Skip to content
Home ยป The Trillion Dollar Question: Will Tesla Be The Next Apple?

The Trillion Dollar Question: Will Tesla Be The Next Apple?

Jim Cramer believes Tesla has the potential to reach a $1 trillion market valuation

Jim Cramer believes Tesla has the potential to reach a $1 trillion market valuation, comparing the electric vehicle maker to tech giants like Apple and Nvidia, check out full video. But what will it take for Tesla to join the elite trillion-dollar club?

On a recent episode of Mad Money, Cramer theorized that a major institutional investor could be propping up Tesla’s share price, not allowing it to fall below a certain level. This echoes the strategy of star stock-picker Cathie Wood, whose ARK Innovation ETF has been a stalwart Tesla bull. “It does feel like there is some big portfolio manager making a stand and not letting it go any lower,” Cramer stated.

Tesla’s valuation already stands at a towering $690 billion, but tripling that to $1 trillion is not out of the question. The company has led the electric vehicle revolution while growing revenue at 50-60% annually. Critics point to looming competition from legacy automakers, but Tesla enjoys strong brand power and continues innovating with moves into solar energy, autonomous driving technology and even humanoid robots.

Becoming a trillion-dollar business is rarefied territory. Besides Apple, the only other U.S. company valued over $1 trillion currently is Microsoft. Saudi Aramco and Amazon have also crossed that threshold in the past. But in an age where software and technology drive business success, Tesla’s vertically integrated structure gives it an opening. With an eccentric visionary like Elon Musk at the helm, underestimating Tesla’s potential seems unwise.

The trillion-dollar question remains open. But with Tesla continuing to disrupt multiple industries at once, it may just be a matter of time.

Share on: