Despite the pandemic and the meltdown of the global automotive market, Tesla's stock is hitting a record high level as investors are buying into the stock after it was announced that it will be added to the S&P500. So much so that legendary investor and CEO of Berkshire Hathaway, Warren Buffett is also rumoured to be buying into the stock. In the last two days alone, the stock has gone up by 8 per cent which is a massive surge. Today, it is up 10 per cent. Tesla has basically added $80 billion to its valuation in the last two days. The stock has also been helped by the target increase from Morgan Stanley.
But such a surge is leading many investors to believe that the mysterious new investor is indeed Warren Buffett has invested massively in the stock. Frank Peelen has tweeted that he found that about $50 million Tesla shares have disappeared in the hands of a mysterious investor based on the 13F filing which discloses large ownerships. It has been stated that the new investment could be in the range of $11 billion. It is interesting as this would indicate that Berkshire Hathaway has taken pains to keep the investment confidential in order to not overly affect the market.
This is strange as this would require the US Securities and Exchanges Commission (SEC) to give Berkshire Hathaway an exception. This can only happen with a company like Tesla as the investment is so high that it reaches the 5 per cent ownership threshold for disclosure. There are only 25 companies in the US exchange which are big enough to not hit that threshold and in this case Berkshire Hathaway owns 9 of them.
This is interesting as Berkshire Hathaway has a stake in Chinese electric car maker BYD which a couple of days ago announced an EV for ride-sharing service with Didi Chuxing. Elon Musk and Warren Buffett do not see eye to eye before as he had earlier lobbied against Musk's solar efforts in Nevada.