Elon Musk Thinks Tesla Will Become the World's Most Valuable Company. I Predict Its Stock Could Plunge by 70% (or More) Instead.

Re suggests that Interestingly, Tesla (TSLA 3

He's preparing the company for an autonomous future by directing its resources into its full self-driving (FSD) software, its Cybercab robotaxi, and its humanoid robot named Optimus

Musk believes Tesla will become the world's most valuable company by far if those duct platforms are successful

In contrast, Image source: Tesla (something worth watching), in light of current trends

Competition is a big reason for Tesla's sluggish sales

While the company's Model Y remains the best-selling car in a handful of countries, consumers more broadly seem to be flocking to other brands

In other words, Tesla is rapidly losing market in Europe's largest car market, in today's financial world

Affordability seems to be a major factor for consumers

BYD's sales exploded fourfold in Germany during June, compared to the year-ago period (noteworthy indeed)

Fortunately, Tesla plans to release a low-cost EV to compete

It was reportedly designed on the flagship Model Y platform, minus all of its premium features to bring the price down

Meanwhile, It just entered duction, but only time will tell whether it's enough to pull Tesla's EV out of its slump

Tesla's robotaxi is still too small to offset weak EV sales Elon Musk believes the future of Tesla's car is autonomous

Moreover, At the same time, In June, the company launched a supervised, invite-only version of its planned autonomous ride-hailing platform, using its passenger EVs ( the Model Y) with its FSD software installed

In contrast, They're completing autonomous trips around Austin, Texas, right now, with a human in the passenger seat to keep an eye on things

However, The test lays a foundation for the rollout of the Cybercab, which is a purpose-designed robotaxi that won't have pedals or even a steering wheel

Regulators currently stand in the way of a broad robotaxi rollout

At the same time, Tesla's FSD platform doesn't have apval for unsupervised use in any U

States right now, but Musk is hopeful that will soon change

Moreover, In fact, he believes the company's robotaxi could have enough coverage to serve half of the entire U

In contrast, However, during a conference call with investors for the second quarter of 2025, Tesla's Vice President of artificial intelligence, Ashok Elluswamy, said only a "handful" of passenger EVs are currently deployed in Austin for the test gram

In contrast, He did say the operating region around Austin will soon expand tenfold, which should put more cars on the road, but it places the company significantly behind the competition (remarkable data)

Cities completely unsupervised (something worth watching), considering recent developments

The idea that Tesla can go from a handful of cars in Austin to serving half of the U

However, Population within the next five months -- leapfrogging Waymo in the cess -- feels very unrealistic

Furthermore, However, It's also three times more expensive than Nvidia -- one of the world's highest-quality and fastest-growing companies -- which trades at a P/E ratio of 54

Additionally, If Tesla's earnings continue to shrink, which seems ly based on the state of its EV sales, then its P/E ratio is going to keep climbing unless its stock price plunges

I think that's a real possibility in the near term, amid market uncertainty

The picture might look a little different for investors who are willing to hold Tesla stock for the long term

Additionally, Dan Ives from Wedbush Securities thinks the company's robotaxi presents a trillion-dollar opportunity, but that figure might be conservative if it winds up serving half the U

Population eventually (noteworthy indeed)

Then there is the Optimus humanoid robot, which could be a hot duct in every manufacturing facility and even in every household one day, given current economic conditions

What the re reveals is 's still an early-stage duct, but Tesla just announced version three, which irons out some of the kinks from the previous models

Musk thinks Tesla will be ducing 1 million Optimus robots annually five years from now, and he previously said this duct could der $10 trillion in revenue for the company over the long term (fascinating analysis)

Investors who believe in Tesla's futuristic duct platforms could be handsomely rewarded in the long run if they buy the stock right now, despite its sky-high valuation

Furthermore, However, I think patient investors might get a cheaper entry point in the coming months.