Part 10/14:
Most importantly, Tesla’s free cash flow generated solely from robo taxis could reach levels equivalent to its total 2024 free cash flow — roughly $3.58 billion — by the end of 2025. This dramatic increase hinges on aggressive but manageable growth, a direct result of the broad, multi-state approach.
The Forcing Function: When Will Robo Taxis Become a Market Catalyst?
A central concept of this analysis is the so-called "forcing function": a critical point at which the robo taxi division’s contribution to Tesla’s free cash flow surpasses a certain percentage—estimated at 5% of total Tesla free cash flow.