Why Warren Buffett Isn't Likely to Buy Tesla Stock -- Ever

Back on April Fools' Day, there were rumors about Warren Buffett acquiring Tesla (NASDAQ: TSLA) for $1 trillion and taking it over, in what would have been a stunning move for the billionaire investor. But it turned out to be a joke, nothing else. While Tesla is a leading company in the electric vehicle (EV) market, it's simply not the type of stock I would ever expect Buffett to buy, let alone for it to take up a significant position in the Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) portfolio.Here's why Buffett would likely never own the stock, regardless of its valuation.Competition is inevitable for companies, but some are much better equipped than others when it comes to dealing with it. And for Buffett, that is a paramount issue: he prefers companies that have a defendable, competitive advantage over its rivals that can allow it to outperform over the long run. He refers to this as its moat.Continue reading

Apr 25, 2025 - 10:51

Why Warren Buffett Isn't Likely to Buy Tesla Stock -- Ever

Back on April Fools' Day, there were rumors about Warren Buffett acquiring Tesla (NASDAQ: TSLA) for $1 trillion and taking it over, in what would have been a stunning move for the billionaire investor. But it turned out to be a joke, nothing else. While Tesla is a leading company in the electric vehicle (EV) market, it's simply not the type of stock I would ever expect Buffett to buy, let alone for it to take up a significant position in the Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) portfolio.

Here's why Buffett would likely never own the stock, regardless of its valuation.

Competition is inevitable for companies, but some are much better equipped than others when it comes to dealing with it. And for Buffett, that is a paramount issue: he prefers companies that have a defendable, competitive advantage over its rivals that can allow it to outperform over the long run. He refers to this as its moat.