Based on 29 Wall Street analysts’ 12-month price forecasts for Tesla in the last three months. The average price estimate is $305.10, with a high of $436.00 expected and a low of $141.33 expected. The average price prediction reflects a 49.28% increase over the previous price of $204.38.
Tesla presently has 3,133,470,045 shares in circulation. With Tesla stock selling at $214.44 a share, the total market capitalization of Tesla stock is $671.94B. The 52-week high for Tesla was $414.50, and the 52-week low was $202.00. It is now -48.27% lower than its 52-week high and 6.16% lower than its 52-week low. As of October 24, 2022, Tesla’s (NASDAQ: TSLA) market valuation is $671.94B.
The market cap (market capitalization) of a publicly listed firm is the entire market value of its outstanding shares. The market capitalization of Tesla is derived by multiplying the current stock price of $214.44 by the total number of outstanding shares of 3,133,470,045.
Elon Musk announced that he would purchase a significant amount of Tesla shares, suggesting that a $5 billion to $10 billion plan could arrive next year.
The Chief Executive Officer (CEO) responded to calls for a stock buyback by proposing a plan that could be carried out next year and would cost between $5 billion and $10 billion. On the other hand, the Chief Financial Officer (CFO) believes that a fifty percent rise in yearly deliveries is implausible because shares are going down as a result of a modest decline in sales.
Elon Musk, CEO of Tesla Inc., made a cryptic comment on the possibility that the business may purchase up to $10 billion in shares on Wednesday. That came about when Tesla’s sales for the third quarter did not meet forecasts, and its CFO cut projections for deliveries for the whole year. Because of this, the company’s share price fell significantly.
After repeated stock splits and the firm losing more than a third of its market value in 2022, some investors in Tesla TSLA, -4.70%, have been advocating for a stock buyback. Musk said on an earnings call that the board of directors of Tesla had discussed the possibility of buying back between $5 billion and $10 billion worth of shares.
At the level of the board, “The idea of a repurchase sparked a heated discussion. The buyback is “obviously subject to board review and approval,” he said, adding that “the board generally believes that a buyback makes sense; we want to go through the proper process to do a buyback, but it is something that we can do a buyback on the order of $5 [billion] to $10 [billion] even in a downside scenario next year, given that next year will be very difficult.”
Because Chief Financial Officer Zachary Kirkhorn rapidly forecasted a change in response to the announcement, the remark did not immediately impact Tesla’s shares.
Even though Tesla delivered a record number of cars in the third quarter, the firm did not meet industry experts’ expectations. That made it more difficult for management to meet their year-end objective of increasing the number of cars delivered by more than 50%. Kirkhorn said that the corporation would boost the manufacturing of automobiles by fifty percent regardless of whether or not there were problems with the supply chain that were beyond their control.
Following the publication of the automaker’s quarterly report, the stock price of the company fell by more than 6%. Tesla announced profits of $3.29 billion, or 95 cents per share, for the third quarter of the year, on sales of $21.45 billion, an increase from $13.76 billion in the same period of the previous year. The firm that manufactures electric automobiles announced profits of $1.05 per share, a rise from 62 cents per share the last year after taking into account stock-based compensation.
According to FactSet, industry experts anticipated an adjusted profit per share of $1.01 based on revenue of $21.98 billion. That was true even though the stock ended the regular trading day at $222.04.
This year, Tesla’s stock has dropped by more than 37%, a reduction more significant than the decline of 22% seen in the S&P 500 index SPX, +0.77%, which has followed years of spectacular increases.
The decline has been attributed to various factors, including increased competition in the electric vehicle market, negative press over Tesla’s full-self-driving claims versus actual performance, and Tesla CEO Elon Musk’s attention being diverted by his attempt to acquire Twitter Inc. TWTR, +2.22%. Pundits have proposed various explanations for the decline, including the factors above.
On the other hand, Musk seems to have no anxiety about the situation. He forecasted that the value of Tesla would be higher than that of Apple Inc. AAPL, +0.47% or Saudi Arabian Oil Co., 2222, +0.84%, are now considered the two most valuable firms in the world. Both of these businesses have market capitalizations of more than $2 trillion.
