For Elon Musk, Tesla’s competitor is really not the one we think

Elon Musk expresses himself without filter on Twitter, but it sometimes allows to obtain interesting information on his vision of the business. A few days ago, it was in a reply to a tweet that he indicated who he thought was his real opponent. And it’s not a clean automaker.

By freely sharing everything that comes to mind on Twitter, Elon Musk exasperates (often). It also allows us to learn more about how he wants to advance his businesses. If all the information he disseminates should not be taken at face value, some is indicative of his state of mind, from a business point of view.

In one of his tweets published on May 25, 2022, highlighted by Teslarati, we can understand that his biggest competitor is neither a car manufacturer nor a GAFAM company, but quite simply the biggest company in the industry. oil: Aramco.

What is Aramco?

I think Tesla has the opportunity to be the most valuable company in history. When the market capitalization of Tesla, which is in renewable energies, exceeds that of Aramco, which produces fossil fuels, we will know that the planet has a bright future ahead of it. “, tweeted Elon Musk.

Aramco, or Saudi Aramco, is the Saudi national hydrocarbon company. It is the largest oil producing company in the world. It owns almost all of Saudi Arabia’s hydrocarbon resources, which represents a considerable share of the world’s oil. Suffice to say that with the current situation of conflict with Russia, they are literally the kings of oil.

While Apple has dominated the market capitalization game since the Covid pandemic, Aramco has just passed the apple firm since the start of the year. In mid-May, its market capitalization exceeded 2,430 billion dollars (or approximately 2,263 billion euros). Elon Musk does not choose his opponents at random.

Why such a goal for Elon Musk?

There are two aspects that explain why Elon Musk wants to beat Aramco. The first is that Elon Musk just wants to be the best, so he’s aiming for the top spot. And, right now, the top spot in terms of market valuation is held by Aramco, so that’s the target to beat. Even though Tesla has already beaten all car manufacturers with exceptional capitalizations, by exceeding 1,000 billion dollars for a time, today the gap has widened again with Aramco.

Tesla share price // Source: google screenshot

A snub to automakers

The second aspect of this objective has a more ecological dimension. Because beating Aramco would be a strong signal that the world is changing, and that the fossil fuel industry no longer dominates the global economy. A utopian vision that we already know from Elon Musk. Through Tesla, the entrepreneur wants to develop an ecosystem of solutions based on renewable and sustainable energies (as with his solar roofs). Products that are positioned at the opposite of the solutions produced by Aramco.

In the universe of Elon Musk, he considers to have already beaten all the car manufacturers. Whether we are talking about market valuation or products. The leader of Tesla has never hidden that he had nothing more to learn, and nothing to fear, from other car manufacturers.

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