OPINION: Shares in the car company have leapt almost 43 per cent in a month, possibly thanks to its self-driving leadership. But it still has to get that much-hyped technology right.
“Valuations are a strange thing,” Tesla founder and CEO Elon Musk told a tech conference in Paris on Friday night. “Sometimes I’ve said, ‘Hey, I think the stock price is too high at Tesla,’ and then the stock price goes up. I’m like, ‘OK’.”Elon Musk says autonomy is the key to the group’s high valuation.) with its market capitalisation up a stunning $US237 billion or 42.5 per cent since May 24. That’s a bigger gain than even the world’s most-hyped stock, Nvidia, which is 39.8 per cent.
Wedbush tech analyst Dan Ives says Tesla’s recent deal with Ford and General Motors to share supercharger infrastructure for electric vehicles has reminded investors of the extent of Tesla’s “EV castle”. The castle includes “its supercharger network, battery technology, and a full self-driving software ecosystem that is unmatched globally compared to any other auto player in our opinion”, says Ives.
“The potential for autonomy is that the value of autonomy is so high, that even if you have a discount, a percentage probability of autonomy happening, that is so incredibly valuable.” He conservatively estimates Tesla can get 25 per cent of the robotaxi market in the US, 8 per cent in Western Europe and 7 per cent in China, plus it can licence its FSD tech to 20 per cent of the world’s non-Tesla robotaxi fleet.Ives has a target price of $US300 a share on Tesla, while Narayan has a target of $US305; at the midpoint, that’s about 16 per cent above the current share price.
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