On the Call regarding his earlier forecast that Tesla might reach Apple’s then-record market valuation, Musk said, “Now I am of the view that we may easily exceed Apple’s current market.”
According to analysis, Tesla has the potential to be worth more than the combined value of Saudi Aramco and Apple. That doesn’t imply that it will happen or be simple; it will be incredibly challenging and take a lot of hard work, innovative new goods, growth, and luck at every turn.
“The Street is starting to fear that the bloom is slipping off the rose in the Tesla story, with delivery difficulties front and center,” said Wedbush Securities analyst Daniel Ives in a research preview on Tuesday. “The Street is starting to fear that the bloom is slipping off the rose in the Tesla story,” Wedbush Securities analyst Daniel Ives said.
Ives claims that there is an increasing amount of pressure on Musk and his company to be successful. “There are logistical problems in China, supply-chain difficulties, FSD black-eye moments, the Musk Twitter calamity, and increased EV competition across the board,” he noted. “There are also logistical worries in the United States.”
Despite what Musk called “embarrassing” price rises, Tesla’s vehicle gross margin dropped in the second quarter and remained at 27.9%.
Earnings forecast: Does the high number of Tesla deliveries hide a problem with demand?
In a discussion with investors on Wednesday, Tesla officials said that the company would restructure the procedure for delivering automobiles, which has been one of their most difficult chores in recent times, to save money.
In the last weeks of each quarter, our delivery volumes reach such a high point that it becomes prohibitively costly and impossible to coordinate the available transportation capacity. According to the presentation the company gave to its shareholders, “As a direct consequence of this, we started adopting a more consistent delivery cadence, which ultimately resulted in an increase in the number of vehicles in transit at the end of the quarter. The company said that as a direct consequence of the situation, “We started converting to a more regular delivery cadence,” which ultimately resulted in an increased number of autos being transported near the end of the quarter. During the quarter, the outbound logistics should be optimized, leading to a drop in the cost per truck.
Tesla Shares Soared After the Electric Carmaker Outperformed Earnings on Stock Forecasts for the Third Time in a Row.
The second quarter wasn’t a banner one for Tesla, but it wasn’t weak enough to sway many investors.
Increases in output and relatively constant demand in the second half of 2022 might be helpful in this regard.
On Wednesday, Tesla (NASDAQ: TSLA) announced adjusted profits per share of $2.27 for the second quarter. The average estimate on Wall Street was $1.80 per share. For the sixth quarter running, the corporation has reported better-than-expected profits.
The market looked to be in decent spirits. Premarket trade on Thursday saw a 2.4% increase in stock prices to $760.79.
Even though Tesla disclosed lower operational expenditures and a tax rate than he anticipated, Cowen analyst Jeffrey Osborne wasn’t as satisfied in a report published on Wednesday evening. Osborne wished the gross margins were higher.
Additionally, unless investors get a stronger sense that production ramps at the new Berlin and Texas factories are proceeding smoothly, he views Tesla shares as “range-bound.”
In his earnings report analysis, Berenberg analyst Adrian Yanoshik spoke about the output increase. As production increases at the new facilities, he expects profit margins to rise in the third quarter.
The Model Y’s “stable lead times,” as Yanoshik put it, have also improved. Investors and experts have disagreed on the best way to approach the problem of lead time.
Even though Tesla has increased prices by around 25–30 percent so far in 2022, growing backlogs have been seen as evidence that demand for electric vehicles (and Tesla’s EVs in particular) continues to be strong. Lead times weakening or being stable may be an indication of an impending economic downturn.
Elon Musk, CEO of Tesla, recently discussed delivery times on a conference call, claiming the company wants to reduce its wait times.
This annoys me. Musk compared this to the experience of ordering a burger at a restaurant and then waiting three hours for it. You need to have your burger right now. The auto is the same way. Therefore, we seek shorter lead times.
