Elon Musk and Cathie Wood Agree: Tesla's AI Project Could Add $10 Trillion to Global GDP

Tesla CEO Elon Musk agrees with Cathie Wood that the company is the "largest AI project on earth." Wood predicts that Tesla's autonomous vehicle efforts could generate trillions in revenue. Analyst Dan Ives estimates that Tesla's AI and autonomous driving division could be worth $1 trillion. Tesla's partnership with Samsung to manufacture the AI6 chip domestically is expected to power its next-gen autonomous systems.

Tesla Inc. (TSLA) has been recognized as the world's most ambitious AI project by ARK Invest CEO Cathie Wood, who predicts that its autonomous vehicle efforts could generate trillions in revenue. Wood's assertion, echoed by Elon Musk, positions Tesla at the forefront of AI innovation, with the potential to significantly impact global GDP.

In a June interview, Wood described Tesla as "the largest AI project on earth," a statement Musk later affirmed on X. She added that ARK's research indicates that the ecosystem surrounding autonomous taxi networks could generate between $8 trillion and $10 trillion in global revenue within the next 5–10 years. This estimate is substantial, considering the current global GDP is approximately $113 trillion.

Musk, a long-time proponent of full self-driving (FSD) and robotaxi services, expects autonomous vehicles to have a noticeable effect on GDP growth within the next one to two years. Despite a 12% year-over-year drop in Tesla's second-quarter revenue to $22.5 billion, analysts remain focused on the company's long-term AI bets.

To further its AI ambitions, Tesla has partnered with Samsung Electronics (SSNLF) to manufacture its AI6 chip domestically. The $16.5 billion multiyear partnership will see Samsung produce the AI6 chip at its Texas facility, powering Tesla's next-gen autonomous systems, including its upcoming robotaxi fleet and Optimus humanoid bot [2].

Analyst Dan Ives estimated that Tesla's AI and autonomous driving division alone could be worth $1 trillion, reinforcing investor optimism despite the company navigating revenue headwinds and political scrutiny [1]. The partnership with Samsung is expected to provide Tesla with valuable foundry experience and strengthen its supply chain resilience, crucial in the face of global semiconductor shortages and geopolitical tensions [2].

Investors have responded positively to the news, with Tesla shares climbing 52.17% over the past 12 months, despite a 20.21% year-to-date drop [1]. The Samsung deal is seen as a foundational shift in the semiconductor and AI chip tech, potentially redefining the self-driving and AI semiconductor race.

References:
[1] https://www.benzinga.com/markets/tech/25/08/46819258/elon-musk-agrees-with-cathie-wood-tesla-is-largest-ai-project-on-earth-amid-robotaxi-vision-samsung-chip-deal-buzz
[2] https://carboncredits.com/teslas-game-changing-16-5bn-samsung-deal-for-ai-chips-is-this-a-turning-point-for-tesla-stock/