Tesla Will Become The Largest Company In The World
This is a proclamation I am willing to put out. This is something that many are going to take exception to especially if they believe Tesla is nothing but a car company.
While this is still bulk of their revenues, and even a greater portion of their profits, the company is delving into areas that will extend outside of automotive. To me, they are already laying the foundation, along with the Chinese auto manufacturers, to wipe out legacy auto.
This is going to open up the path for a lot of electric vehicles to be sold. While I do not agree with the pace many bulls lay out, I do believe that they will be the majority of new car sales by the end of the decade.
It is a situation that aligns well for Tesla. The fact that most major manufacturers, at least in the United States, are going with Tesla's charger system is very telling.
AI Company
This is where Tesla is going to stand out in my opinion. While most view it as a car company, one of the biggest advantages it has is within AI. Elon Musk was the founder of OpenAI, the company that is leading the charge with ChatGPT. Hence, this is not a new endeavor for him.
Tesla is building Dojo. This is going to be one of the most powerful supercomputers in the world. It will rival those built by governments, usually by departments such as Defense or Energy.
There is one key difference: Dojo will not use general purpose chips. The chips are designed specifically for neural networks. Thus, it is going to be the fastest AI computer in the world.
Of course, processing is only one piece of the equation. The other is data. Here again, we see Telsa stacking up nicely.
It is now starting to train its full self driving system with video. There is very little coding. That means that Tesla can simply take video that is shot by all the cameras on its cars and train the system.
This is crucial for the bots that it is working on. If this method proves effective, it will be a major windfall. Designing bots to handle many of the chores done by labor will come down to filming the desired action completed and running the video through the system until the task is learned.
Little coding is required.
Computer On Wheels
Remember when Elon started to use the phrase "computer on wheels"?
This is something that gets overlooked now since he doesn't parrot it much anymore. It is, however, the concept they are implementing.
As we close out 2023, there is still only one car manufacturer that does over the air updates and that is Tesla. It started this in 2013. After a decade, nobody else can do it.
What does that tell you about the software capabilities of the other companies? If there is a winner in full self driving, it is going to be Tesla.
Here is where we see the start of incredible revenue. What happens if every vehicle requires autonomous driving at some point? Who else is going to provide it? If Tesla is the one who cracks the code, it will be the standard.
Think if Tesla as being the one with the operating system for cars. We know what Windows, IOS, and Android are worth to their respective companies.
What happens if Tesla becomes this for the automotive industry?
Robots
This goes one step further:
What is Tesla becomes the operating system for the majority of the robots that are produced?
Consider the implications here. If Tesla not only becomes the default for transportation, but also labor, it will be enormous.
Another facet to all of this is the company licensing that starts to roll in. It isn't a matter of selling at that point. The company can either license the software or rent out the cars/robots. This is something that many people are projecting.
My view is that Tesla will become the first $1 trillion company in terms of annual revenue. I think Walmart is the largest with about $600 million. Their growth rate is not fast enough to compete with Tesla. Granted, the latter will require a 10x from where it stands now.
All of what is presented here is within reason by the end of this decade. Elon is targeting 20 million cars per year by 2030. I do not know if that is going to happen. However, 10 million EVs as a minimum is well within reason. That is more than a 5x from here. It is a move that will give the company around $350M-$400M in revenue.
Of course, this doesn't include the production of the Semi, energy, or insurance.
We will see how all of this unfolds. However, by targeting some many different areas, and many of them interconnected, the ability to leverage the existing growth into even greater gains is before them.
The next few years should really tell the story of where the company stands entering the later part of the decade.
Posted Using LeoFinance Alpha
Counter-proclamation: Elon constantly lies about the progress of his companies, will continuously be sued by investors, employees and customers for those lies and poor/unsafe working conditions and eventually regulators will clamp down on all the shortcuts taken - causing Elon's companies to lose marketshare.
Personally, I really hope that Tesla and SpaceX make it. I think Tesla has a chance if they get a new CEO, focus on the machines that build the machines and their data and refocus on build quality. If they don't consistently make amazing cars then the other auto manufacturers like Toyota will catch up and overtake them in the EV space.
I do not believe Elon's companies will be the leaders in AI or robotics.
