Tesla Stock Forecast TSLA Stock Price

Tesla Stock Forecast TSLA Stock Price

Tesla Stock Price Predictions

What an amazing story Tesla is.  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.

After the stock split recently, Tesla stock price reached $447.94. The stock is one of the most highly rated on the stock market, has momentum and its expected performance in China has investors buzzing. If you consider potential EV sales alone, this company is number one. Add on its solar, battery, and other technologies, and TSLA is impossible to ignore. EPS for next year is looking very good.

 

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.

TSLA’s Stock Price Jumps

TSLA Stock has soared more than 30% in 4 days, for an 8th time this year.   Their prediction is thought to have caused the big jump today (Monday) and talk of the million mile battery.

 

Despite critics, doubters and naysayers Musk has kept true to his passion. And that one fact may also be driving the Tesla Stock price higher now and into 2021.

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 is Tesla’s “Battery Day.”

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.

Zach TSLA buy recommendations. Screenshot courtesy of Zachs.

 

TSLA Recommendation and EPS Outlook

Tesla EPS Outlook. Screenshot courtesy of Yahoo Finance.

 

Yahoo Finance Discusses TSLA’s buy ratings and news.

Tesla TSLA Gets Boost from Stock Split

Tesla’s stock price has hit its highs this year and they’ve just conducted a 5 for 1 stock split.  Now Cramer’s thinking a lot of companies should do stock splits (and some did just that).  It makes the new stock price more attractive to retail investors who don’t have the funds of big hedge fund managers. With the new price at one fifth of the current price, it’s much more attractive to a lot of retail investors (who should be wary of the upcoming election).

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.

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

Tesla Stock Price on September 20, 2020

Tesla stock price comparison with auto majors. Screenshot courtesy of Yahoo Finance.

Why is the financial media so negative on Tesla? The company’s controversial, pot smoking, FCC offending founder Elon Musk says and does unconventional things. That’s not normally acceptable in the corporate investment community.

TSLA Stock Price Forecast

CNN polled 30 analysts ratings on TSLA stock a while back, and here’s their statement:

The 30 analysts offering 12-month price forecasts for Tesla Inc have a median target of 283.50, with a high estimate of 949.00 and a low estimate of 160.00. The median estimate represents a -15.91% decrease from the last price of 337.14.

At $1770 a share now, it seems the  expert’s valuation and forecast simply missed completely on this company.

In the 3rd Quarter the company reported $1.16 per share earnings on sales of 6.8 Billion.

 

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

Tesla stock is trading at $335 and 62.8 times analysts’ 2020 EPS forecast. TSLA stock has the highest price earnings ratio in the sector.

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

gov.capital Forecast

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 crash 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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