Tesla Inc.’s (NASDAQ: TSLA) market cap has hit $1.1 trillion after a sharp share price rebound from March, when Elon Musk’s relationship with President Trump fell apart. This makes it the 10th most valuable company in the world. This is more than all the other major automakers in the world combined.
Toyota, the world’s largest car company by global sales, is second on the list with a market cap of $227 billion. China’s BYD, the largest electric vehicle (EV) company in the world, is worth $112 billion. America’s two auto giants are well behind. GM’s market cap is $65 billion, and Ford’s is $44 billion.
The huge disparity is based largely on the showmanship of Tesla founder Elon Musk. He has made a number of sales pitches in the past, including for the Cybertruck, which turned out to be a massive bust.
Musk’s pitch now is that Tesla is an artificial intelligence and robotics company, and it should be valued as such. Some proof of this, he says, is the Optimus robot. Tesla designed it to do many mundane human tasks. In the future, it will take on more complex tasks, including driving a Tesla. Now, it is not even out of early tests.
Tesla’s most advanced AI product is its robotaxi. It will be able to transport large numbers of people without a driver. Eventually, it will take the place of cabs and buses. It is also in early stages. By the end of the year, it is likely to be in fewer than five cities. The same technology will allow Teslas to be completely self-driving. There is no evidence that will happen soon.
One hurdle for self-driving vehicles is that states and cities have to approve their use. That could mean years of paperwork.
Is Tesla worth $1 trillion? It’s a stretch.
Tesla Stock Price Prediction and Forecast 2025–2030
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