Tesla Stock Forecast TSLA Stock Price

Tesla Stock Price Predictions

There was a forecast by Goldman Sachs that had Tesla stock price rising again.  Some predict the TSLA stock is headed for perhaps $1200 or even $2500.

And they’re are pessimist detractors who were forecasting big declines and a tech stock collapse and so far, they were right. On Friday as well, BofA analyst John Murphy cut the price target expectation on TSLA by 22% to $700 per share from $900. $700 is a long way off though. The stock looks like it is headed for a stronger sell rating.

Tech stocks have been taken a beating lately as the stock market shifts to value stocks. Tesla still is a speculative tech stock as demonstrated by the wicked price with no real backing for it. See more on the tech stock selloff.

There was a time when Tesla was the EV market. But those times have passed and new entrants to the market will squeeze Tesla profit margins hard. On the other side, is Elon Musk’s distraction (SpaceX and Bitcoin) and his reckless management of the company brand.  The darling days are gone and competitors are beginning to put forward some impressive competitive products.  Soon, their promotional efforts will grow too. Whether the Big 3 or China or someone else, a hit product is bound to be released in the next two years. What will happen to TSLA price then?

Tesla Stock Price Today

Tesla Inc. (TSLA) shares slid for a fifth straight week — after some criticism and the unveiling of an electric pickup truck (the popular Ford F150) from Ford. Tesla’s stock price closed down $17 on Friday and was off 1.5% for the week, at $580.88.

TSLA stock price today. Screenshot courtesy of Google Finance.

Tesla Stock price is down to $580, which is down about $303 year to date.  Still, analysts like what they’re seeing from the company as it attempts to ramp up production with two new manufacturing facilities. EV production output was the issue and that may have solved. The company did ramp up productin in the 1st quarter even during a still difficult supply challenge while the Covid 19 pandemic continued.

Screenshot courtesy of insideevs.

The unveiling of the Ford 150 Electric truck hit other EV manufacturers hard too. Ford makes an electric transit van too.

Lordstown Motors (NASDAQ:RIDE) shares fell about 12%,  Canoo (NASDAQ:GOEV) fell 1.4%, Nikola (NASDAQ:NKLA) lost 2%. Fisker fell very slightly over Thursday and Friday.

According to a report from Meticulous Research, the electric vehicle market is expected to reach 233.9 million units by 2027, at a CAGR of 21.7% during that period. “The growth of the EV market is attributed to factors such as supportive government policies and regulations promoting the adoption of EVs, increasing investments by leading automotive OEMs, rising environmental concerns regarding automotive emissions, and the decreasing prices of batteries.”

An amazing year for Tesla in 2020, where the TSLA stock price rose from $95 per share to its highest point at $880. The point is whether the pandemic and Biden’s green plan is just smoke and mirrors and the reality is that Tesla will have to compete hard against the big automakers in the EV markets.  Investors might want to understand the strength of the Tesla brand and Elon Musk’s leadership as Musk touts Bitcoin and then tears it down as a payment method.

tesla stock past year
tesla stock past year. screenshot courtesy of Yahoo Finance.

Given this stock’s meteoric rise and the value of the company now 6th largest in the world, how many investors or experts would argue against it?  TSLA stock is the darling of the 2020 stock market and maybe the 2021 stock market.

Out of nowhere, Elon Musk is building one of the most successful and innovative companies ready to compete with the top car manufacturers on the globe.

This week analysts have gotten some cold feet, as this CNN expert forecast at right suggests. Today the price is headed upward so reality is not agreeing with stock market experts at present.

When you see Tesla’s stock price agains the Dow S&P and NASDAQ price trends, the future become a little clearer. This might be your best pick for the next 3 months. With this dip in price and future dips, you might find a good point to buy TSLA stock if you believe in it.

Musk also had previously mentioned in an interview that being taken over or perhaps merging with a large automaker might be possible, “We’re definitely not going to launch a hostile takeover… If somebody said, ‘Hey, we think it’d be a good idea to merge with Tesla,’ we’d certainly have that conversation.

