What does Warren Buffet think of Elon Musk?


Editorial team Published on

Warren Buffett views Elon Musk as a brilliant, highly talented innovator who tackles impossible goals, though he frequently disagrees with his management style and business philosophies.

💡 Respect for Ambition and Talent

  • Brilliant intellect: Buffett has noted that Musk is exceptionally smart, possesses a high IQ, and grounds his massive dreams in reality.
  • Taking on the impossible: He credits Musk's success to his willingness to aim for unreasonably extreme objectives and take on massive challenges like Tesla and SpaceX.
  • Winning against odds: Buffett praised Musk for taking on entrenched automotive giants with just an idea and succeeding, calling it quintessential American enterprise.

⚠️ Philosophical Differences

  • The value of economic moats: Musk famously dismissed business "moats" as lame, prioritizing the pace of innovation instead. Buffett counters that sustainable moats—such as being a low-cost producer—remain vital.
  • Communication and CEO behavior: Buffett has criticized Musk’s heavy use of social media, stating he doesn't see the necessity to communicate that way and suggesting Musk has "room for improvement" as a CEO.
  • Corporate compensation: Buffett has also cast side-eyes at massive, record-breaking CEO pay packages, warning that "envy and greed walk hand in hand" in executive compensation spirals.