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The auto sector is of particular interest to George Soros.
The legendary investor has invested a lot of money in this industry, which is in full transition towards electric vehicles.
Soros is really convinced that electric cars are the future of the car, if we check 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 lackluster 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 retain its leadership position; the billionaire thus increased his stake in the Model Y manufacturer.
Another automaker is increasingly emerging as a safe bet for Soros.
Soros Buys More Ford Debt
This is Ford (F) – Get a Free Report. The well-known investor proved this by continuing to buy the debt of the Dearborn, Michigan-based group. According to a regulatory filing, the Democratic Party mega-donor held bonds worth $78 million as of Sept. 30. This paper is convertible into shares.
As of June 30, Soros held $29.5 million in debt from Ford. So he went on a massive takeover of the group’s debt over the next three months.
This investment shows that Soros was attracted by the strategy of CEO Jim Farley, who made Tesla its main competitor.
To quickly gain market share, the Blue Oval offers two models in the most profitable market segment: 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 data from Experian.
It is second only to Tesla’s Model Y SUV and Model 3 sedan. Ford delivered 28,089 Mustang Mach-Es between January and September 30, up 49% despite production constraints and bottlenecks. The Blue Oval is aiming for a production of 200,000 Mustang Mach-Es per year by 2023, which should allow it to reach its goal of producing 2 million electric vehicles per year by 2026.
Another hope of the company is The F-150 Lightning, the electric version of the iconic F-150, which is on track, after deliveries start in June. Between June and September 30, the company delivered 8,760 units. This number is expected to increase in the coming months even as Ford faces supply problems that affected its third-quarter financial results.
The company recorded a net loss of $827 million in the third quarter due to a parts shortage, which meant Ford was unable to finish assembling between 40,000 and 50,000 vehicles. It also experienced an unexpected $1 billion increase in supplier-related costs, and a charge due to disbanding Argo AI, a unit that develops autonomous vehicles.
The Stock is down 30%
However, third quarter revenue rose to $37.2 billion, up 2.6%.
Ford also raised its full-year adjusted free cash flow forecast to between $9.5 billion and $10 billion, compared to the $5.5 billion to 6.5 billion previously forecast.
Ford stock is down 30.1% this year.
Stock market regulations require managers of funds with more than $100 million in US equities to file a document, known as a 13F, within 45 days of the end of the quarter, listing their holdings in stocks that trade on a US exchange.
The value of Soros’ US 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 in a broad range of strategies and asset classes, including public equities, fixed income, commodities, foreign exchange, alternative assets and private equity,” the firm said on its website.
Soros, whose net worth is estimated at $8.5 billion, up $1 billion, as of Nov. 22, according to the Bloomberg Billionaires Index, is known for pouring money into philanthropic endeavors. Most of his company’s assets belong to the Open Society Foundations, which support “people around the world working for justice, equity and free expression.”
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