Elon Musk Urges Warren Buffet To Hold Stake In Tesla, TSLA Price Rallies

Multi-billionaire Elon Musk has invited star investor Warren Buffett to invest in Tesla Inc. (TSLA). The TSLA stock price surged in the pre-market session on Monday after the latest comment. Moreover, the move comes amid Buffet’s Berkshire Hathaway reportedly dumping a significant stake in Apple Inc. (AAPL).

Elon Musk’s Advice For Warren Buffett

In a post on X, HyperChange, a YouTuber and Tesla supporter, wrote, “C’mon Warren Buffett, sell all your $AAPL and buy $TSLA.” Musk responded to this post, stating, “He should take a position in Tesla.” Moreover, the Tesla CEO termed it as “obvious move” to establish TSLA’s dominance over AAPL.

As of now, Buffet is yet to reply to the comment by Musk. The celebrity investor has recently cut his Apple stake by 13% owing to tax concerns. He sold over 100 million shares of the AAPL stock. Moreover, Berkshire Hathaway’s AAPL holding slumped to $135.4 billion this year from $174.3 billion reported in January 2023.

However, during the annual shareholders’ meeting, Buffet reiterated that “until something extraordinary happens,” Berkshire Hathaway will own Apple. Highlighting the surging taxes, Buffet said, “We don’t mind paying taxes at Berkshire. We are paying a 21% federal rate on the gains we’re taking in Apple and that rate was 35% not that long ago, and it’s been 52% in the past when I’ve been operating.”

While Tesla and Apple are not direct competitors in terms of scale of operations, the latter had initiated efforts to compete with the EV company. Earlier, in 2014, Apple had undertaken a research and development initiative, titled ‘Project Titan’, to develop an autonomous EV. However, this year, the tech giant gave up on hopes of entering the EV market while Tesla remained the top EV producer.

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TSLA Stock Performance

The Tesla stock extended gains in the pre-market session today. At press time, the TSLA stock was up by 1.02% and traded $183 on Monday, May 4. Whilst, the EV giant boasted a massive market cap of $577.69 billion. However, the Tesla stock price has dropped over 27% year-to-date owing to continued bearish trend.

Nonetheless, this could be an opportunity for investors to enter at a lower buying price to leverage better profits. Earlier, on Friday, May 3, the Tesla stock gained 0.63% and closed at $181.14. Furthermore, analysts remain bullish on TSLA stock, with higher price targets despite its recent surge.

According to Barchart’s survey of 29 analysts, price targets range from an average of $175.41 per share to $310 on the high end. Whilst, Yahoo Finance’s survey of 41 analysts echoes this sentiment, with targets averaging between $179.84 and $320 per share at the highest.

Moreover, AnaChart, a sell-side analyst tracking avenue, reports an average price target of $203.41 from 36 analysts who’ve recently covered TSLA stock. Moreover, this average exceeds Friday’s closing price by over 12%.

Notably, the highest price target stands at $400, significantly surpassing other surveys. In addition, Daniel Ives of Wedbush, with a Buy rating on the stock, estimates its worth at $275.00 per share, reflecting a massive 51.8% increase from Friday’s price.

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