Musk Believes Tesla Can Exceed Value Of Apple and Saudi Aramco Combined

Never one to shy away from expressing his optimism, billionaire and Tesla CEO Elon Musk made a wide range of bold predictions this week during an earnings call.

Musk believes that Tesla’s growth potential is virtually unlimited and that his company could become one of the — if not the — most valuable enterprises in the world. He does not see exceeding Apple’s current market cap as a pipe dream, but a goal “we can far exceed.”

Even further, the CEO envisions a “potential path for Tesla to be worth more than Apple and Saudi Aramco combined.” He did momentarily caution that his vision does not mean it will either happen or be easy.

Musk emphasized that demand for Tesla’s electric vehicles is soaring and the manufacturer fully expects to sell every car it can roll off the assembly line as far into the future as it can see. He noted that factories are back to “running at full speed” and operating margins are strong.

It does not hurt business that the federal government has thrown its weight behind the industry. Part of the recently enacted Inflation Reduction Act enacts $7,500 tax credits for some new electric vehicles and $4,000 for used ones.

States have gotten into the act as well, with California’s Air Resources Board stipulating that all new vehicles in the state by 2035 must produce zero emissions. Other states such as Massachusetts, Virginia, and Washington have followed suit.

Musk also addressed his still-pending purchase of Twitter, saying that he believes that the social media platform “has sort of languished for a long time but has incredible potential.”

He added that the company has far greater long-term possibilities than its current value. The CEO expected to part with some of his major holdings in Tesla to complete the $44 billion purchase.

That purchase was on hold until recently as Musk and Twitter fought over the company’s assessment of fake accounts on the platform. The Tesla CEO also expressed his concern over the perceived lack of support for the principle of free speech within the organization.