Tesla CEO Elon Musk believes his company can cross a $4 trillion valuation in the future. Tesla is one of the most valuable companies in the world, and its latest market value is $1.24 trillion. Data shows that the latest valuation makes the firm the eighth most valuable company in the world as it ranks below mega-cap technology companies and the Saudi state-owned oil giant Aramco. Musk, however, believes that Tesla can cross a $4 trillion valuation and become the most valuable company by a large margin.
Tesla's Market Cap Can Potentially Make It The Most Valuable Company In The World By A Wide Margin, Believes Musk
Tesla's shares have gained 98% over the past twelve months and most of these gains have come after the November 2024 presidential election. From 2024's start to the day before the election, the stock was up by a hairline of one percent, but since the election, the shares have gained 64%. This performance comes as the shares trim their gains by losing 17% since their mid-December peak.
Tesla's pre-election stock price performance was muted because of a global electric vehicle sales slowdown as inflation and interest rates sapped consumer spending power. However, Musk's proximity with President Trump has given investors hope in the form of speedier regulatory approvals for the firm's products and services such as its assisted driving service and autonomous ridesharing service called Robocab.
Additionally, Wall Street also believes that Tesla is a market leader when it comes to implementing artificial intelligence for assisted driving. Musk's ownership of xAI and access to GPU computing resources for AI purposes have lent his firm an advantage when compared to some other rivals.
In a recent statement on X, Musk commented that he believes Tesla can become the world's most valuable company by a "large margin." The executive responded to a post covering the rankings of the world's most valuable companies. This list placed NVIDIA at the top of the chart courtesy of its $3.6 trillion market value. Apple came in at second place due to a market cap of $3.4 trillion, while Tesla ranked seventh since the list only covered US-listed firms and omitted Saudi Aramco from the list.
Tesla's stock is up 8.7% year-to-date as it recovers from its losses at the start of the year after disappointing vehicle delivery figures for 2024 and the fourth quarter. Musk believes that cars will become a secondary driver of his firm's narrative over the long term as he expects Tesla's humanoid robot called Optimus to play a much larger role.
Cathie Wood's Ark Investment believes that humanoid robots represent a $24 trillion market opportunity, while Musk has repeatedly stated that his firm can earn $1 trillion by selling them to other companies. Deutsche Bank modeled Tesla's potential humanoid revenue in a 2024 analyst report.
This report estimated that the car company could bring $10 billion in revenue through the Optimus lineup by 2035. The bank assumed an average selling price of $50,000 per robot and total shipments of 200,000 units to reach its conclusions.
About the author: Ramish is a seasoned technology writer and editor with more than a decade of experience. He specializes in semiconductor fabrication and market analysis. With a background in finance and supply chain management - via his bachelors in Finance and a micromasters in supply chain management from MIT - Ramish combines financial rigor with deep industry insight to deliver accurate and authoritative coverage.
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