Elon Musk Says Tesla Now In A Similar Position Nvidia Was In Before Its Stock 'Went Bananas' – Thinks Strong AI Companies Will Dwarf Others

Elon Musk recently spoke at an event, sharing his thoughts on Tesla’s future and the impact of artificial intelligence (AI). He compared Tesla’s current situation to Nvidia’s before its stock surge, predicting that companies strong in AI will dominate the market.

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Musk explained that Tesla is on the brink of significant growth, similar to Nvidia, saying, “I do feel like maybe … Tesla’s kind of in a phase right now, like similar to what Nidia was in before … Nvidia stock went bananas.” 

He also praised Nvidia CEO Jensen Huang, saying, “I have to say like Nvidia deserves the valuation … they’ve got … Jensen and his team have done an amazing job.” However, he emphasized that companies with strong AI capabilities will see their value increase more than those without. “Any kind of AI company that is strong in AI is just going to be crazy.”

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Full Self-Driving Technology

A major part of Tesla's AI strategy is full self-driving (FSD) technology. Musk stressed how this could change car usage because, according to him, cars are used about 10 hours a week, but with self-driving, they could be used up to 168 hours a week.

“That would be a 10x increase in the productivity of the car, but it costs the same,” Musk said before continuing, “You go from … 20, 25% margins to 90% margins. It’s insane.” 

He went on to explain that when cars can drive themselves, Tesla owners could make money by sharing the car’s earnings. In other words, your car could give rides to people when you’re not using it, and you would get a portion of the money it makes. This extra income could be much more than what you pay for your car loan or lease and is in line with previous Musk statements on the subject.

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Humanoid Robots

Musk also discussed Tesla's humanoid robot, Optimus. He believes these robots could become important in different industries and homes. “The market for humanoid robots is in excess of 10 billion units,” Musk said, predicting high demand for these robots.

“[That’s] more than the number of humans because people will each want one, and then there’ll be others that are involved in industry … if they do sell even at a volume for $20,000, that’s $20 trillion, so it’s like I mean it’s just bananas numbers,” further explained the Tesla CEO.

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The Problem With Musk’s Predictions

While Musk is optimistic about Tesla’s future and AI’s potential, there are several reasons his predictions might not come true.

First, there are regulatory hurdles. Getting approval for fully self-driving cars involves complex rules and regulations, which can delay or even stop the widespread use of self-driving cars.

Second, there are technical challenges. Creating AI that is reliable and safe for self-driving cars and robots is very difficult. Any setbacks in this area could slow down Tesla’s progress.

Third, there is market competition. The AI field is very competitive, with many companies investing a lot of money. Tesla will face strong competition from other tech giants and startups.

Finally, economic factors play a role. Economic downturns or changes in the market could impact Tesla’s stock and overall growth.

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