The legendary financier kept buying Tesla shares in the fourth quarter despite the electric vehicle maker’s stock market crash.
Elon Musk asked George Soros a provocative question last month.
The question was related to the way Soros uses his money and indirectly to the many donations the legendary financier makes.
“Do you really know where your money is going?” Musk said on January 16, referring to Soros.
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Soros never responded. But there is no doubt that Musk’s question touched on the many conspiracy theories that have been circulating for several years about Soros. The Hungarian-born investor fascinates conservatives and extremists on the right and even on the left, who blame him for nearly every ill facing society and the world.
The billionaire is, according to them, the origin of the various evils that shake society and the world. It is also, according to them, the face of a globalist elite that seeks to impose its agenda on the rest of the planet.
Soros buys more Tesla shares
In general, Soros is a victim of his bold and profitable financial bets. He became a financial legend after a coup in 1992. On September 16, 1992, the British pound collapsed, forcing Britain to withdraw from the European Exchange Rate Mechanism. It was called Black Wednesday, also known as the sterling crisis of 1992.
Soros, at the time a currency trader, had bet against sterling by shorting 10 billion pounds. His bet was based on the fact that the British government’s attempts to support the pound would fail. He launched a public campaign against the pound. And he was proven right. As a result, Soros is known for “breaking the Bank of England.”
And since then he has been rumored/suspected/accused of betting against many currencies.
Musk will now have the opportunity to put his question directly to Soros because the legendary investor is becoming a major shareholder in Tesla, the company at the center of the Musk brand.
Soros Fund Management (SFM), the financier’s hedge fund, continued to increase its stake in the electric vehicle maker in the fourth quarter of 2022. SFM owned 132,046 shares of Tesla as of December 31, according to a regulatory submissions. This represented an increase of 42,399 shares from September 30.
What is interesting to note is that Soros continued to buy Tesla shares while the Austin, Texas-based company suffered a stock market crash. In all, Tesla shares lost 65% of their value last year. Soros did not take into account all these streaks. As of December 31, his stake in Tesla was valued at nearly $16.27 million. In less than two months, the value has risen by more than $11 million to $27.63 million at Tesla’s current stock price of $209.25.
The legendary investor seems to have smelled a good deal once again. Tesla posted brilliant results on January 25, with a net profit of $12.6 billion in 2022. The group aims to produce up to 2 million vehicles after making 1.37 million last year. To this good news we must add the start of production at the end of this year of the Cybertruck, the firm’s first truck/pickup. This vehicle is perceived as the future source of income since its order book is full and the expectations it arouses are very high.
Soros has buying options on Tesla
Soros appears to have anticipated all of these events since, in addition to the shares he owns, he also placed a call option on an additional 200,000 Tesla shares, according to regulatory filings. A call option gives the buyer the right to purchase a certain number of shares at a certain price at a certain time.
The legendary investor first bought Tesla shares in the second quarter of last year. At that time, he owned 29,883 shares. He has more than quadrupled his position in six months.
Soros’s investment in Tesla is a sign of confidence in Musk’s strategy and especially the fact that he believes in the Techno King’s promises to make Tesla a company with a market value of over a trillion dollars.
Stock market regulations require fund managers with more than $100 million in US stocks to file a document, known as a 13F, within 45 days of the end of the quarter, listing their holdings in stocks that They are traded on US stock exchanges.
The value of Soros’ US stock portfolio rose 24% quarter-over-quarter to $7.26 billion. Soros Fund Management is a family office that manages public and private capital.
“SFM invests globally in a wide range of strategies and asset classes, including public equities, fixed income, commodities, currencies, alternative assets and private equity,” the firm says on its website.
Soros, whose net worth is estimated at $8.5 billion as of February 14, according to the Bloomberg Billionaires Index, is well known for investing money in philanthropic endeavors. Most of his company’s assets belong to the Open Society Foundations, which supports “people around the world working for justice, equity and free expression.”
