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Elon Musk: "He Has the Wrong Frame of Reference - Tesla is an AI/Robotics Company" In Reference To Tesla Being Viewed As "Just A Car Company"

Recently, there was an interview done with Craig Irwin who looks at Tesla as not having anything that Toyota doesn't have with an $85 price target. Elon Musk responded that he has the wrong frame of reference and that Tesla is an AI/robotics company.
Elon Musk: "He Has the Wrong Frame of Reference - Tesla is an AI/Robotics Company" In Reference To Tesla Being Viewed As "Just A Car Company"

Tesla, More Than Just a Car Company

There is a phrase that has been repeated many times, and it is, "Tesla is just a car company." Many people say this and think it about Tesla because Tesla does produce EVs (electric vehicles). In a recent interview, Craig Irwin says that Tesla doesn't have anything that Toyota doesn't have and should be given a multiple to reflect that and gives Tesla an $85 price target.

Toyota produces about 9 million vehicles per year and Tesla will produce just over 1.8 million vehicles this year. Toyota was recently in the news for the forging of safety scores for some of its vehicles over the last 30 years...

Craig doesn't understand why Tesla has such a large valuation, over an 80 P.E. and says competition is real and competition in China is overtaking them (Tesla).

BYD is one of the largest and top EV makers and sellers due to having PHEV (hybrid vehicles) as well as selling pure EVs. China is going to be the biggest EV market in the world. BYD and Tesla certainly seem to be the top two companies in the world for EVs, but I don't see BYD as beating Tesla. I think there's plenty of room for them both in the over 1 billion people China EV market.

Craig also says Tesla vehicles are "long in the tooth" and that we've been waiting for updates on the Model S and Model X, as well as Model 3 and Model Y.

Craig gives Tesla an $85 price target because it gives Tesla a multiple that is more in line with Toyota. For Tesla to get to this price, while it is growing and in its infancy with EVs, energy, AI, and robotics, it would have to decrease by 68%.

Craig also thinks the mini car in India (the compact car or sub-compact car) is a lever Tesla can pull to get a higher valuation. I sort of agree with this - the compact car will help Tesla greatly and be a game changer, but it isn't needed for Tesla to be valued the way it is. Elon Musk clarifies this.

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Tesla - An AI/Robotics Company

Elon Musk responded on X to this video, saying the following:

He has the wrong frame of reference. Tesla is an AI/robotics company.

I agree with Elon, and there are many reasons for this. First, Tesla vehicles are not long in the tooth. They are constantly updated over time.

The Model 3 got an entire refresh with the Highland in China.

The Model Y is going to get a refresh in 2024 with Juniper.

Tesla is investing in Dojo and FSD in order to make all its cars autonomous.

Tesla is investing in the Optimus humanoid robot in order to solve human labor and dangerous/mundane tasks.

Tesla may be late with its promises, but it does eventually deliver. The Cybertruck was released last month and is seeing incredible demand - over 2 million orders in the backlog.

Craig didn't even mention Tesla energy, and that is a sub-business within Tesla that is growing quickly, generating $500 million in profit last quarter.

Tesla is doing so many great things and as the future goes on, making cars is going to be just a fraction of the entire business.

In Other Tesla News: Elon Musk: "The Amazing Part Is Being So High On the List Despite Not Using BCG" In Reference to Tesla In 2nd Behind Apple In U.S. Innovative Companies List

I'll leave you with a few questions to ponder here:

  • Was Elon's statement correct here - Is Tesla an AI/robotics company, or is Tesla just a car company?
  • Why does Craig Irwin see Tesla as just a car company?
  • Do you think Toyota and Tesla are the same?

Share this article with friends and family and on social media - or leave a comment below. You can view my most recent articles here for further reading. I am also on X/Twitter where I post more than just articles daily, as well as LinkedIn! Thank you so much for your support!

Hi! I'm Jeremy Noel Johnson, and I am a Tesla investor and supporter and own a 2022 Model 3 RWD EV and I don't have range anxiety :). I enjoy bringing you breaking Tesla news as well as anything about Tesla or other EV companies I can find, like Aptera. Other interests of mine are AI, Tesla Energy and the Tesla Bot! You can follow me on X.COM or LinkedIn to stay in touch and follow my Tesla and EV news coverage.

Image Credit, Tesla, Screenshot

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