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Elon Musk says Tesla’s valuation is high, but has a good reason for why it’s justified

Credit: @Gf4Tesla/Twitter

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If you ask anyone in the past two years who has invested money into the stock market, it is likely that the word “Tesla” will come up at one point or another. During the COVID-19 pandemic in 2020, which derailed American manufacturing, especially at automotive plants through the United States. Despite a derail in production at Tesla’s Fremont Factory in 2020, the automaker was able to stay relatively stable through a year filled with uncertainty. It ultimately led to a 700% increase in the stock price, along with an infamous Tweet sent by Tesla’s CEO on May 1st: “Tesla stock price is too high imo.”

On the day of Musk’s Tweet, Tesla shares (NASDAQ: TSLA) closed at a pre-split price of $701.30, or $140.26 on adjusted terms. Since then, Tesla stock has multiplied in value by nearly 6.5x, trading at $900.52, down nearly 27% from its 52-week high of $1,243.49, which was recorded in early November.


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However, since Musk’s May 1, 2020 Tweet, a lot has changed. Tesla has two new production facilities that are nearly ready for production, it has detailed the public on a revolutionary new battery cell, and it has increased yearly production rates by expanding manufacturing footprints at its two currently-operational plants. While the stock is levels higher than what it was when Musk said the stock was too high, the CEO may have come to terms with why Tesla shares trade at extensively high prices: trust.

“I’ve tried to just tamp down expectations, saying I think the stock’s maybe too high,” Musk said in an interview with TIME, who recently named him Person of the Year for 2021. “Current valuation is pretty high,” Musk continued, “which suggests that the market has faith in future execution of the company because it’s certainly not based on historical profitability, that’s for sure.”

Elon Musk is TIME Magazine’s 2021 Person of the Year

While Tesla is a company that has revolutionized the automotive market on a global scale, Musk has definitely come to terms with the fact that the company’s valuation is not necessarily based on presently-available information. However, innovation is something that the company has basically guaranteed through its products. If not for Tesla, it is likely that the companies like Ford, GM, and Volkswagen would probably not have such a tremendous focus on EVs currently. In fact, many of these automakers would probably be pumping out more ICE vehicles than ever. But Tesla’s market influence through flashy, fast, and futuristic electric cars has forced the long-standing dominators of the global car market to reconsider their strategies.

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Tesla’s current valuation is no longer $1 trillion. It currently sits at just over $905 billion, according to CompaniesMarketCap.comwhich tracks the valuations of companies in various sectors. However, Tesla is well over three times as valuable as second-place Toyota, which delivered 9,528,438 vehicles last year. Tesla delivered 499,550. Tesla also has an energy business, which oftentimes goes unnoticed and unaccounted for by analysts. Even still, is this enough to justify the company’s astronomical stock price?

Musk believes the faith from investors must be the reason, and who can blame them. Tesla has not been on time to some of its deadlines, but in a world of uncertainty, many companies have not performed well since the pandemic began. Take previously mentioned Toyota, for example. Despite selling over 9.5 million cars last year, it was an over 11% decrease from 2019. Tesla is continuing to build upon an already solid foundation for its cars and its company, and investor faith, which is evident if you know any Tesla stockholder, is at an all-time high.

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Disclosure: Joey Klender is a TSLA Shareholder.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla Cybercab ramps Robotaxi public street testing as vehicle enters mass production queue

Recent sightings on public roads and growing fleet activity at Giga Texas signal Tesla’s accelerating push toward the Cybercab’s commercial launch.

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Tesla Cybercab spotted in San Jose, CA testing on public roads with Robotaxi validation equipment [Credit: Nic Cruz Patane via X]

Tesla Cybercab is being spotted with increasing frequency both on public roads and across the grounds of Gigafactory Texas, suggesting that the company’s road testing and validation program is ramping meaningfully ahead of mass production.

A total of 25 Cybercab units were recently observed across three separate locations at Giga Texas by drone observer Joe Tegtmeyer — with 14 metallic gold units parked in a tight formation outside the factory exit, nine more at the crash testing facility undergoing structural and safety validations, and two additional units at the west end-of-line area for final checks.

The activity on public roads is just as telling. The Cybercab was spotted testing on public roads for the first time last October, near Tesla’s Engineering Headquarters in Los Altos, California, marking a significant development in the vehicle’s progression toward commercial readiness. As expected at that early stage, a safety driver was present in the seat.

Since then, sightings have only become more frequent. Community observers on X have posted fresh footage of Cybercabs navigating public streets in Silicon Valley, with each new clip adding to a growing body of evidence that Tesla’s validation efforts are well underway. The production backdrop supports the momentum. Tesla’s production line at Giga Texas moved into a higher volume early in March, representing what observers are calling the largest single-day grouping of Cybercabs seen to date.

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Tesla Cybercab spotted testing on public roads in Los Gatos, CA – March 10, 2026 [Credit: Osman Sarood via X]

CEO Elon Musk has been clear-eyed about what to expect from the ramp. “It’s an all-new product and radical redesign of car manufacturing to achieve ~5X higher production rate, which means the output S-curve will be very slow in the beginning, but ultimately super high volume,” Musk wrote on X. “For Cybercab and Optimus, almost everything is new, so the early production rate will be agonizingly slow, but eventually end up being insanely fast.”

Tesla ramps Cybercab test manufacturing ahead of mass production

Musk has also stated that Tesla is aiming for at least 2 million Cybercab units per year across more than one factory, with a potential ceiling of 4 million annually.

