Elon Musk would consider leveraging Tesla's mega $554 billion market cap to buy a legacy automaker, but only if it was on friendly terms, the billionaire entrepreneur said Tuesday in a wide-ranging interview with Axel Springer CEO Mathias Döpfner. Musk, who received an award Tuesday from the media giant, discussed his various interests and businesses, notably SpaceX and Tesla, both of which he leads. Döpfner noted that Tesla's valuation far exceeds the market cap of incumbent automakers like BMW, Daimler and VW, which along with others in the industry once dismissed Musk's ability to make electric vehicles mainstream.
Shares of Tesla (NASDAQ: TSLA) have surged since S&P Global announced last month that it would include shares of the electric-car maker in its closely watched S&P 500 index. Given Tesla's $550 billion market capitalization today, the market-cap-weighted index will need to make a major purchase of the company's shares. In addition, many funds that mimic the S&P 500 will likely similarly purchase shares.
Warren Buffett may be the world's most-mimicked investor, but he's not the only proven stock-picker we can learn from. Peter Lynch, lead manager of the Fidelity Magellan Fund (NASDAQMUTFUND: FMAGX) between 1977 and 1990, can offer investors some worthy tips, too. In fact, the Magellan fund beat the broad market in 11 of those 13 years.