Billionaire investor George Soros has increased his stake in Tesla (NASDAQ:TSLA) despite the challenges the electric vehicle (EV) maker is facing right now.
Soros, a long-time investor whose net worth is estimated at $8.5 billion, upped his stake in TSLA stock during the fourth and final quarter of 2022, according to newly released regulatory filings. Soros’ acquisition of TSLA stock comes despite the fact Tesla chief executive officer (CEO) Elon Musk has criticized and questioned Soros about his charitable donations.
TSLA stock has had a difficult time over the last year but has been on an upswing so far in 2023. Year-to-date, the company’s share price has gained 92% to trade at just under $210 per share. However, even with that big run, Tesla’s share price remains down 32% from this time last year.
What Happened With TSLA Stock
Soros Fund Management, which is a hedge fund, held 132,046 of Tesla shares worth $27.63 million as of Dec. 31, 2022, according to the regulatory filings. The hedge fund run by Soros bought an additional 42,399 Tesla shares during last year’s fourth quarter. Soros bought TSLA stock as the share price fell as much as 65% last year.
The price of TSLA stock really collapsed last fall after CEO Musk purchased Twitter and began focusing on turning around the social media giant. Soros’ hedge fund looks to have bought Tesla stock all the way down, increasing his stake in the automaker by $11 million between October and the end of December.
In addition to Musk’s distraction with Twitter, Tesla has faced numerous problems over the past year that have included shutdowns at its manufacturing plant in China, difficulties sourcing needed parts for its vehicles, increased competition from traditional automakers and waning consumer demand in the face of higher interest rates.
Why It Matters
At age 92, Soros continues to show an uncanny ability to time the market, having bought TSLA stock as it fell only to see the share price nearly double through the first six weeks of this year. Soros also seems to remain bullish on Tesla and its prospects. The regulatory filings show that, in addition to the stock he bought outright, the legendary investor also owns call options on 200,000 additional Tesla shares. That means Soros is betting Tesla’s share price will continue to go up in coming months.
Soros’ purchase of TSLA stock, and the call options, can be seen as a strong vote of confidence in the electric vehicle maker by one of the most successful investors of all time. In total, Soros more than quadrupled his position in Tesla stock in the six months ended Dec. 31. The increased stake in Tesla stock is also a bit curious given Musk has criticized Soros, tweeting as recently as Jan. 16 of this year: “Do you actually know where your money is going?” in reference to Soros’ charitable donations.
However, Soros seems willing to look past Elon Musk’s comments and focus on the current and future potential of Tesla and its stock. Regulations require managers of funds with more than $100 million in U.S. equities to file a document known as a 13F within 45 days of the end of a quarter that lists all of their holdings in stocks that trade on American exchanges.
What’s Next for TSLA Stock
The upward momentum in Tesla stock is likely to continue on news that George Soros is extremely bullish on the company and has increased his position in recent months. Other investors are likely to be encouraged by the fact Soros sees upside potential in TSLA stock and its current recovery.
On the date of publication, Joel Baglole 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.
