Elon Musk, the CEO of Tesla Inc, has once again reiterated his bold prediction that the long-term value of his electric vehicle (EV) company could surpass both tech giant Apple Inc and Saudi Aramco combined. Musk’s statement comes amidst growing enthusiasm for Tesla’s stock, which has surged by almost 130% this year.
In response to a Tesla enthusiast who claimed that the stock is “massively undervalued,” Musk took to social media platform X to stand by his previous prediction. He stated, “I stand by my prediction that, if Tesla executes extremely well over the next 5 years, that the long-term value could exceed Apple and Aramco combined.”
This is not the first time Musk has made such a bold claim. In October 2022, he first expressed his belief that Tesla could exceed the market capitalization of both Apple and Saudi Aramco. However, he acknowledged that achieving this feat would require a tremendous amount of work, innovative production methods, effective expansion management, and a certain amount of luck. Musk made these remarks during Tesla’s third-quarter earnings call.
While Saudi Aramco boasts a market capitalization of $2.13 trillion and Apple holds a significant market cap of $2.99 trillion, Tesla’s market capitalization currently stands at $778.6 billion. Despite Tesla’s impressive growth, the company still has a long way to go to catch up to the market leaders.
However, Tesla’s recent financial performance has not been without its challenges. In the last quarter, the company reported third-quarter revenue of $23.35 billion, falling short of the Street’s consensus estimate of $24.38 billion. Additionally, Tesla’s production and vehicle delivery numbers for the quarter were below the second-quarter figures. This decline was attributed to planned downtimes for factory upgrades.
During the earnings call, Musk also expressed concerns about increased interest rates, which could make electric vehicles more expensive for buyers and potentially reduce demand. Nevertheless, Tesla has maintained its delivery goal of 1.8 million vehicles for the year.
Musk’s prediction of Tesla’s surpassing Apple and Saudi Aramco’s combined value is ambitious, to say the least. However, his track record of setting audacious goals and achieving them cannot be ignored. As the EV market continues to grow, Tesla’s innovative technology and strong brand presence position the company for further success.
In conclusion, Elon Musk’s reiteration of his prediction that Tesla’s long-term value could exceed both Apple and Saudi Aramco combined showcases his confidence in the company’s potential. While this goal may seem ambitious, Tesla’s continuous growth and innovation in the EV market make it an intriguing possibility for investors and enthusiasts alike. As the EV industry evolves, only time will tell if Musk’s prediction becomes a reality.
