Buffett said Tesla FSD may affect his insurance stock. Will he bet on Tesla?

$Tesla(TSLA.US)$ $BYD COMPANY(01211.HK)$ $NIO Inc(NIO.US)$ $XPeng(XPEV.US)$ An investor in both Elon Musk‘s Tesla and Berkshire posed a question to Buffett: If Musk succeeds in reducing accidents by 50% compared to human drivers with Full Self-Driving (FSD), wouldn’t auto insurance rates decrease to reflect the reduced underwriting risk?

Buffet replied:

In response, Buffett stated that if accident rates decrease, the data will reflect it, and consequently, prices will come down... The billionaire said a 50% reduction in accidents is good for society and would be bad for the insurance company’s volume.

Buffett was also asked about potential opportunities in the zero-emission vehicles space, as these vehicles have finally reached the cusp of massive adoption.

Buffet replied:

“I hope we get there,” he said, adding that he didn’t believe Berkshire brought any special expertise to that field. He noted that vehicle manufacturers were better suited for such endeavors. “I would certainly not know how to pick the winners in an industry like that, but I’ll be delighted if there are some winners...” Buffett said.

My Take: The reason why Warren Buffett has not bought Tesla stock is because he can't decide if Tesla will be the winner. I think he is still considering it. On the other hand, he reduces his stake in another EV maker, BYD - sold 10.99 million shares in the last quarter. EM has already invited WB to buy Tesla's share