TLDR
- Billionaire Stanley Druckenmiller sold all Tesla shares in Q2 2025, eliminating his entire position after cutting it 50% in Q1
- Druckenmiller bought 6.5 million Warner Bros Discovery shares before the stock surged 56% on merger speculation
- Tesla faces declining sales with automotive revenue down 16% and inventory up 33% despite multiple price cuts
- Paramount Skydance reportedly preparing cash bid for Warner Bros Discovery according to Wall Street Journal
- FCC agenda suggests regulatory support for media consolidation while DOJ approval still required
Billionaire investor Stanley Druckenmiller made two strategic moves in Q2 2025 that highlight shifting market dynamics. The Duquesne Family Office chief completely eliminated his Tesla position while building a massive stake in Warner Bros Discovery.
Druckenmiller sold his final 18,838 Tesla shares during the second quarter. This followed his decision to cut the Tesla position by 50% in the first quarter of 2025.
The timing proved prescient as Tesla faces multiple headwinds. The electric vehicle maker reported a 16% decline in automotive revenue for Q2 compared to the previous year.
Tesla’s global vehicle inventory jumped 33% to 24 days despite implementing over six price reductions. The company struggles with increasing competition in the EV market as demand softens.
Tesla Regulatory Challenges Mount
The regulatory environment shifted against Tesla under the Trump administration. New legislation eliminated automotive regulatory tax credits for electric vehicles.
Tesla relied heavily on these regulatory credits and net interest income for over half of its pre-tax income. The loss of this revenue stream puts additional pressure on margins.
Product launches have disappointed investors. Cybertruck sales fell short of expectations while the robotaxi launch in Austin proved limited in scope.
CEO Elon Musk’s track record of overpromising may concern institutional investors. Tesla has promised Level 5 autonomy for eleven consecutive years while remaining at Level 2 capabilities.
Tesla shares trade at 234 times forecast 2025 earnings despite expected revenue declining 5%. Traditional automakers typically trade at 10 times forecast earnings multiples.
Warner Bros Discovery Acquisition Target
While exiting Tesla, Druckenmiller purchased 6,537,160 Warner Bros Discovery shares between April and June. The investment gained immediate value when merger rumors emerged.
Warner Bros Discovery stock jumped 56% last week following reports of a potential Paramount Skydance bid. The Wall Street Journal first reported acquisition discussions on September 12.
The media company announced plans in June to split into two separate entities. One company will house streaming and studio operations including HBO Max. The other will contain traditional television networks and Discovery+.
Benchmark analysts previously estimated potential synergies of $3 billion from combining Paramount and Warner Bros operations. The firm suggested Paramount could pay around $18 per share while maintaining value neutrality.
The Federal Communications Commission’s September agenda includes potential elimination of dual network rules. This regulatory change could facilitate further media industry consolidation.
Any merger would still require Department of Justice approval. The timing coincides with broader consolidation trends across traditional media companies.
Warner Bros Discovery’s streaming segment shows improved operating metrics. International subscriber count increased 34% year-over-year to 67.9 million subscribers as of June 30.
The company traded below book value for extended periods until recent merger speculation emerged. This provided opportunistic investors like Druckenmiller attractive entry valuations.
Paramount Skydance shares rose 7% Friday following the acquisition rumors. The stock has generated 67.63% returns year-to-date and trades near its 52-week high of $17.58.
