Tesla is a stock that is seemingly in the news every day. For starters, the innovative electric vehicle maker has shaken up the entire automotive industry with its extremely popular product line, and investors and the general public alike have a keen interest in what the company will do next.
But Tesla’s sometimes-controversial CEO, Elon Musk, also keeps the company in the news, both with his bold business moves and with his always newsworthy tweets and public comments. Both aspects of the company’s headline-making quality play a role in the day-to-day movements of Tesla stock, which is particularly important for investors.
But what do analysts say about the future of the company? Here’s a quick overview of the company itself along with a summary of analyst expectations for Tesla’s stock price.
Tesla Company Overview
Most people have at least heard the names of Tesla and its CEO Elon Musk, especially over the past few years. But as with many large companies, Tesla actually has a longer history than many may realize.
Tesla was founded way back in 2003, and Elon Musk, to the surprise of many, was not its founder. That honor instead fell to Martin Eberhard and Marc Tarpenning. Shortly after Tesla’s founding, Musk became tied to it by investing $30 million into it.
Soon after, Musk was named the chairman of the company, and he has been inextricably linked to it ever since. Musk’s investment not only provided the company with needed capital but also attracted additional funding from outside investors, including venture capitalists.
Tesla actually produced its first vehicle in a relatively short fashion, rolling out the original Roadster in 2008, just five years after the company’s founding. Since then, Tesla has produced a wide range of vehicles, such as the Model S, Model X, Model Y and Model 3. Other models are on the way, including the Cybertruck and a new version of the Roadster. In addition to vehicles, the company also produces solar panels and storage devices.
Tesla Stock (TSLA) Overview
TSLA stock is always in the news because not only is the company popular on Wall Street, it has grown to be one of the most valuable businesses in the world. Even after a relatively large selloff in 2022, Tesla is still the eighth most valuable company in the entire world, according to Statista. Its CEO, Elon Musk, is one of the richest, if not the richest, men in the world due to the success of Tesla.
Tesla’s Early Days
Yet, for all the noise that Tesla stock has made, as with many companies, Tesla wasn’t a big winner in the early days of its existence. In fact, Tesla’s stock didn’t do much of anything for a long period of time.
Looking back at historical charts, Tesla’s stock essentially went nowhere all the way from 2014 to 2019, when it fluctuated at around $17 per share. While there were obvious ups and downs, the stock wasn’t making the type of moves that would snag it all of the headlines it receives today.
Past Growth Rate
Starting in 2019, however, the stock began getting legs. Its biggest year to date for growth rate was in 2020, when shares skyrocketed an astonishing 696.45%. This made Tesla far and away the best-performing stock in the S&P 500 for that year, more than doubling second-place Etsy’s 301.6% return.
Will Tesla Stock Go Up in 2023?
Given the massive gains of 2019 through 2021 and the bear market that hit all three of the major U.S. automakers, the market may prove to have a decent 2023 even with a slower growth rate in the stock price forecast. As of Oct. 26, Tesla boasted the following numbers.
Real-Time Tesla Stock Statistics
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Average Analyst Ratings and Price Targets
Although the average analyst rating on Tesla stock is “buy,” predictions for the company’s future stock price are all over the map. In fact, Tesla stock forecasts are more variable than nearly any other company in the S&P 500. This is in large part because of the “boom or bust” mentality many have about the company which pits short-term and long-term investors against one another ideologically.
In the bullish camp, analysts and investors believe that Tesla will continue to take the leading role in the electric vehicle revolution that has finally gained traction. Bolstering their argument are the price cuts that helped Tesla achieve record deliveries in the second quarter of 2023 with the expectation of record sales in China as well.
According to Reuters, Dan Ives, an analyst at Wedbush Securities, said “The price cuts [were] a smart poker move for Tesla and paying major dividends in the field especially for the China market.”
Tesla bulls also believe the company will lead in other green energy fields, such as solar panels and energy storage devices.
In the other camp, bearish analysts and investors feel that the company will fail to live up to expectations and will just become another production company, rather than something innovative and special. Bears view the company as overvalued, overly subsidized and susceptible to competition.
That competition seems to be heating up. Chinese EV maker BYD, for example, is about to begin delivery of a direct rival to Tesla’s Model Y under its Denza brand. “Denza has really been under the radar for a few years but BYD is ready to show off its rejuvenated brand and the media blitz points to their confidence in the product and their desire to keep pressure on the incumbents,” said Tu Le, founder of the China-based advisory firm Sino Auto Insights, as reported by CNBC.
The most bullish 12-month Tesla stock forecast stands at $358.38. On the other side of the coin, the most negative analyst covering Tesla sees shares dropping to $22.95 within 12 months. This would represent an incredible prediction for a 89% loss.
Clearly, there’s a wide variation within the investment community as to the near-term future for Tesla.
Which Way Will the Tesla Stock Forecast Go?
Whether or not Tesla stock hits $358 within 12 months, falls to $22.95 or trades somewhere in between will likely depend on whether its catalysts outweigh its risks in the eyes of investors, or vice versa. Here’s a list of some of the factors that bulls and bears look at when evaluating the stock.
