After cutting prices, increasing production, and working to improve profitability, sentiment around TSLA began to rise again, with the stock rising to a high of $299.29 in July 2023. Tesla’s journey in the stock market has been marked by significant milestones and periods of volatility. Since its initial public offering (IPO) in June 2010, when it debuted at $17 per share, Tesla has seen dramatic price changes driven by key events and developments. Tesla’s earnings rebounded in the most recent report, but 2024 has been a down year for EV manufacturers overall and buying TSLA shares right now could be risky if the stock remains volatile.
You might prefer an exchange-traded fund that includes Tesla as a major holding, as recommended by Erik Sherman in his coverage of the best EV stocks. While Joby is still far from profitability, it is making solid progress toward its goal of entering commercial service in 2025. To prepare for operations, the company has been working with the FAA to complete precision landing tests and move towards FAA certification. With $1.0 billion in cash and short-term investments, the company is building off a solid foundation. Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial or medical decisions.
Investors Applaud a Cool Inflation Print
- By 2026, Tesla aims to fully integrate autonomous driving capabilities, potentially revolutionising the transportation industry.
- TSLA’s price has increased dramatically in the past five years.
- It isn’t far behind Tesla thanks to its position as the leading player in the semiconductor foundry industry with a market share of 62%, according to Counterpoint Research.
- Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.
- By that, I mean earning a million dollars by investing in electric vehicles.
The Cybertruck was a major flop and likely lost the company billions of dollars. In the last few years, EV competition has come for Tesla’s dominant market position. The biggest question for the company in the coming years is what we’ll see from competitors. Some top EV lists show that Tesla models rank no higher than fourth or fifth place.
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This includes into renewable energy, robotics, artificial intelligence (AI), and self-driving robotaxis to help take the stock to the next level. Tesla made its first full-year profit in 2020, which helped its stock price. Strong earnings, positive cash flow and profit have continued to boost investor confidence. The company has reported positive year-over-year revenue for the past four years. Beyond automotive, Tesla’s energy division, including solar and energy storage products, is poised for substantial growth. The demand for renewable energy solutions is expected to surge, and Tesla’s innovations in battery technology and energy storage systems could capture a significant share of this market.
- Despite these uncertainties, investor sentiment toward Tesla remains ambitious.
- Analysts believe Tesla’s ability to efficiently scale production while maintaining quality will be a key determinant of its success.
- Many investors love to label Lucid as “the next Tesla.” And from a production side, it could conceivably out-produce its big brother someday; there’s no cosmic rule saying that Tesla needs to be No. 1 forever.
Prediction: These 2 Stocks Will Be Worth More Than Tesla in the Next 5 Years
The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. The information is accurate as of the publish date, but always check the provider’s website for the most current information. Tesla also generates revenue from services such as Full Self-Driving. The subscription costs $99 per month and can create a steady income for the company.
Current Overview of Tesla Stock
The 36 analysts that cover Tesla stock have a consensus rating of «Hold» and an average price target of $295.61, which forecasts a 0.57% increase in the stock price over the next year. 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. We already know Tesla is willing to defend its market share by lowering prices.
Yet this volatility cuts both ways, and with questions swirling around execution, regulatory headwinds, and Elon Musk’s leadership focus, caution is warranted. Tesla is redefining its identity as a technology powerhouse, with automation and artificial intelligence (AI) at its core. Its Full Self-Driving (FSD) software continues to evolve, and projects like the Optimus humanoid robot suggest Tesla is eyeing markets well outside transportation. With plans for commercial deployment of Optimus as early as 2026, Tesla is targeting sectors where labor costs are high and automation can offer efficiency gains. Adding to these woes are CEO Elon Musk’s political entanglements, which have further weighed on Tesla’s stock performance.
As US interest rates began to rise in March 2022, sales of EVs began to decline while competition in the market increased—particularly in China, one of its key markets. Elon Musk’s acquisition of Twitter also raised concerns about potential distractions and conflicts of interest. The release of the Model 3 in 2017 was a game-changer, making EVs vastly more accessible to the general public.
Still, Tesla shareholders have long indicated that they don’t think Musk can be replaced as CEO. These headwinds come at a time when Tesla’s overseas operations are struggling because of political backlash and new, low-cost rivals from China, which often enjoy open support from their government. The market seems to appreciate Musk’s bold risk-taking leadership style, which helps explain why Tesla still enjoys an incredibly high valuation, despite its increasingly lackluster fundamentals. Sign-up to receive the latest news and ratings for Tesla and its competitors with MarketBeat’s FREE daily newsletter. Tesla’s multiples are high by most standards, though not nearly as high as they were in 2020 and 2021. Still, analysts don’t agree on whether Tesla is overpriced, forex trading platforms fairly priced or underpriced.
Of the major commodities, only OPEC-controlled oil has largely escaped deflationary pressures. A glimpse of that future recently appeared in Austin, Texas, where Tesla rolled out an early version of its driverless taxi service. While the pilot marks a notable milestone, the service remains heavily restricted, underscoring that full-scale autonomy remains a distant reality. Nonetheless, it’s a strategic step in Tesla’s broader transition toward becoming more of a tech innovator than just an EV manufacturer. Please bear with us as we address this and restore your personalized lists. In June last year, shareholders approved Musk’s controversial $55 billion pay package, which was largely seen as a referendum on his leadership.
Thomas Yeung is a market analyst and portfolio manager of the Omnia Portfolio, the highest-tier subscription at InvestorPlace. He is the former editor of Tom Yeung’s Profit & Protection, a free e-letter about investing to profit in good times and protecting gains during the bad. Fortunately, the 2020 electric vehicle craze spawned a plethora of both great and terrible Moonshot bets. And with some luck, the next millionaire-makers might be hiding among the tiny startups of the electric vehicle world. They demand significant investment, face complex regulatory scrutiny, and rely on the public’s willingness to embrace emerging technologies. The FSD software, for example, still lacks broad regulatory approval, and mass adoption of Robotaxi or humanoid robots is far from guaranteed.
The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. Tesla’s core business centers on the design, development and manufacture of electric vehicles. We are currently witnessing a company at a crossroads; the next few years are crucial for Tesla and the long-term trajectory of its stock price, currently at a current market value of $1 trillion. On the positive side, Tesla continues to dominate the electric vehicle market, with strong sales and production numbers.
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This happened amid Elon Musk’s Twitter takeover, interest rate hikes and vehicle production issues. After the tech stock sell-off of 2022, Tesla experienced a resurgence. Performance has been a bit lackluster, despite the recent third-quarter rally. TSLA has performed well since its initial public offering in 2010 at $17 per share. This was when the company first turned a full-year profit and joined the S&P 500. TSLA was by far the best-performing stock in the S&P 500 in 2020.