With testing activity on public roads accelerating and factory output visibly increasing week over week, the coming months at Giga Texas are set to be pivotal in determining how quickly Tesla can bring the Cybercab from validation to volume.

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Tesla opens Supercharging Network to other EVs in new country

Tesla’s Supercharging infrastructure is the most robust in the world, and it has done a wonderful job of keeping things up and running for the millions of owners out there. As it expanded access to non-Tesla EVs a couple years back, it has still managed to keep things pretty steady, although the need for more charging is apparent.

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Kia EV6, EV9 and Niro Owners Gain Access to Over 21,500 Tesla Superchargers

Tesla has started opening its Supercharging Network, which is the most expansive in the world, to other EVs in a new country for the first time.

After expanding its Supercharging offerings to other car companies in the United States a few years ago, Tesla is still making the move in other markets, as it aims to make EV ownership easier for everyone, regardless of what manufacturer a consumer chose to purchase from.

Tesla’s Supercharging infrastructure is the most robust in the world, and it has done a wonderful job of keeping things up and running for the millions of owners out there. As it expanded access to non-Tesla EVs a couple years back, it has still managed to keep things pretty steady, although the need for more charging is apparent.

Now, Tesla is expanding access to the Supercharger Network to non-Tesla EVs in Malaysia. The automaker just opened up a charging stie at the Pavilion KL Mall in Kuala Lumpur to non-Tesla owners, giving them eight additional Superchargers to utilize with a charging speed of up to 250 kW.

Tesla is also opening up the four-Supercharger site in Shah Alam, a four-Supercharger site at the IOI City Mall, and a six-Supercharger site in Gamuda Cove Township.

Electrive first reported the opening of these Superchargers in Malaysia.

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The initiative from Tesla helps make EV ownership much simpler for those who only have access to third-party charging solutions or at-home charging. While at-home charging is the most advantageous, it is not an end-all solution as every driver will eventually need to grab some range on the road.

Tesla has been offering its Superchargers to non-Tesla EVs in the United States since 2024, as Ford became the first company to gain access to the massive network early that year when CEO Elon Musk and Ford frontman Jim Farley announced it together. Since then, Tesla has offered its chargers to nearly every EV maker, as companies like Rivian and Lucid, and even legacy car companies like General Motors have gained access.

It’s best for everyone to have the ability to use Tesla Superchargers, but there are of course some growing pains.

Charging cables are built to cater to Tesla owners, so pull-in Superchargers are most advantageous for non-Tesla EVs currently, but the company’s V4 Superchargers, which are not as plentiful in the U.S. quite yet, do enable easier reach for those vehicles.

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Tesla Semi expands pilot program to Texas logistics firm: here’s what they said

Mone said the Tesla Semi it put into its fleet for this test recorded 1.64 kWh per mile efficiency, beating Tesla’s official 1.7 kWh per mile target and delivering a massive leap over conventional diesel trucks.

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Credit: Mone Transport

Tesla has expanded its Semi pilot program to a new region, as it has made it to Texas to be tested by logistics from Mone Transport. With the Semi entering production this year, Tesla is getting even more valuable data regarding the vehicle and its efficiency, which will help companies cut expenditures.

Mone Transport operates in Texas and on the Southern border, and it specializes in cross-border U.S.-Mexico freight operations. After completing some rigorous testing, Mone shared public results, which stand out when compared to efficiency metrics offered by diesel vehicles.

“Mone Transport recently had the opportunity to put the Tesla Semi to the test, and we’re thrilled with the results! Over 4,700 miles of operations at 1.64 kWh/mile in our Texas operation. We’re committed to providing zero-emission transportation to our customers!” the company said in a post on X.

Mone said the Tesla Semi it put into its fleet for this test recorded 1.64 kWh per mile efficiency, beating Tesla’s official 1.7 kWh per mile target and delivering a massive leap over conventional diesel trucks.

Comparable Class 8 diesel semis, typically achieving 6-7 miles per gallon, consume roughly 5.5 kWh per mile in energy-equivalent terms, meaning the Semi uses three to four times less energy while also producing zero tailpipe emissions.

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Tesla Semi undergoes major redesign as dedicated factory preps for deliveries

The performance of the Tesla Semi in Mone Transport’s testing aligns with data from other participants in the pilot program. ArcBest’s ABF Freight Division logged 4,494 miles over three weeks in 2025, averaging 1.55 kWh per mile across varied routes, including a grueling 7,200-foot Donner Pass climb. The truck “generally matched the performance of its diesel counterparts,” the carrier said.

PepsiCo, which operates the largest known Semi fleet, recorded 1.7 kWh per mile in North American Council for Freight Efficiency testing. Additional pilots showed similar gains: DHL hit 1.72 kWh per mile, and Saia achieved 1.73 kWh per mile.

These metrics underscore the Semi’s ability to slash operating costs through superior efficiency, lower maintenance, and zero-emission operation. As charging infrastructure scales and production ramps toward 2026 targets, participants like Mone Transport are proving electric semis can seamlessly integrate into freight networks, accelerating the industry’s shift to sustainable, high-performance trucking.

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Tesla continues to prep for a more widespread presence of the Semi in the coming months as it recently launched the first public Semi Megacharger site in Los Angeles. It is working on building out infrastructure for regional runs on the West Coast initially, with plans to expand this to the other end of the country in the coming years.

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