Tesla Stock Price Predictions
At today’s price of $1133 per share, TSLA stock is trading at almost 20 times its price during March of 2020. Some analysts believe the price of Tesla stock will hit $1300 to $1400.
The good news is Tesla’s production is growing, sales are booming and revenue is through the roof. They have been recruiting and training new employees at a wicked pace this summer. They’re eager to scale up. Tesla is listed on the S&P and NASDAQ exchanges.
The bad news is the company is losing market share to competitors. However, Ark Investment’s Cathy Woods mentioned that GM and Ford have big hurdles to scaling up for the EV market. Tesla was built from the ground up for electric vehicle manufacturing.
As the world’s leading EV makers, Tesla’s market cap is above $1 Trillion and it worth well above the combined market cap of the worlds largest automakers. Given Tesla’s brand power, market capitalization, and past adjustments, I think Elon and crew have plenty of creative Trump cards it could play to beat other big auto players. Consider that all the competitors are playing catch up.
TSLA Buy Recommendation
Barchart’s signals suggest a buy recommendation for TSLA stock.
Here are the top performing EV stocks in the last 5 days, from Barchart.com.
Anyone who has recommended selling or shorting the stock doesn’t seem to present a compelling argument. I don’t own the stock and won’t invest in it, primarily because the upside isn’t good enough. Oil stocks and Bitcoin Ethereum Stocks are the high performance, high risk alternatives.
Buying or Selling Tesla Stock
If you’re going to invest in TSLA now as it appears to have peaked, you be cautious. And if you’re waiting to sell the stock, you might as well wait until you’ve found some better stocks to continue onward and upward.
Overall, Tesla has a production capacity at its plants of 1 million units per year and in the Q3 period it produced 237,000 units. In China, Tesla’s production was 54,000 units during October 2021 after 56,000 units produced in September. Year over Tesla’s China production is up 348%. The Austin Gigafactory has just been okay’d for $1 Billion in funding and should be in full operation by next year, where it will also manufacture batteries.
Tesla’s Berlin manufacturing facility is expected to be up and running in December which gave the TSLA stock price a little boost. This facility serving the European market could produce 300,000 vehicles in the first 6 months of 2022 (Benzinga report). The company’s performance has been impressive and it has a huge volume of customers and believers in the Tesla brand and what is represents.
Past performance, growth and brand power has to be factored into any TSLA price forecast.
Tesla Stock Price
The rise in price of TSLA stock as the Yahoo Finance chart below reflects why it is the most researched equity. The stock has risen 8 times its value but is Tesla still a good stock to buy. Some consider it one of the best stocks to buy. given Fed stimulus support for climate change, government incentives, and a growing preference for EVs.
Yahoo’s polled analysts believe Tesla’s revenue will grow from $51 to $71 Billion and earnings to rise from $6 Billion to $8 billion in 2022.
MSN Money Recommends a Hold Position
Recently Tesla announced further price hikes of $1000 to $2000 for several EV models, on top of earlier prices hikes of $10,000 for some models during 2021. They’re expensive EVs but they’ll sell every one of them. Tesla has the best brand, but are competitors about to erode that advantage?
This year, when other automakers and EV manufacturers were struggling to obtain microchips for their vehicles, Tesla somehow had been able to find some. This ingenuity and ability to keep operations moving and progressing is a key sign the company is a winner. Too much Tesla looks like a carnival attraction, but each year, it’s amazing brand builds credibility.
There was a forecast by Goldman Sachs that had Tesla stock price rising again and they are giving TSLA a buy rating. Some predicted the TSLA stock was headed for perhaps $1200 or even $2500. It’s now at $1133!
It’s hard to ignore Tesla’s record breaking production. According to EV Insider, Tesla produced 237,823 vehicles and delivered 241,300 units in the 2020 Q3 period, breaking the Q2 quarter’s record of 201,250 deliveries. It was about 22,000 more EVs than forecasters expected.
There was a time when Tesla was the EV market. But those times have passed and new entrants (NIO, Lucid and Ford) to the market will squeeze Tesla profit margins hard. China’s Xpeng reports production of 20,000 units per month, hardly a challenge to Tesla.
Tesla Stock Price Today
Tesla Inc. (TSLA) was struggling, but good production numbers and high gasoline prices are making it the star of the stock market. Elon Musk has a personal fortune of $314 billion and is the richest man in the world. The stock is up 1900% from two years ago and it’s likely to go higher. Oil and gasoline prices won’t be falling anytime soon
Analysts liked what they saw and forecasted and they were right. Tesla TSLA was a winner. The company expects to ramp up production with two new manufacturing facilities. EV production output was the issue and that may have solved.
Jay Jacobs talks about demand for EVs and the comparative value from electric power vs gas powered vehicles. And Seth Goldstein talks about the benefits of EVs changing as time passes.
Lordstown Motors (NASDAQ:RIDE) shares have fallen 75% this year, Canoo (NASDAQ:GOEV) is down 45%, Nikola (NASDAQ:NKLA) has lost 37%. Fisker (FSR) has dropped by 7.5% and Lucid (LCID) is up 139%.
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 the current US regime’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.
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.
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 buy rating.
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 that Tesla Stock would be included in the S&P 500 beginning last December. It is the largest company ever added to the S&P. Bookmark this page and keep up on the latest on Tesla stock. and other EV stocks. And check out the 3 month forecast, 6 month predictions and 10 year outlook.
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
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.
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.
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.