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Musk With A Huge New Goal – To Turn Tesla Into A $25 Trillion Company

After Elon Musk won support from Tesla shareholders to pay out a $56 billion compensatory bonus and move the company’s headquarters to Texas, the billionaire announced his next ambitious goal: to turn the $25 trillion electric car company around.

Key Facts

  • The entire value of the S&P 500 currently stands at $45.5 trillion, according to FactSet. Tesla’s CEO said his company’s Optimus humanoid robots could eventually make the automaker worth more than half that amount.
  • Musk, who characterized himself as a “pathological optimist” at the 2024 annual shareholder meeting in Austin, Texas, said Tesla was embarking not only on a “new chapter” in its life, but was about to write an entirely “new book”. Optimus seems to be one of the main characters.
  • Tesla first revealed its plans to work on humanoid robots in 2021 at an AI Day event, unveiling a dancer in a jumpsuit that looked like a sleek, androgynous robot.
  • In January, Tesla showed off Optimus robots folding laundry in a demo video that was immediately criticized by robotics engineers as a hoax. The robots were not autonomous but rather operated with humans at the controls.

What To Watch For

At Thursday’s shareholder event, Musk didn’t reveal exactly what Optimus might do today. He speculated that the robots would one day act like R2-D2 and C-3PO from the Star Wars movie. They could cook or clean for you, work in a factory or even teach your children, Musk suggested.

As for shareholder value, Musk said Optimus could be the catalyst to lift Tesla’s market capitalization to $25 trillion someday.

Speaking to a crowd of mostly adoring fans in an auditorium at the Gigafactory, Musk promised that Tesla would move to “limited production” of the Optimus in 2025 and test humanoid robots in its factories next year.

The company, he predicts, will have “over 1,000 or several thousand Optimus robots running Tesla” by 2025. All of these are far-fetched even for Musk, who is known for making ambitious promises to investors and customers that don’t come true, from developing software that can turn an existing Tesla into a self-driving, drop-in vehicle, to battery-swapping EV stations.

Big Number

Reaching a market cap of $25 trillion would mean Tesla would be worth about eight times Apple. The iPhone maker is currently the world’s largest company by market capitalization, just ahead of Microsoft. At Thursday’s close, Tesla was valued at about $580 billion, making it the 10th most valuable company in the S&P 500. Musk did not provide a time frame for reaching $25 trillion. He said autonomous vehicles could propel the company to a market capitalization of $5 trillion to $7 trillion.

A Look Into The Future

Tesla shares have fallen 27% this year as the company expects sales to decline, linked in part to an aging lineup of electric vehicles and increased competition in China. The company has also implemented drastic layoffs. Musk encouraged investors to look beyond the current state of the business and more toward the future of autonomous driving, robots and artificial intelligence.

Taking the stage after the shareholder votes were read, Musk said, “I just want to start by saying I love you guys.”

Among his boldest claims on Thursday was Musk’s declaration that Tesla has advanced so far in silicon development that it has surpassed Nvidia when it comes to the interface, or process, that trained machine learning models use to make inferences from new data.

Nvidia shares have jumped nearly ninefold since the end of 2022, driven by demand for its AI chips. The company is now worth about $3.2 trillion.

One concern swirling around Musk is his focus on Tesla given all his other commitments. He owns and operates social media company X, is the CEO of SpaceX and the founder of The Boring Co. and Neuralink. He launched another startup, xAI, in March of last year, and the company recently raised $6 billion in venture funding.

Musk was asked by a shareholder at the meeting how important he personally is to Tesla’s future.

“I’m a useful accelerator of that future,” he said, emphasizing his role in innovation.

He said that when it comes to humanoid robots, other companies, including tech startups, are chasing the market. Competitors include Boston Dynamics, Agility, Neura and Apptronik.

“What really matters is whether we can be much faster than everybody else and have our product ready a few years before theirs and be better,” Musk said.

Moonshot’s Kimi K2: A Disruptive, Open-Source AI Model Redefining Coding Efficiency

Innovative Approach to Open-Source AI

In a bold move that challenges established players like OpenAI and Anthropic, Alibaba-backed startup Moonshot has unveiled its latest generative artificial intelligence model, Kimi K2. Released on a late Friday evening, this model enters the competitive AI landscape with a focus on robust coding capabilities at a fraction of the cost, setting a new benchmark for efficiency and scalability.

Cost Efficiency and Market Disruption

Kimi K2 not only offers superior performance metrics — reportedly surpassing Anthropic’s Claude Opus 4 and OpenAI’s GPT-4.1 in coding tasks — but it also redefines pricing models in the industry. With fees as low as 15 cents per 1 million input tokens and $2.50 per 1 million output tokens, it stands in stark contrast to competitors who charge significantly more. This cost efficiency is expected to attract large-scale and budget-sensitive deployments, enhancing its appeal across diverse client segments.

Benchmarking Against Industry Leaders

Moonshot’s announcement on platforms such as GitHub and X emphasizes not only the competitive performance of Kimi K2 but also its commitment to the open-source model—rare among U.S. tech giants except for select initiatives by Meta and Google. Renowned analyst Wei Sun from Counterpoint highlighted its global competitiveness and open-source allure, noting that its lower token costs make it an attractive option for enterprises seeking both high performance and scalability.

Industry Implications and the Broader AI Landscape

The introduction of Kimi K2 comes at a time when Chinese alternatives in the global AI arena are garnering increased investor interest. With established players like ByteDance, Tencent, and Baidu continually innovating, Moonshot’s move underscores a significant shift in AI development—a focus on cost reduction paired with open accessibility. Moreover, as U.S. companies grapple with resource allocation and the safe deployment of open-source models, Kimi K2’s arrival signals a competitive pivot that may influence future industry standards.

Future Prospects Amidst Global AI Competition

While early feedback on Kimi K2 has been largely positive, with praise from industry insiders and tech startups alike, challenges such as model hallucinations remain a known issue in generative AI. However, the model’s robust coding capability and cost structure continue to drive industry optimism. As the market evolves, the competitive dynamics between new entrants like Moonshot and established giants like OpenAI, along with emerging competitors on both sides of the Pacific, promise to shape the future trajectory of AI innovation on a global scale.

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