Will Tesla become the world’s most valuable company? Elon Musk thinks so.
Tesla has had an impressive past few years under the direction of CEO Elon Musk, and despite a wave of barriers, this year has been no different. And in a recent investor’s meeting that discussed topics ranging from the upcoming stock split to a future full of robots and robotaxis, Musk also said that Tesla could be slated to outperform the rest of the market.
At Tesla’s annual shareholders meeting this month, Musk said he thought Tesla would probably become the world’s most valuable company, as detailed in a report from Barron’s. The concept isn’t out of the realm of possibilities, and with the automaker’s 3-for-1 stock split coming up, bullish investors seem inclined to agree with Musk’s prediction.
The stockholder’s meeting, held on August 4, was closed out by Musk after shareholders voted to approve proposal four to split the stock — increasing authorization of as many as 4 billion shares. And if the current stock split is anything like the last one, Musk might not be far off.
“Assuming we do all these things…Tesla will probably be the most valuable company in the world,” Musk said at the Cyber Roundup shareholder’s event.
On August 11, 2020, Tesla declared a stock split which would take effect on August 28. Shares began trading at the split-adjusted price on August 31, after a bull run which left the automaker’s stock gaining an amazing 81 percent between August 11 and 31.
While Tesla’s stock is unlikely to gain another 81 percent in the upcoming stock split, doing so would boost the company quite significantly. An 81 percent gain by August 25, when the split will take effect, would push Tesla upward past both Alphabet (Google) and Amazon, making the company worth $1.7 trillion.
Similarly, at the meeting, Musk mentioned not being surprised at estimates that Tesla could sell 100 million cars over the next decade, and that the automaker had officially sold its three millionth vehicle just a week or so before the event. Over the past decade, Musk explained, Tesla went from 300,000 to three million vehicles sold, representing a tenfold increase.
Tesla’s future achievements will be worth watching, no doubt, but it’s up to investors to decide the scale of the company’s stock. And ahead of the stock split, Musk’s bold claim of Tesla becoming the world’s most valuable company will ring in the ears of bulls and bears alike.