Tesla CEO, Elon Musk said today that his electric vehicle company could raise its value over Apple and Aramco combined. The 52-year-old billionaire aimed to achieve this target in the next five years.
iPhone company, Apple, and oil giant Aramco are one of the two biggest companies in the world in the tech and oil sectors.
In terms of numbers, Apple evaluates at $2.98 trillion and Aramco $2.16 trillion as of December 29, 2023. These two combine a valuation worth over $5 trillion.
In comparison, Tesla’s market cap is about $770-$780 billion, which is far behind as of 2023.
Projection:
2023 has been a volatile year for Tesla but it has marked a rise of well over 120% by the end of this year.
The firm is operating the largest EV share in the U.S. and abroad. However, it began to face the heat of the competition in China, the world’s largest market for sales.
The current EV sales account for only a handful of numbers around the globe and there’s a large portion of EVs that could fill the place of gas-powered vehicles.
There’s a lot of space for growth for all of the EV makers but the rest of the companies are still lagging in the competition outside of China especially in the US.
Tesla also has the largest charging network including 2,300 Supercharger stations and over 26,000 connectors across North America.
Competitors such as Electrify America operate about 3,700 fast-charging stalls in the U.S. Outside of North America, Tesla operates around 55,000 open charging stalls.
These chargers also provide stability for customers to choose a new Tesla car.
Future Tesla products:
Tesla is not relying on cars alone, the company is working on the next phase of products including robots such as Optimus, full self-driving also known as FSD, and a powerful self-learning computer.
Although, these products aren’t available to the public for the time being but analysts are predicting a bright future with the long-term business.
Analyst at Goldman Sachs predicts that Tesla FSD could earn about $50 to $100 billion each year in revenue starting in 2030. Before that, the company could grow from $1-$3 billion a year with gradual increases.
Meanwhile, regulators have raised questions about the safety measures and operations around FSD.
With ups and downs, the Tesla chief and his company need to measure a long road if he wants to par the total value of Apple and Aramco combined.