"With Musk recently noting on X (formerly Twitter) that Optimus, Tesla's humanoid robot, could make up about 80% of Tesla's value, I think investors might wish to take a step back and consider the true potential behind what may very well be Tesla's "biggest product ever." Of course, he may not be able to get the timing right on emerging technologies."
"However, if you're a long-term investor, I think the timing is a less important factor, even if it means missing out on other opportunities out there by being too early to the next big technological shift. Either way, it's clear that Tesla stock deserves to be valued not as an automaker but as an AI company, or maybe even a diversified AI ETF,"
"For growth-minded investors who don't mind stomaching a bit of added volatility, I think it's better to be early than late to punch a ticket to the next profound nascent technology. With robots hogging the headlines of late, and Musk expressing confidence in Tesla's Optimus line of humanoid robots, it's becoming tougher to envision the distant future (think beyond the next 10 years), given the pace of AI's advancement."
Tesla's long-term value could be driven largely by its AI and humanoid robot, Optimus, which Musk said could represent roughly 80% of company value. Timing of technological breakthroughs may be uncertain, but long-term investors can prioritize potential over short-term timing. Tesla's AI capabilities could enable the company to disrupt multiple markets and create new revenue streams beyond vehicle sales. The firm can be viewed as an AI company or diversified AI platform rather than solely an automaker. As AI models gain agency, their embodiment into robots and physical devices could unlock broad commercial applications.
Read at 24/7 Wall St.
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