Star investor Warren Buffett was recently invited to consider investing in Tesla by multibillionaire Elon Musk, the CEO of Tesla Inc. (TSLA). The recommendation surfaced in response to a post on X, HyperChange, where a Tesla devotee and YouTuber urged Buffett to transfer his investments from Apple Inc. (AAPL) to Tesla (TSLA). This idea was supported by Musk, who said Buffett should invest in Tesla because it is an “obvious move” to maintain Tesla’s superiority over Apple.
Awaiting Buffett's Response
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Warren Buffett has not yet replied to Musk’s request as of yet. This appeal for action follows rumours that Berkshire Hathaway had lowered its investment in Apple, with Buffett purportedly reducing his ownership by 13% because of tax considerations. Buffett reiterated at Berkshire Hathaway’s annual shareholders’ meeting that the company plans to stay onto its Apple shares notwithstanding this decrease, barring unusual events that call for a shift in approach.
Apple vs. Tesla: A Comparative Strategy
Although Tesla and Apple are in different businesses, Apple has previously looked into getting into the EV industry in 2014 with its ‘Project Titan’ program. That being said, in the end, Apple gave up on developing autonomous EVs, giving the upper hand to Tesla, the top EV manufacturer.
Performance of TSLA Stock
TSLA stock saw upward momentum in the pre-market session in response to Musk’s invitation and against the overall adverse trend. When this story was published, TSLA was trading at $183, up 1.02%. Despite TSLA’s 27% year-to-date decline, analysts continue to have high hopes for the company’s future, with price estimates ranging from $175.41 to $400 per share.
Tesla's Restructuring Efforts and Buffett's Past Opportunities
Buffett passed up investing chances when Tesla was still in its infancy, so Musk’s offer to him highlights this. Amidst financial difficulties, Musk is actively “reorganizing” Tesla, as seen by the company’s 55% decline in net profit for the January–March quarter. Musk isn’t deterred despite these failures and is still working to guide Tesla through the changing global EV market.
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