George Soros seems to have picked his winners in the race for electric vehicles.
In any case, the emblematic investor places his pawns while car manufacturers fight with thunderous announcements to occupy this market considered as the future of the automobile in the medium term at least.
Soros, who had so far been content to invest in young startups like Lucid (LCID) and Rivian (SHORE) , has just adjusted its strategy. He just chose Tesla (TSLA) the world leader in the sector led by its charismatic CEO Elon Musk.
Soros, 92, also bets on Ford (F) and its CEO Jim Farley.
Indeed, billionaire firm Soros Fund Management just revealed it acquired 29,883 Tesla shares, according to a regulatory filing with the Securities and Exchange Commission on August 12, citing its stock holdings that trade in the United States as of August 30. June.
This stake in Tesla is valued at just over $20.1 million as of June 30. But its value has already risen since, with Tesla stock jumping nearly 34% since June 30.
This is the first time Soros has invested in Tesla.
Soros has a surprise
What is surprising, however, is that if Soros believes in Musk and Tesla, he also bet on Twitter (TWTR) , which is currently in a row with the tech mogul after it withdrew its $44 billion takeover bid from the microblogging website. A trial that will take place in five days is scheduled from October 17.
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Soros Fund Management bought 29.5 million Ford shares. The move seems to suggest that Soros is seduced by Farley’s strategy, which split the Dearborn, Michigan, automaker into separate entities.
Businesses related to internal combustion engine or gasoline-powered cars, including iconic models like the Bronco Sport SUV, F-150 and Mustang Ranger, have been integrated into a unit called Ford Blue.
Battery electric vehicle operations, in a unit called Ford Model e, are seen as Ford’s long-term future, with the launch of vehicles like the Ford Mustang Mach-E, F-150 Lighting pickup and many more to come.
The company’s ambitious goal is to produce 2 million electric vehicles by 2026.
Ford, however, only sold 27,140 electric vehicles in the United States in 2021.
Stock market regulations require fund managers with more than $100 million in US stocks to file a document, called a 13F, within 45 days of the end of the quarter listing their stock holdings traded on US stock exchanges.
The value of Soros’ US equity portfolio rose 5.3% quarter over quarter to $5.6 billion. Soros Fund Management is a family office that manages public and private funds.
“SFM invests globally in a wide range of strategies and asset classes, including public equities, fixed income, commodities, currencies, alternative assets and private equity”, the company said on its website.
Soros, whose net worth is estimated at $8.5 billion as of August 12 according to the Bloomberg Billionaires Index, is well known for pouring money into philanthropic endeavors. Most of his company’s assets are owned by Open Society Foundations, which supports “people around the world working for justice, equity, and free speech.”
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