Tesla’s future growth point is not in the automotive energy business will drive the market value of the trillion.

Chamath Palihapitiya, a venture capital expert and CEO of Social Capital, said today that Tesla’s future growth point is no longer cars but its energy business. “In terms of electrification and decarbonization, the energy business is the focus of the future,” Mr. Parihapitia told the media today. Tesla’s future growth point is no longer a car, it’s just the first wave of growth. “Mr. Parihapitia believes that the energy business will push Tesla’s market capitalisation above trillions of dollars.

Tesla's future growth point is not in the automotive energy business will drive the market value of the trillion.

In fact, Tesla’s share price has been moving in that direction. At this time last year, Tesla’s share price was about $260. Today, its share price is above $1,500. Earlier this month, For the first time, Tesla overtook Toyota to become the world’s most valuable carmaker. On July 1st Tesla had a market capitalisation of $206.5bn, while Toyota was valued at $202bn. As of Thursday morning local time, Tesla had a market capitalization of $295.3 billion.

So far, Tesla’s energy business has been a minor player compared to its key automotive division, but Musk has been driving its growth. Yesterday, Tesla reported its first profit from its energy storage business, Megapack, in the second quarter of 2020. Meanwhile, SolarCity, the solar roofing business, has about twice as many installations as it has been month-on-month.

Tesla’s energy business will be similar to LaMotors in the long run, CEO Elon Musk said on a earnings conference call. Overall, the energy market is larger than the automotive market.

Musk also said energy production needs to be sustainable in order to achieve a more sustainable energy-based future. It’s basically solar, then wind. In addition, there are plenty of batteries to store this energy.