- Elon Musk reiterated his belief that Tesla can be “the Most worthy company on earth.”
- The comments got here throughout the electric vehicle maker’s fourth-quarter earnings call.
- Tesla stock is down 59% from its 52-week high, but has rallied nearly 30% year-to-date.
Elon Musk stood behind his view that Tesla will sooner or later be the Most worthy company on earth, as he teased latest initiatives throughout the company’s fourth-quarter earnings call on Wednesday
Tesla reported quarterly results that beat analyst estimates and offered vehicle delivery guidance of 1.8 million in 2023, with a stretch goal of two.0 million if the whole lot goes easily. The higher-than-feared earnings report helped push Tesla fill up as much as 12% on Thursday.
“Tesla has essentially the most exciting product growth map of any company on earth by an extended shot, and we’ll proceed to be in that position. We have got more great ideas than we all know what to do with here. The long run could be very exciting… long run, I’m convinced that Tesla can be the Most worthy company on earth,” Musk said.
He made similar comments during Tesla’s third-quarter earnings call in October, when he said Tesla could be value greater than Apple and Saudi Aramco combined, or about $4 trillion. Tesla currently has a market valuation of $502 billion.
It is a daring prediction from Musk, on condition that Tesla stock crashed 65% last yr as investors grew concerned about higher rates of interest, a possible recession, Musk’s Twitter takeover, and up to date price cuts to Tesla’s vehicle lineup.
Yr-to-date, Tesla shares rave rebounded significantly, jumping nearly 30%.
Tesla does have several avenues for future growth. On the automobile front, the corporate said its Cybertruck will enter mass production in 2024 and contribute meaningfully to its bottom line.
Musk also teased that latest products are under development, which presumably could possibly be a brand new automobile model. Wall Street analysts expect a lower-cost EV that they’ve dubbed the “Model 2.”
“I must also say that we’ve other products in development. We’re not going to announce them obviously but they’re very exciting and I believe we’ll blow people’s minds once we reveal them,” Musk said.
Other areas of growth for the corporate include Tesla insurance, which is currently at an annual premium run rate of $300 million. “We’re growing 20% 1 / 4 so it’s growing faster than the expansion in our vehicle business,” CFO Zachary Kirkhorn said.
Tesla can also be growing its energy generation and storage business, which grew 90% year-over-year within the fourth quarter with $1.3 billion in revenue.
While Tesla’s insurance and energy businesses could also be growing fast, they still represent about 5% of the corporate’s overall revenue, so cars should remain the majority driver of Tesla’s future profits.
For Tesla to turn out to be the Most worthy company on earth today, it will need to surpass Apple’s current market valuation of $2.2 trillion, which might equate to a Tesla stock price of about $698.