Buffett Warns Apple On Buying Tesla
When investor billionaire Warren Buffett offers his advice, there is one person who might want to listen closely: Apple CEO Tim Cook.
During an interview with Fox Business Network, Buffett said that if there is something Apple should definitely not do, it is invest in Tesla.
Buffett called the prospect of Apple investing in, or buying up Tesla a “very poor idea”, mainly because of the nature of the automotive industry, which Apple has never had any involvement in. “It’s not an easy business,” Buffett said.
After Tesla CEO Elon Musk cancelled his plans to try and take the electric car maker private, mutterings have abounded about where the company could go next, with Apple seen as a possible investor.
With US$244 billion (A$339 billion) cash on hand, Apple is one of the few companies that could buy Tesla outright and feel almost no impact to its balance sheet.
Also, Apple has been exploring self-driving car technology for some time, and last month re-hired Doug Field, a former Apple hardware engineering executive who joined Tesla two years ago, to help with its autonomous-driving technology efforts.