How Much Is Tesla Software Worth? A Lot.

A second broker has taken a shot at valuing Tesla’s software business. The conclusion, good news for the company and for other carmakers, is that Tesla software is worth a lot.

UBS analyst Patrick Hummel took a look at some of the value hidden away in Tesla (ticker: TSLA). The idea that some might still be undiscovered within the world’s most valuable automaker, whose stock has trounced the competition, might seem oxymoronic. But bulls believe Tesla is more than just a car company, given that it sells solar panels, insurance, and importantly, software.

Hummell isn’t a full Tesla bull. He rates shares at Hold and has a target of $730 for the share price. He believes other automakers will have some success ramping up sales volumes for EVs, but that “Tesla remains the undisputed tech leader, most notably in software.”

At his price target. well above the stock’s current level of about $686, Tesla would be worth roughly $700 billion. He values the car business at roughly $200 billion, leaving about $500 billion for everything else.

“The lion’s share of this value can be generated by software, mainly autonomous driving,” wrote Hummell in a Wednesday report. “Out of $20 [billion operating profit] we expect Tesla to generate in 2025, $9 [billion] should already be software-driven.”

That almost half of profit would come from software by 2025 is surprising. Most of that would be from Tesla’s autonomous-driving package, called full self-driving mode, which sells for $10,000 today. To make more money, Tesla could improve the rate at which consumers choose that option, as well as potentially offering it via a monthly subscription.

Hummell isn’t the only one that values Tesla software highly. Morgan Stanley analyst Adam Jonas has taken a sum-of-the-parts approach to valuing Tesla stock, looking at the different businesses separately. He values Tesla’s software and services business at roughly $250 billion.

That’s lower than Hummell’s call, but Jonas still rates Tesla stock at Buy, with a target of $880 for the share price. Jonas believes the Tesla car business is more valuable than Hummell does, valuing it at roughly $350 billion.

All the value and profit coming from software isn’t just a benefit to Tesla. Other auto makers plan similar products. Ford Motor (F) already plans to offer products related to its fleet of commercial vehicles around the globe. General Motors (GM) still has On Star. And Tesla peer NIO (NIO) is considering the idea of selling its autonomous-driving software as a subscription.

The theoretical valuation discussions about hidden assets, however, weren’t helping Tesla stock Wednesday. Shares were down about 0.6% in midday trading. in line with the S&P 500. The Dow Jones Industrial Average was up about 0.1%.

The stock is down about 15% over the past couple of weeks, but is still more than 350% higher over the past year.

A new investment fund targeting celebrity-founded consumer brands has secured US$40 million in commitments and is rapidly approaching its US$50 million fundraising target, signalling growing investor appetite for alternative opportunities beyond traditional asset classes.

The Global Talent Fund, which has a maximum raise of US$100 million, focuses on building and investing in consumer businesses alongside celebrities, athletes, and influential personalities who play an active role as co-founders rather than simply endorsing products.

The strategy is based on the belief that changes in consumer behaviour, particularly the rise of social media and digital engagement, have fundamentally altered how brands are built and scaled.

GTF founding partner Jeremy Hunt, who is helping lead the fund’s strategy, said consumers increasingly feel connected to personalities they follow online and are more willing to support products developed by those individuals.

“Consumers are searching for content to engage with, and when a celebrity they like or follow takes them on the journey of creating a product or brand, they genuinely feel part of that process,” he said.

The fund is targeting high-growth consumer sectors including wellness, hydration, beauty and recovery, areas Hunt believes continue to benefit from strong global demand and ongoing innovation.

Rather than backing celebrity endorsement deals, the fund is seeking businesses where talent is deeply involved in product development, brand creation and long-term growth.

According to Hunt, authenticity remains one of the biggest differentiators between successful celebrity-backed brands and those that fail.

“The consumer can see clearly if someone is simply being paid to promote a product,” he said. “The winners are typically the brands where the celebrity has genuinely helped build the business from the ground up.”

The model has attracted support from several prominent Australian investors and business families, reflecting broader interest in alternative investments with global growth potential.

Hunt said consumer brands offered a level of tangibility that many investors found appealing.

“Consumer brands are what we touch, feel, smell and taste every day,” he said. “Our investors understand the growth potential in the model, but they also want to be part of the journey.”

The fund’s rapid progress towards its fundraising target comes amid growing recognition that celebrity influence, when combined with strong commercial execution and scalable business models, can create significant enterprise value.

With several high-profile celebrity-founded businesses generating billion-dollar exits in recent years, supporters of the strategy believe the opportunity remains in its early stages.

How Much Is Tesla Software Worth? A Lot.

A second broker has taken a shot at valuing Tesla’s software business.

With US$40 million already committed, the Global Talent Fund is attracting investor attention with a strategy focused on building globally scalable consumer brands alongside high-profile talent.