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At Tesla’s 2024 annual shareholder meeting, CEO Elon Musk announced a bold vision for the company, predicting that its humanoid robots, known as Optimus, could propel Tesla’s market cap to an astonishing $25 trillion. This announcement came as Tesla’s market cap stood at approximately $580 billion, underscoring the ambitious nature of Musk’s forecast.
Musk, speaking at the meeting in Austin, Texas, described this phase as not just a “new chapter” but an entirely “new book” for Tesla. The Optimus robots, first introduced in 2021, are set to revolutionize various sectors by performing tasks ranging from household chores to industrial labor. Musk even hinted at future capabilities akin to the beloved droids from “Star Wars,” such as R2-D2 and C-3PO.
Despite the fanfare, the path to this ambitious valuation remains steep. Tesla’s stock surged following the announcement, driven by investor excitement over the AI integration across Tesla’s products. Musk’s projection included a near-future scenario where “over 1,000, or a few thousand” Optimus robots would be operational in Tesla factories by 2025.
Forbes reported that the broader market context is critical, as the entire value of the S&P 500 stands at $45.5 trillion, making Tesla’s target a significant leap. Achieving a $25 trillion valuation would position Tesla far above current market leaders like Apple and Microsoft.
Musk’s confidence extends to autonomous vehicles, which he believes could elevate Tesla’s market cap to between $5 trillion and $7 trillion. He aligns with predictions from Cathie Wood, CEO of Ark Invest, who has set a $2,600 price target for Tesla by 2029, equating to an $8 trillion valuation based on anticipated developments in the robotaxi business.
Musk’s remarks followed a shareholder vote to reinstate his $56 billion pay package, a decision cheered by attendees. He emphasized the company’s future potential, despite current challenges such as declining sales and increased competition, particularly in China.
One of Musk’s most striking claims was that Tesla has surpassed Nvidia in developing silicon for AI, a significant assertion given Nvidia’s dominant market position. Nvidia’s shares have skyrocketed due to the demand for AI chips, bringing its market cap to about $3.2 trillion.
Despite Musk’s numerous ventures, including SpaceX, X (formerly Twitter), The Boring Co., Neuralink, and the startup xAI, he reassured shareholders of his commitment to Tesla. He highlighted the importance of innovation and speed in maintaining Tesla’s competitive edge in developing humanoid robots, facing off against rivals like Boston Dynamics and Agility Robotics.
