In what is being seen as a bold prediction by the world¡¯s richest person,?Elon Musk has said that he sees?Tesla?becoming bigger than the?combined valuation of?Apple?and?Saudi Aramco one day. And no, this is not the first time he has said so!??
After releasing Tesla¡¯s quarterly results a couple of days back on Wednesday, Musk discussed Tesla's valuation.
As per the Apple Insider report, "A while ago," Musk said, "I said on an earnings call that I thought it was possible for Tesla to be worth more than Apple, which was worth (around) $700 billion at that time."
A "while ago" refers way back to May 2017. At that time, Apple was worth $772 billion, and Tesla trailed at $51 billion. Apple?is now valued at $2.3 trillion and is currently considered the most valuable company in the world.
Elon Musk continued, "Now I'm of the opinion that we can far exceed Apple's current market cap. I see a path for Tesla to be worth more than Apple and Saudi Aramco combined. "
As per the report, Saudi Aramco, which is a petroleum and natural gas giant, has a current value of around $2.1 trillion.?Earlier in May 2022, it had briefly surpassed Apple as the most valuable company in the world.?
As per the American stock exchange, Nasdaq,?Tesla is currently worth $649.51 billion and Apple $2.3 trillion. In January 2022, Apple became the world's first company to hit the $3 trillion?market cap mark.
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After Tesla recently reported lacklustre third-quarter results this week, with revenue and margins missing estimates, Wall Street analysts weren't quite convinced with Musk¡¯s bold prediction regarding Tesla¡¯s net worth.??
According to the Bloomberg report, the disappointing results of Tesla prompted multiple analysts to lower their price targets for the company yesterday. Tesla?shares sank by as much as 9% to $202 in New York yesterday.??
We remain cautious on valuation, particularly in the context of lofty unit volume growth expectations, and continue to see material downside risk to our December 2023 price target," JPMorgan analyst Ryan Brinkman reportedly wrote in a note.
As per the Bloomberg report, "Tesla?stock is predicated on a growth-valuation framework, for which access to low-cost capital is a key input," BofA (Bank of America) analyst John Murphy wrote in a note to clients, adding that the Tesla shares may already be priced fairly, especially considering market volatility.
Still, while valuation may be held back in the near term because of global economic turmoil, ongoing supply-chain and logistical problems, and high raw material prices, analysts largely maintained their?longer-term bullish outlook for?Elon Musk¡¯s Tesla.
According to the report, "While Tesla is not insulated from a downturn, we believe its growth and margins could be much more resilient than the rest of the industry in a global recession."
Now it remains to be seen if and when Musk is able to turn his prediction into a reality, i.e., the day Tesla¡¯s net worth crosses the combined net worth of tech giant Apple and oil giant Saudi Aramco.
Also Read:?Apple's?Market?Value?Wiped Out By $120 Billion In Mass Sell-off
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