Tesla Inc currently trades with a valuation of just over $1 trillion. However, CEO Elon Musk is beyond optimistic, predicting that the stock will reach a valuation of $20 trillion to $30 trillion. This is not the first time Musk has placed a market cap goal of more than $20 trillion on the electric vehicle company.
Key Drivers of Growth
Musk believes that the future of Tesla’s growth will come mainly from two key areas:
- Autonomous vehicles: Tesla’s advancements in autonomous technology are expected to play a significant role in driving growth.
- Optimus humanoid robot: The Optimus robot is seen as a game-changer, with potential applications in various industries, including healthcare and manufacturing.
Robotaxi Fleets: A New Era for Transportation
Musk envisions a future where robotaxi fleets will revolutionize transportation. These fleets will be a combination of:
- Uber: Providing on-demand transportation services
- Airbnb: Allowing individuals to own and rent out their vehicles to others
Some of the fleet will be Tesla-owned, while others will be customer-owned.
###life-Changing Opportunities with Optimus
Musk believes that Optimus could be life-changing for many people, particularly those who require assistance with daily tasks. The robot could be used as a:
- 24-hour day nurse or helper: Assisting individuals with disabilities or those who need physical help
- Helper in dangerous or repetitive tasks: Reducing the risk of injury and improving efficiency in various industries
Investors Remain Skeptical
While Tesla has attracted a large fan base and numerous investors, hearing a market capitalization of more than $20 trillion may seem unrealistic. The current valuation of the 10 most valuable companies in the world is around $23.2 trillion, making Musk’s prediction seem ambitious.
Comparison to Other Companies
- NVIDIA: The most valuable company, with a market cap of over $4 trillion
- Microsoft, Apple, and other companies are also expected to reach high valuations, but Tesla’s predicted growth is exceptional
Musk’s Other Ventures
Interestingly, Tesla may not be the most desirable investment option among Musk’s companies. A recent poll showed that:
- Starlink: 27% of investors would prefer to invest in Starlink
- SpaceX: 27% would prefer to invest in SpaceX
- X and xAI: 19% would prefer to invest in X and xAI
- Tesla: Only 16% would prefer to invest in Tesla
Conclusion
While Musk has proven investors wrong before, a $30 trillion valuation for Tesla seems like a lofty goal. Currently, investors are not fully buying into Musk’s promises, and it remains to be seen whether Tesla can achieve such an ambitious target.