30% by 2017, when the company is expected to mass produce its Model 3 vehicle at a starting price of around $35,000-$40,000.

Shares of Tesla were gaining in Monday trading, up 1.8% to $247.21.

--Written by Chris Ciaccia in New York

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