Catalysts for Tesla
While the future is unpredictable, here are some of the bullish ideas that are supporting investor interest in Tesla stock:
- Competitive pricing has broadened its appeal to the masses.
- Musk appears to be shifting focus from Twitter back to Tesla, with good results. Addressing the recent increase in Tesla share prices, Ross Gerber, president and CEO of Gerber Kawasaki Inc., told Yahoo Finance, “We just have seen full fledge how Elon’s focus makes such a huge difference in the results.”
- Tesla continues to dominate the e-vehicle market, even in the face of competition.
- Tesla’s stock valuation has tumbled, thanks to last year’s falling price and rising earnings.
- Tesla actually has three segments, something even many investors don’t know yet but will learn. In addition to its e-vehicle division, the company has an energy generation and storage division and a “services and other” division — and both are growing rapidly.
If any — or all — of these catalysts work out, the stock should go higher.
Risks for Tesla
Part of the reason Tesla stock can be volatile is that it has inherent risks. Here are some of the major factors that could keep the stock from returning to its 2021 highs:
- CEO Elon Musk’s purchase of Twitter. Some analysts fear that between that and SpaceX, his space exploration company, he might have his hands full instead of simply focusing on Tesla.
- Car deliveries may fall below expectations. Tesla reported record Q2 deliveries and forecast high expectations for sales in China, its largest market. However, deliveries fell short of Wall Street expectations in this year’s third quarter.
- A recession is still possible. This risk isn’t Tesla-specific, but could greatly damage the buying power of consumers for the company’s higher-priced vehicles.
- Competition in the electric vehicle space will only grow. With new mandates for internal combustion engines to be phased out of existence, every car maker is now incentivized to produce e-vehicles.
- In the near term, Tesla stock may fall victim to year-end tax-loss selling.
What Will Tesla’s Stock Price Be in 2023?
Tesla stock is up over 68% since the beginning of the year, but it’s still down about 7% for the year and over 22% in the last quarter. Deliveries fell short in the third quarter, and Elon Musk tempered expectations about fourth-quarter deliveries, which won’t be announced until early 2024, leading analysts to reduce their price targets. While they’ve not set a target for the end of this year, it seems unlikely that Tesla shares will see significant gains or losses by the end of the year.
What Will Tesla’s Stock Price Be in 2024?
As of Oct. 27, 2023, analysts’ 12-month Tesla stock predictions range from $22.95 to $358.38. The average price target is $215.52, which means that the average Tesla stock forecast calls for shares to reach $215.52 by Oct. 27, 2024.
What Will Tesla’s Stock Price Be in 2025?
Analysts’ typically make predictions a year in advance, so they haven’t weighed in yet on 2025 prices. However, Rob Baron of Baron Funds, one of Tesla’s largest shareholders, has hypothesized that shares could hit $500 by 2025.
Websites that base predictions on algorithms forecast daily prices many years out. Coin Price Forecasts predicts Tesla stock will reach $398 by the end of 2025. Gov Capital has a mid-range forecast of $539.80 for the end of 2025. However, it’s important to note that those predictions change by the day, so the prediction these sites make today could be very different than the predictions they make a week or month from now.
What Will Tesla’s Stock Price Be in 2030?
Analysts establish price targets based on many factors, including the company’s past and projected financial performance, economic conditions and trends affecting the market for the company’s products and services. Because those factors are in constant flux, analysts predictions change frequently and are usually updated every month. Algorithmic predictions can change even more frequently. Therefore, any forecast for a price seven years out is purely speculative and will change hundreds or even thousands, of times between now and 2030. That said, as of Oct. 27, Coin Price Forecast predicts Tesla stock will finish 2030 at $789.
Baron Funds’ Ron Baron has expressed his belief that shares have the potential to reach $1,500 by 2030.
Analysts don’t seem to be able to agree on the future of Tesla — it could be a big win or a significant loss. Whether you choose to invest in Tesla or another company, never invest in what you can’t afford to lose.
- Is Tesla stock going to go up?
- The average 12-month stock price prediction for Tesla is $215.52, which slightly higher than its current price. Analysts don't agree on whether Tesla stock will go up or down in the short term, though. Some predictions peg it as high as $358.38 a year from now, while others see it dropping as low as $22.95.
- Is Tesla a good stock to buy in 2023?
- The current average analyst rating for Tesla stock is "buy."
- What will Tesla stock be worth in 2023?
- Tesla shares closed at $205.76 on Oct. 26. Analysts who follow the stock haven't offered predictions for the remainder of 2023, but their average 12-month prediction is $215.52.
- What will Tesla's stock price be in 2025?
- Price forecasts for future years are notoriously unreliable. However, Ron Baron of Baron Funds, one of Tesla's largest shareholders, predicted earlier this year that Tesla could reach $500 per share in 2025 and $1,500 by 2030, according to Seeking Alpha.
Information is up-to-date as of Oct. 27, 2023.