Valuations and Long-Term Vision
Emma Wall, chief investment strategist at Hargreaves Lansdown, said Musk now leads in what she called “two incredibly frontier technologies”: AI and space exploration.
Because the merger remains entirely private, Wall noted, it has not been tested by public markets in the way Tesla has.
“What you’re seeing priced in at these valuations is a kind of multi-decade vision,” she told BBC Radio 4’s Today programme, referencing ambitions to move energy generation and data centers into space. However, she cautioned that any tangible benefits may not materialize for “10, 20, 30 years.”
Tesla’s Role and the “Super Company” Concept
The merger follows Tesla’s announcement last month of a $2 billion investment in xAI. Musk told Tesla investors he envisions xAI acting as an “orchestra conductor” for Tesla’s robot-powered factories.
He also revealed plans to halt production of two car models in favor of focusing on robotics — one of the most dramatic pivots in Tesla’s history.
“It’s those type of technologies that he’ll be looking to leverage with this new kind of super company,” Wall said.
Tesla proceeded with its xAI investment despite pushback from some shareholders. In a vote last year, abstentions and opposition outnumbered approvals.
