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Tesla’s market cap is tied to solving autonomous driving

Elon Musk, CEO of SpaceX and Tesla, attends the Viva Know-how convention devoted to innovation and startups on the Porte de Versailles exhibition centre in Paris, June 16, 2023.

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Tesla CEO Elon Musk thinks the automaker’s market capitalization is immediately tied as to if or not the automaker is ready to resolve autonomous driving, the billionaire advised LVMH scion Antoine Arnault Friday.

Musk was talking at Paris’ VivaTech innovation convention. The youthful Arnault ribbed Musk about Tesla’s $827 billion market cap, noting it dwarfed the storied luxurious conglomerate’s valuation.

The Tesla CEO responded and urged he had little perception into inventory value actions. “Valuations are an odd factor,” Musk mentioned. “Generally I’ve mentioned, ‘Hey, I feel the inventory value is just too excessive at Tesla,’ after which the inventory value goes up. I am like, ‘okay.'”

However Musk additionally urged Tesla’s market cap was tied as to if or not the corporate may excellent autonomous driving expertise.

“Actually the worth of the corporate is totally on the premise of autonomy,” Musk mentioned. “In the event you take a look at our whole automobile output, it is nearly 2 million automobiles this yr or one thing like that. However that is nonetheless solely 2% of whole automobile manufacturing.”

“The potential for autonomy is that the worth of autonomy is so excessive, that even even if in case you have a reduction, a share chance of autonomy taking place, that’s so extremely beneficial,” the CEO continued. He additionally reiterated the concept of Tesla homeowners turning their automobiles right into a fleet of self-driving robotaxis, an thought which he as soon as mentioned can be carried out by 2020.

Musk has mentioned for a number of years that Tesla is near fixing autonomous driving, however the firm’s vehicles nonetheless solely present superior driver help options.