<div id="readability-page-1"><div><div><p><strong>Deepwater Asset Management</strong>'s co-founder <strong>Gene Munster</strong> thinks that <strong>Elon Musk </strong>should combine <strong>Tesla Inc.</strong> <span>TSLA</span> with his artificial intelligence company xAI to achieve the $8.5 trillion market capitalization target for the EV giant.</p><h2>‘A Fairy Tale Ending,' For Tesla And Elon Musk, Says Gene Munster</h2><p>In a blog post shared on Friday, the investor outlined his thoughts following the Tesla board’s unveiling of a new $1 trillion compensation package for Musk. &#34;The reality is that a fairy tale Tesla $8.5T market cap is on the table,&#34; Munster said in the post.</p><p>He added that the numbers are &#34;mind blowing and achievable&#34; should Musk leverage AI through FSD, Robotaxi and Optimus robots. &#34;I believe that this humanoid robot line could account for more than half of Tesla's value in the long run,&#34; Munster said.</p><h2>Tesla's Merger With xAI</h2><p>The investor said that a merger with xAI would make sense for the company despite Musk saying there are no such plans currently in place. &#34;Tesla's market cap would likely jump on the announcement of a deal, unlocking pent-up retail demand for xAI through Tesla stock,&#34; Munster said.</p><p>He added that xAI's research could help the EV giant develop its products and that the company's AI Model Grok was gaining traction. &#34;With xAI's next funding round rumored at $175–$200B, the company remains small enough for Tesla to consider acquiring within the next year,&#34; Munster said.</p><h2>Tesla Revises FSD Definition Amid Robotaxi Expansion</h2><p>Tesla has recently revised the definition of the FSD system, which the company now states is &#34;an advanced driving system, regardless of the marketing name used, that is capable of performing transportation tasks that provide autonomous or similar functionality under specified driving conditions,&#34; according to the SEC filing of Musk's pay package.</p><p>This was preceded by Tesla expanding its Robotaxi operations in Austin, which now also operates on highways. However, the company has moved the onboard safety operator from the passenger seat to the driver's seat, in what could be a response to Texas updating its autonomous driving regulations.</p><h2>Tesla's Optimus Exploits, Master Plan IV</h2><p>Meanwhile, <strong>Salesforce Inc.</strong> <span>CRM</span> CEO <strong>Marc Benioff</strong> recently hailed Musk and the Tesla Optimus robot in a social media post after Musk's prediction, which said that the robot could represent over 80% of the company's value in the future.</p><p>Tesla also unveiled its Master Plan IV, which is a roadmap for its future endeavors. The plan focused heavily on artificial intelligence and the Optimus humanoid robot while having little mention of the company's EV plans.</p><p>Tesla scores well on Momentum and Growth metrics, while offering satisfactory Quality, but poor Value. For more such insights, sign up for Benzinga Edge Stock Rankings today!</p><p><em>Check out more of Benzinga’s Future Of Mobility coverage by</em><em> following this link.</em></p><ul> <li>Tesla Robotaxi Downloads Outpace Uber By 40% On Apple’s App Store Amid Ease Of Self-Driving Regulations</li> </ul><p><em>Photo courtesy: Shutterstock</em></p></div></div></div>

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<p>Gene Munster, co-founder of Deepwater Asset Management, suggests that Elon Musk should merge Tesla with his AI company xAI to reach an ambitious $8.5 trillion market cap. Munster believes that leveraging AI through Tesla's Full Self-Driving (FSD), Robotaxi, and Optimus robots could significantly enhance the company's value. He argues that such a merger would likely boost Tesla's market cap and unlock demand for xAI. Tesla has also revised its FSD definition and expanded its Robotaxi operations, while focusing on AI in its Master Plan IV.</p>

- Gene Munster, co-founder of Deepwater Asset Management, suggests that Elon Musk should merge Tesla with his AI company xAI to reach an $8.5 trillion market cap.  
- Munster believes that leveraging AI through Tesla's products could significantly enhance the company's value, particularly with the humanoid robot line.  
- He argues that such a merger would likely boost Tesla's market cap and unlock demand for xAI, despite Musk's current lack of plans for such a deal.

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Gene Munster Thinks Elon Musk Should Combine Tesla With xAI To Achieve 'Fairy Tale' Ending With $8.5 Trillion Market Cap