Billionaire Elon Musk has become the world’s most influential CEO in recent months. His popularity is increasing day by day.
He has around 130 million followers on Twitter. Each of his tweets and messages is viewed by millions of users of the social network and covered by the media.
The billionaire’s persona, and his promises to transform the modes of transportation today and in the future, have enabled Tesla (TSLA), the maker of electric vehicles of which he is CEO and co-founder, to experience An unprecedented market share rise for the automotive conglomerate.
Tesla’s market valuation is currently $ 622 billion. That’s more than $400 billion more than Toyota Motor (TOYOF), the world’s biggest carmaker in terms of sales last year.
The Japanese conglomerate currently has a market value of $188 billion. Musk inspires immense confidence in investors, which justifies this valuation of Tesla, which is not viewed as par with its rivals. The automaker is viewed more as a technology conglomerate than a carmaker.
Basically, the billionaire didn’t need anyone else to establish Tesla’s power and notoriety. He’s the epitome of the brand, and as long as he’s in charge, investors should see the company’s stock continue to push higher.
While he has the confidence of many investors, there is one that is missing. This is the legendary investor Warren Buffett, whose philosophy is to understand the business of a company before investing in it.
But the Oracle of Omaha, as Buffett is nicknamed, invested in BYD, Tesla’s big Chinese competitor. BYD sold more clean cars than Musk’s company last year.
But when only electric vehicles are taken into account Tesla remains the world leader as BYD also sells hybrid vehicles – gasoline + electric motorization.
Buffett, through his holding Berkshire Hathaway (BRK.A) – Get the Free Report, invested in BYD in 2008, acquiring 225 million shares, equivalent to about $232 million. Since then, investments have increased significantly, with BYD’s share price increasing significantly over the years.
However, for several months now, the billionaire has started reducing his stake in BYD. Berkshire has sold about 95 million of its original 225 million shares of the company, after selling 4.235 million shares worth about $140 million last month, the firm announced in a regulatory filing earlier this month.
The holding is one of the largest shareholders of the company with 130.3 million shares, representing approximately 12% stake in the Chinese conglomerate.
It was in this context that a Twitter user asked which company Buffett should invest in, given that Berkshire Hathaway ended 2022 with a sizable war chest. Indeed, the holding’s cash mountain for the fourth quarter of 2022 is expected to be $128.65 billion, up from about $109 billion in the third quarter.
“Warren Buffet’s Berkshire Hathaway now has over $128 billion dollars in cash, what stocks should they buy?” the Twitter user asked.
Musk immediately replied that the holding company should invest in Tesla.
“Starts with a T …” the billionaire said.
Starts with a T …— Elon Musk (@elonmusk) February 26, 2023
Information Source: TheStreet
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