Elon Musk said that the Robo-taxi is the key to the success.
Tesla’s CEO Elon Musk doesn’t think that his company is overvalued, despite that the share price got up over 700 percent in the past year.
The real rise makes Tesla worth $ 800 billion, which is equivalent to a valuation of 213 times the expected profit in 2021.
During the company’s conference call (due to the Q4 report released on Wednesday), Musk said that the valuation can be defended if you include robot taxis. What Musk means is that Tesla is able to make significantly more money when its self-driving technology is improved, which means that the cars can be used to a much greater extent (60 hours a week compared to the current 12 hours).
Musk said that only if car use is doubled can a value of one trillion dollars be justified for Tesla.
His calculations also include that Tesla will soon reach a turnover of 50-60 billion dollars per year (amounted to 9.3 billion in Q4).
Furthermore, Musk said that the self-driving technology will no longer be available for purchase, the car buyers will have to sign up for a subscription. This will generate recurring revenue and help Tesla improve the technology.
Musk also commented on the electric pickup Cybertruck. He said that a number of trucks will be delivered in 2021 but that larger volume production will not be available until next year.