How would he know what capitalism really is? His famous book was published in 1776.
I think you, like most people, confuse a market-based economy with 'capitalism'. A market-based economy can exist without large-scale production.
Yet, while I am no Marxist, I accept, as Marx did, that large-scale production is necessary to overcome material scarcity. The present means of accomplishing that, however, certainly has nothing in common with any of the teachings of Jesus, according to what is written in the Gospels.
To achieve large-scale production in the context of a just economy would be consistent with the teachings of Jesus--who talked about justice as much as he talked about loving one another.