Tesla has four compelling businesses within it: selling EVs, energy storage, full self-driving, and the Tesla Bot. Each of these is progressively bigger than the previous.
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Tesla Inc., often synonymous with electric vehicles (EVs), has strategically positioned itself far beyond the automotive industry, venturing into energy solutions, full self-driving technology, and even robotics with the Tesla Bot.
Despite a 13% drop in Tesla stock, yesterday, each of these sectors not only stands as a testament to Tesla's innovative prowess but also showcases the company's vision of a sustainable and technologically advanced future
Despite its already significant achievements, Tesla continues to operate with the agility and ambition of a startup, hinting at a potential that is vast and largely untapped.
Automotive: The Foundation of Tesla's Empire
Tesla's journey began in the automotive sector, revolutionizing the way the world viewed electric vehicles. With the launch of the Roadster, Model S, Model X, Model 3, and Model Y, and the Cybertruck, Tesla has not only made EVs desirable but has also set new benchmarks for range, performance, and technology integration.
The success of Tesla's automotive division lies in its ability to combine sustainability with luxury, performance, and cutting-edge technology, making it a formidable player in the global automotive market. The Cybertruck alone is an attraction getter.
However, Tesla's automotive business is just the tip of the iceberg. It serves as the foundation upon which the company is exploring and expanding into other, potentially larger markets.
I give Tesla's automotive business, at 20 million vehicles per year sometime in the next decade, a value of about $2 trillion.
Energy: Powering the Future
Tesla's energy division, encompassing solar energy products and energy storage systems like the Powerwall and Megapack, represents the company's commitment to a sustainable energy ecosystem.
These products are important for utility companies, and they are beneficial for them because those utility companies can fill the batteries at night and then sell the energy from them during the day for a higher cost. It's not just the eco-friendly nature that is beneficial.
This sector aims to transition the world from a dependency on fossil fuels to a future powered by renewable energy. The scalability of Tesla's energy solutions presents a vast market potential, arguably larger than the automotive sector, due to the universal need for sustainable energy solutions across residential, commercial, and utility-scale applications.
With Tesla Megapacks flooding the earth, in the coming decades, I believe this will end up being worth about $3 trillion for Tesla.
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Full Self-Driving: The Path to Autonomous Mobility
Tesla's Full Self-Driving (FSD) technology is perhaps its most ambitious venture, with the potential to revolutionize not just personal transportation but the entire concept of mobility.
Recently, FSD version 12 was released, and we saw some incredible drives from Whole Mars Catalog.
FSD aims to make Tesla vehicles fully autonomous, capable of navigating complex traffic scenarios without human intervention. The implications of achieving Level 5 autonomy are profound, extending beyond individual Tesla owners to impact ride-sharing, logistics, and urban planning.
The market for autonomous driving technology is immense, with the potential to significantly surpass the traditional automotive market in size and scope.
I give full self-driving, with a hundred million Tesla vehicles operating as a robotaxi, a $5 trillion value for Tesla.
Tesla Bot: Venturing into Robotics
The announcement of the Tesla Bot, an autonomous humanoid robot, marks Tesla's foray into robotics. While details about the Tesla Bot are still emerging, its intended applications in performing repetitive, mundane, or dangerous tasks could revolutionize labor markets and industries worldwide.
The potential market for intelligent, autonomous robots is vast and largely untapped, providing Tesla with yet another frontier for growth and innovation.
The market of the Tesla Bot is difficult to understand because, as Elon Musk says, what is the limit to human labor. However, if we take a hundred million Tesla bots, working 16 hours per day doing labor, this can add another $10 trillion in value for Tesla.
Keep in mind, that Elon Musk thinks Tesla could have a billion of these - ten times what I mentioned here - by the 2040s.
Tesla: The Perpetual Startup
Despite its growth and success across these four sectors, Tesla retains the spirit of a startup. This is evident in its constant pursuit of innovation, willingness to take calculated risks, and agility in responding to challenges and opportunities.
Tesla's ability to venture into new markets, each progressively larger than the last, while continuing to innovate within its existing businesses, showcases a potential that is reminiscent of the most dynamic startups.
Tesla's journey from an electric vehicle manufacturer to a multi-faceted technology conglomerate is a testament to the vision of its leadership and the ingenuity of its team.
As Tesla continues to break new ground in automotive, energy, autonomous technology, and robotics, it is clear that the company is not just leading the charge in sustainable and intelligent technology but is also redefining the boundaries of what is possible.
In the grand scheme of things, Tesla is still at the beginning of its potential growth curve, much like a startup poised for exponential growth, making its future all the more exciting and worth watching.
Tesla's market cap is about 570 billion today, with a share price at $184. With all these businesses in full swing, that puts Tesla at a $2 + $3 + $5 + $10 trillion = $20 trillion market cap, which is almost 40 times the value of Tesla today. This is why I view Tesla as a startup still. The potential is huge over the coming decades.
In Other Tesla News: Getting Launched In An Original Tesla Roadster - The Moment That Changed Everything For Me About Tesla
Is Tesla auto, energy, FSD, and Bot, all in one and is Tesla still the size of a startup today considering the potential of all these businesses?
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! You can also find short Tesla videos on my TikTok account. 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 or watch my short Tesla videos on TikTok to stay in touch and follow my Tesla and EV news coverage.
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