Never far from the daily news cycle, Tesla, Inc. (NASDAQ:TSLA) provokes a wide spate of opinions among investors. Among the many topics of debate is the company’s valuation, and whether TSLA should be thought of as an EV company in the here and now, a technology firm chasing the future, or some cross between the two.
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Thus far, the share price very much points to TSLA being a company centered on the coming years. Its valuations are far and away beyond those of a traditional automobile manufacturer (TSLA’s Forward Price-to-Earnings multiple is north of 150x in contrast to Ford’s ~11x), as analysts and investors are pricing in AI, robotics, and a future of technological innovation.
That has been a net positive for investors, who enjoyed vast gains over the past two years. Things slowed down in the early going of 2025, however, as tariff worries, increasing competition, and a tanking brand image due to Musk’s political activities caused TSLA to take a turn for the worse during the first part of the year.
And yet, Musk’s admission that he would be turning his efforts towards running his business ventures certainly helped matters improve, and TSLA is up some 40% since the late April announcement on the company’s Q1 earnings call.
Looking to the future is just the ticket, explains one investor known by the pseudonym MMMT Wealth, who notes that placing too much of an emphasis on run-of-the-mill evaluations demonstrates a fundamental misunderstanding of TSLA’s true worth.
“Tesla’s current valuation isn’t justified by traditional metrics, but its potential as an AI, robotics, and energy company is unmatched,” explains the 5-star investor.
MMMT Wealth notes that robotaxis and Optimus robots could be worth some $900 billion for the company.
When it comes to the robotaxis, Tesla will likely win a large portion of the autonomous vehicle market. The investor also points out that Tesla will benefit from economies of scale and a fully integrated stack that includes software design, batteries, manufacturing, charging, and routing, among other features.
The investor estimates that the robotaxi business will have an enterprise value of $600 billion by 2030. MMMT Wealth further details that Tesla’s Optimus robotics and “other moonshot projects” could represent another $300 billion in value by the end of the current decade.
“Given that TSLA is currently valued at $1T and I can fairly conservatively reach nearly that, excluding a good portion of the current business shows that the potential ahead for TSLA is pretty significant,” adds MMMT Wealth.
MMMT Wealth is therefore comfortable putting faith in Musk and his visions of futuristic innovation.
“Investors need to understand that Tesla is playing a different game, and the future potential for TSLA is far more substantial than any other company in the market,” sums up MMMT Wealth, who is assigning TSLA a Strong Buy rating. (To watch MMMT Wealth’s track record, click here)
Wall Street is a bit more conflicted, with a fair amount of Bulls, Bears, and those who aren’t quite sure. With 13 Buys, 13 Holds, and 9 Sells, TSLA holds a consensus Hold (i.e. Neutral) rating. Its 12-month price target of $293.28 has a downside in the high single digits. (See TSLA stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.