George Soros appears to have named his winners in the electric vehicle race.
In any case, the emblematic investor is placing his pawns while the automakers are fighting with thunderous announcements to occupy this market that is considered to be the future of the car at least in the medium term.
Soros, who had so far been content to invest in young startups like Lucid (LCID) and Rivian (TORN) , has just adjusted its strategy. He has just chosen Tesla (TSLA) world leader in the sector led by its charismatic CEO Elon Musk.
Soros, 92, is also betting on Ford (F) and CEO Jim Farley.
In fact, the billionaire firm Soros Fund Management just disclosed that it bought 29,883 Tesla shares, according to a regulatory filing with the Securities and Exchange Commission on August 1[ads1]2, which lists its holdings in the US-traded stock as of June 30.
This stake in Tesla is valued at just over 20.1 million dollars as of 30 June. But the value has already risen since as Tesla stock has jumped 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 has also tipped on Twitter (TWTR) , who is currently at loggerheads with the tech mogul after he withdrew his $44 billion purchase offer for the microblogging site. A trial to 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 appears to suggest Soros is seduced by Farley’s strategy, which has split the Dearborn, Mich., automaker into separate entities.
Activities related to internal combustion engine or gasoline-powered cars, including iconic models such as the SUV Bronco Sport, F-150 and Mustang Ranger, became part of a unit called Ford Blue.
The operation of battery electric vehicles, in a unit called the Ford Model e, is seen as Ford’s long-term future, with the launch of vehicles such as the Ford Mustang Mach-E, the F-150 Lighting pickup and more to come.
The company’s ambitious goal is to produce 2 million electric vehicles by 2026.
However, Ford sold only 27,140 electric cars in the US in 2021.
Stock market regulations require managers of funds with more than $100 million in U.S. stocks to file a document, known as a 13F, within 45 days of the end of the quarter to list their holdings in stocks traded on U.S. exchanges.
The value of Soros’ US stock portfolio rose 5.3% quarter over quarter to $5.6 billion. Soros Fund Management is a family office that manages public and private equity.
“SFM invests globally in a broad range of strategies and asset classes, including public equities, bonds, commodities, foreign exchange, alternative assets and private equity,” the firm 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 known for pouring money into philanthropic efforts. Most of the firm’s assets belong to the Open Society Foundations, which support “people around the world working for justice, fairness and freedom of expression.”