Despite the stock’s rather difficult time over the last few weeks, its CEO has not lost hope. Indeed, Elon Musk has recently stated his belief that Tesla (TSLA) will eventually surpass the world’s five largest companies in worth. Yet, can its future products be enough to propel it beyond its current struggles?
Tesla had underperformed in its most recent earnings report. Moreover, it looks to be one of the biggest companies affected by the ongoing geopolitical tensions. As US President Donald Trump institutes tariffs on North American nations, it places a lot of the company’s earning power into question. So, why is Musk still so optimistic?
Also Read: Tesla (TSLA) Stock Keeps Falling: Are Trump’s Tariffs to Blame?
Elon Musk Says Tesla Will be Worth More than Five Largest Companies Combined: But Why?
Midway through Wednesday, Tesla shares had already fallen more than 2.51%. That has come to be indicative of the trend, as opposed to the exception. Things were certainly supposed to be different this year. With Elon Musk taking a position in the incoming presidential administration, he was expected to push for benefits for his EV manufacturing company.
Yet, that has ceased to be the case. In its most recent earnings report, the company noted revenue increased just 2% for Q4 year over year, reaching $25.7 billion. Additionally, its profitability was negatively impacted by a 9% increase in operating expenses.
Altogether, they missed expectations from analysts for its underwhelming data. However, Elon Musk still says Tesla (TSLA) will surpass the five largest companies in the world combined. The biggest question is: why?
Also Read: US Stocks: Which Was Hit the Hardest by Trump’s Tariffs?
Speaking on the earnings call, Musk said he expects the automobile business to return to growth this year. Moreover, he noted unsupervised self-driving will launch in Texas in June. Moreover, he expects to expand to several more cities by the end of 2025.
Additionally, Musk spoke glowingly about the company’s Optimus Robots. Indeed, he noted that the company is planning to build 10,000 of the humanoid bots by the end of the year. He did note that these products will be doing “useful things.”
This all created what Musk viewed as a path to a value of more than the next top five companies by market cap combined. Currently, the automobile manufacturer is 7th on the market value list. Although there are exciting developments taking place, that appears unlikely for now.