2024-07-03 09:44:34 ET
Summary
- Tesla, Inc.'s valuation is influenced by whether it remains an automaker or evolves into a technology hardware company, with expected value ranging from $300 billion to $1 trillion.
- Tesla is heavily investing into new technologies like Full Self Driving, robotics manufacturing solutions, and AI.
- Tesla’s performances speak for themselves, in all aspects they are superior to your average automaker.
- Tesla's risk-reward profile has the potential to generate a positive return to its shareholders.
Executive Summary
Tesla, Inc.'s (TSLA) valuation is influenced by whether the firm will remain an automaker or it will evolve into a technology hardware company, with the company’s expected value ranging from a low of $300 billion to a high of $1 trillion.
At the present day, Tesla is undoubtedly an automobile company, with 1.8 billion vehicles sold in 2023. However, it's undeniable that the company is heavily investing in new technologies, among all in its Full Self-Driving ((FSD)) capabilities.
But Tesla tech doesn’t stop at autopilot, the firm is notably investing and developing robotics manufacturing solutions, currently implemented in its factories to improve efficiency and profitability, and obviously, they couldn't miss investing in AI technologies.
The management couldn’t stress more on their robotics and AI future during the 2024 Q1 earnings call:
We should be thought of as an AI or robotics company. If you value Tesla as just like an auto company, it's just the wrong framework. If you ask the wrong question, then the right answer is impossible.
Read the full article on Seeking Alpha
For further details see:
Tesla: A Tech Company Disguised As An Automaker