'Revenge of the Electric Car' premiere: Tesla Motors CEO Elon Musk on red carpet
Perhaps we'll soon see yet another ambitious project from Tesla and SpaceX CEO, Elon Musk. The outspoken executive recently took to Twitter to announce he's "super serious" about starting...a candy company.
Where did the idea for a candy company originate? It appears Musk and Warren Buffet, CEO of Berkshire Hathaway, sparred over social media, according to a CNBC report on Monday. Musk criticized Buffett's use of "moats." A company with an economic moat has a widely recognized brand value that makes it almost impossible for rivals to compete on an even playing field. Think Apple in the smartphone market. Buffet likes to invest in companies with wide moats, and in fact he recently made a huge investment in Apple.
Firing back at Musk's comments, Buffett said, "I don't think he'd want to take us on in candy." Berkshire Hathaway has owned See's Candies since 1972.
Soon after, Musk returned to social media to declare how serious his is about starting a candy company. It doesn't seem entirely off the table since the Tesla and SpaceX CEO has a thing for diving into uncharted territory. Musk has also laid out plans for a network of tunnels to shuffle cars and passengers via his Boring Company, and he also announced plans to build his own Hyperloop transit system.
I’m starting a candy company & it’s going to be amazing— Elon Musk (@elonmusk) May 5, 2018
Yet, it's difficult to take the rhetoric at face value. Tesla remains in a shaky state after reports surfaced detailing how quickly the automaker burns through cash. Musk and the company have insisted Tesla will not need to raise new funding this year, but some analysts believe it's inevitable. Model 3 production also remains rather stalled as the company works to produce 5,000 units per week by the end of Q2 2018.
Perhaps candy profits will help fund future Tesla cars.