Warren Buffett Could Have Just Invested in Tesla: The One Reason He Hasn't

Warren Buffett and Tesla: Why He Hasn't Invested

Warren Buffett is arguably the most successful investor of our time, and there is one thing he has never done: invested in Tesla.

He has invested in other EV companies, like BYD, but for some reason, he hasn't invested in Tesla.

If you listen to discussions with Warren Buffett about his companies and Tesla, you can come to a simple understanding of why he hasn't invested in Tesla:

It's because he doesn't understand the company.

That one statement is all you need to know regarding Warren Buffett and Tesla. Because he doesn't understand the company, he is not going to invest in it - ever.

Next time you listen to Warren Buffett in any interview, listen for when he says why he doesn't invest in companies, and you will discover this is the primary reason.

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Elon Musk: He Could Have Just Invested in Tesla

Elon Musk made the statement that he could have invested in Tesla at a $200 million market cap when he had the opportunity to do so. However, Elon is missing the primary reason he hasn't - because he doesn't understand the company.

Understanding Tesla isn't that complicated, which makes it confusing to me why Warren Buffett doesn't understand the company. Tesla has shown continued growth over time in a new market, EVs, and continues to show why it is the leader.

Tesla has 3 primary areas: EVs, Energy Storage, and AI. You could also include robotics in there, but these 3 areas make Tesla easy to understand.

EVs are still in an early adoption phase, with global penetration around 8%. This means that there is a ton of room to grow for Tesla and other EV companies.

Battery energy storage is easy to understand. There is a year and a half order backlog and this kind of savings and backup for utility companies is also in its infancy.

And then there is AI and robots - all in their infancy too. The opportunity is tremendous.

Will Warren Buffett invest in Tesla some day? I don't think so. It would take a predecessor of his who understands Tesla for that to happen.

I think Warren Buffett and Tesla will be just fine, by the way, without his investment. He has proven that he is a fantastic investor in the companies he understands.

Would you invest in Tesla today?

In Related News: Tesla's Energy Business is Flying Under the Radar of Wall Street

Or he could have just invested in Tesla at $200M market cap when he had the opportunity to do so— Elon Musk (@elonmusk) March 27, 2023

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Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter or LinkedIn to stay in touch and follow his Tesla news coverage on Torque News.

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