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Tesla Shifts Gears: Major Expansion in Robotics Set to Skyrocket Valuation

Daniel Kim Views  

Elon Musk made several significant announcements at the recent Tesla shareholders’ meeting.

Musk shared that his stock option compensation package was reapproved, amounting to approximately $5.6 billion. Additionally, the proposal to relocate the headquarters to Texas was accepted, which is expected to strengthen Musk’s control over Tesla. The proposal received over 80% of the total votes, garnering more support than expected.

Tesla also received approval for mass production of semi-trucks, and the Cybertruck broke the record by producing 1,300 units per week. The release of the Robotaxi was reconfirmed for August 8. The newly announced Tesla vehicle lineup is expected to include the Model 2, Roadster, and Robotaxi. Tesla also announced the expansion of the 4680 battery factory and the growth of its energy storage device system. With the release of FSD 12.4, it will be possible to drive without holding the steering wheel, and the transition to Level 3 autonomous driving is expected. The most notable announcement is that thousands of Optimus bots are expected to be operational in factories from next year.

Musk redefined Tesla not as an automobile company but as an AI software and robotics company. He stated that the robotics business could raise Tesla’s market capitalization to $25 trillion. This figure is ten times larger than the combined market capitalization of Apple and Microsoft.

Investment firms like Morgan Stanley, JP Morgan, and Goldman Sachs highly evaluate the potential of the robotics business. There’s an analysis that if the ROI of robots is set at $250,000, it can generate more than $3 million in profits over 15 years. Robots can work 24 hours, which greatly reduces labor costs and is expected to create added value due to its high efficiency.

Ark Investment estimates Tesla’s fair share price in 2029 to be $2,600, suggesting it could increase more than 15 times from the current price. They expect the Robotaxi business to account for 63% of revenue, with its commercialization beginning in 2025.

Tesla is showing overwhelming results in autonomous driving technology. In terms of accumulated autonomous driving distance and accident rate, Tesla is far ahead of its competitors. Tesla’s FSD is evaluated as 20 times safer than humans, with one accident occurring every 3.2 million miles.

For autonomous driving to be commercialized, the perception that AI is safer than human drivers needs to spread. Although this may take time, the possibility is increasing. Tesla’s future relies on the success of autonomous driving and robotics businesses, which could help achieve its market capitalization goal of $25 million.

Daniel Kim
content@viewusglobal.com

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