This is not my forecast but one that I read. The numbers might be off but it is the premise that I want to highlight.
In this video I discuss how FSD is likely to be 10x the effect on the stock price as compared to automotive alone. This means we are looking at $3,000 per share before energy and insurance is factored in.
Is this possible? Again, the numbers might be off but the line of thinking holds. Elon Musk stated that the company already has talks with a "major automobile manaufacturer" over the prospect of liscensing the software.
▶️ 3Speak
Summary:
The video discusses the potential impact of Tesla's full self-driving feature on the company's stock. The speaker mentions a forecast made by someone who claims that the software is worth ten times more than the automotive aspect of Tesla. This forecast sets a $3,000 price target for the full self-driving feature alone. While the speaker does not confirm agreement with the specific numbers, he does acknowledge the exponential impact this technology could have on Tesla's profitability and revenue potential. The speaker also highlights the possibility of Tesla being seen as a software company by the market, drawing parallels to companies like Nvidia. The video ends with the speaker expressing optimism based on Elon Musk's mention of discussions to license the full self-driving software to a major automaker.
Detailed Analysis:
The video delves into a forecast regarding Tesla's full self-driving technology, proposing that its value could significantly impact the company's stock. The forecast suggests that the full self-driving feature could be ten times more valuable than Tesla's automotive segment, leading to a $3,000 price target assigned to the software alone. The speaker mentions that even though he does not necessarily agree with the specific numbers presented in the forecast, he does emphasize the potential exponential impact on Tesla's profitability and revenue.
Furthermore, the speaker discusses the market's potential perception of Tesla as a software company due to the innovation of its full self-driving technology. Drawing a comparison to Nvidia, a company known for supplying chips for such software, the speaker hints at the upside potential for Tesla's stock price. This comparison leads to the consideration of Tesla's valuation in terms of price-earnings (PE) ratio in comparison to other software-related companies.
The discourse shifts to Elon Musk's mention of potential discussions to license Tesla's full self-driving software to a major automaker. While the automaker's identity remains undisclosed, the speaker imagines possibilities like Volvo, Ford, or Rivian. By speculating on the pricing strategy for licensing the software, with an example of $2,000 per vehicle, the speaker explores the revenue potential from licensing to a company producing millions of vehicles. This strategy could unlock vast revenue streams without Tesla needing to manufacture the vehicles themselves, further enhancing the company's financial outlook.
In conclusion, the video emphasizes the significance of solving the full self-driving technology challenge for Tesla to realize its potential revenue from licensing agreements. The speaker's optimism stems from the notion that once achieved, full self-driving capabilities could catapult Tesla into a race for market domination, potentially reshaping the automotive industry.
Notice: This is an AI-generated summary based on a transcript of the video. The summarization of the videos in this channel was requested/approved by the channel owner.