Owning Tesla stock has been a bit of roller coaster ride of late: During the first week of February, for example, the stock had “one of its wildest weeks ever,” CNBC reported, with the share price “swinging hundreds of dollars in both directions.” On Thursday, when Tesla announced it will sell 2.65 million new shares of stock, the share price jumped nearly 5%. After it announced the new stock will sell at $767 a share on Friday, the stock fell 2% in premarket trading.
At the annual shareholders meeting for newspaper company Daily Journal on Wednesday, a shareholder asked Berkshire Hathaway vice chairman Munger what he thought about Musk, based on Tesla’s recent ups and downs.
“My thoughts are two,” Munger, who serves as the Journal’s chairman replied. “I would never buy [Tesla], and I would never sell it short,” he said, referring to a technique investors use to bet that a stock will decline.
And “I have a third comment,” the billionaire investor continued: “Never underestimate the man who overestimates himself. I think Elon Musk is peculiar and he may overestimate himself, but he may not be wrong all the time.”