Elon Musk talks little about Tesla (TSLA) – Receive free reports for the last few months.
Too busy completing the $44 billion acquisition of Twitter and finding new revenue streams for the platform, the billionaire has somewhat forgotten his jewel, leading to Tesla’s sharp fall in the stock market.
Tesla’s stock price has lost 50% of its value this year, representing a roughly $532 billion drop in market cap.
Tesla’s big stock market crash was a boon for billionaire George Soros, in stark contrast to Musk’s current ideology. Soros is a frequent donor to Democrats, while Musk now sides with Republicans and urged voters to vote for conservative candidates in the last midterm elections on Nov. 8.
But business is business. Using the same principle, Soros, who bought shares in Tesla in the second quarter, increased his stake.
Soros currently owns 89,647 Tesla shares through his company Soros Fund Management (SFM), according to regulatory filings. The stake is valued at $16.4 million at the current market price of $183.20.
Soros doubles on Tesla
The experienced investor first bought Tesla shares between April 1 and June 30. At that time he held 29,883 shares. He tripled his fortune in three months.
Soros’ investment in Tesla is a vote of confidence in Musk’s strategy, and particularly the fact that he believes the “techno king” will make Tesla his priority again.
Opinion of many renowned analysts.
“Of course, macro/competitive concerns will likely remain an overhang as capacity increases, but as we’ve previously written, a hard landing scenario also improves Tesla’s and potentially Se’s long-term competitive position (President Joe Biden’s Inflation Reduction Act). ‘ Citigroup analyst Ite Michaeli wrote in a recent statement.
While investors may face additional risks from CEO Elon Musk’s continued Twitter distractions, the conglomerate remains on track to grow revenue nearly 37% over the next year, in free cash, said Adam Jonas, an analyst at MorganStanley. Generates an inflow of US$15 billion and solidifies its position as the global leader in electric vehicles.
“We believe Tesla’s ‘competitor gap’ could potentially widen, particularly as EV prices pivot from inflation to deflation,” Jonas wrote. “Regarding the (Inflation Reduction Act), we believe Tesla is by far the best OEM in terms of potential excise tax and manufacturing credit eligibility.”
The company’s fundamentals are very strong. For the third quarter, Tesla reported adjusted earnings before interest, taxes, depreciation and amortization of nearly $5 billion, up 55% year over year, while revenue 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 exchange regulations require money managers of more than $100 million in US stocks to file a document known as a 13F within 45 days of the end of the quarter in order to be listed in stocks traded on US stock exchanges. Get their holdings listed.
The value of Soros’ U.S. stock portfolio rose 4.3% quarter-on-quarter to nearly $5.9 billion. Soros Fund Management is a family office that manages public and private stocks.
The company says on its website: “SFM invests globally in a wide range of strategies and asset classes, including public equity, fixed income, commodities, foreign exchange, alternative investments and private equity.”
Soros, whose net worth is reported to have risen by $1 billion to $8.5 billion as of Nov. 22, according to the Bloomberg Billionaires Index, is known for pouring money into philanthropic endeavors. Most of his firm’s fortune goes to the Open Society Foundations, which “supports people around the world who work for justice, justice and freedom of expression.”