Tags: Elon | Musk | Tesla | Worth | Apple

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).

© 2017 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
StreetTalk
Tesla Chief Executive Elon Musk boldy predicted his electric carmaker will be worth more than Apple.
Elon, Musk, Tesla, Worth, Apple
392
2017-54-04
Thursday, 04 May 2017 02:54 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved