Elon Musk’s perspective on Tesla‘s valuation is nothing short of extreme: succeed in full self-driving (FSD) technology or the company could be “worth basically zero.” Almost two years have passed since Musk made this contentious statement, and yet it remains at the core of every debate surrounding the automaker and its stocks on NASDAQ:TSLA. Bullish Tesla investors, many of whom shared Musk’s video on social platforms such as Twitter today, find themselves at a crossroads, where the company’s future hinges on the success or failure of its autonomous driving technology, particularly a version that diverges sharply from the rest of the industry’s approaches.
The Crux of the Matter
For followers of Tesla, whether they’re invested in the stock market angle or simply fascinated by technology, the conversation inevitably leads back to FSD. Can Tesla deliver on a robotaxi future? Remarkably, the same assertion Musk made serves to reinforce both bulls’ and bears’ arguments, depending on which side they stand. However, whether Tesla’s approach will ultimately triumph is less a matter of clear-cut technological progression and more a matter of belief. It’s a journey into uncharted territory – unlike technologies with room for errors, like ChatGPT, which don’t carry the same potential for danger.
The “All or Nothing” Debate
Conversations about Tesla and its FSD progress often assume an “all or nothing” character, propelled by both the vast sums of money invested in TSLA and the polarizing figure of Elon Musk. With substantial financial stakes, from thousands for an individual investor to billions for a fund, the discourse around the company grows fervent, even divisive. The polarities are stark: either the FSD leap towards robotaxis is a myth, risking the company’s hefty market cap, or an imminent breakthrough is on the horizon, potentially transforming the automotive and tech landscape.
Tesla’s Market Standing: The FSD Factor
What has become evident is the undeniable role of FSD in Tesla’s market valuation. Gone are the days when the company’s prolific sales growth might have been seen as a buffer against FSD’s uncertainty. Analysts and aficionados alike now realize that Tesla’s stock recommendations essentially pivot on one fundamental question: Will Tesla’s autonomous driving bet pay off, or is it a miscalculation that will unravel the stock’s value? As opinions oscillate, so does Tesla’s estimated worth, which could range from its current hundreds of billions in market capitalization to a multi-trillion-dollar tech titan, or down to a dramatically reduced valuation if its FSD mission stalls.
In summary, the central question driving stakes, discussions, and future projections is Tesla’s gamble on full self-driving technology. It’s a milestone that could either define the company’s destiny or lead to a drastic reassessment of its value. As debates continue to heat up, it remains to be seen whether Tesla will achieve the FSD breakthrough it so boldly predicts, or if reality will steer the company towards a different outcome.
