Tesla: The Road to Becoming the First $100 Trillion Company
- LaFoy O. Thomas III, Esq.
- Mar 8
- 5 min read
Updated: Mar 13
Tesla (TSLA): The Road to Becoming the First $100 Trillion Company
Executive Summary Tesla, Inc. (NASDAQ: TSLA) is uniquely positioned to become the most valuable company in history, with the potential to reach a $100 trillion market capitalization. While skeptics focus on short-term volatility, Tesla's long-term trajectory is defined by its dominance in artificial intelligence, energy, autonomous driving, and manufacturing innovation. This report outlines the key developments that make Tesla the inevitable leader of the global economy in the coming decades.
Furthermore, we at Thomas Third Capital are setting a one-year price target of $600 per share, based on Wall Street’s inevitable recognition of Tesla’s future revenue potential. Over the next 12 months, it is our opinion that Wall Street will begin to pull forward revenue projections from Tesla’s Optimus robot, its robotaxi service, the energy division, and upcoming lower-priced vehicles, leading to a significant rally in the stock.
1. Autonomous Driving and Robotaxi Revolution
Tesla’s Full Self-Driving (FSD) technology is rapidly advancing toward full autonomy. Once Tesla nearly perfects and deploys its robotaxi network, it will create an entirely new trillion-dollar industry.
Market Potential: Revenue from autonomous transportation could realistically exceed several trillion dollars by 2035 and almost definitely by 2040. Tesla’s robotaxi service will very likely capture and maintain a dominant share, given its data lead, cost-efficiency, and scalability.
Profitability: Unlike Uber or Lyft, Tesla will own both the vehicles and the technology stack, maximizing margins. A single Tesla robotaxi could generate over $30,000 in annual revenue, scaling into hundreds of billions in annual profit, likely within five to seven years of the domestic launch of the service.
Wall Street Pulling Forward Revenue: With Tesla expected to launch its robotaxi service this year in Austin, Texas, institutional investors will begin to price in this massive revenue stream well before it fully materializes, contributing to the stock’s move higher.
2. Energy Business & Grid-Level Storage Domination
Tesla Energy is an overlooked growth driver that will likely eventually surpass its automotive business in both revenue and profits.
Megapacks & Virtual Power Plants: Tesla’s large-scale Megapack batteries are already transforming the energy grid by stabilizing power supply and reducing reliance on fossil fuels. Tesla also recently announced the building of a new Megafactory near Houston, Texas. This will be the company’s third Megafactory and lead to more substantial growth after the company’s energy generation and storage revenue already increased 67% in 2024 to over $10 billion annually and deployments increased 114% compared to 2023.
Global Energy Market: More optimistically than many others, we believe that the energy storage market alone can exceed $1 trillion or more by 2040. Tesla’s dominance in this space positions it as a global energy powerhouse and the energy demands associated with artificial intelligence will increasingly push the world to look in Tesla’s direction for its energy needs.
Stock Price Impact: As Tesla continues to report record energy deployments, Wall Street will revise its revenue forecasts upward, recognizing Tesla Energy as a high-margin and inevitable trillion-dollar business.
3. AI & Robotics: Tesla’s Unparalleled Edge
Tesla’s AI initiatives extend beyond autonomous driving, encompassing robotics, neural networks, and artificial general intelligence (AGI).
Tesla Bot (Optimus): Tesla’s humanoid robot will revolutionize labor markets by closing labor shortages before eventually replacing manual labor in many sectors, including manufacturing and agriculture. We believe, as stated by Elon, that Optimus will be the best-selling product of all time and it is easy to forecast trillions in profitable revenue by 2040.
Dojo Supercomputer: Tesla’s Dojo, one of the most powerful AI training platforms, will help continue to give Tesla an unprecedented edge in AI development. Tesla will also likely offer Dojo to other companies as a SuperComputer-as-a-Service, contributing to its status as an indispensable technology company.
Why Wall Street Will Take Notice: As Tesla increases production of Optimus this year, investors will increasingly discount Tesla’s leadership in robotics and artificial intelligence, recognizing Optimus as the future of the company and the global economy.
4. Next-Generation Manufacturing & Supply Chain Efficiency
Tesla’s commitment to manufacturing innovation gives it an unmatched cost advantage.
Gigapress & Structural Battery Packs: These technologies allow Tesla to build vehicles more efficiently, reducing costs greatly compared to legacy automakers.
Vertical Integration: Tesla controls its supply chain, from raw materials (e.g., lithium refining) to software and AI chips, enabling industry-leading margins and resilience against supply disruptions.
Global Expansion: New possible Gigafactories in countries like Mexico, India, and beyond will supercharge Tesla’s production capabilities and market penetration of its more affordable vehicles and or the robotaxi in the coming years.
Stock Price Impact: As Tesla streamlines production and continues to achieve record-breaking margins, analysts will revise their earnings projections upward, further supporting a stock price surge.
5. The Next-Gen Vehicle Platform & Mass Market Domination
Tesla’s upcoming cheaper vehicles, built on an entirely new platform, will democratize EV ownership and massively expand its total addressable market.
Economies of Scale: This affordable EV will be produced with next-gen manufacturing techniques, continuing Tesla’s status as the cost leader in the industry.
Global Market Share: Emerging markets like India, Southeast Asia, and Africa will help drive exponential growth as Tesla expands its product lineup.
Investor Reaction: The announcement of this low-cost vehicle, expected in the second or third quarter of this year, will contribute to the stock’s run as investors anticipate Tesla’s expansion into mass-market dominance.
6. Tesla’s Unique Business Model & Revenue Streams
Unlike any other company, Tesla operates in multiple future trillion-dollar industries simultaneously. Its revenue streams include:
Vehicle Sales
Software (FSD subscriptions, Dojo computing-as-a-service)
Energy
Robotics
Insurance (Tesla’s data-driven insurance business)
7. Tesla’s Stock: The Future of Investment
Tesla’s financial trajectory suggests exponential growth as these industries materialize.
Projected Revenue Growth: Tesla could reach or exceed $5 trillion to $10 trillion in annual revenue by 2040, with industry-leading profit margins.
Valuation Upside: As Tesla disrupts multiple trillion-dollar industries, a market cap exceeding $100 trillion becomes a realistic long-term target.
One-Year Price Target: $600: As Wall Street increasingly pulls forward revenue projections for Tesla’s Robotaxi service, FSD software, Optimus Robot, Tesla Energy, and lower-cost vehicles, the stock will rally significantly we believe.
Conclusion: The Most Valuable Company in History
Tesla is not just a car company—it is a technology and energy conglomerate that is fundamentally reshaping the global economy. The convergence of AI, robotics, energy, and manufacturing efficiencies ensures that Tesla will lead the world’s most significant technological revolutions.
One-Year Target: $600 – As Wall Street increasingly recognizes the transformative potential of Tesla’s revenue streams, the stock will likely rally before the end of the next 12 months. At a closing price of $262.67 on March 7th, 2025 and a market cap of less than $850 billion, investors who understand this once-in-a-lifetime opportunity will be part of financial history, not just over the next 12 months but over the next 20 years and beyond.
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Disclaimer: I/We own a position in Tesla (TSLA) stock and plan to remain shareholders long-term.
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