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- Elon Musk mentioned Tesla’s worth might exceed $4.4 trillion, and Twitter could possibly be price $400 billion.
- The Tesla CEO mentioned he is a maker of issues, not an investor like Warren Buffett, and teased a $10 billion inventory buyback.
- Musk warned he is seeing deflation, and mentioned the Fed has hiked rates of interest an excessive amount of.
Elon Musk has prompt Tesla’s market worth might surge greater than six-fold to over $4.4 trillion, pegged Twitter’s potential price at $400 billion, and distanced himself from Warren Buffett.
The know-how billionaire additionally rang the deflation alarm, teased as much as $10 billion of inventory buybacks subsequent 12 months, and argued the Federal Reserve has raised rates of interest an excessive amount of. He spoke throughout Tesla’s third-quarter earnings name on Wednesday.
Listed below are Musk’s 10 greatest quotes, evenly edited for size and readability:
1. “I see a possible path for Tesla to be price greater than Apple and Saudi Aramco mixed. I see a approach for Tesla to be roughly twice the worth of Saudi Aramco. That is the primary time I’ve seen that potential.” (Apple and Saudi Aramco are valued at about $2.3 trillion and $2.1 trillion. Tesla proper now could be price $700 billion.)
2. “I’m excited concerning the Twitter scenario. It is an asset that has languished for a very long time, but it surely has unbelievable potential. Though myself and the opposite buyers are clearly overpaying for Twitter proper now, the long-term potential for Twitter is an order of magnitude larger than its present worth.” (The social-media firm’s market capitalization is about $40 billion.)
3. “I am not Warren Buffett. I am not an investor. I am an engineer and a producing particular person and a technologist. So I really work and design and develop merchandise. We’re not going to have a portfolio of investments.” (Musk was discussing whether or not he would possibly create an umbrella firm that sits above his varied enterprise pursuits. He has lengthy been vital of the Oracle of Omaha.)
4. “It is doubtless that we’ll do some significant [stock] buyback. Even when subsequent 12 months is a really troublesome 12 months, we nonetheless have the flexibility to do a $5 billion to $10 billion buyback.”
5. “The automobile goes to be sick. It is going to be a corridor of famer, subsequent stage. Sorry it took longer than anticipated, however there have been a couple of issues that bought in the way in which, like insane world provide chain shortages. Power majeure, if there ever was one.” (Musk was speaking about Tesla’s upcoming Cybertruck and the manufacturing challenges it has confronted.)
6. “Commodities are dropping quite a bit. However in electrical automobiles, issues like battery-grade lithium are nonetheless loopy costly. We have got a mix of issues the place costs are dropping and issues the place costs are growing. However there’s extra deflation than inflation.”
7. “We’re very pedal to the steel, come rain or shine. We aren’t decreasing our manufacturing in any significant approach, recession or not recession.”
8. “The Fed is elevating rates of interest greater than they need to, however I believe they’re going to ultimately understand that and produce it again down once more. The Fed shouldn’t be listening as a result of they’re trying on the rearview mirror as a substitute of looking the entrance windshield.”
9. “Engineers aren’t coming off some meeting line like cookies or one thing.” (Musk was mentioning that engineers vary in high quality, so their particular person impression on the enterprise varies.) … “One Nikola Tesla is frankly price an infinite variety of of {dollars}. You might have virtually an infinite variety of nice engineers and they might not have the ability to do what one Nikola Tesla might do.”
10. “I believe the general public at giant realizes that the world’s shifting in direction of electrical automobiles and that it is silly to truly purchase a brand new gasoline automobile at this level as a result of the residual worth of that casting automobile goes to be very low.”
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