In a bold move to motivate Tesla Inc. investors, Elon Musk, the CEO of Tesla, has made outlandish predictions about the company’s future. After receiving approval for his massive compensation plan, which could be worth up to $55.8 billion, Musk discussed the potential of Tesla’s robot-making effort. Currently, Tesla has two humanoid robot prototypes that are capable of plucking battery cells off a production line and placing them in shipping containers. Musk revealed that several other robots are also being tested in the company’s offices in Palo Alto.
While the CEO does not expect the robot, named Optimus, to go into limited production until next year, Musk presented an ambitious projection. He suggested that Tesla could potentially make around $1 trillion in profit annually from the robots, although he did not specify a time frame for this achievement. Musk stated, “If the price-to-earnings multiple is…something like that, that would mean a $20 trillion market cap from Optimus alone. It’s within the realm of possibility for Tesla to achieve a valuation 10 times that of the most valuable company today.”
Musk’s focus on robotics is not new. Earlier this year, he laid down an ultimatum to Tesla’s board, insisting that he wanted to increase his stake in the company to around 25%. If this didn’t happen, he stated that he would prefer to develop artificial intelligence and robotics products elsewhere. This indicates Musk’s strong belief in the potential of robotics.
However, while Musk is known for setting ambitious goals, his track record of achieving them on time is a bit spotty. Despite correctly predicting that Tesla’s pursuit of self-driving technology could lead to the company becoming a half-trillion-dollar company, his previous claims that Tesla’s cars could become robotaxis have not come to fruition. Additionally, he had previously suggested that Tesla’s energy generation and storage products would rival the company’s automotive operations in terms of sales, but this has not been the case.
Regarding the automotive market, Musk acknowledged the challenges Tesla faces. He noted that other manufacturers, such as General Motors and Ford, have reduced their plans for electric vehicle production. However, Musk expressed confidence in Tesla’s ability to increase its market share, recognizing that it is not an easy market to succeed in.
Elon Musk’s visionary thinking and ambitious goals have been both celebrated and questioned throughout his career. While some of his predictions have not materialized, his enthusiasm for the potential of robotics and his drive to push Tesla towards new heights are undeniable. As Tesla continues to innovate and expand its presence, it remains to be seen how much of Musk’s vision will become a reality.
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