Charlie Munger Calls Tesla a 'Minor Miracle' Despite Telling Elon Musk It Would Fail In Its Early Days And Declining To Invest

Earlier this year, Tesla Inc. CEO Elon Musk made light of Berkshire Hathaway Inc. CEO Warren Buffett and his right-hand man Charlie Munger's performance in response to a post showcasing their company's portfolio growth from 1994 to 2022. 

Musk tweeted, "Munger could've invested in Tesla at ~$200M valuation when I had lunch with him in late 2008."

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Musk also tweeted that during a 2009 lunch, Munger expressed doubt about Tesla's future, listing several reasons he believed the electric car company would fail. Musk admitted that Munger's comments left him feeling disheartened, but he agreed with the concerns raised. Despite the possibility of failure, Musk was determined to press on, believing that trying to make Tesla a success was worth the risk.

The tweet read: "I was at a lunch with Munger in 2009 where he told the whole table all the ways Tesla would fail. Made me quite sad, but I told him I agreed with all those reasons & that we would probably die, but it was worth trying anyway."

But since that lunch, it seems that Munger's perspective on Tesla has shifted. While he mentioned not recalling the specific lunch conversation with Musk, Munger now praises Tesla and recognizes its remarkable achievements in the American auto industry. 

Speaking highly of Musk's electric vehicle company during an interview with CNBC's Becky Quick on "Squawk Box," Munger commended Tesla for its substantial contributions to civilization. 

"We haven't had a successful new auto company in a long, long time. What Tesla has done in the car business is a minor miracle," he stated.

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Munger further highlighted the rarity of successful new auto companies, emphasizing that Tesla's achievements were remarkable in an industry where such feats are rare.

With a market cap of $824.13 billion, Tesla ranks as the seventh-most valuable company globally by market cap. 

There is no denying the investment potential for Berkshire Hathaway would have been huge had Munger taken the gamble on Tesla in 2008. And it seems that Musk looks for every chance to remind both Munger and Buffett of their mistake, publicly via Twitter.

In response to a Twitter thread that pointed out his net worth surpasses the combined wealth of Buffett and Microsoft Corp. Co-Founder Bill Gates, Musk tweeted, "Maybe Buffett should invest in Tesla haha." Musk is currently the richest man in the world, and Buffett ranks sixth. 

Despite the occasional jabs exchanged over the years, there are likely no deep-seated animosities between Musk and the Berkshire Hathaway duo. Throughout the years, Munger and Buffett have consistently recognized Musk's achievements, openly acknowledging his success. 

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