Tesla has recorded an unprecedented rally on the stock market for an automotive group. Market valuation is currently $622 billion, more than $400 billion compared to Toyota Motor, the world‘s largest automaker by sales last year. The Japanese group currently has a market value of 188 billion dollars. Musk inspires enormous confidence in investors, which justifies this valuation of Tesla.
But while Musk enjoys the trust of many investors, there is one that is missing. This is the legendary investor Warren Buffett, who is a shareholder in a rival Chinese company of Musk.
The Oracle of Omaha has invested in BYD, Tesla’s major Chinese competitor, and has sold more clean vehicles than Musk’s company. Buffett, through his Berkshire Hathaway holding company, invested in BYD in 2008 by purchasing 225 million shares, equal to about $232 million. Since then, the investment has grown substantially and BYD’s share price has increased significantly over the years.
For several months, however, the billionaire has begun to reduce his stake in BYD. Berkshire sold nearly 95 million of the company’s original 225 million shares, after selling another 4.235 million, worth about $140 million, last month, the company said in a regulatory filing earlier this month. .
The holding company remains one of the company’s largest shareholders with 130.3 million shares, which represent about 12% of the Chinese group. It was in this context that a Twitter user asked which company Buffett should invest in, given that Berkshire Hathaway ended 2022 with a strong cash flow. In fact, the holding company’s cash pool was $128.65 billion in the fourth quarter of 2022, up from nearly $109 billion in the third quarter. “Warren Buffet’s Berkshire Hathaway now has more than $128 billion in cash, what stock should they buy?” asked the Twitter user. Musk immediately replied that the holding company should invest in Tesla. “It starts with the T…”, said the billionaire.