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Episode #1036: Warren Buffett shocks investors with a surprise retirement announcement, Tesla sweetens the Model Y deal to boost lagging demand, and Harley’s LiveWire hits a wall while the legacy brand keeps the engine running.
Show Notes with links:
- After 60 years of leading Berkshire Hathaway, Warren Buffett has stunned the business world by announcing he will retire as CEO at the end of 2025. Buffett, now 94, made the announcement unceremoniously after nearly five hours of Q&A, stunning a packed stadium into silence.
- He had not previously disclosed his exact plans—not even to most of the board or Greg Abel, his named successor, who was sitting beside him at the time.
- Abel has already been managing most of Berkshire’s sprawling empire since 2018, excluding insurance, and is described as a “quick study” with deep operational knowledge and a more involved leadership style. Buffett will stay on as chairman.
- Investors and analysts widely agree: nobody can replicate Buffett’s investing instincts or the brand equity he brings to the table. “[Abel] would make a huge mistake trying to be Warren Buffett, and he knows that,” said Fidelity’s Will Danoff.
- Buffett will leave behind a company with 189 operating businesses, $264 billion in stocks, and $348 billion in cash—along with a trust-based leadership culture.
- Berkshire Hathaway Automotive, one of the group’s largest units, continues to play a key role, contributing 65% of the company's retail revenue in 2022, with over 100 franchises in 10 states.
- Tesla is offering low-interest financing on the new Model Y, signaling that demand isn’t quite where they hoped it would be.
- New U.S. buyers can now get 1.99% APR or $0 down—a first for the refreshed Model Y.
- It follows a $2,000 discount offered just last week to early buyers.
- Despite being Tesla’s best-seller, inventory is building up and wait times are unusually short.
- Tesla blamed Q1’s weak deliveries on the Model Y changeover, but signs point to broader demand challenges.
- In Europe and China, things are worse—0% financing is already being offered to move cars.
- Harley-Davidson’s electric offshoot LiveWire is facing serious headwinds, with sales collapsing and losses piling up—raising real questions about the brand’s future.
- LiveWire sold just 33 electric motorcycles in Q1, down 72% year-over-year—a staggering drop for a brand once aiming for 100,000 units annually by 2026.
- The brand earned only $3 million in revenue but posted a $20 million operating loss, meaning it lost about $606,000 per bike.
- Harley blames a “volatile macroeconomic environment” and consumer hesitation amid economic uncertainty.
- Meanwhile, Harley-Davidson’s core business weathered the storm, pulling in $1.32 billion in Q1 revenue despite sh
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