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Elon Musk says self-driving Tesla robotaxis can help justify the company's $800 billion valuation

Posted On: Feb 25, 2021   |   Posted By: Business Insider

Elon Musk says self-driving Tesla robotaxis can help justify the company's $800 billion valuation

Summary List Placement Tesla has a massive market cap of more than $800 billion , making it the fifth-most valuable company in the S&P 500 .
And robotaxis can be part of the "roadmap" to help justify that value by boosting revenues, its CEO Elon Musk said Wednesday.
Musk has envisaged a robotaxi network with vehicles that can park and plug in themselves using Tesla's self-driving technology. Tesla plans to develop its own ride-hailing app where customers can summon a car or add their own vehicle to the network.
By using Tesla vehicles as robotaxis, the vehicles would be in full-time use, Musk explained at a quarterly earnings call Wednesday.
This means they would be used for around 60 hours a week, rather than 12, he said, which is "roughly a five times increase in utility." Tesla could therefore charge more for the vehicles by adding self-driving technology. Even if their usage only doubled, this would still be doubling Tesla's revenue for the vehicles, he said, "which is almost entirely gross margin."
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