Tesla's (TSLA) Potential $4 Trillion Value

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【Summary】Elon Musk believes Tesla can reach a $4 trillion valuation if they continue to excel. Despite a recent drop in stock value, Musk and other investors remain optimistic about Tesla's potential. Ron Baron, a hedge fund manager, sees Tesla becoming a battery company and dominating the market with their autonomous driving technology. Musk agrees that Tesla needs to keep delivering exceptional products to achieve the $4 trillion goal.

FutureCar Staff    Nov 02, 2023 4:22 PM PT
Tesla's (TSLA) Potential $4 Trillion Value

Elon Musk is optimistic about Tesla's potential to reach a $4 trillion valuation if they can achieve outstanding success. He has frequently discussed the market capitalization of Tesla, famously stating that it could surpass the combined worth of Apple and Saudi Aramco in October 2022.

However, since Musk made that comment last year, Tesla's stock has decreased by 4%, while the NASDAQ has increased by 20% over the same period. This recent decline has been frustrating for Tesla investors, with a 17% drop in just the last month.

Ron Baron, a hedge fund manager and long-time Tesla investor, recently reiterated his belief that Tesla has the potential to become a $4 trillion company. He sees Tesla's future as a battery company, stating that other car companies cannot compete with what Tesla is doing and that Tesla will be like Intel inside of cars, with all cars using Tesla autonomous driving.

Musk agrees with the idea of Tesla becoming a $4 trillion company, but he acknowledges that they would need to achieve exceptional success multiple times to reach that value. Currently, Tesla is valued at over $600 billion.

While $4 trillion may sound unrealistic, many people had the same doubts when Tesla was valued at $100 billion, and it is now worth $600 billion. Tesla has already experienced success with the Model Y, and Musk suggests that they will need to replicate that success with next-generation vehicles and Full Self-Driving, which are significant challenges.

What are your thoughts on Tesla's potential? Share your opinions in the comments below.

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