- Warren Buffett reportedly called the disruptive electric vehicle giant, Tesla, a bad investment.
- Justin Sun has been an investor in Tesla since 2012 before the company managed to gather a brand value and a global recognition like no other electric vehicle manufacturer.
During the $4.6 million meal with investment legend Warren Buffett that Tron CEO Justin Sun won in an auction bid in June 2019, Buffett reportedly called the disruptive electric vehicle giant, Tesla, a bad investment. Sun says that Buffet commented that,
“Elon Musk is a great entrepreneur, but he doesn’t think Tesla is a good investment at this time cuz automobile industries have fierce competition & all of Tesla’s competitors with large cash reserves won’t quit.”
Mr. Buffett said Elon Musk is a great entrepreneur, and Tesla is a large industry with huge potential. But he doesn't believe Tesla is a good investment.
For more topics of Tesla discussed during Justin Sun and
Mr. Buffett's charity dinner?#TRON #TRXhttps://t.co/ObPBAy4U2U
— TRON Foundation (@Tronfoundation) February 22, 2020
This makes a lot of sense since the entire electric vehicle industry has been popularized by Tesla with the brand name is the face of electric vehicles.
But as much as Tesla gave birth to the electric vehicle industry, other automobile manufacturing giants are all seeing the potential behind EVs and jumping onto the bandwagon that Tesla bolstered.
If enough thought is given about it, one can find a similar analogy in the world of cryptocurrencies too, where Bitcoin began the cryptocurrency revolution and made the industry what it is, but today the market has a number of alternative cryptocurrencies that provide different utility, some even more functionality than Bitcoin does.
Although Bitcoin still remains the largest cryptocurrency by market cap with no other altcoin at its tail, Tesla doesn’t share the same massive lead that puts it so far ahead of everyone else.
Justin Sun has also been an investor in Tesla since 2012 before the company managed to gather a brand value and a global recognition like no other electric vehicle manufacturer. Its reigns are now being challenged by the likes of numerous automobile manufacturers by the likes of Porche, Dodge, BMW, etc..
Who has the power and fund pool to keep prodding and poking at Tesla, one-upping them at every turn, which warrants why Buffett believes that Tesla stock isn’t the right investment at this time?
Other key topics that were discussed during the charity meal included Bitcoin and blockchain technology. Buffett is a staunch believed in the potential of blockchain technology and companies that he has investments in are exploring its applications.
Sun and his other colleagues from the industry who were at the dinner tried their best to convince the investor to take a chance on cryptocurrencies and change his mind.
But alas they all failed as Buffett remained rooted in his belief that cryptocurrencies like Bitcoin had a long way to go before it fully harnessed the potential of blockchain technology.
Buffet has previously called Bitcoin akin to “rat poison”, very publicly vocalizing his dislike of the cryptocurrency. But this said, Buffett, is also known to have not invested in Amazon and Google since he never understood the potential of their goals, so the billionaire’s opinions are not to be entirely taken at face value.