Tesla's potential future value of 4.4 trillion dollars according to Elon Musk is supported by
more optimistic price forecasts from some Wall Street experts as of right now Tesla is the sixth
largest publicly traded Corporation in the world with a valuation of 690 billion dollars Elon Musk
Tesla CEO stated during the most recent earnings call that he sees a potential future with Tesla
worth more than Apple and Saudi aramco combined this bold claim faces the company's value at 4.5
trillion dollars and some Wall Street analysts are even more bullish earlier this year the asset
management company Arc invest released a value model that explores three potential outcomes the
bull scenario which is the most bullish of the three values Tesla at 6.7 trillion dollars by
2026 similar to this new Street research analyst Pierre faraju predicted that Tesla may be worth
10 trillion dollars by 2030. but only if the fur meets its goal of producing 20 million Vehicles
annually these optimistic projections which range from 550 to 13 490 suggest big gains for Tesla
shareholders however given that Tesla is presently worth more than the following eight automakers put
together Bears will likely claim the stock is already overvalued is it a good idea to purchase
Tesla stock hello everyone and welcome back to Elon Musk Evolution where we bring you the most
recent news about Elon Musk and his multi-billion dollar companies space news and the latest science
and technology but before we begin make sure you subscribe to our Channel and click the Bell icon
so you don't miss out on any of our amazing videos Tesla delivered another set of strong
financial results in the third quarter even if delivery estimates were not met Revenue increased
by 56 percent to 21.5 billion dollars while free cash flow or FCF shut up by 148 to a record 3.3
billion dollars the most noteworthy development however was that the company once more reported an
operating margin that led the sector this diamond increased to 17.2 percent supporting CEO Elon
musk's prediction that manufacturing efficiency would be its key Competitive Edge what fuels the
sufficiency Tesla has redefined what it means to be an automaker at the risk of sounding theatrical
along with popular Rising electric vehicles the company disregarded traditional advertising
in favor of media coverage and Word of Mouth marketing avoided dealerships to pursue a direct
to Consumer sales approach and more these chances paid off Tesla has created a premium brand image
that drives consumer demand and it has done so while cutting costs at Legacy automakers consider
standard operating procedures however Tesla has also contributed new technology advancements
for instance when the business unveiled its 2170 battery cell a few years ago musk claimed that it
was both the most affordable and energy Dent cell in the world this assertion was supported by care
and Energy Research advisors who also pointed out that Tesla cost less per kilowatt hour for battery
packs than any other automaker that's especially remarkable because battery packs are the most
expensive component of an electric vehicle meaning Tesla has a sizeable cost Advantage even better
the company is currently scaling up production of its next Generation 4680 battery cell which
should further cut costs furthermore at its brand new gigafactories in Texas and Germany Tesla
fabricates the model y's front and rear bodies from a single piece of metal the 1 600 fewer welds
per car produced by that single piece casting method translate into cost Savings in the form of
reduced welding time and a reduction in the number of welding robots used on the manufacturing floor
investors have many good reasons to be excited it about the future the company is diversifying into
new Automotive Industries with the delivery of the first Tesla semi later this year and the launch of
cyber truck manufacturing the next year likewise musk reaffirmed prior guidance regarding the
long-term growth of deliveries by 50 yearly during the most recent earnings call by 2030 the company
plans to build 20 million Vehicles annually which will need the construction of around 12
gigafactories Grandview research estimates that by 2027 the total Global sales of electric vehicles
would reach 1.2 trillion dollars indicating that Tesla has just begun to explore the potential of
its Market in the end management anticipates that full self-driving technology will be the main
driver of profitability for Tesla there will be two stages to that changeover this quarter Tesla
will first roll out its FSD beta software throughout North America and following that
pending regulatory approval will be Europe and other areas of the world naturally demand for FSD
software will probably increase after the product is released that is once it provides complete
autonomy but the business should still experience an increase in subscription software Revenue
in the near future second at some point in the future Tesla intends to introduce an autonomous
ride-hailing service the company's Robo taxi is scheduled to begin production in 2024 though
management hasn't given a particular date in light of this 10 years from now Tesla might function as
an automobile software developer and services provider in tandem from a financial standpoint
that development might be game changing by 2030 according to analysts at UBS group and arconvest
the market for robo taxis might be worth more than two trillion dollars annually by the same year
autonomous ride hailing Services could make two trillion dollars in Revenue furthermore according
to Tesla CFO Zach kirkhorn there is quite a bit of upside on margins from a software Viewpoint
which indicates that FSD it not only offers a sizeable addressable Market but also a chance
for Tesla to become more profitable in the future and to top it off Tesla's in a great position to
dominate the market for driverless Vehicles Tesla amassed more data on autonomous driving
than any other automaker and data is the basis of artificial intelligence with a fleet of 3 million
autopilot capable Vehicles the price of Tesla stock is 10.6 times revenue and 71 times earnings
when compared to other automakers those value multiples appear to be outrageous the stock of
Toyota for instance is valued at 0.7 times sales and 8.4 times earnings the stock will certainly
become more volatile in the coming months as a result of Tesla's High valuation but this does
not necessarily imply that Tesla is overvalued time will only tell if Tesla reaches its long-term
production goals and develops traction with FSD software and services the company's value might
increase significantly over the next 10 years possibly reaching 10 trillion dollars because of
this most investors don't have any intentions to sell their Tesla stock and risk-taking investors
might want to think about investing in a few share years of this growing stock right now meanwhile
the CEO of Arc investors generally made wise purchase and sell choices with Tesla stock over
the past 12 months one of the most Ardent Tesla supporters on Wall Street has been Kathy Wood and
a number of exchange traded funds or ETFs managed by wood the stock has been at or close to the top
holding but would continue to sell Tesla shares first in the fall of 2017 when the stock was close
to its highs and then once more in the spring of 2018. wood is definitely traded at the right
times repurchasing shares from the stock fell and offloading some after it increased investors
should take note of wood's recent purchases in October which include an additional 66 190 shares
for the arc Innovation ETF the day after Tesla released its third quarter earnings here are
three solid Arguments for why wood is once again bullish on Tesla shares and why you should be too
after Tesla's Q3 report the stock fell prompting wood to make her most recent purchase and the
statement by management that it expects to fall short of the 50 growth goal for 2022 car sales
compared to last year during the earnings call caught the attention of several analysts however
it's important to note that Tesla continues to believe it will achieve that objective for vehicle
production the company has been facing shipment constraints which will account for the disparity
due to such Logistics problems Tesla built 22 000 more cars in Q3 than it actually delivered these
vehicles though have buyers and won't merely end up in stock for long-term investors it
shouldn't matter if customers require ownership during one quarter versus another furthermore a
lot of other things are also expanding quickly net income more than doubled and total sales
increased by 56 percent year over year in the third quarter musk also disclosed to investors
that the company's accelerating efforts to improve battery production capacity battery storage and
solar rooftops are also included in its energy segment which has more demand than it can meet
as its energy storage deployments increase 62 percent year over year sales from that division
accounted for five percent of overall Revenue in the third quarter remember that the goal of this
channel is not to provide Financial advice advice and we do not urge or recommend that you invest in
any specific company in light of this we firmly advise that you conduct thorough research on the
issue before making any relevant purchases and that ends today's episode we hope you
enjoyed our video so what do you think is Tesla a good stock buy let us know your thoughts in the
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