On generous assumptions, Tesla’s core EV business, generating 75% of gross profit but with falling sales, might be worth roughly $50 per share, only 15% of the current price. 1Much of the remainder relates to expectations around self driving. RBC Capital, for example, ascribes 59% of its price target, or $181 per share, to robotaxis and a further $53 to monetizing Full Self Driving technology. Combined, that is a cool $815 billion based on double-digit multiples ascribed to modeled revenue — not earnings — 10 to 15 years from now because, after all, it relates to businesses that barely make money today.

 

Tesla’s $800 Billion Robotaxi Dream Is Finally Facing Reality

By Liam Denning

Liam Denning is a Bloomberg Opinion columnist covering energy. A former banker, he edited the Wall Street Journal’s Heard on the Street column and wrote the Financial Times’s Lex column.