Tesla Stock Price Predictions
A new forecast by Goldman Sach’s has Tesla stock price rising again. And yet others believe the stock is headed for perhaps $1200 or even $2500.
And they’re are pessimist detractors who are calling for big declines. So far so good. Look at the price chart below and see if this is a stock you could believe in. If you can’t believe in Tesla, what can you believe in?
Tesla Stock price hit $649 yesterday, although some news has taken it down a little. Still, analysts like what they’re seeing from the company as it attempts to ramp up production with two new manufacturing facilities. Output is the issue.
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.
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.
Tesla’s stock price dropped today on Elon Musk’s announcement of $5 billion of new stock issue, which will give the company an infusion of cash. Tesla’s auto manufacturing production facilities costs are believed to be the reason for the stock issue.
The Tesla stock price had been rocketing since the news TSLA would be listed on the S&P. 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.
TSLA stock recent loss last month was attributed to short selling by experts who recommended selling the “overpriced” Tesla stock. Elon Musk responded by telling employees the company could be crushed like a souffle under a sledgehammer. Musk knows the company is in a competitive situation and highly leveraged and exposed, and pressured by impatient investors, so detractors could gang up to cause the company grief.
Short Sellers of Tesla Paying Dearly for their Outlook
But short-sellers took a $4 billion bath on Tesla this year, which is reportedly the most shorted stock in the markets. They would love to see the stock plummet, but right now that’s not happening. These short-sellers could be in for serious losses, after 8 agonizing months of short losses.
The short sellers don’t seem to understand the love people have for this company and what it represents.
“The exit of older TSLA shorts not being replaced by new TSLA shorts may produce a dramatic drop in total TSLA shares shorted in the month of December,” from Benzinga report. Will this contribute to less shares available and higher price rises?
Musk is reported to have told them to cut costs to appease analysts, and that the company has to perform at very high levels. Musk keeps saying repeatedly that the stock price is too high. That might turn off smart investors, but again in after hours, Tesla stock price is up.
However, some experts believe Tesla isn’t just a battery EV manufacturer. They’re on the cusp of big revenues from software services. Because Musk has been so innovative, he won’t back down from many good opportunities. Investors might just be realizing where Tesla is really going.
Musk also 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.
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.
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.
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
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.
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 made an excellent forecast of Tesla’s stock price for late 2020, but underestimated like almost everyone else.
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.
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 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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