One user posted on the social media platform “X” that Berkshire Hathaway's boss should sell all Apple shares and buy Tesla instead. Musk then responded, “He (Buffett) should hold Tesla shares. It's an obvious move.”
Musk didn't explain why this was obvious. Buffett and his late partner Charlie Munger had previously praised Musk. Munger said, “Tesla's success in the automotive industry is a small miracle.” However, Tesla's financial situation usually doesn't appeal to Buffett.
According to FactSet data, Tesla's stock price is 66 times next year's earnings, 9 times its book value, and 57 times its cash flow. Although still high compared to other companies in the same industry, these values are relatively low compared to Tesla's own history.