Gene Munster Suggests Elon Musk Merge Tesla with xAI for a 'Fairy Tale' Conclusion and $8.5 Trillion Market Valuation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 08 2025
0mins
Should l Buy CRM?
Source: Benzinga
Gene Munster's Proposal: 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, emphasizing the potential value of Tesla's humanoid robots and AI advancements.
Tesla's FSD and Robotaxi Updates: Tesla has revised its Full Self-Driving (FSD) definition and expanded its Robotaxi operations in Austin, adapting to new regulations by moving the safety operator to the driver's seat.
Optimistic Future for Tesla: Marc Benioff, CEO of Salesforce, praised Musk's vision for the Tesla Optimus robot, which he believes could significantly contribute to the company's future value, alongside the unveiling of Tesla's Master Plan IV focusing on AI and robotics.
Tesla's Performance Metrics: Tesla currently shows strong momentum and growth metrics, but has a low value score, indicating a mixed performance outlook in the stock market.
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Analyst Views on CRM
Wall Street analysts forecast CRM stock price to rise
39 Analyst Rating
29 Buy
9 Hold
1 Sell
Moderate Buy
Current: 179.420
Low
223.00
Averages
326.40
High
405.00
Current: 179.420
Low
223.00
Averages
326.40
High
405.00
About CRM
Salesforce, Inc. is a customer relationship management (CRM) technology company. Its artificial intelligence (AI) powered Agentforce 360 Platform offers sales, service, marketing, commerce, collaboration, data management, integration, analytics, and information technology (IT) service solutions. It enables customers to build and deploy digital labor for employees and customers, leveraging autonomous AI agents across business functions. Its service offerings include Agentforce Sales, Agentforce Service, Agentforce 360 Platform, Slack and Others. The Agentforce Sales provides sales capabilities and tools built for organizations across prospecting, sales engagement, team collaboration, sales analytics and AI, sales programs, sales performance, partner management, and revenue and orders. The Agentforce Service provides field service solutions that enable companies to connect service agents, dispatchers and mobile employees through platform to schedule, dispatch and manage jobs.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strong Earnings Performance: Nvidia's latest earnings report reveals an adjusted EPS of $1.87 and revenue of $81.62 billion, surpassing Wall Street expectations and further solidifying its leadership position in the semiconductor industry.
- Pressure on Software Market: The iShares Semiconductor ETF has surged approximately 72% this year, while the iShares Expanded Tech-Software Sector ETF has declined about 12%, illustrating the increasing competitive pressure AI products are placing on traditional software, prompting businesses to reassess their software spending.
- Investor Mindset Shift: Cramer notes that while legacy software companies remain, the rise of AI is weakening their pricing power, urging investors to reevaluate their perspectives on technology investments to adapt to this new market reality.
See More
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- Nvidia Earnings Beat Expectations: Nvidia reported adjusted earnings of $1.87 per share and revenue of $81.62 billion, surpassing Wall Street expectations, showcasing the strong growth potential of the semiconductor industry.
- Software Sector Under Pressure: While the semiconductor ETF has risen approximately 72%, the software sector ETF has fallen about 12%, reflecting the impact of AI technology on traditional software business models as companies reassess their software spending.
- Investor Mindset Shift: Cramer emphasizes that investors need to adapt to the reality of Nvidia being the most valuable company globally, highlighting the increasing revenue stability in the semiconductor industry and the competitive pressures facing traditional software companies.
See More
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- AI and Software Stocks Recovery: Cava Group surged 3.91%, while Salesforce and Marvell Technology advanced 0.70% and 4.89%, respectively, reflecting a renewed confidence in the AI and SaaS sectors, driving related stocks higher.
- CEO Remarks Focus: Investors will closely monitor CEO Jensen Huang's comments during the earnings call, particularly his optimistic views on AI infrastructure development and the transition to
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- Software Sector Resilience: Companies like Salesforce and Marvell Technology saw stock price increases, reflecting a recovering market confidence in AI and SaaS, which further bolstered overall market positivity.
- Earnings Report Focus: Nvidia's Q2 revenue estimates and gross margins will be closely watched, especially with soaring memory chip prices; strong revenue guidance could enhance investor confidence in the sustainability of the AI market growth.
See More
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- AI Cost Pressure: Companies like Meta, Shopify, Spotify, and Pinterest have reported rising AI and inference costs as a drag on margins, with Shopify noting that economies of scale were partially offset by increased LLM costs, highlighting the profitability challenges faced across the industry.
- Intensifying Market Competition: As Chinese labs offer competitive models at lower prices, the IPO valuations for OpenAI and Anthropic, projected to exceed $800 billion, face pressure, as the assumptions regarding market share and pricing power are increasingly challenged.
- Shifts in Enterprise Budgets: A survey by CloudZero indicates that by 2025, over 45% of companies will spend more than $100,000 monthly on AI, a significant increase from the previous year, demonstrating a growing commitment to AI investments among enterprises.
- Accelerated Technological Transformation: The CEO of Databricks noted that enterprises are adopting an
See More
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- Market Rebound: The S&P 500 index rose by 0.78%, the Dow Jones Industrial Average increased by 0.75%, and the Nasdaq 100 climbed by 1.24%, indicating a recovery amid lower bond yields and strong semiconductor stock performance, reflecting investor confidence in economic recovery.
- Bond Yield Decline: The 10-year T-note yield fell by 5 basis points to 4.62% as inflation expectations weakened, driven by a more than 3% drop in WTI crude oil prices, which provides support for the bond market and may prompt investors to reassess risk assets.
- Semiconductor Sector Strength: Nvidia's stock rose over 1% ahead of its earnings report, with Q1 sales expected to increase by 80% year-over-year, drawing market attention to its production ramp-up and competitive strategies, which could significantly impact its stock price and the broader AI economy.
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See More
