Tesla Update and Price Prediction

Ian Greer -

In a recent Twitter Spaces, Elon Musk gave a price prediction for Tesla stock and several updates on Tesla.

  • Elon said he predicts that within five years, Tesla will become the largest company in the world. If we estimate that the largest company in five years will have a market capitalization of $4 trillion, and Tesla's current market capitalization is ~$400 billion, then Tesla's market capitalization could potentially 10x by 2028.
  • Elon said that he will not sell any Tesla stock in 2023 and is unlikely to sell any in 2024.
  • Elon said that Tesla is the most recession-resistant of any complex manufacturing company. Tesla has no debt, ~$20 billion in cash and cash equivalents, and generates ~$3 billion in free cash flow.
  • The board is open to a stock buyback but Elon wants to gauge the severity of the 2023 recession first.
  • Elon said there will likely be huge stock investment opportunities in 2023.
  • On the All-In Podcast, Elon said that his best guess for when the coming recession will end is Q2 2024.