Billionaire Elon Musk Advises Warren Buffett to Invest in Tesla
Days after Warren Buffett hosted Berkshire Hathaway’s annual shareholders meeting, fellow billionaire Elon Musk has some advice for the chairman about his next investing moves. In response to a post suggesting Buffett should sell all of his shares in Apple, Musk took to X to recommend that Buffett consider buying shares of his electric vehicle company Tesla.
“He should take a position in Tesla. It’s an obvious move,” Musk tweeted on May 6, 2024.
Buffett and Berkshire have held a stake in Apple since 2016, with an estimated $174.3 billion in shares at the end of Q3 2023. However, Berkshire offloaded around 115 million Apple shares, or 13% of its total holdings, by the end of Q1 2024.
During the recent shareholders meeting, Buffett mentioned that unless there are significant changes in capital allocation, Apple will remain their largest investment. Meanwhile, Berkshire revealed that it had completely divested its stake in Paramount Group.
An investment from Buffett could be beneficial for Tesla, which has been facing challenges in recent months. The company reported a 9% quarterly revenue decrease in Q1 2024, its largest drop since 2012. Musk also made headlines for laying off 500 employees from the Tesla Supercharger team and rescinding internship offers.
Despite past disagreements, Buffett praised Musk during Berkshire Hathaway’s 2023 annual shareholder meeting, calling him a brilliant individual with visionary dreams. Musk, in turn, expressed gratitude for Buffett and his late business partner, Charlie Munger.
As of Tuesday morning, Tesla’s stock was up over 4.3% year over year. Buffett’s potential investment in the company could have a significant impact on its future growth and success.