Elon Musk: Tesla to beat NVIDIA, reach value of over $4 trillion
Is Elon Musk at it again with yet another audacious prediction? You bet. The Tesla CEO recently suggested that his electric vehicle and tech giant will not only reach an astonishing $4 trillion market capitalization but also eclipse even the current darling of Wall Street, NVIDIA, "by a large margin." Bold words, especially with Tesla currently sitting at a valuation of around $1.24 trillion.
The $4 Trillion Dream: Is it Realistic?
Elon Musk at an event by Tesla
Tesla's stock has, to say the least, seen its highs and lows. While it's up about almost a two-fold increase in the last year, much of that surge came after the November 2024 elections. Before the election, the stock was pretty much flat. That pre-election sluggishness was partly a factor of a global slowdown in EV sales, as everyone began to feel the pinch of inflation and rising interest rates.
But things did a complete about-turn. Musk's cozy relations with-well, one can only make an educated guess, and not knowing for certain, let's maintain neutrality-have injected new hope among investors. The thinking goes that this might ultimately translate to faster regulatory approvals-think self-driving tech and Tesla's robotaxi ambitions, still awaiting the green light in many places.
Beyond Cars: Optimus Robot and AI Edge
That is where things get really interesting with Musk's vision. No longer does he really see Tesla as a car company. He projects that cars will be taking a back seat in the long run as its main projects, mainly the humanoid robot Optimus, start taking center stage. Yes, you heard that right-robots.
Think about it: Cathie Wood's Ark Investment estimates a $24 trillion market for humanoid robots. Musk himself has thrown around the idea of Tesla making a cool $1 trillion just from selling these robots to other businesses. Even Deutsche Bank, in a 2024 report, projected billions in revenue from Optimus within the next decade. That is a lot of potential beyond just the sale of electric vehicles.
And then there's AI. If Wall Street is to be believed, Tesla leads the charge in deploying artificial intelligence to make its vehicles self-driving. It doesn't hurt, either, that Musk owns xAI and has some of the most powerful AI computing resources on the planet at his fingertips. That AI advantage could be one gigantic differentiator relative to other car manufacturers.
Beating NVIDIA: A Tall Order?
Now, about passing NVIDIA… That's pretty bold, with NVIDIA's dominance in the AI chip market and a valuation of $3.6 trillion. Musk seems so confident that Tesla will be even more transformative and impactful in the future than even the AI boom currently fueling NVIDIA's growth. Is it hype? Maybe. But Musk does have a track record of turning those seemingly outlandish ideas into real life. Whether Tesla actually can achieve the $4 trillion valuation to outrank NVIDIA is yet to be seen, but it will be an interesting ride to watch for sure.
