- Tesla’s electric car business was “the first wave of growth” and will give way to a greater focus on renewable energy, billionaire Chamath Palihapitiya said on Wednesday.
- Elon Musk’s company is “the leading coverage when it comes to electrification and decarbonization,” and is worth trillions of dollars once investors appreciate Tesla’s growing energy businesses, he added on CNBC.
- Palihapitiya’s comments come after Tesla reported second-quarter earnings that exceeded expectations. The automaker also posted a fourth consecutive quarter of profitability.
- Watch Tesla commerce live here.
Tesla’s rapid growth may continue, but it won’t just hinge on electric cars, billionaire Chamath Palihapitiya said Thursday.
The CEO of Social Capital and president of Virgin Galactic believes that Tesla is worth trillions of dollars as investors shift from viewing the company as a carmaker to betting on green energy.
“This is no longer about cars, that’s the first wave of growth,” he said on CNBC. “I think people are appreciating a gutting of traditional cars and a huge shift to electric vehicles, of which Tesla will get the disproportionate share.”
He continued: “This is worth trillions of dollars.”
Click here to subscribe to Power Line, Business Insider Weekly Energy Newsletter.
Elon Musk’s company is on a winning streak with no signs of stopping. Tesla shares have risen about 280% so far this year and posted a record on Monday. The company’s second-quarter report released Wednesday showed that the company exceeded Wall Street expectations and achieved its fourth consecutive quarterly profit. The achievement brings Tesla closer to being added to the S&P 500 index and further increases its favor among investors.
The company’s market capitalization stood at approximately $ 292 billion on Thursday morning, with the majority of earnings led by Tesla’s auto manufacturing business. However, Palihapitiya believes that the company’s energy businesses, including solar panel company SolarCity and battery maker Megapack, are driving growth forward.
Read more: Bernstein says buy these 13 dividend-rich stocks created to capitalize on a trend not seen in 65 years
“It is the leading hedge when it comes to electrification and decarbonization,” he said.
Tesla’s expansion will only accelerate once more customers purchase its energy business. Utilities are among the “most predictable and reasonable businesses”, and Tesla’s business portfolio will democratize power generation and storage as the country moves further toward promoting renewable energy, Palihapitiya said.
“I subscribe to this action as a commitment to decarbonisation, to unregulated energy and to the ability of all of us to become our small micro-profits,” he added.
Tesla was trading at $ 1,593.01 per share as of 10:35 am ET on Thursday.
Now read more market coverage from Markets Insider and Business Insider:
Buy these 19 cheap health care stocks poised to beat the market regardless of the election outcome and Obamacare’s fate, says BTIG
Avoid Apple’s actions as coronavirus uncertainties weigh on iPhone launch, says Goldman Sachs
Credit card spending suggests economic recovery stalled in July, JPMorgan says
.
