At Tesla's Investor Autonomy Day last week, Elon Musk put out the automaker's plan for self-driving, but now the CEO sets a valuation for what the company is trying to raise over $ 2 billion.
Yesterday, Tesla filed for a capital income of up to $ 2.3 billion.
Following the announcement, Citigroup and Goldman Sachs, two of those responsible for Tesla's new capital income, held a call to investors with some Tesla leaders, including CEO Elon Musk.
According to people on the call (via CNBC), Musk focused on Tesla's demanding efforts – go as far as saying that all Tesla's current businesses, electric cars, energy storage and solar, are just a backstop of value.
He tagged many things he already said last week during Tesla's Autonomy Day, but he also added that he sees Tesla achieving a $ 500 billion capital marketing thanks to his self-propelled technology:
Musk safe old investors on the call that autonomous driving will transform Tesla into a company with a market value of $ 500 billion, these people said. The current market price is around $ 42 billion. He also said that existing Teslas will increase in value as self-propelled capabilities are added via software and will be worth up to $ 250,000 within three years.
It would represent an increase of over 1
The CEO refused to answer any questions related to Tesla's current business efforts to focus on autonomy:
"But he also tried to drive the conversation back to autonomy and called it the basic driver of value for Tesla, and urged investors to to stop nit picking over vehicle margins. "
Musk plans to participate in the capital increase by buying additional $ 10 million worth of Tesla shares.
Here's the case: if Elon is right on Tesla's self-driving strategy, he also deals with the valuation.
If Tesla can actually beat almost every vehicle it produced since October 2016 (after some compositions of retrofits) to self-propelled cars / robot axes with a software update at some point next year, the company will actually create hundreds of billions in value overnight.
Of course, it's not as simple as that. The rollout will most likely be gradual, as legal approval will be based on jurisdiction, but you get the point.
As I have said before, I agree with Tesla's approach to autonomy, and therefore I think Tesla can get there.
But Tesla's current business of selling cars to customers with a decent gross margin is still very important.
The problem is that Tesla needs to get there and Elon has been historically inaccurate in terms of the timeline of self-driving.
The first quarter showed that Tesla can really be in danger with just a few months of trouble. In other words, Tesla needs to survive while delivering as many vehicles as possible before its self-propelled technology works
$ 2 billion more in the bank should help and give them something like a year of buffer.
Subscribe to Electrek on YouTube for exclusive videos and subscribe to the podcast.