Yet, I think it is well-placed to generate market-beating returns in the coming several years. In the third quarter, Tesla’s revenue grew 57% year over year. Tesla management said the company expects to grow its EV deliveries at an average annual rate of 50% over a multi-year horizon. Based on its expected growth rate, the company could be delivering 28 million cars annually 10 years from now.
- There are several other potential growth avenues for Tesla.
- The bullish camp predicts steep growth for TSLA, while Tesla bears believe the stock is only headed down.
- For perspective, that’s a number close to what each of Volkswagen or Toyota Motor sold in 2020.
- That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.
Kat has expertise in insurance and student loans, and she holds certifications in student loan and financial education counseling. Get Forbes Advisor’s expert insights on investing in a variety of financial instruments, from stocks and bonds to cryptocurrencies and more. Tesla has faced challenges over the past 12 months, but it still has delivered significant returns over the last five years. Tesla’s stock had a meteoric rise through the previous decade, and TSLA reached over $400 per share in October 2021. © 2024 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed.
Recent Analyst Ratings and Stock Forecasts
The current ABR compares to an ABR of 2.85 a month ago based on 31 recommendations. Musk’s latest stock sale did have some small effect on the stock price short-term, but it may not impact Tesla in any significant way in the long run, say 10 years down the road. Even after the sale, the company’s founder will still own a high percentage of his previous stake. The main reason for the sale is to get the cash to pay the taxes Musk owes because he exercised stock option trades that were about to expire. Tesla is a household name, even among those who don’t typically follow the automotive or technology industries. Although the company’s vehicles are well-known, it faces some substantial challenges.
Tesla is an interesting long-term stock that may face near-term headwinds. The company’s leading market share in the global EV market is attractive. According to Fortune Business Insights, EV sales globally will grow at a CAGR of 17.8% between 2023 and 2030. Finally, Tesla is focusing on auto insurance as a growth opportunity.
Price Target
Since 1988 it has more than doubled the S&P 500 with an average gain of +24.18% per year. These returns cover a period from January 1, 1988 through January 1, 2024. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return.
Already, the years-long delay on the Tesla Cybertruck launch has opened the door for Ford, Rivian and GMC to build audiences for their EV trucks. Famous growth investor Cathie Wood has a similar vision, albeit with a longer timeline. Citing Dojo as a growth factor for Tesla, Wood predicts Tesla will hit $1,400 or more by 2027. Upgrade to MarketBeat All Access to add more stocks to your watchlist.
Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Zacks may license the Zacks Mutual Fund rating provided herein to third parties, including but not limited to the issuer. 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.
Tesla stock has run up 135% since January, but it’s still 40% off its 2021 highpoint. Is this recent strength building towards a new high stock price for Tesla TSLA in 2025? Read on to learn where Tesla’s opportunities lie and what challenges it faces going forward.
TSLA revenue forecast
The stock rose again when the China Passenger Car Association reported year-over-year and month-over-month sales growth on Tesla EVs made in China. Zacks provides the average brokerage recommendation (ABR) for thousands of stocks for most of the leading investment web sties. The ABR is the calculated average of the actual https://www.dowjonesanalysis.com/ recommendations (strong buy, hold, sell etc) made by the brokerage firms for a given stock. 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 plans to construct at least two new Gigafactories beyond what’s already announced in the coming years, though their locations are not yet decided. So, there is a lot of work, and growth, ahead for Tesla in the next decade. So by itself, there is not too much to read into this latest move, and the company’s long-term growth plans remain where intact. Let’s take a closer look at Tesla’s growth potential in the coming decade, and beyond. More manufacturers are producing electric vehicles, and several companies, such as Lucid Motors (LCID), are producing vehicles that could be significant challengers to Tesla.
Tesla Inc Stock (TSLA) Price Forecast for 2026
Longer term, Tesla ideally wouldn’t be dependent on electric passenger car and truck sales for growth. The company’s fast-growing energy segment should help in that regard. Launch of driverless taxis and a possible move into cloud computing with Dojo are also potential growth engines. Analysts like Tesla less than other Auto/Tires/Trucks companies.
The average twelve-month price prediction for Tesla is $217.75 with a high price target of $320.00 and a low price target of $85.00. At the center of everything we do is a strong commitment to independent https://www.forex-world.net/ research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system.
Primarily known for its electric vehicles, Tesla also produces energy generation and storage systems, areas that have experienced increased demand in recent years. The average https://www.forexbox.info/ 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.
The Motley Fool owns shares of and recommends Tesla and Volkswagen AG. Interest in Tesla’s vehicles remains strong, and one factor affecting the demand is the federal tax credits available. The government introduced tax credits for new clean vehicles purchased in 2023 or after, providing buyers with a tax credit worth up to $7,500. If you had invested $1,000 in FNCMX in June 2018, it would have been worth $1,636.80 in June 2023.
To be fair, extending management’s “multi-year” estimate to this story’s 10 years estimate is extrapolating beyond what the company has said. So let’s assume that its growth slows down to an average of 20% annually after five years. By doing so, Tesla could still be selling roughly 9.5 million EVs annually by 2030. For long-term investors looking for a company that could deliver higher-than-usual returns, Tesla may be a good bet.