{"id":34132,"date":"2022-10-19T18:08:24","date_gmt":"2022-10-19T22:08:24","guid":{"rendered":"https:\/\/autosector.com\/?p=34132"},"modified":"2022-10-19T18:08:24","modified_gmt":"2022-10-19T22:08:24","slug":"elon-musk-tesla-tsla-worth-more-than-apple-appl","status":"publish","type":"post","link":"http:\/\/autosector.com\/?p=34132","title":{"rendered":"Elon Musk says Tesla (TSLA) could soon be worth more than Apple (AAPL)"},"content":{"rendered":"

Elon Musk says Tesla (TSLA) could soon be worth more than Apple (AAPL), and the company is putting its money behind this position with a $5 to $10 billion share buyback.<\/p>\n

Today,\u00a0Tesla released its Q3 2022 financial results<\/a>. The automaker delivered a small miss on revenue-based on expectations, but it beat earnings expectations.<\/p>\n

Tesla has been having a hard time on the stock market over the last few months, and the Q3 results didn\u2019t help.<\/p>\n

After the release of the results, Tesla held a conference call with analysts during which CEO Elon Musk took the microphone in a clear attempt to calm investors. The CEO started out by announcing that Tesla\u2019s board has discussed a share buyback program, and it is in agreement that it would make sense to proceed with a $5 to $10 billion share buyback.<\/p>\n

A share buyback program consists of a company buying its own shares at the market price. It\u2019s generally a sign that the company believes its stock is undervalued and is a way to boost the stock price.<\/p>\n

Musk did say that the plan hasn\u2019t been finalized, but it looks like Tesla is going to be moving forward with a share buyback program soon.<\/p>\n

After announcing the buyback program, the CEO commented on Tesla\u2019s valuation:<\/p>\n

\n

A while ago, I said on an earnings call that I thought it was possible for Tesla to be worth more than Apple, which was worth about $700 billion at the time.<\/p>\n<\/blockquote>\n

Tesla is now worth about $700 billion based on its market capitalization. <\/p>\n

Now Musk has a new goal for Tesla\u2019s valuation:<\/p>\n

\n

Now I\u2019m of the opinion that we can far exceed Apple\u2019s current market cap. I see a path for Tesla to be worth more than Apple and Saudi Aramco combined.<\/p>\n<\/blockquote>\n

Apple is now worth $2.3 trillion, and Saudi Aramco is worth about $2 trillion.<\/p>\n

The CEO also emphasized that even in a bad recession, Tesla could still generate \u201cmeaningful cash\u201d next year. Hence his belief that it would make sense to initiate a share buyback program.<\/p>\n

Musk doesn\u2019t include Tesla Optimus<\/a>, the company\u2019s planned humanoid robot, in his equation, and says that it would take a lot of work, great execution, and some luck to achieve Apple and Aramco\u2019s valuation.<\/p>\n

\n

FTC: We use income earning auto affiliate links.<\/em> More.<\/a><\/p>\n

\"\"<\/a><\/div>\n\n

Subscribe to Electrek on YouTube for exclusive videos<\/a> and subscribe to the podcast<\/a>.<\/p>\n