What Tesla has to do to achieve $4T valuation according to Elon Musk

Tesla CEO Elon Musk believes the electric automaker can achieve a $4 trillion valuation, but he knows the road to the accomplishment is going to be a long one.

Yesterday, we reported on Ron Baron, a billionaire investor who has been one of Musk’s longest believers, stating that Tesla could reach a massive valuation of $4 trillion.

Tesla investor who made billions on stock says SpaceX will be bigger

Baron said that his firm has made many multiples of its initial investment and, at its peak, was up over $5 billion. He believes SpaceX has an opportunity to be an even bigger golden egg when it goes public, which he believes will happen within three years.

Musk stated on X earlier today that he does believe Tesla can reach that type of valuation if the company “can knock it out of the park several times.”

Tesla has a few things in the works that could help achieve this valuation.

One is the Full Self-Driving suite, which Musk has said for years that the company will solve “this year.” By “this year,” he does not mean 2023 specifically because he has said nearly every year since 2015 that it will be the year FSD is solved.

Tesla has made progress on its FSD suite, but it admitted in 2023 that the semi-autonomous driving software is still a Level 2 SAE autonomous classification. Level 5 would be enough to allow drivers not to do anything when the car is in operation.

FSD would open up opportunities for the company’s Robotaxi fleet to begin operation, allowing drivers to sleep while their vehicle performs a ride-hailing service.

Scaling production to millions of EVs every year and selling millions of cars in various markets would also help Tesla’s valuation, but that has several moving parts, including the launch of more Gigafactories and more affordable cars, which has been in the pipeline for the company for several years.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

What Tesla has to do to achieve $4T valuation according to Elon Musk


Leave a comment

Your email address will not be published. Required fields are marked *