$25 trillion valuation requires $1.25 trillion annual profits, Elon probably has difficulties with arithmetic, tweet author notes

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Olesia Kramarenko

27.04.2026

$25 trillion valuation requires $1.25 trillion annual profits, Elon probably has difficulties with arithmetic, tweet author notes — $25 trillion valuation needs massive profits

Elon probably has difficulties with arithmetic, industry influencer, questions the feasibility of a $25 trillion valuation for a mature company, pointing out the arithmetic involved.

According to the author, with a price-to-earnings ratio of 20, reaching a $25 trillion market cap would imply annual profits of $1.25 trillion. This figure would represent roughly 40% of all after-tax U.S. profits, a level viewed as highly improbable based on historical standards.

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Baker has previously noted that hours worked and average weekly earnings in the U.S. declined in March before accounting for inflation in his analysis. In another report, he observed that the Trump administration’s Iran policies and economic measures reduced stock prices, effectively lowering billionaire wealth by billions according to his findings. These observations highlight his focus on earnings data and market valuations in recent commentary.

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