Such a merger would really launch Tesla’s production capacity and market share to world-class levels and would excite Tesla investors. It’s likely the rebound shows a firm belief in Tesla’s profit potential in 5 to 10 years.

Barchart is giving Tesla TSLA a sell rating.

Barchart TESLA sell rating
Barchart TESLA sell rating. Screenshot courtesy of Barchart.com

No one could have forecasted the huge jump in price this year, but a large group of investors, perhaps most Millennials, love this company and want to own part of it.

It’s hard to argue the valuation due to Elon Musks’ adventurers in Spacex, solar shingles and lifetime battery technology.

He’s become a superstar for many young entrepreneurs and gets more press than most other big cap companies.

S&P Dow Jones announced during November that Tesla Stock would be included in the S&P 500 beginning in December. It will be the largest company ever added to the S&P.  Bookmark this page and keep up on the latest on Tesla stock.  And check out the 3 and 6 month forecasts for 2021.

Broker Recommendations for TSLA Tesla stock. Screenshot courtesy of Zachs.

That helped Tesla stock price jump 46.3% to a new high of 607.80 on November 30. On March 16th this year, you could have purchased Tesla stock at $74.94 a share. That is an 700% rise in 8 months.

TESLA was mentioned as a replacement for Netflix as one of the FANG stocks, but that might have to wait until after the Covid 19 pandemic has subsided. See more on the forecast or outlook for Google stock, Facebook stock, Apple stock and Amazon stock.

After many years of losses, the company has been reporting positive earnings in the last year and a half.

TSLA earnings and revenue estimates courtesy of Yahoo Finance.

Tesla Stock Price Forecast to 2021

A number of investors have price predictions ranging up to the $1100 to $1200 per share by mid 2021. Some suggest it will become the next Trillion dollar stock. Who would argue based on these price estimates during a pandemic recession?

According to a Barron’s report, Wedbush analyst Dan Ives said “Now the race is on for investors to get their indexing set heading into the Dec. 21 date.” He thinks Tesla stock will trade up, possibly as high as $700, over the coming weeks.

With a return of the global economy and US economy in 2021, and an anti-gasoline American government we’d have to believe the forecast for Tesla’s stock will be high indeed.

TSLA is the star of the stock market and top price gainer of the year.  Some suggest Tesla’s total market value could become bigger than Walmart. The company is valuated at $288 billion, listed on the NASDAQ.

GLJ Research’s Gordon Johnson 4 weeks ago is bearish on Tesla, citing low exports compared to last year and reduced demand from China. China recently hit Tesla with recall demands for its vehicles in China. With conflicts with US, possibly a trade war, Tesla would likely not rely on sales in China.

GLJ Research’s Gordon Johnson. said Tesla’s 4th quarter sales would be disappointing.

You have to keep to date on this company’s news, earnings reports, product announcements, etc because Tesla moves fast.

Should You Buy Tesla Stock?

Tesla Stock Gets High Composite Rating : The IBD Stock Checkup tool shows that Tesla has a strong IBD Composite Rating of 99 out of 99. The rating means Tesla stock currently outperforms 99% of all stocks in terms of the most important fundamental and technical stock-picking criteria. — from Investors.com.

Should you buy it now that it’s risen so precipitously?  It’s all about the batteries (expected announcement of the million mile battery), which Musk might be wanting to focus on now.  Sept 22 was Tesla’s “Battery Day.” but wasnt’ much of an investment event.

Citigroup gave it a sell rating on August 4th and Credit Suisse Group gave it a neutral rating back on July 28th. Now in insight, those ratings seem grossly unfair and missing the mark.

Tesla electric vehicles can’t be produced in sufficient volume to satisfy demand in the “global warming” era. TESLA company seems to grow more organically and experimentally than other companies, taking on debt and producing cars in an erratic fashion. That will depress Tesla’s stock price valuations (some experts rate it overpriced).

