Elon Musk predicts that Tesla could surpass the combined market value of Apple and Aramco within five years, given its significant growth and ambitious sales targets.
- Tesla’s current market capitalization stands at $778.6 billion, with significant stock growth over the past year.
- Despite challenges in sales and a competitive environment, especially in China, Tesla is expected to report record sales for the final quarter of 2023.
- The upcoming year poses further challenges for Tesla, including the end of tax credits and concerns about vehicle quality impacting market sentiment.
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Tesla could become the world’s most valuable company, surpassing Apple and Aramco combined, as long as it “executes well” over the next five years.
This is a prediction that its chief executive Elon Musk first made on Tesla’s third-quarter earnings call but confirmed at the end of the year.
“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,” Musk wrote in an X post.
Apple’s market capitalization is $2.99 trillion at the moment, with Aramco’s at $2.13 trillion. Tesla’s current market cap, on the other hand, is $778.6 billion. The stock has grown significantly over the past year, however.
At the start of January 2023, Tesla traded at some $108 per share. It ended the year at close to $250 per share.
This is not to say that the year has been without challenges. Like all EV makers, Tesla has suffered a decline in sales, which prompted the company to cut prices. The environment seems th be especially challenging in China, which is a key market for the carmaker and also an intensely competitive one.
Even so, Tesla is expected to report record sales for the last quarter of the year, although they will likely fall short of Musk’s own plans for 2023 sales. Per an LSEG poll reported by Reuters, Tesla’s 2023 sales will likely stand at 1.82 million cars.
