Billionaire George Soros embraces Ford | Rare Techy
George Soros is particularly interested in the automobile sector.
The legendary investor has invested a lot of money in the industry, which is completely transforming to electric vehicles.
Soros is indeed convinced that electric vehicles are the future of cars, if you look at his investment portfolio of companies listed on the US markets.
This obviously includes Tesla (TSLA) – Get a free report, an automaker that is considered the benchmark for electric vehicles. Elon Musk’s group dominates its weaker competitors in terms of sales, production and market capitalization. But its lead has been somewhat eroded by competitors offering more and more electric models.
Soros is betting that Tesla will maintain its leadership position; The billionaire has thus increased his stake in the Model Y manufacturer.
Another automaker is also increasingly emerging as a safe bet for Soros.
Soros buys more Ford debt
It’s a Ford (F) – Get a free report. A well-known investor proves this by continuing to buy the debt of the Dearborn, Michigan-based group. The Democratic Party megadonor has $78 million in bonds at face value as of Sept. 30, according to a regulatory filing. This document is convertible into shares.
As of June 30, Soros owed Ford $29.5 million. So he continued his massive acquisition of the group’s debt over the next three months.
This investment shows that Soros is seduced by CEO Jim Farley’s strategy, which has made Tesla his main competitor.
To gain market share rather quickly, 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 electric vehicle in the United States between January and August, according to Experian.
It was second only to the Tesla Model Y SUV and 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’s goal is to produce 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.
The company’s other hope is the F-150 Lightning, an electric version of the iconic F-150 that is on track after deliveries began last June. Between June and September 30, the company shipped 8,760 units. That number is expected to increase in the coming months, even as Ford faces supply issues that have weighed on its third-quarter financial results.
The company posted a net loss of $827 million in the third quarter due to a parts shortage that meant Ford was unable to finish assembling 40,000 to 50,000 vehicles. There was also an unexpected increase of $1 billion in supplier costs and fees due to the spin-off of autonomous vehicle developer Argo AI.
Stock is down 30%
However, third-quarter revenue rose 2.6% to $37.2 billion.
Ford also raised its full-year adjusted free cash flow forecast to $9.5 billion to $10 billion, up from an earlier forecast of $5.5 billion to $6.5 billion.
Ford shares are down 30.1% this year.
Stock market rules require managers of funds with more than $100 million in U.S. stocks to file a document called a 13F within 45 days of the end of the quarter to list their holdings in U.S.-traded stocks.
The value of Soros’ US stock portfolio rose 4.3% 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 sovereigns, 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 as of Nov. 22, according to the Bloomberg Billionaires Index, is known for pouring money into charity. Most of his company’s assets belong to the Open Society Foundations, which support “people around the world working for justice, equality and freedom of expression.”