Tesla Inc. CEO Elon Musk recently advised employees and investors to focus on companies with promising product futures, citing Warren Buffett’s investment philosophy. During an all-hands meeting, Musk explained that the stock market is like having someone stand at the edge of your property and yell prices to buy or sell your house every day.
What Happened
Musk said, “I think it’s Warren Buffett’s sort of metaphor—the stock market’s like having someone stand at the edge of your property or your house and yell prices to buy or sell your house every day. Sometimes they take their meds and sometimes they don’t.” He emphasized the importance of investing in companies that have a promising product future, asking investors to consider whether they love the products that the company makes and whether the company will continue to produce them.
Musk’s Advice to Investors
Musk advised investors to “buy stock in companies where you think the product that company makes will be better in the future.” He also encouraged investors to “hang on to your stock,” emphasizing Tesla’s long-term potential. Musk expressed his confidence in Tesla’s future, stating that the company will probably be the most valuable in the world with the development of Optimus and self-driving technology.
Tesla’s Achievements
The meeting highlighted Tesla’s achievement of producing over 7 million vehicles globally. Musk projected that the company would surpass 10 million vehicles next year. He also touted several other achievements, including:
- The Model Y becoming the world’s best-selling vehicle
- Cybertruck emerging as the top-selling electric pickup
- Progress with Tesla’s Dojo supercomputer, now handling approximately 5-10% of the company’s AI training workload
Relationship with Warren Buffett
The relationship between Musk and Buffett appears to be respectful but distant. Buffett recently acknowledged that he has spoken to Musk a few times but dodged questions about Musk’s cost-cutting efforts.
Musk’s Outlook on Tesla’s Future
Despite TSLA shares dropping 37.71% year-to-date, Musk remains bullish on Tesla’s future. He told attendees, “While it’s difficult to predict how things will be from you know in the next day six to 12 months, if you say like where will things be in three years or five years, the future of Tesla is incredibly bright.”