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HomeAutomobileTesla's market cap is tied to fixing autonomous driving

Tesla’s market cap is tied to fixing autonomous driving

Elon Musk, CEO of SpaceX and Tesla, attends the Viva Expertise convention devoted to innovation and startups on the Porte de Versailles exhibition centre in Paris, June 16, 2023.

Chesnot | Getty Photos

Tesla CEO Elon Musk thinks the automaker’s market capitalization is instantly tied as to if the automaker is ready to remedy autonomous driving, the billionaire advised LVMH scion Antoine Arnault on Friday.

Musk was talking at Paris’ VivaTech innovation convention. The youthful Arnault ribbed Musk about Tesla’s $827 billion market cap, noting it dwarfed the storied luxurious conglomerate’s valuation.

The Tesla CEO responded and steered he had little perception into inventory worth actions. “Valuations are a wierd factor,” Musk mentioned. “Typically I’ve mentioned, ‘Hey, I feel the inventory worth is simply too excessive at Tesla,’ after which the inventory worth goes up. I am like, ‘okay.'”

However Musk additionally steered Tesla’s market cap was tied as to if the corporate might excellent autonomous driving expertise.

“Actually the worth of the corporate is totally on the idea of autonomy,” Musk mentioned. “When you take a look at our complete automobile output, it is nearly 2 million automobiles this yr or one thing like that. However that is nonetheless solely 2% of complete automobile manufacturing.”

“The potential for autonomy is that the worth of autonomy is so excessive, that even in case you have a reduction, a share chance of autonomy occurring, that’s so extremely worthwhile,” the CEO continued. He additionally reiterated the thought of Tesla house owners turning their automobiles right into a fleet of self-driving robotaxis, an concept that he as soon as mentioned can be implemented by 2020.

Musk has mentioned for a number of years that Tesla is near fixing autonomous driving, however the firm’s vehicles nonetheless solely present superior driver help options.

Elon Musk's visit to China shows how important the market is for Tesla, strategist says

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