Tesla CEO Elon Musk made a bold prediction during the company’s fourth-quarter conference call on February 2, 2025, stating that Tesla could become the most valuable company in the world. He envisions a market capitalization exceeding the combined value of the current top five companies, which are Apple, Nvidia, Microsoft, Amazon, and Alphabet, totaling $14.7 trillion.
- Elon Musk predicts Tesla's future market dominance.
- Core EV sales faced a 1% decline.
- Autonomous driving could revolutionize revenue streams.
- Optimus robot may surpass car sales potential.
- Tesla stock currently has a high P/E ratio.
- Investors should prepare for long-term holding.
Musk believes that Tesla’s future value could be driven by new opportunities beyond electric vehicles, particularly through its Cybercab robotaxi and the Optimus humanoid robot, which he claims could generate significant revenue streams.
Despite Musk’s optimistic outlook, Tesla’s core business is currently facing challenges. In 2024, the company delivered 1.78 million vehicles, marking a 1% decline from the previous year. This drop is concerning as passenger electric vehicle sales represent nearly 79% of Tesla’s total revenue. Musk had previously projected a 50% annual growth rate in deliveries, but increasing competition and softening demand have impacted sales.
Looking ahead, Musk is focusing on the development of the Cybercab, a fully autonomous vehicle that will not have pedals or a steering wheel. This vehicle will rely on Tesla’s full self-driving software, with the latest version already in beta testing. According to Tesla’s safety report, vehicles using this software have a significantly lower crash rate compared to the average American driver.
In addition to the Cybercab, Musk is particularly enthusiastic about the potential of Optimus, a humanoid robot. He believes that Optimus could have a thousand times more applications than a car, with plans for thousands of units to be used at Tesla for repetitive tasks. Musk anticipates that the production of Optimus could ramp up significantly, potentially generating over $10 trillion in revenue in the long term.
While Musk’s predictions are ambitious, Tesla’s stock is currently considered expensive, with a price-to-earnings ratio far exceeding that of its competitors. Investors are advised to approach Tesla stock cautiously, as the company’s financial performance may rely heavily on passenger vehicle sales in the near term.
Musk’s vision for Tesla’s future hinges on the success of its autonomous driving technology and humanoid robots. While the company faces immediate challenges, the long-term outlook could be transformative if these projects come to fruition.
