Part 4/9:
He then applies a 20x profit multiple, a common valuation heuristic for technology companies, to arrive at a $2 trillion market capitalization—a tripling of the company's current valuation. This model assumes continued growth and efficiency, making Tesla a dominant player in the automotive and tech landscapes.
Valuation and Market Potential
This projected $2 trillion valuation suggests a 3x increase from current levels. While this figure already indicates substantial growth, Matt clarifies that this is just one part of his reasoning—mainly, he uses this as a baseline to illustrate Tesla's potential.