I absolutely agree that the next couple of years will be extremely important for Elon's companies.
As opposed to every other company out there doing the same thing?
Of course, political winds do change. There is no doubt Elon has a bullseye on his chest. However, as this unwinds, if it is viewed as corruption, that has a way of turning things in the opposite direction.
That is what makes markets. However, who will be the leader then, especially in robotics.
I would argue that Elon lies more egregiously to try and sway investment, for example, he's been claiming every year since 2015 that FSD (and that its safer than humans) is just a year or months away and has said the same thing again recently. I can't think of many other companies the size of Tesla that has made similarly bold claims.
Other auto manufacturers both in America and aboard have far more robust health and safety programs and quality control processes. They're just not taking the same number of shortcuts that Tesla is.
I very much want Tesla to be successful, what they've done for EVs in this world is extraordinary, but I personally don't think they have a chance at being the biggest company in the world while Elon is involved.
He lies about Twitter constantly, this week he said that 90% of advertisers have returned to the platform, which may technically be true, but those companies are spending way less than ever on the platform, which has been easy enough for journalists to verify.
I guess we'll see who becomes the leader in robotics, but I think it's more likely to be Nvidia, Yamaha, Denso or Midea far more than Tesla, and part of that will come down to investors being able to trust Tesla to invest in their robotics space.
Value creation is ascertain with this certain qualities which will certainly qualify upgrades and brings traffic to the company.
Tesla leverage on the AI will be of higher advantage.
AI can enhance any business. Most are not implementing it to a great degree as of yet.
Tesla appears to be doing just that.
Yeahhh! That happens to be their own strategy.
I appreciate you sharing this Sir
I do daily videos on Tesla so people can try to keep up to date.
This is fascinating, I will obviously visit the videos for more insights about Tesla
It is under this account here. Most every day I do what is going on with Tesla. I dont really talk about the market price but what the company is doing.
I just listened through one of the videos and I can say, I will be glued to your feed. Will check out more on my spare time.
Appreciate the follow and the listen. I will keep trying to put out relevant material so it becomes your go to place for Tesla news.
I do stay up on that company daily.
I am so happy having you take me through this Tesla feed Sir
It is already one of the largest, for certain. And it has tremendous growth potential in the future, as things stand right now. All the best!
It is in the top 10 for sure. But present valuation is under $1 trillion I believe. Apple and MSFT are over $3 trillion or near it.
Oh, very interesting, thanks for letting me know. Where will Apple be then in the future if Tesla will rise so high and overtake it? I wonder... I don't think Apple will drop that low, right? Best regards!
Well they are in different industries to a great degree. Apple's success is not dependent or related to Tesla.
I would guess, although I dont follow Apple a great deal, is that it will be bigger in the future. Tim Cook seems to do a good job running that company. The innovation hasnt been there the last decade but it could emerge with VR/AR.
I wouldnt bet against Apple, lets put it that way.
Aha, I see, very well said. I see a lot of potential with respect to Apple, though I am not a fan the last design strategies they implemented for some of their products, but that's just my taste. I'm not saying or implying that design is bad, just that it's not actually my cup of tea, so to put it. But, yes, I see Apple growing and growing in the future. The sky is the limit for them as well. And, yes, of course, their success is not dependent or related to Tesla at all. Best regards! 🙂
I do make my statements about Apple without expertise. I dont honestly follow the company closely so there are better takes out there.
Just based upon the track record of Tim Cook, he seems to know what he is doing. His steering of the company was very successful and, I see no reason to believe he will not continue.
But I am not schooled enough on that company to know about the potential pitfalls.
I see, I understand, but the current leadership is indeed a successful one. And I think it will continue to be successful in the future as well as I see no reasons why it shouldn't. All the best! 🙂
That is my view. Some lose their touch while others, like Bezos, step aside with the company on top.
Cook is likely in the latter category.
Curious about how much is TESLA's 1 share now.
About $250 last time I looked.
Oh! What a price. Owning even 10 shares would be great.
10 shares could change some lives if the projections by some come into being.
But I have enough that I am trying for life changing money.
Blessings on your TESLA holdings.
I believe it is blessed. We will see what the next couple years hold in store.