On the occasion of the presentation of Tesla’s financial results, Elon Musk predicted that the valuation of his company will exceed that of Apple and Saudi Aramco combined by the end of the decade. In the past, he was right about Tesla’s potential.
Tesla is fine. With a turnover of 18.7 billion dollars (+55% in one year) and a profit of 5.2 billion dollars (+42%) in the third quarter of the year 2022, the manufacturer gives the feeling of living in a parallel reality. Its latest financial results, published on October 19, certainly reflect the unusual situation of the company. While the auto industry was slipping, Tesla continued to soar and break records. True, analysts are hoping for a higher margin (hence the likely decline in the stock tomorrow), but Tesla seems to have a bulwark ahead of it.
Elon Musk predicts a bright future for Tesla
With Tesla’s financial results, there is a lot of information. The brand indicates, for example, that it has a 2% market share in Europe and more than 3% in the United States (this is huge for a relatively young company), announcing that it produced 365,923 cars in a quarter for 343,830 deliveries (94.6% of which are Model 3 and Model Y) and says it recruited a lot of engineers thanks to its AI Day, where the Tesla Optimus robot was shown. Tesla also said that 160,000 drivers in North America currently have access to the beta of its “Full Self Driving” (autonomous driving), ahead of a wider opening in the coming weeks.
Tesla = Apple + Saudi Aramco?
Obliges by Elon Musk, the presentation of Tesla’s financial results is also an opportunity to listen to some interesting little predictions. The billionaire famously mentioned the acquisition on Twitter, which seems to be on the way, and mainly got people talking about him by betting on Tesla’s future valuation.
According to him, by 2030, Tesla will be equal in value to Apple and oil giant Saudi Aramco combined. On what scale is it based? Hard to say. As of this writing, Apple is worth $2.3 trillion and Saudi Aramco is worth $2.101. Will Tesla be worth $4.4 trillion in 8 years? Or Elon Musk based his calculation on the fall of others? Nothing specified. Today, Tesla is worth 695 billion. But the company reached 1.2 trillion a few months ago.
Still, it’s hard to see in this prophecy an unrealizable stroke of madness. As some people have pointed out on Twitter (here’s a Tesla investor, so not the most neutral source), Elon Musk has been right about these economic predictions in the past. He bet on a valuation of 700 billion dollars by 2025, Tesla reached it by 2020. His prospects for car manufacturing were also good, when many thought Tesla would never get there.
Of course, when we say “Elon Musk” and “prediction” in the same sentence, we must have in mind the many times Elon Musk announced things that didn’t happen (like a man leaving Mars for example). Elon Musk was ironic about this phenomenon in response to the tweet quoted above:
Can Tesla do it? By positioning it in the electric vehicle market, which has no reason to slow down in the coming years, we want to say yes. If the company succeeds in maintaining this speed, improving its quality, pioneering autonomous driving and launching a cheaper vehicle for the European market, as it has planned for several years, then Tesla has every reason to hope to be the number one company on the planet. . But during that time, on what level will Apple be mounted?