Elon Musk believes that Tesla (TSLA) can reach a $4 trillion valuation if they “knock the ball out of the park” a few times.
The CEO has often commented on the potential market capitalization of Tesla.
Most famously, he said that Tesla could be worth more than Apple and Saudi Aramco combined back in October 2022.
However, Tesla’s stock is down 4% since Musk made that comment last year. The NASDAQ is up 20% over the same period:
Lately, the stock has been frustrating Tesla investors with a 17% drop over just the last month.
Recently, Ron Baron, hedge fund manager and long-time Tesla investor, went on MarketWatch to reiterate his vision that Tesla would become a $4 trillion company.
He believes that Tesla will achieve that by becoming 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.”
Musk commented on the idea that Tesla could become a $4 trillion company – agreeing, but adding that it would need 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.
$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.
As for knocking it out of the park, Tesla has certainly done it with the Model Y. The vehicle is as big of a success as it gets.
I assume that Musk means that Tesla will have to do that again with the next-generation vehicles and Full Self-Driving.
Those are big ifs.
What do you think? Let us know in the comment section below.
Elon Musk, CEO of Tesla, believes that the company can achieve a $4 trillion valuation if they continue to excel in their performance. Musk has frequently discussed the potential market capitalization of Tesla and even stated in October 2022 that Tesla could be worth more than Apple and Saudi Aramco combined. However, since making that comment, Tesla’s stock has dropped by 4%, while the NASDAQ has increased by 20% during the same period. Over the past month, Tesla’s stock has frustrated investors with a 17% decline. Despite this, hedge fund manager Ron Baron, a long-time Tesla investor, recently reiterated his belief that Tesla could become a $4 trillion company. Baron predicts that Tesla will achieve this by positioning itself as a battery company rather than just a car company. He claims that all cars will eventually utilize Tesla’s autonomous driving technology, creating a competitive advantage that other companies cannot match. Musk agreed with the idea but emphasized that Tesla would need to consistently exceed expectations to achieve such a valuation. Currently, Tesla is valued at over $600 billion. While the $4 trillion figure may seem far-fetched, it is worth noting that Tesla’s current valuation was once considered improbable as well. Electrek, a news source focused on electric vehicles, suggests that Tesla’s success with the Model Y demonstrates their ability to “knock it out of the park.” However, the future success of Tesla will depend on the performance of their next-generation vehicles and Full Self-Driving technology.