Tesla, with a market capitalization ranging from $370 billion to $1.6 trillion, is at the center of discussions about the future of electric vehicles and autonomous technology.
Tesla's Ambitions and Company Valuation
Analysts estimate Tesla's stock price for the next 12 months to be between $115 and $500, indicating significant disagreement on expectations. According to Nicholas Colas, much of the stock price is tied to ambitious yet unproven plans. The current business model does not justify the price, and belief in the company's future is heavily linked to Elon Musk.
Driverless Cars: Tests and Expectations
Elon Musk asserts that the future lies in full automation. The Robottaxi, set to launch on June 22 in Austin, is expected to operate a small fleet of Model Y vehicles. However, the current full self-driving system requires human oversight and raises questions about reliability, especially in poor lighting and weather conditions. Currently, the program does not generate revenue, remaining at the idea stage.
Competition in the Electric Vehicle Market
Tesla's core business faces increasing pressure from competitors like BYD, which surpassed Tesla in sales in Europe in April 2024. It is expected that this could happen on a global scale as well. While 80% of Tesla's revenue stems from vehicle sales, this segment is already showing signs of decline.
Tesla's valuation leads to contentious conclusions regarding the company's future prospects. The main factors influencing stock prices revolve around investor faith in automation and the opportunities it presents amid growing competition in the electric vehicle market.
