Tesla’s stock was extremely volatile in 2025 due to numerous challenges, but its CEO, Elon Musk, remains confident in the company’s future. Despite a 30% year-to-date stock value decline, Musk’s Tesla projections remain optimistic, particularly the one claiming that it will eventually outperform the next five most valuable companies combined in market value. According to this projection, Tesla’s market capitalization is $15 trillion, which would require Elon Musk to dethrone Apple and Microsoft.
Tesla’s Current Status and Future Prospects
Tesla’s financial results for Q1 2025 were nothing short of disappointing. Vehicle deliveries fell 13%, marking the company’s worst performance in three years. Revenue decreased by 9% to £19.3 billion, while non-GAAP net income fell 40%. Despite this, Musk remains firm and plans for resolving this issue by relying heavily on autonomous vehicles and humanoid robots, which he claims will drive the company’s growth in the coming years.
Autonomous Vehicles and Robotaxis: Tesla’s Revolutionary Innovation
Tesla’s most exciting prospect is the autonomous ridesharing service, or Robotaxis, which is expected to launch in Austin by June 2025. Musk claims that TESLA will eventually dominate the fleet market for Robotaxis, capturing up to 99% market share. Furthermore, industry analysts, including Adam Jonas of Morgan Stanley, believe that revenue from Tesla’s Robotaxis could reach £84 billion by 2035, equivalent to approximately £93,800 in annual revenue per vehicle operated.
Regardless of projections, Tesla shares are currently trading at an extreme valuation. Tesla’s stock is considered highly overvalued, trading at 130 times adjusted earnings when the market expects adjusted earnings to rise at a 15% annual rate over the next five years. However, if Elon successfully implements the self-driving vehicle and humanoid robot strategies, he will keep Tesla’s market capitalization in the long run, which initially justifies the price tag. Morgan Stanley predicts that Tesla’s revenue stream will grow at a 20% annual rate over the next 20 years, with autonomous services fueling the growth.
Investor Outlook and Future of Tesla
The future of Tesla is undoubtedly divided for those who believe Musk’s vision of a fully autonomous world, Tesla represents a golden opportunity. On the other hand, those who are skeptical of Musk’s ambitious plans, see Tesla’s financial issues and volatile market as major risks. While the company is working to integrate autonomous technologies into the fleet, it is unclear whether Musk’s vision of a £15 trillion Tesla will become a reality or an unattainable dream.
News Writer