Tesla CEO Elon Musk has ambitious predictions for Tesla’s value, suggesting it could surpass the market capitalization of the world’s five largest companies—Apple, NVIDIA, Microsoft, Amazon, and Alphabet—combined. Despite this optimism, Tesla’s core business of passenger electric vehicles (EVs) is struggling, with deliveries down 1% in 2024. Musk is focused on future technologies like the Cyber Cab, which relies on Tesla’s Full Self-Driving (FSD) software, and the humanoid robot Optimus, which he believes has vast market potential.
Musk envisions significant earnings from a ride-hailing network for the Cyber Cab and expects Optimus to revolutionize productivity across various industries. He has set ambitious production targets but faces challenges as Tesla’s current financial performance is heavily tied to declining EV sales. Tesla’s stock appears overpriced given its high price-to-earnings ratio, suggesting room for decline if progress on FSD and Optimus isn’t made. Investors are advised to exercise caution and consider a long-term commitment before investing in Tesla.
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