Tesla may possibly be a target by a takeover by Warren Buffett. Berkshire Hathaway CEO Warren Buffett has used the bear market as an opportunity to buy high-quality businesses at a discount. Tesla is, right now, a high-quality business at discount. Do you agree with that? There are a number of factors that could reasonably draw the Buffetts attention to Tesla in the upcoming year. However, there are also key reasons Buffett would avoid Tesla -- and it starts at the top.
Sean Williams has an interesting coverage on the subject at the Motley Fool asking "Would warren Buffett buy shares of Tesla in 2023?"
Here's what could, in theory, put Tesla on Warren Buffett's radar in 2023.
First, Tesla is an industry leader. Second, Tesla can sustain its industry-leading share. Third, is Tesla's income statements. Forth, is Tesla's balance sheet, which ended September with $21.1 billion in cash, cash equivalents, and marketable securities.
But are these four factors enough to coerce the Oracle of Omaha to put Berkshire Hathaway's money to work in Tesla? In my view, not a chance -- and there are two key reasons why.
Williams brings two points. According to him:
1. Tesla lacks a true moat.
2. Elon Musk doesn't evoke trust from shareholders.
#tesla #teslatakeover #warrenbuffett #berkshirehathaway #elonmusk
This is Armen Hareyan from Torque News. Please follow us at https://twitter.com/torquenewsauto on Twitter and https://www.torquenews.com/ for daily automotive news.
Reference
The Motley Fool https://www.fool.com/investing/2022/12/28/would-warren-buffett-buy-shares-of-tesla-in-2023/
Armen Hareyan Torque News Tesla https://www.torquenews.com/video/i-have-feeling-warren-buffett-may-be-eyeing-tesla-2023-due-these-4-factors
Disclaimer: Armen Hareyan is not a Tesla shareholder and is not in the stock market.
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