All the cars in China

12 February 2015 By Robert Cyran Follow @rob_cyran

Elon Musk thinks the $25 bln electric automaker could be worth $700 bln or more in 10 years. Along with what seems to be a math mistake, Musk’s assumptions for Tesla’s future look heroic – especially for a company that is having some down-to-earth trouble in the present.

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Tesla Motors on Feb. 11 reported revenue of $957 million for the fourth quarter of 2014, an increase of 57 percent from the same period a year earlier. The electric car maker lost $108 million, or 86 cents a share. Tesla lost $16.3 million, or 13 cents per share, in the final quarter of 2013.

The company delivered 9,834 vehicles in the quarter. Chief Executive Elon Musk had said in July that Tesla would deliver 13,000 of its Model S cars in the quarter.

In a call with investors, Musk said Tesla would “spend staggering amounts of money on capex, for good reasons and a great ROI.” He went on to say the company’s market value could reach Apple’s <AAPL.O> within 10 years. The iPhone maker is worth $740 billion, while Tesla is worth $25 billion.

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Elon Musk plugs Tesla valuation into the grid

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The company delivered 9,834 vehicles in the quarter. Chief Executive Elon Musk had said in July that Tesla would deliver 13,000 of its Model S cars in the quarter.

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