SpaceX and Tesla CEO and owner of Twitter Elon Musk attends the Viva Technology conference dedicated to innovation and startups at the Porte de Versailles exhibition center on June 16, 2023 in Paris, France.
Chesnot | fake images
tesla CEO Elon Musk believes that the automaker’s market capitalization is directly related to whether or not the automaker is capable of solving autonomous driving, the billionaire said. LVMH shank Antoine Arnault Friday.
Musk spoke at the VivaTech innovation conference in Paris. The younger Arnault mocked Musk about Tesla’s $827 billion market capitalization, noting that it dwarfed the valuation of the storied luxury conglomerate.
Tesla’s CEO responded, suggesting that he had little information on stock price movements. “Valuations are kind of weird,” Musk said. “Sometimes I’m like, ‘Hey, I think the stock price is too high in Tesla,’ and then the stock price goes up. I’m like, ‘Okay.'”
But Musk also suggested that Tesla’s market capitalization was tied to whether or not the company could perfect self-driving technology.
“Really, the value of the enterprise is largely based on autonomy,” Musk said. “If you look at our total vehicle production, it’s almost 2 million vehicles this year or something like that. But that’s still only 2% of total vehicle production.”
“The potential for autonomy is that the value of autonomy is so high, that even if you have a discount, a percentage chance that autonomy will occur, that’s incredibly valuable,” the CEO continued. He also reiterated the idea of Tesla owners turning their vehicles into a fleet of autonomous robotaxis, an idea he once said would be implemented by 2020.
Musk has said for several years that Tesla is close to solving autonomous driving, but the company’s cars still only provide advanced driver assistance features.