Can $50,000 Invested in Tesla Stock Make You a Millionaire? Elon Musk's Answer May Shock You.

Core Viewpoint - Tesla's stock has declined 30% year-to-date due to poor financial results and market share losses, ranking among the worst in the S&P 500, despite CEO Elon Musk's optimistic claims about the company's future potential [1][3]. Financial Performance - Tesla reported a 13% decline in first-quarter vehicle deliveries, totaling 336,681, marking the lowest total in three years [3]. - Revenue fell 9% to $19.3 billion, with operating margin reaching a six-year low, and non-GAAP net income dropped 40$0.27 per share [3]. - The company withheld guidance due to uncertainties from changing U.S. trade policies [4]. Future Prospects - Musk reiterated plans to launch an autonomous ride-sharing service in Austin by June and mentioned the deployment of thousands of autonomous robots in factories this year [4]. - Musk expressed strong confidence that Tesla could become the most valuable company globally, potentially surpassing the combined value of the next five largest companies [5]. Autonomous Ride-Sharing Opportunity - Tesla aims to capture 99% market share in autonomous ride-sharing, with Musk stating that he does not see any current competitors [10]. - Morgan Stanley estimates that by 2035, Tesla could have 900,000 robotaxis generating over $84 billion in revenue, with$17 billion expected to contribute to the bottom line [11]. Valuation Considerations - Tesla's stock is currently trading at a high valuation of 130 times adjusted earnings, which may seem excessive given recent performance [12]. - However, if Tesla successfully capitalizes on autonomous driving and humanoid robots, revenue could grow at 20% annually for the next 20 years, potentially justifying the current valuation [14].