Elon Musk May Keep Whining, But Warren Buffett Isn't Going To Own Tesla Stock: Analyst Nails Down Key Reason

Elon Musk has more than once indirectly reminded billionaire investor Warren Buffett about the opportunity cost of not investing in Tesla, Inc. TSLA.

What Happened: As Musk tweeted on Monday that Buffett had the option to pick up Tesla shares at a valuation under $200 million, one Twitter user said the Tesla CEO's messaging is worse. He also took exception to the tech entrepreneur selling his stake in Tesla to buy Twitter, which he sees as damaging institutional investors' credibility long term.

Commenting on the tweet, Tesla bull and Future Fund's Gary Black said Buffett isn't going to own Tesla. There is a huge difference between value and growth investors, he said.

Value investors presume reversion or return to mean growth and margins as competitors enter, while growth investors do not assume reversion to the mean, Black added.

Clarifying further, Black noted that value investors tend to start with what looks cheap, relative to intrinsic value and then find those that can grow.

"Growth investors start with high growers and then buy those that are reasonably priced relative to intrinsic value. It's two entirely different mindsets," he said.

See Also: Everything You Need To Know About Tesla Stock

Tesla Vs. Apple: When Buffett picked up Apple, Inc. AAPL first in 2016, it was a value stock, Black said in reply to one of his followers.

"Many would view it as a core stock today with just 5-6% revenue growth trading at 26 times its estimated earnings per share for 2023. "It's certainly not growth," he added.

Tesla closed Monday's session 0.74% higher at $191.81, while Apple ended down 1.23% at $158.28, according to Benzinga Pro data.

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