Social Capital CEO Chamath Palihapitiya told CNBC on Thursday that Tesla’s growth is no longer about its electric cars, but its renewable energy components. That could make Elon Musk’s company worth billions, he added.
“It’s the main coverage when it comes to electrification and decarbonization. This is no longer about cars, that’s the first wave of growth. I think people are appreciating evisceration of traditional cars and a huge shift to [electric vehicles], of which Tesla will get the disproportionate share, “Palihapitiya said in a” Squawk Box “interview.” This is worth trillions of dollars. “
Tesla has been crying. At this time last year, Tesla shares were trading at around $ 260. Now, they are trading above $ 1,500. Earlier this month, Tesla became the world’s most valuable automaker when its market capitalization surpassed that of Toyota for the first time. As of July 1, Tesla had a market capitalization of $ 206.5 billion compared to Toyota’s $ 202 billion valuation. As of Thursday morning, Tesla’s market capitalization is $ 295.3 billion.
The company has also just reported its first full year of profitability under GAAP.
Until now, Tesla’s energy businesses have been pushed into the background compared to its key car unit, but Musk has been pushing for growth. In its second-quarter earnings report, Tesla said its Megapack energy storage business generated earnings for the first time.
“What Tesla is going to do with its battery packs and software will suddenly allow each of us to be in the energy business,” said Palihapitiya.
“Once again, people will get angry, they won’t understand, they will try to go back and they will be wrong. And what will happen is that this stock will now represent the entirety around decarbonization and sustainability, so it was really cool to have this thing near automobiles for the first few years, I get it. But now I subscribe to this stock as a push toward decarbonization, unregulated energy, and the ability of all of us to become our little micro-profits. ”
Subscribe to CNBC on YouTube.
.
