Part 9/11:
This optimistic stance is grounded in detailed modeling of how robo taxis will contribute to Tesla’s free cash flow. Crucially, once the fleet surpasses about 2,000 vehicles, the autonomous revenue could rapidly multiply, pushing Tesla into a new valuation realm.
The Historical Parallel: From Model 3 to Autonomous Driving
The discussion draws parallels to Tesla’s earlier scaling success with the Model 3, where rapid unit growth turned a hype story into a cash-flow powerhouse. Similarly, the imminent scaling of robo taxis could induce a comparable transformation, rendering political noise irrelevant and focusing the market firmly on cash flow and technological validation.