Tech billionaire Elon Musk, as the CEO of Tesla, participated in an earnings conference call for the electric vehicle company to mark the end of the year’s third quarter and offered up some news that came as a surprise to some.
Musk predicted a “record-breaking” fourth quarter and suggested that Tesla could eventually be more valuable in terms of market capitalization than Apple and Saudi Arabia’s Aramco oil company “combined,” Fox Business reported.
He further shared how “excited” he was about his potential acquisition of Twitter and said that while he would be “overpaying” for the social media platform right now, he envisioned that company eventually becoming “an order of magnitude greater than its current value.”
Tesla did pretty well during Q3
Fox Business noted that it had been estimated by analysts that Tesla’s Q3 revenue would be around $21.96 billion, and while the company fell short of that mark, it wasn’t by much, as its quarterly report revealed $21.45 billion in Q3 revenue, which was up by more than 25 percent over Q2 and by more than half compared to 2021’s Q3.
It was also revealed that Tesla had earned $3.3 billion in profit in the third quarter, more than twice as much as the $1.6 billion profit it enjoyed over the same three-month period in 2021.
As far as its automotive production is concerned, the Tesla report confirmed what had already been announced in a press release a few weeks ago — that it had produced more than one vehicle for each day of the year in just the third quarter alone and had already delivered the vast majority of those vehicles to waiting customers.
Indeed, over the course of Q3, Tesla had completed production on 365,923 vehicles and had completed delivery of 343,830 of them — a number that potentially could have been even higher had it not become “increasingly challenging to secure vehicle transportation capacity and at a reasonable cost during these peak logistics weeks” near the end of the quarter.
As for certain problems that Tesla has faced, the quarterly report cited “logistics volatility and supply chain bottlenecks” as immediate short-term issues and suggested that “battery supply chain constraints” would be the primary “limiting factor to EV market growth” longer term.
Musk shares optimistic outlook for the future of Tesla … and Twitter
During the Wednesday earnings call, Fox Business reported, Musk said, “We’re looking forward to a record-breaking Q4,” and added, “Knock on wood, it looks like we’ll have an epic end of year.”
He noted that Tesla foresaw “excellent demand” for its products in the fourth quarter and shared his expectation that the company would be able to sell “every car that we make for as far as the future as we can see.”
As for the future outlook for the company’s value, Musk said, “I see a potential path for Tesla to be worth more than Apple and Saudi Aramco combined,” but cautioned, “Now that doesn’t mean it will happen or that it’ll be easy. In fact, I think it will be very difficult and require a lot of work, some very creative new products, mass expansion and — always — luck.”
With respect to his bid to purchase Twitter, which came up during the call, Musk said, “I think it’s an asset that has sort of languished for a long time but has incredible potential,” and added, “Although obviously myself and the other investors are obviously overpaying for it right now, the long-term potential for Twitter in my view is an order of magnitude greater than its current value.”