Tesla (TSLA) might be valued at $4 trillion, according to Elon Musk, provided the company can consistently “knock the ball out of the park.”
The CEO has frequently discussed Tesla’s possible market valuation.
Most notably, in October 2022, he predicted that Tesla may be worth more than the combined value of Apple and Saudi Aramco.
However, since Musk said that last year, Tesla’s stock has dropped 4%. In the same time frame, the NASDAQ is up 20%:
With a 17% decline in the previous month alone, the stock has been aggravating Tesla investors recently.
Hedge fund manager and ardent Tesla supporter Ron Baron recently reiterated his prediction that Tesla will grow to be a $4 trillion business on MarketWatch.
He thinks Tesla will succeed in doing so by turning into a battery company:
“In the case of Tesla, we are convinced that people cannot do what they’re doing and that, ultimately, it’s not just going to be a car company and it’s not just going to be a battery company. All the other car companies, which 50 years ago, elected to become much more profitable and outsource supplies and compute to other people. We’re going to be like Intel was inside of computers. This is going to be Tesla inside of cars. All the cars are going to be using Tesla autonomous driving. No one else can possibly compete.”
Regarding the notion that Tesla may reach $4 trillion in valuation, Musk expressed his agreement while stating that it would need the firm to “knock the ball out of the park several times”:
“We do need to knock the ball out of the park several times to achieve that value, but I think we can.”
Tesla is currently valued at over $600 million.
Electrek’s Take
$4 trillion sounds ridiculous, and it very well might be, but most people said the same thing about Tesla being worth $100 billion, and it is worth $600 billion today.
When it comes to really hitting the mark, Tesla has done it with the Model Y. The car is about as successful as they come.
I take Musk to indicate that Tesla will have to repeat the process with the upcoming models and Full Self-Driving.
Such are large ifs.
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