Warren Buffett’s Berkshire Hathaway has long been skeptical of the automotive industry, despite its highly competitive nature and worldwide competitors. Previous comments made by Buffett and his late business partner Charlie Munger have not shed a positive light on investing in the industry. As such, it is unlikely that Berkshire Hathaway will invest in Tesla, despite Elon Musk’s recent suggestion that the company should do so.
At Berkshire Hathaway’s 2023 annual shareholder meeting, Buffett and Munger shared their concerns about the uncertainty of the future of car companies. The high capital costs and risks associated with electric vehicles, despite their rapid growth, have further deterred Berkshire Hathaway from considering investments in the automotive sector. While Musk’s suggestion that Berkshire Hathaway should invest in Tesla is not new, it may be difficult for Buffett to justify such an investment given the company’s previous statements.