For Elon Musk, Tesla’s Biggest Rival Is Not An Electric Car Maker

Deepak Gupta May 31, 2022
Updated 2022/05/31 at 10:49 PM

As Tesla is a car manufacturer, it would be expected that its biggest rival would also be a company dedicated to the development and production of vehicles. However, Elon Musk revealed that this is not the case.

The CEO’s opinion was given, as always, via Twitter.

Before being an electric car company, one of the most significant in the market, Tesla is a hardware and software company. In fact, it is the skills in this segment that guarantee the success it has enjoyed. In such a way that its arrival shook the market – with irreverent models that proved that an electric car can coexist with an appealing design -, and accelerated the electric mobility that is being widely adopted by other manufacturers.

As one of the giants in the electric market, it would be expected that its main competitors would be other manufacturers trying to penetrate this, which is the field of Tesla. However, Elon Musk has already revealed that his main rival is much bigger than a car manufacturer.

Oil company is Tesla's biggest rival

Seeking to accelerate the transition to the use of renewable energies is not limited to the electrification of supply. Therefore, Tesla's biggest rival is, for Elon Musk, Aramco, one of the largest oil companies in the world, based in Saudi Arabia. In addition, it is also one of the world's largest in terms of market capitalization and owns 69% of SABIC, one of the world's leading manufacturers of chemicals, fertilizers, plastics and metals.

In the opinion of the Tesla CEO – given, as always, via Twitter – once the electric maker overtakes Aramco on the stock market, “we will know that the future will be good for the Earth”. In addition to Aramco, which recently became the most valuable company, Tesla is expected to overtake other oil companies, revealing a maturing consumer market in relation to renewable energy.

Currently, and despite values ​​fluctuating on a recurring and unexpected basis, Aramco has a capitalization of 2.4 billion dollars. In turn, Tesla sets itself at $786 billion. Given these data, the road to the Earth's “good future” is predicted to be a long one.

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