As we conclude what’s been an interesting 13-F filing season, investors have many fund managers to assess. However, one of the companies that’s most in focus today is Lucid (NASDAQ:LCID) following some interesting bets from Ray Dalio’s Bridgewater Associates on LCID stock and other electric vehicle (EV) names.
This past quarter, Ray Dalio appears to have been busy assessing the future prospects of the EV sector. In addition to adding nearly $5 million in exposure to Lucid (285,791 shares), the hedge fund also added more than 62,000 shares of EV startup Rivian (NASDAQ:RIVN). Dalio added to positions in Nio (NYSE:NIO) and XPeng (NYSE:XPEV), while more than doubling his stake in Ford (NYSE:F).
All these bets were made while the Bridgewater Associates fund manager chose, interestingly, not to invest in current EV leader Tesla (NASDAQ:TSLA).
Let’s dive into what to make of these rather diverse bets across the EV sector.
Dalio Spreads His Bets, Initiating Position in LCID Stock
The fact that Ray Dalio is focusing on the future of the EV sector, rather than its present state, is interesting. Tesla is clearly the market leader for EVs in the U.S. However, Chinese EV maker BYD has recently passed Tesla as the highest-selling EV maker globally. And over time, Dalio appears to think Nio and XPeng have a better shot of capturing global market share than Tesla.
Additionally, Dalio’s bets on Lucid and Rivian suggest that he’s not as keen on Tesla’s growth prospects from here, relative to the competition. It’s about to become a very competitive EV market in a few years. And via spreading his bets across a number of players in this sector, Dalio appears to think the future doesn’t necessarily lie with Tesla.
Personally, I share Dalio’s view. I think this 13-F filing is among the most interesting we’ve seen this past quarter. Over time, we’ll see if Dalio is right. Perhaps Tesla’s market capitalization will double that of all automakers in the future. But at some point, fundamentals matter. And Dalio is betting that these EV players will have better fundamentals in the future — an interesting bet to be sure.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.