The economy has gone one way with high unemployment and fewer car buyers, and the stock market has gone the other direction. Governments are still struggling to make economic decisions on more stimulus aid to keep countries afloat.
But the markets don’t believe that’s a problem. Most stocks have risen strongly, and one stand equity stands out as truly odd: Tesla Stock. Its latest price is $650 per share, which is up 700% since March. It is to be listed on the S&P index later this month.
Is Tesla’s stock price buoyed by technology, economic recovery predictions, brand power or a revolution in zero commission trading? It has so much going for it, it’s hard to keep track.
Tesla Ratcheting Up for Big Sales before 2025
Yesterday’s announcement from Tesla regarding the sale of $5 billion of Tesla stock had investors reacting negatively. However, tonight in after-hours trading, the stock jumped to $659 a share.
Given how well the price of Tesla stock has performed, Tesla’s selling of stock to fund growth is a wise choice. It’s another sign to investors that Tesla will grow and become the company many expect. Read more on Tesla, it’s history and business units.
Tesla is a fascinating company to study and invest in. Do you plan to buy Tesla stock this year? Please leave a comment regarding your investment attitude toward Tesla stock. How high do you believe Tesla’s stock price could go, or do you see other EV manufacturers blowing away Tesla?
Tesla 5 Year Stock Price Forecast
Not many stock analysts are offering up 5 year outlooks for Tesla Stock. Of course, when you do, it can make the expert’s look bad when the price misses by a lot. Better not to do 3 year or 5 year forecasts if image is the priority.
However, it’s uncertain how many cars they can produce up to 2025 via their two new manufacturing plants in Germany and in Texas. So many variables, so we have to rely on reliable estimates from the major stock advisors such as Motley Fool and others. The established brokerages have missed out on recreational investors love of this stock and the company.
A tripling of the stock isn’t out of the question as the pandemic ends mid-June and the economy stimulates a lot of car buying. Gasoline prices will climb, and car loan rates will still be very low making EV car purchases a likelihood.
This chart shows Tesla’s price was up over 300% last February before Covid 19 was imported from China. What other stocks were rocketing before the pandemic? They might be worth watching now as the vaccinations begin.
Back then, the Fool cited 5 factors that drove the price then:
- surging Model 3 sales
- Tesla’s China-based manufacturing began
- postive free cash flow
- becoming self funding
- ambitious plans for 2020
Gov Capital predicts Telsa’s stock price will reach $1748 per share by December 23rd, 2025.
Many were laughing under their breath at the Tesla story, but now they’re thinking it can’t possibly last. Should we believe them?
Rocketing Tesla Stock Price
There’s plenty who believe the price is looking a lot like a SpaceX rocket during launch. This is an exciting company with an attractive brand and growing revenue base. Experts believe the company will become a true digital company via software subscriptions, not just auto sales.
Tesla’s stock price has doubled in the last 3 months and has jumped 700% since March. Every time skeptics predict a crash, TSLA just keeps on climbing. There is speculation about who is so negative toward EV technology and Tesla, but we shouldn’t dwell on it.
Change always brings resistance, and Elon Musk really pushes the envelope on market-changing innovation. There’s a lot of pension funds that are fully invested in the Big 3 and Japan automakers and feel threatened by Tesla’s strong brand.
Young investors, likely via Robinhood have overwhelming faith in the upward forecast for Tesla Stock.
Tesla Ramping Up Global Production
Yet the company is building factories to ramp up production numbers to Toyota/GM volume. Tesla will face opposition. For instance, today, the German manufacturing facility was held back by “snake protectionists” who say snakes will be endangered by the new facility.
EV Sales in China
Becoming the biggest company in the world isn’t easy. Yet investing in Tesla doesn’t seem like a gamble anymore. Its global sales potential is unbelievable.
The China Passenger Car Association reported Tesla’s EV sales soared 128% in November. Sales of the Tesla Model 3 jumped 78% from October. The CPCA announced that Tesla sold 21,604 made-in-China Model 3 cars last month in China.
Sales of EVs in China could jump in the next 2 years to close to 3 million which means Tesla may sell a lot of cars. I have always believed that China would not allow any foreign company to own a market in China. But if Biden jumps up imports of China goods, Tesla might be allowed to sell more EVs there.
With growth in Germany, Europe and China, Tesla is positioned for incredible growth. And those SpaceX rockets and Youtube videos will only make the brand very attractive to future EV buyers around the globe.
Factors Supporting Tesla Stock
There are a lot of factors pushing Tesla stock ever higher. Here are a few:
- global economy will return as vaccinations take effect and car buying will begin
- millennials like a new auto manufacturing company
- G7 countries support the demise of the gasoline engine
- battery technology is improving faster
- Elon Musk is a bold leader with vision and creates new technology
- Elon Musk has moved to low tax Texas and is taking his company with him
- Tesla is producing more cars and are gearing up financially to ramp production up considerably
analysts are giving the buy signal
Please bookmark this post for continuous updates on Tesla and the TSLA stock price.
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