CEO Elon Musk Reiterates Tesla Market Cap Could Surpass Apple, Saudi Aramco Combined In Next 5 Years: 'If...Executes Extremely Well'

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Tesla Inc (NASDAQ:TSLA) CEO Elon Musk on Friday reiterated his prediction that his EV company’s long-term value could exceed both tech giant Apple Inc (NASDAQ:AAPL) and Saudi Aramco put together.

What Happened: “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 wrote on X.

He was responding to a Tesla enthusiast who opined that the stock is “massively undervalued” despite rising by nearly 130% this year.

While oil giant Saudi Aramco boasts a market capitalization of 8 trillion SAR ($2.13 trillion), Apple holds a significant market cap of $2.99 trillion, placing them among the highest-valued companies globally. Tesla, on the other hand, currently enjoys a market capitalization of $778.6 billion.

Why It Matters: In Oct. 2022, Musk first said that he sees potential for Tesla to exceed the market cap of the two market cap leaders combined. He added that it wouldn't be easy and would require a lot of work, some very creative new productions, expansion management, and luck. He was speaking at Tesla's third-quarter earnings call.

However, in the last quarter, Tesla reported third-quarter revenue of $23.35 billion, missing a Street consensus estimate of $24.38 billion. The company also reported production and vehicle delivery numbers below second-quarter numbers, a slump attributed to planned downtimes for factory upgrades.

Further, during the company's earnings call, Musk raised concerns pertaining to increased interest rates, making EVs more expensive for buyers and subsequently lowering demand. However, the company has retained its delivery goal of 1.8 million vehicles for the year.

Check out more of Benzinga's Future Of Mobility coverage by following this link.

Read Next: First Reported Cybertruck Crash: Toyota Corolla Sustains Injuries, Damage On Tesla Vehicle Unclear

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