Business tycoon Elon Musk has just reaffirmed his forecast that his automotive business, Tesla, can top the combined market valuation of Apple and Saudi Aramco in about five years.
In hindsight, Tesla Chief Musk initially announced this ambitious forecast during the Q3 2022 Earnings Call in October 2022.
Current market cap comparison
For context, Teslarati reported that tech giant Apple’s market cap is at an astounding $2.99 trillion as of this writing. Meanwhile, state-owned petroleum firm Saudi Aramco currently has a market cap of $2.13 trillion.
In contrast, the American electric vehicle giant’s highest market cap in history was only $1.23 trillion, which it recorded in November 2021.
Therefore, CEO Musk’s expectation for Tesla to beat the two giant companies in terms of market cap would really be challenging.
Tesla boss’ forecast
Tesla Chief Elon Musk conveyed during the Q3 2022 Earnings Call that the EV giant could grow substantially bigger than Apple and Saudi Aramco, assuming ideal circumstances in the industry and its operations.
“I see a potential path with Tesla worth more than Apple and Saudi Aramco combined. So now that doesn’t mean it will happen or that will be easy. In fact, I think it will be very difficult. It will require a lot of work, some very creative new products, manage expansion, and always luck. But for the first time, I see a way for Tesla to be, let’s say, roughly twice the value of Saudi Aramco.”
Tesla CEO Elon Musk stated during the Q3 2022 Earnings Call (via The Motley Fool)
At present, some TSLA bulls, including @WholeMarsBlog, think that Tesla is “still massively undervalued.” In response, CEO Musk replied to an X post with the same sentiments, saying that he still keeps his ambitious forecast regarding Tesla’s market cap.
“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.”
Tesla CEO Elon Musk
Tesla’s potential
Tesla indeed has a strong potential to top the combined market cap of Apple and Saudi Aramco in the future, considering the electric automaker’s rapid growth and dominant position in the global market.
Despite CEO Musk’s optimistic prediction, he emphasized the need for Tesla to deliver “exceptional” strategy execution and sales performance.
Apart from its automotive business, the company has also penetrated various industries like renewable energy, robots, and AI. These business units can significantly aid Tesla in reaching the boss’ forecasts in the coming years.
