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.
Armen Hareyan is the founder and the Editor in Chief of Torque News. He founded TorqueNews.com in 2010, which since then has been publishing expert news and analysis about the automotive industry. He can be reached at Torque News Twitter, Facebok, Linkedin and Youtube.