Tesla (TSLA) CEO Elon Musk said he expects the electric carmaker’s shares to outperform the combined value of Apple (AAPL) and Saudi Aramco.
The electric vehicle maker released its third-quarter results on Wednesday. Tesla beat earnings guidance but underperformed on revenue — a first for the company since the third quarter of last year.
“Now I think we can far exceed Apple’s current market cap. I see a way for Tesla to be worth more than Apple and Saudi Aramco combined,” Musk said on Wednesday’s conference call.
In the most recent quarter, demand was “a little tougher than usual,” Musk added, citing markets in China and Europe.
Following Wednesday’s results and shaky auto demand, several analysts lowered the company’s target price. The company’s average target is now $298, Bloomberg reported.
“We remain cautious on valuation, particularly in the context of high unit volume growth expectations, and continue to see significant downside risk to our December 2023 price target,” said JPMorgan analyst Ryan Brinkman in a note.
With investors cautious following third-quarter results, Musk has made efforts to assuage concerns. On Wednesday, he said he expects the company to be valued at five times its current position.
While betting on the company’s future and inviting investors to buy, Musk is reportedly selling a sizeable chunk of his 155 million shares, CNN noted. The massive stock dump comes as Musk tries to complete his $44 billion purchase of Twitter.
Tesla, which previously had a brief valuation of over a trillion, currently has a market cap of over $680 billion, according to Yahoo Finance. Apple and Saudi Aramco, meanwhile, are at $2.3 trillion and $2.1 trillion, respectively.
Shares of Tesla closed at $207.28 on Thursday, down $14.76, or 6.65%. Shares of Apple closed at $143.39, down $0.47, or 0.33%.
https://www.ibtimes.com.au/elon-musk-expects-tesla-stock-surpass-apple-analysts-remain-skeptical-1839762?utm_source=Public&utm_medium=Feed&utm_campaign=Distribution Elon Musk expects Tesla stock to overtake Apple, but analysts remain skeptical