During a visit to Paris, CEO Elon Musk emphasized the significance of vehicle autonomy for Tesla’s market value. He expressed optimism about the company’s progress toward achieving fully autonomous vehicles, stating that autonomy is the “main driver” behind the brand’s value. As a result, Tesla’s shares experienced a 3% surge, reaching their highest level in over eight months.
Tesla, recognized as the world’s most valuable automaker with a market capitalization of approximately $800 billion, has faced challenges in meeting Musk’s previous targets for complete self-driving capability. Nevertheless, Musk expressed confidence in the near-term resolution of autonomy, conveying this message at the VivaTech conference.
According to Musk, the primary basis for Tesla’s value lies in autonomy. He believes it to be the key factor driving the company’s worth. However, Tesla clarifies that its “Full Self-Driving” software does not render the vehicle autonomous and necessitates driver supervision.
On the same day, Musk held a meeting with French President Emmanuel Macron, marking their second encounter in just over a month. French officials are keen on persuading Musk to select France as the location for Tesla’s next gigafactory in Europe. Furthermore, Musk had lunch with Bernard Arnault, the head of luxury goods conglomerate LVMH, accompanied by Arnault’s sons Antoine and Alexandre. Notably, both Musk and Arnault have alternated as the world’s richest person, with Musk recently surpassing Arnault following a luxury market decline and a rally in Tesla stocks.