The automotive sector is of particular interest to George Soros.
The legendary investor has invested a lot of money in this industry, which is in full transformation to electric vehicles.
Soros is indeed convinced that electric vehicles are the future of the automobile, if we are to look at his investment portfolio of companies listed on the US markets.
This obviously includes Tesla (TSLA) – Get a free report, the automaker that is considered the benchmark when it comes to electric vehicles. Elon Musk’s group dominates its weak rivals in sales as well as production and market capitalization. But its lead has been somewhat eroded by rivals offering more and more electric models.
Soros is betting that Tesla will maintain its leadership position; the billionaire has that way increased his stake in the Y model manufacturer.
Another carmaker is also increasingly emerging as a safe bet for Soros.
Soros buys more Ford debt
It’s a Ford (Well) – Get a free report. The celebrity investor is proving it by continuing to buy the Dearborn, Michigan-based group’s debt. According to a regulatory filingthe Democratic megadonor held $78 million in bonds as of Sept. 30. These papers can be converted into shares.
As of June 30, Soros had $29.5 million in debt from Ford. In doing so, he continued to massively acquire the group’s debt over the next three months.
That investment shows Soros is seduced by CEO Jim Farley’s strategy, which has turned Tesla into a major competitor.
I’m winning market share relatively quickly The Blue Oval offers two models in the most profitable segment of the market: SUVs/Pickups/Trucks. The Ford Mustang Mach-E SUV was the third best-selling vehicle in the electric vehicle market in the United States from January to August, according to Experian data.
It was second only to Tesla’s Model Y SUV and the Model 3 sedan. Ford delivered 28,089 Mustang Mach-Es between January and September 30, a 49% increase despite production constraints and bottlenecks. The Blue Oval is aiming to produce 200,000 Mustang Mach-Es a year by 2023, which should allow it to reach its goal of producing 2 million electric vehicles a year by 2026.
The company’s other hope is the F-150 Lightning, the electric version of the iconic F-150, which is on the way after deliveries began last June. Between June and September 30, the company shipped 8,760 units. That figure is expected to increase in the coming months, even as Ford faces supply issues that have weighed on financial results in the third quarter.
The company recorded a net loss of $827 million in the third quarter due to a parts shortage, which meant Ford could not finish assembling between 40,000 and 50,000 vehicles. It also suffered an unexpected $1 billion increase in supplier-related costs and a charge due to the spin-off of Argo AI, a unit developing autonomous vehicles.
Shares down 30%
Third quarter incomehowever, it increased to $37.2 billion, a 2.6% increase.
Ford also raised its forecast for full-year adjusted free cash flow to between $9.5 billion and $10 billion, up from the $5.5 billion to $6.5 billion previously forecast.
Ford shares are down 30.1% this year.
Stock market regulations require fund managers 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 U.S.-traded stocks.
The value of Soros’ U.S. stock portfolio rose 4.3 percent from the previous quarter to nearly $5.9 billion. Soros Fund Management is a family office that manages public and private capital.
“SFM invests globally across a broad range of strategies and asset classes, including public equities, fixed income, commodities, foreign exchange, alternative assets and private equity,” the firm says on its website.
Soros, whose net worth is estimated at $8.5 billion, up $1 billion from Nov. 22, according to the Bloomberg Billionaires Index, is well known for pouring money into philanthropic endeavors. Most of his firm’s assets belong to Open Society Foundations, which support “people around the world who work for fairness, justice and free expression.”