Musk Claims Tesla’s Value Is Because of Self Driving Tech

At the VivaTech conference held in the picturesque City of Lights, Elon Musk, the CEO of Tesla, candidly disclosed that the electric car behemoth is on the brink of mastering full self-driving prowess. He emphasised that Tesla’s valuation largely hinges on its autonomous capabilities, a remark which sent Tesla’s shares on a 3% ascent to reach an 8-month zenith.

"Although I've said this before, I think we will solve autonomy soon. The value of the company is primarily on the basis of autonomy. That's really, I think, the main driver of our value,” said Musk on the sidelines of the VivaTech conference in Paris," elucidated Musk.

In the year 2022, Tesla astoundingly crossed the trillion-dollar market capitalisation threshold. However, a subsequent acquisition of Twitter by Musk led to a diminution in Tesla’s value. The market expressed disquiet over Musk’s foray into the social media sphere, which not only diverted his attention but also necessitated the liquidation of a portion of his Tesla holdings.

Nevertheless, Tesla continues to tower over its competitors, maintaining an astronomical valuation of $800 billion – a magnitude only surpassed by corporate titans such as Microsoft, Apple, Google, ARAMCO, and Nvidia.

Musk, a perennial optimist, has been effusive about the advancements Tesla has made in self-driving technology. However, the ground reality presents a more tempered picture. Currently, Tesla vehicles can, at best, boast a Level 3 self-driving capability, which falls short of full autonomy.

Regrettably, Tesla's journey has been marred by fatal accidents on American soil, and the company finds itself under scrutiny. While Musk’s promises of achieving full autonomy have been a constant refrain, tangible progress has been elusive.

Tesla’s technological arsenal does include the awe-inspiring AI infrastructure, epitomised by the Dojo supercomputer, and a dedicated semiconductor team that crafts the chipsets essential for both the supercomputer and self-driving technology. However, Tesla's decision to eschew critical sensory hardware such as radars and LiDARs has ostensibly been to its detriment.

In a glamorous twist, Musk’s sojourn in Paris also included tête-à-têtes with Bernard Arnault, the luminary at the helm of LVMH and a formidable contender for the title of the world’s wealthiest individual. Furthermore, Musk engaged in diplomatic dialogue with French President Emmanuel Macron, who harbours ambitions of persuading the tech mogul to establish a second Tesla Gigafactory on European soil, following Berlin’s precedent.

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