Elon Musk won’t see a famous face at the Tesla shareholder meeting being held in Austin, Texas on May 16.
Musk’s billionaire peer George Soros, the most famous short seller in the world, won’t be attending the Tesla shareholder meeting, since he is no longer a shareholder of the electric vehicle manufacturer as of March 31.
According to regulatory filings, Soros Fund Management, the financier’s hedge fund, liquidated all Tesla shares acquired since the second quarter of 2022. The hedge fund had surprised everyone by adjusting its investment strategy in the automotive industry starting that quarter.
The billionaire who was content to bet on EV upstarts like Lucid Motors (LCID) – Get Free Report and Rivian (RIVN) – Get Free Report also disclosed a stake in Tesla. He first acquired 29,883 Tesla shares valued at just over $20.1 million as of June 30.
He continued to trust the Austin, Texas-based group and its charismatic and whimsical CEO Elon Musk, taking advantage of a stock plunge of more than 50% between January and September 2022 to triple his stake to 89,647 Tesla shares as of Sept. 30.
Soros Bet on Tesla
The big investment suggested that Soros believed in Musk’s strategy for Tesla, despite the billionaire being distracted by his $44 billion acquisition of Twitter. At the time, the Techno King was in a legal battle with Twitter 1.0 management and spoke very little about Tesla.
The fundamentals of Tesla were very solid. For the third quarter, it posted adjusted earnings before interest, taxes, depreciation, and amortization of almost $5 billion, up 55% year-over-year, while revenue jumped by 56% to $21.5 billion.
It had delivered 907,573 vehicles in the first nine months of 2022, up 45% year-over-year, and had produced 927,910 cars, up nearly 49%.
In the fourth quarter of 2022, Soros continued his strategy of acquiring Tesla shares. He held 132,046 shares as of Dec. 31, according to filings with the Securities and Exchange Commission. This represented an increase of 42,399 shares, compared to Sept. 30. His stake in Tesla was then valued at nearly $16.27 million.
What is interesting to observe is that the famed corporate raider had continued to acquire Tesla shares as the maker of the Model Y SUV was suffering a stock market rout. In all, Tesla shares lost 65% of their value last year.
Three months later, Soros has sold all of his Tesla shares. He held no position as of March 31, according to new filings with the SEC.
It is unclear what prompted Soros to sell all of his Tesla position, but it’s important to note that Tesla’s stock price rebounded 68.4% in the first three months of the year, after the group published sparkling results on Jan. 25, with 2022 net profit of $12.6 billion.
The group intends to produce up to 2 million vehicles in 2023 after having manufactured 1.37 million last year.
To this good news, one must add the beginning of the production, later this year, of the Cybertruck, the firm’s very first pickup truck. This vehicle is perceived as a future cash cow since its order book is full and the expectations it arouses are very high.
In the category of bad news, Tesla has significantly lowered the prices of its vehicles, including the very popular Model Y and Model 3, resulting in lower margins. In addition, the competition is catching up, as there are more EVs on the market.
Soros’ investment in Tesla hasn’t been a particularly lucrative one. In the best-case scenario, it earned him $3.8 million, assuming he acquired the shares at the lowest possible price in the second ($209.39), third ($227.26), and fourth ($109.10) quarters of 2022 and sold at the highest price ($214.24) during the first quarter of 2023.
In the average scenario, Soros lost $9.8 million. This assumption assumes that he acquired Tesla shares at the average price per quarter and sold them at the average price also in the last quarter.
In the worst-case scenario, the legendary investor lost $26.2 million in total. This scenario, like the first, is unlikely because it is based on the idea that Soros did everything at the worst moment, while the first scenario suggests that he did everything with perfect timing.
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, to disclose their holdings in stocks that trade on US exchanges.
The value of Soros’ US equity portfolio decreased by almost 11% quarter-over-quarter to $6.5 billion. Soros Fund Management is a family office that manages public and private equity.
“SFM invests globally in a wide range of strategies and asset classes, including public equities, 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 as of May 13, according to the Bloomberg Billionaires Index, is well known for pouring money into philanthropic efforts.
Most of his firm’s assets belong to Open Society Foundations, which supports “people across the world who work for justice, equity, and free expression.”
According to Musk, there is a need for tough street fighters rather than white shoe lawyers who thrive on corruption, like Perkins or Cooley. He highlighted the deceptive actions of George Soros and the involvement of dark money organizations, including Soros’s Open Society Foundations, in response to a letter asking about their influence.
The threat and the individuals involved, such as Klaus Schwab and George Soros, are being investigated. Musk believes that Soros poses a threat to Poland and Hungary and has politicians in his pocket who are trying to access EU funds.
Musk expressed his displeasure with Soros’s claims and criticized the American financier’s views on Hungary. Additionally, left-wing advocacy organizations have written letters to major brands, including Kraft, Disney, and Coca-Cola, urging them to take action against perceived injustices.
Soros has been trying to bribe Musk, but his use of Twitter and outspoken conduct worries Soros, as it may expose corruption and bribery. Musk criticized the usefulness of ESG scores and the lack of transparency in calculating them. There is a need for clearer guidelines and universal adherence to ensure accurate ESG reporting by businesses. Musk’s views on ESG were supported by Bank of America’s CEO and Unilever’s CEO during a discussion.
