Elon Musk famously, some would say notoriously, makes impossibly optimistic predictions when it comes to his companies.
But his latest prediction, this time about Tesla, is possibly his wildest yet.
Apple is overvalued in the stock market when compared to other equivalent car companies.
This is because even though other companies sell more cars or make more money than Tesla, investors see Musk’s brand as a future certainty.
Furthermore, they also think Tesla is a tech company, not just a car company.
Musk, whose net worth mostly derives from the stock value of Tesla, believes this is just the start.
He says, five years from now, Tesla could be worth more than Aramco or even Apple.
Aramco, the gas and oil company owned by Saudi Arabia, has a market cap of $2.13 trillion.
Apple, the largest company in the world, has a market capitalization of $2.99 trillion.
Both are vastly more valuable than Tesla, which achieved its highest market cap of $1.23 trillion two years ago.
Then, about a year ago, Musk said the brand has the potential to outpace Aramco and now, he says he still stands by his prediction.
“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 said on X.
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— Elon Musk (@elonmusk) December 30, 2023
Musk added that this will obviously not happen “by itself”, and it will require “exception performance” on the part of Tesla.
Tesla is desperately trying to scale up production, with mixed result.
Musk said the Tesla Model Y was the best-selling car in the world in 2023.
That’s on the plus side, but on the minus side, the company has a massive order backlog for the Cybertruck.
At this rate, it’ll take about five years to deliver a Cybertruck to every single person who’s bought one.