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FT: Elon Musk Predicts Tesla Will Be Worth More Than Apple

Image: FT: Elon Musk Predicts Tesla Will Be Worth More Than Apple
(Getty/Jerry Lampen)

By    |   Thursday, 04 May 2017 02:54 PM

Tesla Inc. Chief Executive Elon Musk boldy predicted his electric car maker will be worth more than Apple.

“I want to preface this by saying I could be delusional,” Musk told Wall Street analysts on his company’s latest quarterly earnings call, the Financial Times reported.

"But I think I see a clear path to that outcome,” he said.

“The set of steps necessary to achieve that outcome seems pretty obvious. I am heavily involved in Tesla [getting] incredibly good at the machine that builds the machine, which involves, by the way, a tremendous amount of software. This is not just a bunch of robots that are sitting there. It's the programming of robots and how they interact. And it's far more complex than the software in the car. I mean, I think, this is just going to be a very difficult thing for other manufacturers to copy. I would not know what to do if I were in their position," CNBC quoted Musk as saying.

Tesla's market value is $51 billion through Wednesday, according to FactSet. Apple's current market value is $772 billion after a 27 percent rally this year.

Tesla reported quarterly revenue that more than doubled and also trumped analysts' expectations, driven by record deliveries of its Model X sports utility vehicles and Model S sedans, Reuters reported.

Tesla said it had $4.01 billion in cash and cash-equivalents as of March 31, compared with $3.39 billion at the end of the previous quarter.

Tesla said net loss attributable to common shareholders widened to $330.3 million in the first quarter ended March 31, from $282.3 million a year earlier.

On a per-share basis, net loss narrowed to $2.04 per share from $2.13 per share.

Excluding items, the company lost $1.33 per share. Analysts on average had expected a loss of 81 cents per share, according to Thomson Reuters I/B/E/S.

Revenue more than doubled to $2.70 billion from $1.15 billion, and edged past analysts' average expectation of $2.62 billion.

Meanwhile, Tesla stock (TSLA) recently traded at $297.57.

But to Reuters Breaking View's Antony Currie, that may be a big red flag.

"At almost 26 times 2020 estimates, Tesla’s stock is trading at a level implying Silicon Valley-style margins of 30 percent and near-perpetual vehicle-sales growth," he wrote. "Despite Musk's undeniable kinetic energy, that's simply unjustifiable."

(Newsmax wires services contributed to this report).

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Tesla Chief Executive Elon Musk boldy predicted his electric carmaker will be worth more than Apple.
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Thursday, 04 May 2017 02:54 PM
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