Tesla’s push for energy could make it worth billions


Social Capital CEO Chamath Palihipitiya told CNBC on Thursday that Tesla’s growth is no longer about its electric cars, but about its renewable energy components. He said that Elon Musk’s company could be worth trillions.

“It’s the major hedge when it comes to electrification and decarbonization. It’s no longer about cars, it’s the first wave of growth. I think people are pricing due to traditional autos and a drastic change . [electric vehicles]Of which Tesla will get an unmodified share, “Palihapitiya said in a” Squaw Box “interview. It’s trillions of dollars.”

Tesla has been on a tear. At this time last year, Tesla shares were trading around $ 260. Now, they are trading above $ 1,500. Earlier this month, Tesla became the world’s most valuable automaker, when its market cap exceeded Toyota for the first time. On July 1, Tesla had a market cap of $ 206.5 billion compared to Toyota’s $ 202 billion valuation. As of Thursday morning, Tesla has a market cap of $ 295.3 billion.

The company reported only its first full year of profits based on GAAP.

Tesla’s energy businesses have taken a back seat compared to its flagship auto unit so far, but Musk is moving towards growth. In its second quarter earnings report, Tesla said its energy storage business Megapack made a profit for the first time.

“What Tesla is going to do with its battery packs and software will let us all suddenly enter the energy business,” Palihapitiya said.

“Again, people will get angry, they won’t understand, they will try to push back, and they will be wrong. And what is about to happen is that the stock is now going to represent totality around decarbonization and stability, So it really was. ” To own this thing around cars for the first few years, I get it. But I now underline this stock as a push towards decarbonization, toward unregulated energy, and the potential for all of us to become our little micro-utilities. ”

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