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Elon Musk and Warren Buffett
- Elon Musk called Warren Buffett’s energy plan in Texas “crazy.”
- Instead, he asked the state to use Tesla Megapacks to store emergency power.
- Musk and Buffett have clashed before on issues like moats and tweets.
- Visit Business Insider to more stories.
Elon Musk dismissed Warren Buffett’s plan to prevent another Texas energy crisis in a recent tweet. The Tesla CEO also proposed that the state trust his company’s solution.
“This is crazy,” Musk said. “You should use Tesla Megapacks to level the load on the grid. More effective, more reliable, and cost less.”
Buffett’s Berkshire Hathaway conglomerate wants to establish a Texas Emergency Power Reserve and build 10 natural gas power plants across the state by November 2023, the Dallas Morning News reported.
It has offered to invest $ 8.3 billion in emergency power generation that would be backed by a $ 4 billion guarantee. However, you expect to be reimbursed and get a 9.3% annual return on your investment, financed through higher energy bills for Texans.
Berkshire bosses have argued that their backup system would be cheaper than “weathering” the power grid to cope with the cold, or revamping the state’s power market to compensate for excess capacity.
Musk would prefer that Texas use Tesla Megapacks, the clean energy company’s battery storage systems, to avoid another devastating blackout. The systems, which look like rows of high school lockers, are featured as powerful, compact, and easy to install on the Tesla website.
In particular, Buffett’s beloved Apple plans to use 85 of the battery packs at a Northern California solar farm to help power its Cupertino headquarters, The Verge reported this week.
Musk and Buffett have clashed before. The Tesla boss may have quoted Buffett in the past, but admitted that he is not the “biggest fan” of investors. He also described the capital allocation at Berkshire as “a kind of boring job” and questioned Buffett’s “good-natured grandfather” personality.
Additionally, the serial entrepreneur has called Buffett’s idea of economic moats or long-lasting competitive advantages, such as a beloved brand or proprietary technology, “unconvincing.”
“Elon can change things in some areas,” Buffett replied. “I don’t think he wants to hire us in candy,” she added, referring to Berkshire-owned See’s Candies.
Buffett has also praised Musk as an “extraordinary guy,” but suggested he has “room for improvement” and should be more moderate in his tweets. Receive a daily news update on your cell phone. Or receive the best of our site by email
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