While many of the big auto manufacturers could have designed and manufactured an all electric car, they dragged their heels on it. Not Tesla and Elon Musk. They’ve put together a series of electric vehicles which deliver excellent mileage per dollar. Most non electric car producers can’t believe an electric car is cheaper to operate but it is.  The new million mile battery makes Tesla’s even more valuable.

Tesla Model Y – courtesy of Tesla.com

The TSLA stock price jumped in 2017 and then crashed in 2019. There’s a lot of volatility with this company. The Tesla Car Company is now trying to convince investors it is back on track. Compare its stock price performance to company’s such as Google, Facebook and Amazon for EPS.

Tesla’s stock surged 32% after their Q2 earnings release.

Electric Vehicle Sales and Demand

US Electric Vehicle Sales & Marketshare – courtesy of nextgreencar

Sales growth of electric vehicles in the US has been steep. After a hot 2018, growth has slowed, with a forecast of 405,000 units. So when Tesla delivers 175,000 in one quarter this year, that is an astonishing stat for one company. After all, electric cars are a new product. And if gasoline drops in price as it has, it stands to reason the big car makers are going to sell more of their gas guzzlers.

Plug in EVs

Plug in EVs comprise a very small portion of the total market. Regardless of how Tesla performs, they are the premium brand in a market with incredible potential. The upside is something to pay attention to, since the other automakers are more committed to gas powered cars and trucks.

Screen capture courtesy of ev-volumes.com


TSLA Price Earnings Ratio

During Q1 2021, Tesla recorded a net income of $438 million on earnings of 93 cents per share on $10.39 billion in revenue.  The total investment in Bitcoin by Tesla rose to almost $1.2B. Cash and cash equivalents decreased in value to $17.1B in Q1, driven mainly by a net cash outflow of $1.2B in cryptocurrency (Bitcoin) purchases, net debt and finance lease repayments of $1.2B, partially offset by free cash flow of $293M.

Former Tesla employee Steve Westly discusses the company’s performance last summer with Jim Cramer. His positive outlook has borne out.

gov.capital Forecast

Gov.capital made an excellent forecast of Tesla’s stock price for late 2020, but underestimated like almost everyone else.

Tesla Stock Price Forecast Chart courtesy of gov.capital

gov.capital believes Tesla is on the right track for a stock price above $500 near end of 2020.

Guru focus has given warnings on TSLA stock. They flag Tesla’s debt, net revenue and cash flow.

TSLA stats. Screenshot courtesy of Gurufocus.

Market Threats to Tesla

What are the threats to Tesla success? Very low priced gasoline will keep constant cost pressure on Tesla. And hydrogen cars are not far off either. Hydrogen is a powerful type of fuel. Musk’s original thought that we’re going to run out of oil and fossil fuels is simply not true. In fact, The US has become the world’s largest producer of oil. If the US were to build more fuel refineries, gasoline prices would plummet making gasoline powered cars very cost efficient.

Tesla Gigafactory in Nevada. Courtesy of Tesla.com

Tesla EV cars are priced above mid-priced autos and might be harder to sell in a recession. However, Tesla is an unmistakable brand of the future.  All the cars are built in Tesla’s California factory which will draw the ire of some states who stand to lose auto jobs. Production in China is growing and is expected to make up 40% of sales soon.

Other companies are building EVs such as Nissan, GM and BMW and have production capacity and market reach. It has massive debt which might be hard to finance if interest rates climb.

Tesla positives: It’s a determined, resilient company with a new gigafactory that might produce 500,000 cars per year. The company also produces new age products including solar panels, Solar Roof, the Powerwall home battery, and the Powerpack battery system for commercial and utility-scale sites. Read more about their energy solutions. Read more about the best electric vehicles.

Check out this documentary if you haven’t see it yet. Get to know the company before you buy the TSLA stock.

See more on the best stock picks for 2020, and an updated stock market forecast. Some still believe the market is in a bubble and a stock market correction is inevitable. Political instability is what makes that possible. Otherwise the US economy is looking good investors. The S&P outlook, NASDAQ forecast and DJIA predictions are positive.

 

Stock Market Forecasts – DJIA S&P NASDAQ

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