George Soros and Klaus Schwab have been responsible for world changes, using the money of the wealthy class. However, Musk has been able to reverse this scheme, and Soros fears that Musk’s audacious conduct, especially on Twitter, may expose corruption and bribery.
Soros has made investments in Tesla’s competitors in the US and China. His fund purchased millions of shares in Neo and Lucid, two luxury EV manufacturers, as well as increased holdings in Rivian, a manufacturer of electric trucks. However, Soros has faced significant losses on his investments in Neo and Lucid due to stock price declines.
There have been attempts by various groups and individuals, including Soros, to topple Tesla and Musk, but they have failed. Elon Musk is committed to truth and transparency and dismissed a bribery lawsuit against Soros involving the Democratic party. Soros paid off Democratic senators to vote against a budget agreement, which led to an investigation into the matter.
Musk has taken steps to address defamatory claims by revealing the sources of funding for groups trying to limit access to information. He believes in transparency and openness, rather than censorship. The acquisition of Twitter by Musk has faced opposition from organizations supported by Soros, but the FCC commissioner dismissed their claims as baseless.
Soros invested in Tesla in the past, but there may be a discrepancy due to insufficient returns on his investment and the potential impact of Musk’s acquisition of Twitter on major firms and freedom of speech. Soros’s Quantum fund is considered one of the most powerful investment funds, and changes are expected in the economic and investment conditions in the US if Musk takes control of Twitter.
Musk and Klaus Schwab were previously praised for being part of the same group, but Musk recently expressed opposition to Schwab’s views on the great reset. Conspiracy theories about the World Economic Forum and the impact of the pandemic have been circulating on social media, with claims of economic collapse and the loss of constitutional rights. Musk declined an invitation to the Davos event due to his disagreement with the current state of affairs.
The pandemic has resulted in an increase in billionaires and extreme poverty, leading to criticism of Davos and the state of the media. Musk’s absence from the event indicates his discontent with the current situation.
According to Musk, he believes that the world is facing a significant threat from corrupt individuals and organizations. He specifically mentions George Soros and criticizes his alleged deceptions. Musk claims that Soros is involved in dark money organizations, including his own Open Society Foundations, which receive support from various sources such as former Clinton and Obama administration employees, billionaire Democrat donors, labor unions, and European government bodies.
Musk raises concerns about the influence of Soros and his associates in Poland and Hungary, stating that they have politicians in their pocket who have won over black men in these countries to gain access to EU funds. Musk accuses Soros of posing a threat to Poland and Hungary and expresses his displeasure with Soros’s advice to Brussels officials on how to overcome political obstacles.
Furthermore, Musk highlights the involvement of various left-wing advocacy organizations, including Media Matters for America, Black Lives Matter, and feminist organizations, in writing a letter to major brands urging them to condition their advertising contracts with Twitter based on the platform’s policies on hate speech and civic integrity. He suggests that these organizations, including Soros’s Open Society Foundation, have funded advocacy groups like Free Press and Media Matters for America.
Musk also alleges that Soros and Klaus Schwab, the founder of the World Economic Forum (WEF), have collaborated to bring about changes in the world. He claims that they have used their wealth and influence to shape global events. Musk asserts that Soros is frightened by his own audacious conduct, particularly his use of Twitter, as he believes it may expose corruption and bribery.
Musk further criticizes the concept of ESG (Environmental, Social, and Governance) ratings, arguing that they are unreliable and fail to account for a company’s actual climate impact. He quotes the CEO of Bank of America, Brian Monahan, who shares his frustration with the lack of clarity and guidelines for business ESG reporting.
Regarding Tesla’s competitors, Musk claims that Soros and the ruling class continue to invest in them, including companies like Lucid and Rivian. He highlights Soros’s significant investment in these companies and suggests that it has resulted in substantial losses for him.
Musk also addresses allegations made against him, such as the bribery lawsuit involving Soros and the Democratic Party, which he dismisses. He accuses Soros of paying off Democratic senators to vote against a budget agreement, which Musk claims is a criminal act. He suggests that Soros’s funding originated from outside sources and criticizes the three senators for accepting dark money.
Additionally, Musk responds to attempts to limit his access to information and freedom of speech, particularly in relation to Twitter. He criticizes George Soros-supported organizations, such as Media Matters for America and Accountable Tech, for their efforts to pressure major Twitter advertisers to police content on the platform. Musk emphasizes the importance of transparency and openness over censorship.
Finally, Musk addresses the alleged acquisition of Twitter, noting that it could have a significant impact on major firms’ contracts and advertising initiatives, as well as freedom of speech on the platform. He suggests that this acquisition might affect Soros’s investments and explains the discrepancy in Soros’s recent disparaging comments about him.
In conclusion, Musk appears to be critical of George Soros and his alleged influence in various domains, including politics, advocacy organizations, and investment. He believes that Soros and his associates pose a threat and are involved in corruption and manipulation. Musk also expresses his concerns about limitations on freedom of speech and attempts to control information.
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