Tesla’s stock price was essentially flat for several years after the 2010 IPO. In 2008, the carmaker had endured a near-death experience, and in the lead-up to the IPO and afterwards, it was selling only one car, the original Roadster. The business plan at this point was for CEO Elon Musk and his team to keep the lights on long enough in order to roll out Tesla’s first built-from-scratch car, the Model S sedan. Tesla is a risky stock, but one that could play big rewards down the line. If Tesla can execute near-term product and feature launches while maintaining its market share without upending margins, the future will be bright.
Tesla stock has 40% upside as a ‘top pick’ as it corners the EV-credit market, Morgan Stanley says
We already know Tesla is willing to defend its market share by lowering prices. As a manufacturer of cars, Tesla is clearly overvalued. Even Elon Musk has asked investors to value Tesla as a robotics or artificial intelligence (AI) company rather than one that purely focuses on the production of road vehicles – even if they are electric. As such, some analysts may question why Tesla, which was already trading on elevated multiples, has surged on the back of these improved EV deliveries. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer.
Musk says he doesn’t think regulatory approval will be a limiting factor for self-driving cars.
«The share price rally since the start of the year has been largely linked to this, and progress hasn’t been dented thanks to Tesla’s record quarter.» The EV manufacturer logged earnings-per-share of $1.19 for the three months ending December 31, which comfortably beat Wall Street analysts’ expectations. The central bank hiked the cost of borrowing from near-zero to 4.5% over the past year in a bid to crush soaring inflation, which weighed on stocks by lowering the future cash flows that make up part of their valuations.
- Management typically releases production and delivery data along with other vehicle manufacturers on a quarterly basis (it used to be released monthly).
- By the time Musk had signed off from the earnings call, the carmaker’s stock had tumbled more than 7% in after-hours trading.
- They say in their investor presentation materials, «Providing our technology to other commercial vehicle segments is a much larger capital efficient opportunity.» Yeah, I would think so.
- In turn, this led Wood’s investment fund to suggest the stock will be worth $2,600 in 2029.
- I’ve never been a huge fan of consumer staple plays as Moonshots (unless they’re extraordinarily cheap or have excessive leverage).
Tesla Analyst Opinions
Drawing on decades of experience, Centrus can help with the design and manufacture of critical components as well as the design and licensing of facilities to produce new fuels. Centrus Energy (LEU) Many think that wind and solar are the answer to climate change, but about 60% of the reduction in CO2 emissions during the past 15 years has come from switching from coal to natural gas. But if you don’t already own it, I think there are better prospects out there—particularly in less famous stocks. However, Musk has been touting two major developments, which are due to take place over the next 18 months. The first is the long-awaited Robotaxi – set to be unveiled on August 8 – and the second is the sale of its Optimus robots, which may start in the second half of 2025. The Tesla CEO previously said on X that the Robotaxi event had been delayed from August due to some design changes he requested.
Musk talks how hard it is to get Nvidia GPUs.
To form an opinion on Tesla’s pricing, start by deciding what kind of company Tesla is. Considering Tesla’s current valuation, it’s clear most investors don’t view Tesla as a carmaker. Investors are paying a steep premium because they believe in Tesla’s ability to innovate, open new markets, diversify its business model and create massive shareholder value. Competition will be a major challenge for Tesla in the years ahead. Going forward, consumers will have more choice in electric vehicles as other automakers increasingly look to win a piece of the EV market.
Analyst Forecast
Musk says the demand for the product is so high its «often difficult to get the GPUs.» As a result, Musk says Tesla is putting more effort into its Dojo supercomputer, which he hopes will eventually compete with Nvidia. Shares of Tesla are down more than 6% in after hours trading. Musk is asked about a report that he diverted a shipment of Nvidia GPUs away from Tesla to one of his other ventures. Musk says Tesla is likely to receive regulatory approval in Europe and China by end of the year.
Assuming a production cost between $150,000 and $200,000 (per ARK Invest), building a global fleet of Robotaxis would likely cost trillions. Tesla doesn’t have the necessary cash flow to build a global fleet. Tesla is still poised to reach a $1 trillion valuation, assuming that the carmaker continues to make headway on AI initiatives, Wedbush said.
Tesla’s stock price is on track for its best month in over two years, representing a dramatic change in the market fortunes of the electric carmaker after a hellish 2022 in which it suffered a $700 billion wipeout. The better-than-expected delivery numbers sparked a double-digit percentage rally in the stock price, but the automaker is not out of the woods yet. The extent of the weakness could be revealed when the company releases its full quarterly report.
That’s because guessing economic conditions might earn you 10% here and there; consumer staples are low-risk, low-return by their nature. Unfortunately, shorting these companies is also a recipe to get slowly burned by dividend salary of actuary in india payments. Commodities, which traders generally price in U.S. dollars, have an inverse relationship with the value of greenbacks. Trading on the NASDAQ, Tesla offered 13.3 million shares at a price of $17 per share.
CCIV shareholders only own a tiny 16.1% slice of Lucid. The average analyst rating for Tesla stock from 36 stock analysts is «Hold». This means that analysts believe this stock is likely to perform similarly to the overall market. In a 2018 televised interview, she said Tesla would hit $4,000 by 2023. Adjusting for splits, Tesla hit that mark two years early in 2021.
Musk acknowledged earlier this month that Tesla had decided to delay its Robotaxi event, which was initially set to take place August 8, so that the company could make a design change he requested. The Tesla CEO confirmed Tesla’s Robotaxi event had been delayed until October 10, but didn’t have much to say on when the first Robotaxi rides on the autonomous service could be expected. While Tesla’s cost cutting measures should help protect the stock from potential downside, its «cornering» of the ZEV-market will help drive further upside. Tesla stock is going to soar 40% over the next year as it corners the zero-emission vehicle-credit market, according to a Monday note from Morgan Stanley.
According to Fortune Business Insights, EV sales globally will grow at a CAGR of 17.8% between 2023 and 2030. According to 36 analysts, the average rating for TSLA stock is «Hold.» The 12-month stock price forecast is $201.75, which is a decrease of -9.37% from the latest price. Despite Tesla being in a pole https://www.1investing.in/ position to dominate in the autonomous era, I remain wary of Musk’s overpromising. This makes it very hard to get behind a stock that’s currently trading at 96.4x non-GAAP forward earnings. It could be priced for perfection, and if Musk underdelivers on August 8, the share price may pull back significantly.
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