Berkshire Hathaway will pay $1 trillion in cash to legendary investor Warren Buffett to acquire Tesla. According to reports, the 94-year-old “Oracle of Omaha,” who has a history of showing little interest in tech companies or electric cars, made the historic offer by contacting Elon Musk directly.
“While I’ve publicly stated that I don’t understand tech companies, I’ve secretly been driving a Cybertruck around my Nebraska neighborhood at night,” Buffett said to investors during an early-morning conference call on Tuesday, April 1.
Cash Deal That Breaks All Records
The biggest acquisition in company history is represented by this cash deal. The previous record, set by Vodafone’s $203 billion acquisition of Mannesmann in 2000, is greatly surpassed.
Buffett’s simple response to the question of how Berkshire Hathaway could finance such a large purchase was, “I’ve been keeping the money in a shoebox under my bed.”
Given Buffett’s track record of investing in businesses with steady cash flows and significant competitive advantages in stable industries, financial analysts are finding it difficult to understand the transaction.
Buffett’s Hidden Preoccupation with EVs
Buffett disclosed during the call that he had a collection of every Tesla model ever produced and has been a covert admirer of electric cars for years.
“I’ve been telling people I still drive my old Cadillac, but the truth is, I’ve racked up 100,000 miles on my Model S,” said Buffett. “I’ve been doing donuts in the Costco parking lot.”
The purchase was made a few days after Buffett stated in his yearly letter to shareholders that Berkshire Hathaway had been having trouble locating “attractive large acquisitions.” He apparently located one.
The ‘Chief Meme Officer’ position will remain with Musk.
Elon Musk has decided to remain with the company and assume the newly established position of “Chief Meme Officer,” while Buffett will personally supervise day-to-day operations. This is perhaps the most unexpected development.
When Musk informed reporters, “Warren promised me I could still tweet whatever I want,” “In addition, he’s providing me See’s Candies and Cherry Coke indefinitely. Have you ever tasted those brittle peanuts? I adore those little men.
