Elon Musk says valuation of $20 trillion for Tesla is possible, but….

Investor

Keith Fitz-Gerald

recently said that Elon Musk-owned electric vehicle (EV) company

Tesla

is headed towards a $20 trillion valuation. He stated that “Betting against Elon is like betting against Steve Jobs (Apple founder)”. Responding to the comments, the Tesla CEO acknowledged that while the valuation is possible, it may require ‘extreme execution’.“Extreme execution is needed, but a valuation of $20 trillion for Tesla is possible,” Elon Musk wrote, quoting a post on X (formerly Twitter). Notably, this comes days after Elon Musk warned of ‘few rough quarters’ for Tesla following the expiration of the US tax credit for EVs. In an earnings conference call with analysts and investors this week, the tech billionaire said “We’re in this weird transition period where we’ll lose a lot of incentives in the US.” Continuing further, he said “We probably could have a few rough quarters. I'm not saying we will, but we could”. “But once you get to autonomy at scale in the second half of next year, certainly by the end of next year, I would be surprised if Tesla’s economics are not very compelling,” he added.

The EV maker reported a drop in profit for the third quarter in a row, with earnings falling to $1.17 billion, or 33 cents per share, down from $1.4 billion, or 40 cents per share, during the same period last year.On an adjusted basis, the company earned 40 cents per share, which was in line with Wall Street expectations. Revenue for the April to June quarter also declined — from $25.5 billion to $22.5 billion — but still came in slightly higher than analysts had forecast.During the earnings calls, Musk was asked about whether he would want more than his current 13% stake in Tesla to keep control. To this, Musk said he did want more but not too much.“I think my control over Tesla should be enough to ensure that it goes in a good direction,” he said, “but not so much control that I can’t be thrown out if I go crazy.”