Elon Musk, the CEO of Tesla Inc., is responding to investors’ approval of his massive compensation plan by making outlandish predictions about the future of the company. After receiving confirmation that investors supported awarding him stock options worth up to $55.8 billion, Musk spoke about Tesla’s robot-making efforts during the company’s annual meeting.
According to Tesla’s general counsel, the company currently has two humanoid robot prototypes in California that are being used to pluck battery cells off the end of a production line and place them in shipping containers. Musk revealed that there are several other robots cruising around the company’s offices in Palo Alto.
While it is expected that these robots, named Optimus, won’t go into limited production until next year, Musk didn’t hesitate to offer an ambitious projection. He suggested that Tesla could eventually generate around $1 trillion in profit annually from these robots, although he did not specify a time frame. Musk believes that if the price-to-earnings multiple is between 20 and 25, Optimus alone could contribute to a market capitalization of $20 trillion for Tesla, potentially making it the most valuable company in the world.
Musk’s focus on robots within Tesla is not a new development. Earlier this year, he put pressure on the company’s board to increase his stake in Tesla to around 25% or else he would consider building artificial intelligence and robotics products elsewhere.
However, it’s worth noting that while Musk is known for setting ambitious goals, his track record in achieving them has been mixed. While he correctly predicted in 2019 that self-driving technology could make Tesla a half-trillion-dollar company, his predictions about turning Tesla’s customer cars into robotaxis have not yet materialized.
It’s also important to mention that this isn’t the first time Musk has suggested that another business within Tesla could rival its carmaking operations. Despite years passing, Tesla’s energy generation and storage products still generate only a fraction of the company’s sales, falling short of the CEO’s previous projections.
In contrast to his grand vision for robots, Musk acknowledged the challenges in the auto industry, particularly for electric vehicle production. While Tesla plans to increase its production, Musk recognized that other manufacturers like General Motors and Ford have scaled back their electric vehicle plans. He emphasized that the market is not easy, indicating the complexities of operating in the automotive industry.
In conclusion, Elon Musk’s response to the approval of his compensation plan includes ambitious predictions about Tesla’s robot-making efforts. While there is potential for significant profit from these robots, it remains to be seen whether Musk’s projections will become a reality. Meanwhile, Tesla faces challenges in the competitive auto industry, but the company remains determined to increase its production.
