by Elon Musk has spoken much less about Tesla (TSLA) – Get a free report in the past months.
The billionaire was busy finalizing the $44 billion acquisition of Twitter and finding new sources of revenue for the platform.
Tesla’s share price has lost 50% of its value this year, translating to a drop in market capitalization of approximately $532 billion.
Tesla’s major stock market crash was a boon to billionaire George Soros, who, however, is on the opposite side of Musk’s current ideology. Soros has been a consistent donor to the Democrats, while Musk is now campaigning for the Republicans and then called on voters to vote for the conservative candidates in the latest midterm elections on Nov. 8.
But business is business. Following this principle, Soros, who acquired Tesla shares in the second quarter, has increased his stake.
Soros currently owns, through his firm Soros Fund Management (SFM), 89,647 shares of Tesla, according to a filing. This interest is valued at $16.4 million at the current market price of $183.20.
Soros doubles Tesla
The legendary investor first acquired Tesla stock between April 1 and June 30. At that time he owned 29,883 shares. In this way he tripled his position in three months.
Soros’s investment in Tesla is a sign of confidence in Musk’s strategy and, above all, his belief that the “Techno King” will make Tesla his priority again.
An opinion shared by several leading analysts.
“Certainly, macro/competitive concerns will likely continue to overhang with capacity increases, but as we’ve previously written, Tesla’s long-term competitive position in a hard landing scenario is also likely to improve and may be further enhanced by (President Joe Biden’s Inflation Reduction Act),’ Citigroup analyst Itay Michaeli wrote in a recent note.
Morgan Stanley analyst Adam Jonas said that while the continued distraction from CEO Elon Musk’s foray into Twitter is likely to expose investors to additional risk, the group remains on track to grow sales by about 37% next year and $15 billion in free generate cash. current and consolidates its position as the word’s dominant EV player.
“We believe Tesla’s gap to competition may widen, especially as electric car prices move from inflationary to deflationary,” Jonas wrote. “With respect to the (inflation relief bill), we believe that Tesla is by far the best-positioned OEM in terms of potential eligibility for consumer tax and manufacturing credits.”
Solid fundamentals
The foundations of the company are very solid. For the third quarter, Tesla posted adjusted earnings before interest, taxes, depreciation and amortization of nearly $5 billion, up 55% year-over-year, while sales rose 56% to $21.5 billion.
Tesla delivered 907,573 vehicles in the first nine months of 2022, up 45% year-over-year, and produced 927,910 cars, up nearly 49%.
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 declare their holdings of stocks traded on U.S. exchanges. mention.
The value of Soros’ U.S. equity portfolio rose 4.3% quarter-over-quarter to nearly $5.9 billion. Soros Fund Management is a family office that manages public and private equity.
SFM invests globally across a broad range of strategies and asset classes, including public equities, fixed income, commodities, currencies, alternative assets and private equity.
Soros, whose net worth is estimated at $8.5 billion, up $1 billion on Nov. 22 according to the Bloomberg Billionaires Index, is known for pouring money into philanthropic endeavors. Most of his company’s assets are owned by Open Society Foundations, which “support people around the world who work for justice, justice and free speech.”
