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Tesla stock has been falling since Thursday, when CEO Elon Musk said the company would be closing its stores in favor of an online-only sales model.

On Tuesday, with the stock down again, the company’s largest outside shareholder expressed its support for Musk, but acknowledged that it was open to a different role for the Tesla (ticker: TSLA) founder and CEO.

“We wouldn’t be against him having a different role,” James Anderson, head of global equities for Ballie Gifford, told Barron’s. “I don’t think he needs to be CEO.”

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Anderson was answering a question about how Musk’s circumstances could change given the Securities and Exchange Commission’s request to a federal court to find Musk in contempt.

Tesla stock closed down 3.1% Tuesday, to $276.54 per share, as the broader S&P 500 was flat.

Anderson said Musk was essential to Tesla, but he suggested that the company’s founder could play some other role within the company, such as taking on a “chief ideologue” position.

A Tesla spokesman didn’t immediately respond to a request for comment.

Tesla stock is down 13% since the company made its online sales announcement last Thursday. On a call with reporters, Musk also acknowledged the company would not be profitable in the first quarter.

The new sales strategy came only days after the SEC said it was asking a federal judge to find Tesla’s CEO in contempt of court. The SEC action followed a recent round of Musk’s tweets where he seemed to mislead investors about Tesla’s 2019 production, before correcting himself a few hours later.

Investors have long traded alongside Musk, with shares falling in and out of favor based on his behavior. Through it all, the company’s largest outside shareholder, Baillie Gifford, has remained a steadfast supporter. The firm, based in Edinburgh, Scotland, currently owns 13 million shares, or 7.7% of Tesla’s stock, valued at $3.8 billion. Baillie Gifford is Tesla’s second largest shareholder, behind Musk, who owns 19.7% of the stock.

The firm has been building its stake in Tesla since 2013, according to FactSet, rarely selling shares.

On Tuesday, Musk tweeted that the company’s decision to hold a press-only call to announce its lower priced Model 3 and its change in strategy with regard to sales was a mistake.

Write to Alex Eule at alex.eule@barrons.com