(Boursier.com) — You’re here corrected after the stock market on Wall Street yesterday Wednesday, the group of Elon Musk having reported strong growth in third quarter revenues, but below the very ambitious expectations of analysts on the spot. The stock thus fell 6% to $208 off-market. Tesla is now giving up half of its value on Wall Street, since all-time highs recorded in November 2021.
Yet Musk made no secret of his ambitions last night when presenting the results. He even claims that Tesla could be worth as much asApple and Saudi Aramco – the two groups with the largest capitalizations in the world – combined! For the moment, Tesla weighs less than 700 billion dollars, against more than 2,300 billion dollars for Apple and nearly 2,100 billion for Saudi Aramco.
“My view is that we could significantly exceed Apple’s current market capitalization,” Musk said, adding, “In fact, I see a potential path for Tesla to be worth more than Apple and Saudi Aramco combined.” In other words, the boss of Tesla thinks that the market capitalization of the manufacturer of electric vehicles could reach… more than 4.400 billion dollars!
Musk has previously compared the market capitalizations of Tesla and Apple. In October 2021, Tesla had entered the very closed club of market capitalizations of more than 1,000 billion dollars. Since then, with the relapse of Wall Street, the most expensive automaker in history has fallen a notch.
Without really explaining Tesla’s plans to reach more than $4 trillion in market value, Musk also promised Tesla fans and investors an “epic” year-end. The CEO of the group envisages for Tesla “a record fourth quarter”, or even “extremely good”, comments which did not really dispel the disappointment of the third quarter.
In the quarter ended, Tesla posted net profit of $3.3 billion and revenue of $21.45 billion. Despite an impressive 56% year-on-year increase in revenue, the consensus, which was $21.96 billion, is missed. In the third quarter, Tesla produced nearly 366 thousand units, a 54% year-on-year increase, with the Model Y and Model 3 accounting for 94.6% of total production. Over three quarters, the group produced as many vehicles as in the whole of 2021. Nearly 344,000 cars were delivered over the quarter and 908,573 over nine months.
Musk refers to the fourth quarter as “excellent demand” and factories running at full speed, with operating margins still strong.
Zach Kirkhorn, the group’s chief financial officer, for his part indicated last night that Tesla was still having difficulty getting its vehicles to customers, with an increase in cars in transit at the end of the third quarter which weighed on the fund. rolling. “Looking ahead, our plans show we are on track for 50% annual growth in production this year – although we are monitoring supply chain risks, which are beyond our control. On the delivery side, we expect to be just under 50% growth due to an increase in cars in transit at the end of the year (…) This means that again, you should expect a gap between production and deliveries in Q4. And these in-transit cars will shortly be delivered to their customers upon arrival at their destination and in Q1 (2023).” In other words, Tesla should therefore produce nearly 1.4 million vehicles in 2022 and deliver more than 1.4 million units, according to these comments.
Thus, Tesla’s CFO has somewhat revised the delivery target, which only seems to be a short-term problem due to logistical difficulties, and does not call into question the very high level of demand. Musk, meanwhile, hinted that a Tesla stock buyback program could be a possibility next year, for $5 billion to $10 billion, subject to board approval. “I wouldn’t say we’re recession proof, but certainly recession resilient,” the executive added.
Wall Street, however, seems unconvinced at the moment, in a hectic market environment, and while operators also fear that Musk will have to sell additional Tesla shares in the short term to finance the acquisition of the social media network. Twitter for $44 billion. The businessman said last night that he was still enthusiastic about the idea of this acquisition, although he considers that he and other investors are overpaying the company.