Part 12/14:
Tesla is spending heavily on hardware (like Nvidia’s GPUs) to support its AI ambitions. Experts like Gary Black estimate a potential 38% upside solely from vehicle sales, given Tesla’s rapid growth trajectory, with 37% vehicle sales growth indicated.
In this light, Tesla's current forward Price-to-Earnings ratio of 45 seems justified, especially considering the technological moat it’s creating with its vision-only approach to autonomous driving. This contrasts with many traditional tech giants like Google and Meta, which lack such aggressive autonomous vehicle initiatives.