Tesla's AI and robotaxis have the potential to double the stock price.

December 3, 2024

Tesla is garnering attention with its Robo-Taxi plan utilizing artificial intelligence (AI). The company's stock surged after the presidential election and according to analyst Dan Ives of Wedbush Securities, in an interview on CNBC, the current market capitalization is approximately 1 trillion dollars, but growth to 2 trillion dollars can be expected.
Dan Ives considers Tesla the most undervalued AI-related stock, pointing out that regulatory easing and technological advancements will further drive up the stock price. The advancement of Full Self-Driving (FSD) could accelerate the market introduction of 'Cybercab,' leading to increased competitive advantage.
The policies under the Trump administration may also boost technological innovation, and the evolution of AI is creating new expectations for investors. While the market is experiencing overheating, the company's futuristic vision is supporting its valuation. In particular, Elon Musk's AGI technology 'xAI' is expected to contribute to establishing Tesla not just as an auto manufacturer but as an AI company.

Tesla's Robotaxi concept is an ambitious initiative based on the advancement of Full Self-Driving (FSD) technology to provide the next generation of mobility. The company announced the 'Cybercab' project a few months ago, with high expectations for a revolutionary shift in mobility if successful. Robotaxis could contribute to optimizing transportation, reducing costs, easing urban congestion, and reducing environmental impact.
However, not only technological progress but also the establishment of regulatory frameworks are crucial for its success. Under the Trump administration, the adoption of technology-friendly policies could act as a tailwind for the Robotaxi market. According to Dan Ives, with regulatory easing, Tesla could realistically lead ahead of its competitors. Such institutional support would provide a significant tailwind for the company's market share expansion.
On the other hand, questions regarding the safety and reliability of FSD technology remain unresolved. Overcoming technical barriers and increasing market acceptance require further innovation and social consensus.

Currently, Tesla's market capitalization is slightly over 1 trillion dollars, but experts are discussing the possibility of it growing to 2 trillion dollars. Particularly, Dan Ives from Wedbush Securities mentions that Tesla elevating its status as an AI company could lead to a doubling of its stock price. The concrete product lines such as FSD technology and Robotaxis are driving this optimism. If these initiatives succeed, revenue diversification will progress, accelerating Tesla's growth.
Furthermore, it is emphasized that the potential of Tesla's AI technology should not be underestimated. The company's efforts extend not only to the automotive industry, but also to the fields of AI and AGI (Artificial General Intelligence). Founded by Elon Musk, 'xAI' aims to build a new business model using these technologies, which if successful, would bring about a significant transformation in Tesla's revenue structure.
However, investors should also be cautious of the overheated market. The post-presidential election surge in stock prices may carry short-term adjustment risks. Understanding these risks is necessary to evaluate Tesla's growth strategy from a long-term perspective.

Tesla's ambitious plans go beyond just corporate growth strategies. The vision the company aims for leads to solving social issues through technology and realizing new lifestyles. In particular, the Robo-taxi concept not only transforms individual transportation methods but also has the potential to significantly impact the entire transportation infrastructure.
Elon Musk's vision harnesses AI technology to maximize efficiency while reducing environmental impact. If this initiative succeeds, it will lead to a future where sustainable means of transportation are provided for society as a whole. However, this requires not only technological innovation but also the understanding and support of society as a whole.
Thus, Tesla's vision goes beyond AI and Robo-taxis, encompassing a broader social transformation. Assessing how the fusion of technology and society progresses will likely be crucial in determining the company's future evaluation.

The end.