You’ve probably seen the headlines. Maybe a stray tweet or a LinkedIn post made you double-tap. The idea that Warren Buffett buys Tesla is the ultimate financial fan fiction. It’s the investing equivalent of Batman and Superman finally grabbing a beer together. One is the king of "boring" cash-flow businesses like insurance and soda; the other is a rocket-launching, meme-posting disruptor.
But did it actually happen?
Honestly, the short answer is no. But the "why" behind the rumors—and what it tells us about the current state of the market—is way more interesting than a simple yes or no. In early 2025, the internet nearly broke when a satirical report claimed Berkshire Hathaway was acquiring Tesla for $1 trillion. It was a masterpiece of April Fools' engineering. People actually believed Buffett was secretly cruising around Omaha in a Cybertruck at night.
He isn't.
Why the Warren Buffett buys Tesla rumors won't die
The reason these stories go viral is that we’re all looking for validation. If the world’s most famous value investor puts his stamp of approval on Elon Musk’s empire, it changes everything. It would mean Tesla is no longer just a "growth story" or a speculative tech play. It would mean it’s a "Buffett business."
What is a Buffett business?
It’s something with a "moat." A brand so strong you can’t imagine the world without it. Think GEICO. Think Coca-Cola. For years, Musk has actually invited Buffett to invest, even saying on X (formerly Twitter) that Berkshire should take a stake.
But Buffett is picky. Really picky.
In his final shareholder letter as CEO in late 2025, he didn't mention Tesla by name as a buy. Instead, he took a bit of a swipe at the "envy and greed" fueling massive CEO pay packages. This came right after Tesla shareholders approved a compensation plan for Musk that could theoretically hit $1 trillion if the company reaches an $8.5 trillion market cap.
That’s not exactly the "margin of safety" Buffett looks for.
The brutal reality of the car business
Buffett isn't a hater of electric vehicles. Far from it. Berkshire Hathaway was an early backer of BYD, the Chinese EV giant. He bought into BYD back in 2008 when most people couldn't even spell "lithium-ion."
But there's a difference.
BYD produces its own batteries and has a massive cost advantage in the world’s largest car market. Buffett likes the manufacturing efficiency. When it comes to the broader auto industry, though, he’s famously cautious. He’s said before that "you will see a winner for a while, but it doesn't get you a permanent check."
Tesla is currently fighting a war on several fronts:
- Chinese rivals like BYD and Xiaomi are slashing prices.
- Legacy automakers in the US are finally getting their EV acts together.
- The "Musk discount" is a real thing.
That last point is huge. Some analysts, like those at Morningstar, have noted that Musk’s political polarization might actually be hurting sales. A study from the National Bureau of Economic Research suggested Tesla could have sold over a million more cars if the brand wasn't so tied to divisive politics. Buffett hates drama. He likes managers who stay focused on the "knitting."
Could it ever happen?
If Warren Buffett buys Tesla in some alternate reality, it wouldn't be because of the cars. It would be because of the AI.
Currently, Tesla is trying to pivot from being a car company to being an AI and robotics powerhouse. We’re talking about the Optimus robot and Full Self-Driving (FSD). If those technologies ever become a "utility"—something every household or business must have—then it fits the Berkshire model.
But right now? Tesla’s price-to-earnings (P/E) ratio is often in the triple digits. Buffett likes to buy $1 worth of assets for 50 cents. Tesla is currently priced like it’s already conquered Mars.
There is also the "Circle of Competence" issue.
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Buffett admits he doesn't "get" high-tech shifts until they become consumer staples. He missed Amazon for years. He only bought Apple when it became a "phone company" that people couldn't live without, rather than a "computer company" for nerds. Tesla isn't a staple yet. It's still a luxury and a statement.
What you should actually do
If you're waiting for the Oracle of Omaha to give you the green light on Tesla, you’ll probably be waiting forever. His logic and Musk’s vision are just on different timelines.
Instead of chasing the rumor, look at the 13F filings. These are the quarterly reports where Berkshire has to show its cards. As of the latest filings in late 2025 and early 2026, Tesla is nowhere to be found in the Berkshire portfolio.
Actionable Insights for Investors:
- Check the Moat: Don't buy Tesla because you think Buffett will. Buy it if you believe their data advantage in AI (5 million+ cars on the road) creates a barrier that Ford or GM can't cross.
- Watch the Cash Flow: Buffett loves "free cash flow." Tesla hit a record of nearly $4 billion in Q3 2025. That’s a good sign, but it’s still small compared to the $250 billion+ cash pile Berkshire is sitting on.
- Ignore the Satire: If you see a headline about a $1 trillion buyout on April 1st, keep scrolling.
- Diversify: Even if you love Tesla, remember that Buffett’s biggest strength is never betting the whole farm on one "genius."
Basically, the "Warren Buffett buys Tesla" story is a great way to get clicks, but a bad way to build a portfolio. If you want to invest like Buffett, you buy when things are undervalued and boring. Tesla is many things, but "undervalued and boring" isn't one of them.
Keep an eye on the earnings calls and the actual SEC filings. That's where the truth lives, far away from the meme-heavy world of social media finance.