Generally, Tesla is perceived as primarily focused on automobiles. However, Elon Musk suggests that a lesser-known offering could potentially transform Tesla into the most highly valued corporation globally.
Tesla, with its market cap soaring past the trillion-dollar mark, is undeniably a powerhouse in the electric vehicle (EV) scene. Yet, its CEO, Elon Musk, has eyes on the horizon, envisioning a product that will catapult the company to new heights. So, what's this game-changing invention that Musk believes could shape Tesla's future?
Tesla Today: A predominantly EV Company
Let's first delve into the current state of Tesla. At its core, it remains an EV company. Its revenue, as reported from the final quarter of 2021, was a substantial $25.7 billion. Breaking it down, we see that:
- About 77% of the total revenue came from automaking
- Energy storage and generation contributed 12%
- The remaining 11% went towards services and other sources
This data indicates that automobiles continue to be the main drivers of Tesla's income (as expected, most of the services and energy sales can be traced back to EV sales).
So when Musk talks about a non-EV product, he means anything that will eventually surpass the significance of Tesla's current primary revenue stream – EV sales.
On the Horizon: Tesla as a Robotics Company
The product that Musk believes could pave the way towards this monumental shift is Optimus. A 5-foot-8 humanoid robot that weighs around 125 pounds, Optimus is capable of amazing feats like walking at 5 miles per hour, carrying up to 40 pounds, and being powered by a 52-volt battery pack.
Presently, Optimus prototypes are being showcased for interactions and performances, possibly providing a sneak peek of its future potential. But Musk envisions these humanoid robots as labor-saving devices that can handle menial, repetitive, or potentially dangerous tasks across various industries.
The cost-effective and practical price point of $25,000 for each Optimus robot might make it an attractive acquisition for individual households eager to let machines take over tedious, everyday tasks like lawn mowing and dish washing.
During the most recent Tesla earnings call, Musk displayed unwavering confidence in the potential of Optimus. With a target of $10 trillion in revenue, he sees a path for Tesla to become the most valuable company in the world.
Musk's optimistic stance may seem audacious. However, we must remember that the humble smartphone has already transformed our world and managed to generate sales of around $4.6 trillion between 2014 and 2024[C1] .
Tesla's short-term opportunities remain closely tied to its vehicle sales, energy storage, and autonomous vehicles. However, the company's ultimate goal seems to be to evolve beyond being just an EV manufacturer and tap into the vast potential that Optimus offers.
Enrichment Data Insights:
- Tesla is committed to reshaping multiple industries, most notably energy and transportation, with AI and robotics integration[C1].
- The company's ambitious manufacturing expansion strategy involves building giga-factories worldwide to reduce costs and increase market reach[C1].
- Optimus, the humanoid robot project, is a key part of Tesla's long-term plans, aimed at revolutionizing manufacturing processes and potentially impacting broader industrial sectors[C2].
- Tesla has set ambitious production targets and aims to make Optimus robots affordable for widespread adoption[C2].
- Challenges associated with Optimus include significant technical hurdles, market acceptance, and potential job displacement, but these challenges also present opportunities for innovation and new career paths[C2].
- With Tesla's market cap exceeding a trillion dollars, Elon Musk is looking beyond electric vehicles, investigating potential investments in a non-EV product that could surpass the significance of their current primary revenue stream.
- The product that Musk believes could propel Tesla to new heights is a 5-foot-8 humanoid robot named Optimus, capable of performing various tasks across industries at an affordable price point of $25,000.
- During a recent Tesla earnings call, Musk expressed confidence in the potential of Optimus, envisioning the company's revenue reaching $10 trillion and projecting a future where Tesla becomes the most valuable company in the world.
- The holographic presentation of 40eb03e05b1209506f15967edb561d6e during the Tesla earnings call showcased the company's ambitious plans for Optimus, highlighting its role in reshaping multiple industries and expanding Tesla's presence beyond electric vehicles.
