Analysts dispute Elon Musk’s claim about Tesla becoming bigger than Apple, Aramco: Report

Analysts dispute Elon Musk’s claim about Tesla becoming bigger than Apple, Aramco: Report

The electric-vehicle maker reported lacklustre third-quarter results on Wednesday, with revenue and margins missing estimates even as profit beat

By Wam Published: Fri 21 Oct 2022, 1:59 PM

Wall Street analysts have disputed Elon Musk's claim about Tesla Inc becoming bigger than the combined valuation of Apple Inc and Saudi Aramco one day, Bloomberg reported on Friday.

According to the Bloomberg data, the electric-vehicle maker reported lackluster third-quarter results on Wednesday, with revenue and margins missing estimates even as profit beat.

This is the first time the company missed revenue estimates since the third quarter of 2021. Tesla CEO Musk also said that demand was a "little harder than it would otherwise be", due to downturns in China and Europe.

The results and the cautious stance on demand prompted multiple analysts to lower their price target on the company on Thursday.

The average price target on the company stands at $293: over 40 per cent higher than the stock's Thursday close. Tesla shares closed down 6.7 percent at $207.28.

"We remain cautious on valuation, particularly in the context of lofty unit volume growth expectations, and continue to see material downside risk to our December 2023 price target," JPMorgan analyst Ryan Brinkman wrote in a note.

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