GM, Tesla, Ford: Hedge Funds’ Favorite Auto Manufacturers

Ford Motor Company (NYSE:F)

– Number of Hedge Funds With Long Positions (as of June 30): 31

– Aggregate Value of Hedge Funds’ Holdings (as of June 30): $685.18 million

Of the 749 hedge funds tracked by Insider Monkey which filed 13F’s for the June 30 reporting period, 31 were bullish on Ford Motor Company (NYSE:F) at the end of the second quarter, down from 33 a quarter earlier. The Michigan-based automaker reported an 8.8% decline in sales for the month of August, compared to the same period of last year, and even worse than analysts’ already-modest estimate of an 8.2% decline.  Ford’s Lincoln sales in the U.S. increased by 7% in August on a year-over-year basis. Overall, the U.S. car and truck manufacturer’s sales totaled 214,482 vehicles, an 8% decline. Ford Motor Company (NYSE:F) has reportedly decided not to proceed with its plans to produce a new compact car family for emerging markets like India and China. Ford shares have lost over 11% of their value so far this year.

Tesla Motors Inc (NASDAQ:TSLA)

– Number of Hedge Funds With Long Positions (as of June 30): 36

– Aggregate Value of Hedge Funds’ Holdings (as of June 30): $1.13 billion

At the end of the second quarter, 36 hedge funds were long Tesla Motors Inc (NASDAQ:TSLA), down 39 three months earlier. According to Bloomberg, Tesla CEO Elon Musk has called for cost cutting measures in a recent email to Tesla’s employees. Tesla needs capital as it ramps up its Model 3 production, and for its planned $2.6 billion acquisition of SolarCity Corp (NASDAQ:SCTY). Tesla reported a second quarter adjusted loss of $1.06 per share, nearly double the estimated loss of $0.56 per share. Revenue for the quarter came in at $1.30 billion, also well below the consensus mark of $1.62 billion. Tesla’s stock has lost 17% of its market value since the start of 2016. Andrew Feldstein and Stephen Siderow’s Blue Mountain Capital owns 60 million shares of Tesla Motors Inc (NASDAQ:TSLA) as of June 30.

General Motors Company (NYSE:GM)

– Number of Hedge Funds With Long Positions (as of June 30): 65

– Aggregate Value of Hedge Funds’ Holdings (as of June 30): $3.29 billion

A total of 65 hedge funds in our system, including legendary investor Warren Buffett of Berkshire Hathaway, had stakes in General Motors Company (NYSE:GM) at the end of the second quarter, making it by far the most popular auto manufacturer among hedge funds. GM sold 256,429 units in August, a 5.2% decline, but better than analysts’ forecast of 255,151 units. Crossovers and SUV’s continue to show their strength even in the current tough market conditions. Sales of General Motors Company (NYSE:GM)’s Chevrolet Colorado and Canyon pickups were also up by 35% and 39% respectively year-over-year for the month. 2016 sales totaled 2.3 million through August, an 8.1% jump on a year-over-year basis.

Disclosure: None