Electric vehicle giant Tesla Inc TSLA has been one of the most valuable companies in the world since rising over 1,000% in share value over the last five years. The company ranks as the world's sixth most valuable company, a position that CEO Elon Musk thinks will increase over time.
What Happened: Musk recently replied with his thoughts of Tesla becoming the most valuable company in the world to a Twitter TWTR post by Whole Mars Blog.
The post he replied to said:
“Without Elon there wouldn’t be a Tesla. Major eye roll at shareholders hating on the guy who made them rich just because the market had a downturn. ‘it’s all Elon’s fault!’ He told you stock price was too high. He told you recession was coming,” the tweet read.
Musk shared his thoughts in a reply to the tweet.
“Indeed I did. However I also think that Tesla has the potential to be the most valuable company ever. When Tesla’s market cap, making sustainable energy products, exceeds that of Aramco, producing fossil fuels, you know the future will be good for Earth,” Musk said.
Musk’s response references Saudi Aramco, the second most valuable company in the world. Saudi Aramco is an oil company valued at $2.39 trillion at the time of writing.
Technology giant Apple Inc AAPL ranks as the most valuable company in the world at $2.42 trillion.
A total of five companies rank ahead of Tesla, and they're also part of the trillion dollar value club with Microsoft Corp MSFT, Alphabet Inc GOOGGOOGL and Amazon.com Inc AMZN ranking third, fourth and fifth respectively.
Investing $1,000 in Tesla: Here’s a look at how a $1,000 investment in Tesla stock would fare if the electric vehicle company is set to become the most valuable company in the world.
Tesla shares closed at $765 on Friday and commanded a market capitalization of $787 billion. The total shares outstanding for Tesla stands at around 1.04 billion shares.
A $1,000 investment in Tesla shares can buy 1.3072 shares of Tesla at the time of writing.
If Tesla becomes the most valuable company in the world, it would be worth $2,326.92 per share, assuming no gain for Apple or the other companies ahead of the EV maker.
The $1,000 investment would be worth $3,041.75 if Tesla becomes the most valuable company in the world, representing a return of 204.2%.
Photo: Created with an image from TED Conference on Flickr
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