SpaceX and Tesla CEO Elon Musk attends the Viva Technology conference dedicated to innovation and start-ups at the Porte de Versailles exhibition center in Paris on June 16, 2023.

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tesla The billionaire told CEO Elon Musk that he believes a carmaker’s market capitalization is directly tied to whether the automaker can solve the self-driving problem LVMH On Friday, successor Antoine Arnault.

Musk speaks at the VivaTech Innovation Conference in Paris. The young Arnault scoffed at Musk’s Tesla’s $827 billion market capitalization, noting that it dwarfs the storied luxury conglomerate’s valuation.

The Tesla CEO responded by saying he knew little about stock price movements. “Valuations are a weird thing,” Musk said. “Sometimes I say, ‘Hey, I think Tesla’s stock price is too high,’ and the stock goes up. I say, ‘Okay.'”

But Musk also said that Tesla’s market value is related to the company’s ability to perfect self-driving technology.

“In reality, the value of a company is largely determined by autonomy,” Musk said. “If you look at our total vehicle production, it’s closer to 2 million or so vehicles this year. But that’s still only 2% of total vehicle production.”

“The potential for autonomy is that the value of autonomy is so high that even if you have a discount, the percentage probability that autonomy happens, that’s very valuable,” the CEO continued. He also reiterated the idea of ​​Tesla owners turning their vehicles into fleets of self-driving robotaxis, an idea he has said will happen in 2020.

Musk has said for years that Tesla is close to solving the self-driving problem, but the company’s cars still only offer advanced driver assistance features.

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