Elon Musk, the CEO of Tesla, a prolific businessman, and the richest man in the world, is of course the one who fired off this most recent rhetorical rocket.
This multibillionaire businessman, frequently makes the most astonishing claims.
Everyone in the market got curious and stunned as they absorbed the Declaration.
Though investors and followers are accustomed to Musk making bold claims, everyone was taken aback when he predicted that Tesla (TSLA) – Get Tesla Inc. Report would be worth more than the combined value of Apple (AAPL) – Get Apple Inc. Report and Saudi oil behemoth Saudi Aramco.
According to Musk, the value of Tesla will rise to at least $4.5 trillion in the next years. He made no time estimate.
According to companiesmarketcap.com, Apple is presently the most valuable company in the world, with a market value of $2.34 trillion as of the most recent check and the market value of Saudi Aramco, which is gaining from rising oil prices, is $2.1 trillion.
The two biggest businesses in the world are valued at $4.5 trillion combined.
Some Facts about Tesla
Tesla needs to boost its market value by a factor of six, or approximately $4 trillion, in order to surpass Apple and Saudi Aramco combined.
Tesla currently has a market value of more than $665 billion. At one point, the maker of electric vehicles had surpassed the symbolic $1 trillion valuation mark.
All of this does not appear to intimidate Musk, whose brand was established on aspirational and ambitious promises. Some argue that Musk wouldn’t exist without his promises and bold predictions.
During the Tesla third-quarter earnings call on October 19, the billionaire said,
“Several years ago, I indicated I thought it was possible for Tesla to be worth more than Apple, which was then the largest [capitalization] firm on the market at the time.”
“I claimed that it requires exceptional execution and possibly a little luck. And we certainly didn’t set out to accomplish that.”
But he went on: “I now believe that we can significantly outperform Apple’s present market cap. In fact, I foresee a future in which Tesla will be valued more than Apple and Saudi Aramco put together.”
“That does not imply that it will occur or be simple. In fact, I believe it will be exceedingly challenging and time-consuming. Some incredibly innovative new goods, expansion mania”
Musk continued, “For the first time, I see a way for Tesla to be, say, nearly double the value of Saudi Aramco. I’m simply just seeing that possibility now.
Naturally, there was a tremendous lot of skepticism about the prognosis.
But Musk remained steadfast and even increased his bet on Twitter, noting that his 2015 prediction that Tesla would be valued at $700 billion by 2025 had already been received with skepticism.
“By 2030, Tesla will be valued $4 trillion, far more than Apple and Saudi Aramco combined. Tesla’s value would reach $700 billion by 2025, according to a similar forecast made by @elonmusk in 2015.
By December 2020, Tesla had a $700 billion market value, five years earlier than expected “After the updated forecast, a Tesla investor tweeted a reply.
Musk said, “The media broadcasts my predictions that are late with tremendous hoopla, but rarely those that are early.”
The billionaire acknowledged that it was a huge task but proceeded to defend his views.
Will need very great execution, but it is feasible, according to Musk.
The Upcoming Trail
It is difficult to arrive at this assessment. Even though public policies have never been so favourable to environmentally friendly vehicles, Tesla confronts a monumental hurdle over the next two years.
Beginning on December 1, the Austin business will start producing its first semi vehicle and start making deliveries.
The most vulnerable period is the upcoming year since the eagerly awaited Cybertruck’s production and deliveries are set to begin in the middle of 2023.
Given the hype surrounding it and its extremely full order book, this vehicle, whose development has been repeatedly delayed, is expected to be a blockbuster.
Market perception of yet another delay would be extremely negative.
Additionally in 2023, Tesla will have to launch Optimus, its humanoid robot.
A new era for Tesla would begin if the feedback is favorable.
Furthermore, Musk has stated that the business will introduce its robotaxi service in 2024.
Tesla’s Full-Self-Driving driver assistance system, however, must navigate and resolve the many regulatory probes it is facing as a result of some of its cars equipped with the system being involved in tragic accidents before the service can be made available.
Additionally, Tesla must be able to hold its own against the avalanche of EV market rivals, including both established American automakers and, in particular, Chinese automakers like BYD.
Currently, BYD, which has the support of renowned investor Warren Buffett, is one of the few manufacturers of clean vehicles able to produce 1 million units annually.
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