Elon Musk recently expressed his belief that billionaire investor Warren Buffett should consider investing in Tesla stock. Musk stated his opinion in an X communication and emphasized that it is an “obvious move” for Buffett to take a position in Tesla. Buffett’s company, Berkshire Hathaway, has been reducing its holdings of Apple shares for two consecutive quarters, but still owns a substantial amount of the tech company’s stock. Musk suggested that the money liquidated from Apple would be better off invested in Tesla.
However, Buffett indicated at Berkshire Hathaway’s Shareholder Conference that it has no current plans to completely liquidate its holdings of Apple, which is expected to remain the largest common stock holding for the company. In contrast, Tesla, although still categorized as a Level 2 suite, continues to strengthen and improve its ability to attract drivers through various driving scenarios. Musk also highlighted the potential for Tesla’s Full Self-Driving (FSD) technology to significantly reduce the frequency of accidents, which could have a positive impact on society but may pose a challenge for insurance companies. The potential reduction in accidents could lead to a decline in insurance company revenues.
While it does not appear that Buffett will entirely liquidate its holdings of Apple, the possibility of Buffett investing in Tesla remains uncertain. As of the latest information, Tesla shares are showing an increase of over 2% on the East Coast.