Here’s what people are saying about Tesla’s Elon Musk and his lofty Apple claim
During last night’s Tesla (TSLA) earnings call, company founder Elon Musk didn’t hold back.
The eccentric entrepreneur has big goals for his electric car company. In fact, he directly challenged Apple (AAPL), saying that Tesla’s market cap would match that of Apple in 10 years.
That’s an ambitious goal. Just this week shares of the tech giant rose above $122, making the company the first in world history to exceed $700 billion in market capitalization at the close of a trading day.
Musk thinks his company can do the same. Here’s what he said on the earnings call, as quoted by TheStreet.com:
“If you take this year’s revenue, around $6 billion or thereabouts, and if we are able to maintain a 30% growth rate for 10 years, add to your 10% profitability number, and have a 20 P/E, our market cap would basically be the same as Apple’s is today.”
“That’s going to require a bit of — on the order of $700 billion — obviously, getting there will requires some significant CapEx, but I am hopeful that we can do this without any significant dilution to the company, maybe minor dilution but nothing serious.”
Tesla’s market cap currently sits at $26 billion. Apple’s market cap? $733 billion — 28 times larger, to be exact.
Not surprisingly, Musk’s ambitions have lit up social media. Here’s what people are saying about his bold statements.