$Tesla Motors(TSLA)$ Before you decide to sell at these levels, you might want to consider how Tesla stands to benefit.
Tesla directly benefits from SpaceX's success through its 19 million shares in the company. At the IPO price of $135 per share, that stake is worth about $2.57 billion, and a successful IPO would add even more value.
Beyond that, Tesla also gains from shared chipmaking. For the chipmaking mentioned earlier, Musk announced plans for a semiconductor facility in Texas to produce chips for Tesla, SpaceX, and xAI, which SpaceX acquired in February. For Tesla, this could provide consistent access to chips through its own supply chain for its Optimus robots and full self-driving (FSD) technology.
It will need plenty of advanced chips for the Optimus robots, which Tesla plans to sell commercially and also deploy in its own factories. Its first-generation production line is designed to manufacture 1 million robots annually. The second-generation facility under construction in Texas is intended to eventually have a production capacity of 10 million robots annually.
Regarding FSD, the technology will be installed not only in the electric vehicles sold to consumers but also in its robotaxi fleet. Broadly, the robotaxi market is projected to boom. By 2035, Goldman Sachs Group forecasts the global robotaxi market will be worth $415 billion. As other automakers and tech giants look to build their own robotaxi fleets and autonomous-driving capabilities, access to advanced chip technology could give Tesla a durable edge over its competitors.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
