Legendary investor Warren Buffett praised Tesla Inc and its CEO Elon Musk in a recent interview.
What Happened:Shares of Tesla have increased over 1,500% over the last five years. The company is now valued higher than all of the other major auto companies combined.
Former CBS journalist Charlie Rose asked Berkshire Hathaway, Inc. CEO Warren Buffett his thoughts on Tesla and how the company accomplished this feat.
“That shows what America produces,” Buffett said.
Buffett added all the other automotive companies have products, but Musk is finding a way to beat the legacy automakers. “Taking on General Motors, Ford, Toyota Motors that have all this stuff. He’s got an idea, and he’s winning.”
Why It’s Important:Buffett said that there are a lot of companies that produce cars, but ultimately you have to be the one who makes cars that people want.
Buffett also acknowledged during the interview that we should be doing more to fight climate change, but didn't elaborate on the impact of electric vehicles.
“If there’s a 1% chance (we can fight climate change), we should be doing something.”
Buffett is worth $122 billion, ranking him as the fifth-wealthiest person in the world. Over the last few years, Buffett was passed by Musk, who is the world’s richest person, worth an estimated $259 billion.
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