Tesla falls 9%, continuing its slump a day after its largest outside shareholder trimmed its stake

• Shares of Tesla slumped as much as 9% in intraday trading Thursday.
• The fall comes just a day after Baillie Gifford, Tesla's largest outside shareholder, said it had to trim its stake amid the stock's record-breaking rally.
• Tesla fell 6% on Wednesday following the announcement.
• Watch Tesla trade live on Markets Insider.
• Read more on Business Insider.

Tesla shares continued to slump Thursday, a day after its largest outside shareholder announced it had cut its stake because of the recent blistering rally.

Shares of Tesla fell as much as 9% in intraday trading Thursday, extending a 6% loss from Wednesday. Baillie Gifford, the automaker's largest shareholder, on Wednesday announced that it had trimmed its stake in the company because of internal rules limiting the weight of a single stock in client portfolios.

Read more: 'I had run $5,000 up to $140,000 in just 2 years': Here are the 7 trading rules stock-market wizard Marty Schwartz leverages to help ensure success

Baillie Gifford said it's still a Tesla fan and would welcome the opportunity to increase its stake once again if the stock were to fall further. Tesla shares have been on an epic rally this year, surging more than 430% through Wednesday's close.

The slump comes just after Tesla's 5-for-1 stock split went into effect Monday. On Tuesday, to take advantage of the stock's epic rally, Tesla announced plans to raise as much as $5 billion in a share sale.

Tesla is officially in correction territory, marked as a drop of more than 10%, after falling this week. The stock shed more than 10% between Monday and Wednesday's close.

Read more: A UBS real estate-investing chief told us 5 ways investors can profit from the pandemic's transformation of how Americans live and work — including the housing markets poised to boom