Tesla has always operated differently from traditional automotive businesses, and its stock price movements have also never matched those of standard car manufacturers. The company maintains a market capitalization of $1.5 trillion, which establishes Tesla as the most valuable automotive enterprise, and the investors maintain their trust in Elon Musk’s future plans.
The stock price has increased by 25,390% since its 2010 initial public offering, which transformed a $4,000 investment into $1 million. This indicates that Tesla still possesses the ability to create millionaires for its investors.
However, the current situation requires assessment, because it remains unclear whether the present situation represents a historical pattern or whether the company has experienced its peak performance.
Tesla’s Core Business Face Obstacles
Tesla maintains its primary operations through electric vehicle production, which has now lost its complete efficiency. The company reported a 9% decrease in vehicle deliveries for 2025, while its automotive revenue experienced a 10% annual decline.
The company who once thrived through uninterrupted growth, now finds itself in new and challenging business circumstances. Automakers from across the world, along with domestic competitors who operate aggressively, have entered the market and challenged Tesla.
Companies need to reduce their prices for maintaining market position, which ultimately leads to decreased profit margins. Also, the demand for electric vehicles has decreased, because consumers prefer to drive gasoline and hybrid vehicles.
However, the current market situation shows that Tesla operates a different business than what its valuation indicates. The stock trades at a price-to-earnings ratio of 390, which means that investors expect perfect performance from the company despite its actual business difficulties.
Valuation Built on Dreams
At the present valuation of Tesla, the investors purchase the company for its future potential instead of its present state. The situation demands no room for error, because expectations for success remain extremely high. Also, Tesla requires innovative developments that extend beyond its automobile products to prove its current market valuation.
The vision depends on robotaxis, which is its main component. Musk has described the worldwide need for self-driving taxis as “quasi-infinite”, and Tesla is establishing its self-driving taxi service through its Cybercab production facility and upcoming autonomous ride-hailing service in additional cities.
As per Musk, the development of Tesla’s humanoid robot, Optimus, will create a significant economic impact on the U.S.
He said,
“I think long-term Optimus will have a very significant impact on the U.S. GDP”.
The next-generation Optimus production starts this year, which will maintain the existing long-term story.
Can Tesla Make You a Millionaire?
People who have wagered against Elon Musk through the years have faced dangerous risks, yet Tesla still holds potential to deliver groundbreaking results during the next ten years. Investors at this valuation, now pay for future achievements, which have not yet materialized.
So, the stock price could experience a sudden decline, if it faces any small operational errors. Tesla may deliver rewards to long-term investors who remain dedicated, yet using one highly valued stock to achieve millionaire status, presents an investment strategy which carries high levels of danger.
Bottom Line
Tesla operates as one of the most captivating businesses in the market, as it combines ambitious goals with innovative products and controversial elements. The company shows potential for an exceptional future achievement, but its current stock price provides no possibility of surprises.
A person needs to develop three specific qualities to achieve millionaire status, which includes patience, discipline, and investment in multiple assets, rather than solely depending on one high-risk plan.
