The company founded by Peter Thiel, Elon Musk has spawned three billionaires, many, many millionaires, and generation-defining companies.

Thiel, a venture capitalist and hedge-fund manager, had already generated $640.1 million in sales during the initial public offering.

Thiel, who sold more than 16 mn shares in the company’s IPO, has given himself added flexibility to sell more of his holdings.

Hedge-Fund managers following the path of George Soros, who made a fortune by exploiting financial turmoil, are beating their peers for the...