Musk reaffirmed his confidence that Tesla would be able to sell all of its vehicles indefinitely. However, Musk doesn’t seem concerned about supply and demand.
In an article published Wednesday night, RBC analyst Joseph Spak seemed to concur with Musk, stating that he does not think Tesla has a demand issue. The fact that Tesla’s older factories are producing more vehicles was another positive sign for Spak.
It had been estimated that the Tesla facility in Fremont, California could manufacture 600,000 automobiles per year, but Spak now thinks that number may be increased to 650,000. He estimates that 750,000 units per year can be manufactured at the Shanghai plant. In 2021, over 480,000 autos will be manufactured in Shanghai.
Yanoshik and Osborne agree that Tesla stock should be held. Osborne estimates that the stock may rise to $733. As for Yanoshik, he has set a price objective of $833.
Shares are recommended to be purchased by Spak. He expects the price to reach $1,100. Also recommending a buy is Daiwa analyst Jairam Nathan. He expects the price to rise to $800. After the profit announcement, Nathan, like Spak, emphasized productivity.
By the end of 2022, Tesla’s “management is optimistic of exciting at close to 40,000 units/week in total production,” as Nathan put it. Giving or taking a few weeks for maintenance and vacation, that’s almost 2 million automobiles every year.
If Tesla can maintain a 2 million unit run rate through the end of the year, it will be well positioned to achieve another year of 50% volume growth in 2023. Even so, weekly productivity would have to steadily increase into 2023. Tesla expects to deliver approximately 1.4 million units in 2022, which is approximately 50% more than the previous year’s delivery of 2.1 million units.
On August 4th, Tesla will be holding a shareholder meeting, and on September 30th is AI Day. Investors will vote on a proposal to raise the permitted number of shares outstanding at the shareholder meeting, allowing for a 3-for-1 stock split to take place. On AI Day, Tesla will demonstrate a year’s worth of development toward fully autonomous vehicles. There won’t be another “A.I. Day” until 2021.
Overall, 53% of the analysts that cover Tesla recommend buying the stock. About 58% of stocks in the S&P 500 SPX +0.59% are rated Buy by analysts. The consensus estimate for Tesla stock from market analysts is $870.
Coming into Thursday’s trading, Tesla stock has fallen about 30% this year, while the S&P 500 and Nasdaq CompositeCOMP +1.58% have fallen about 17% and 24%, respectively.
According to the Stock Forecast, Investors Are Impatiently Awaiting a Report on Tesla’s Second-quarter Delivery Figures.
What exactly transpired?
Stock Forecast reports that Tesla’s second-quarter delivery statistics are expected to be released at any moment, and investors are eagerly awaiting the news. That nervousness was clearly evident in the stock’s performance on Thursday; it ended the day about 2% lower than the S&P 500 index, which had a 1% drop.
What does this mean?
Many firms had a difficult second quarter, and Tesla was no exception. The coronavirus limitations and lockdowns at the company’s Shanghai Giga factory in China were the most damaging. Manufacturing at Tesla was also hampered by the global supply chain issues now impacting many industrial firms.
Many experts have revved up recent forecasts for Tesla deliveries in the third quarter. The general consensus is that the EV maker’s results would be far lower than the highs set in previous quarters, according to this group.
In a fresh research note on Thursday, Wedbush analyst Daniel Ives predicted that around 250,000 units would be sold. A FactSet survey reported by Investors Business Daily puts the number at 272,000, which falls on the low end of the overall range of forecasts.
There isn’t enough room in that range to even come close to Tesla’s first-quarter total of more than 310,000 vehicles. Furthermore, if those low forecasts come true, the EV king would see its first sequential fall since the early phases of the coronavirus epidemic, which would be quite depressing.
The Twitter takeover leads the Tesla stock forecast to a bearish zone
Elon Musk’s decision to buy Twitter came as a negative surprise for Tesla investors. When the purchase was announced, Tesla stock fell below $1,000, losing almost 5% in a single trading day.
That is because it was revealed that shares of Tesla were used as collateral for the purchase transaction. Musk sold $21 billion of Tesla stock to make available the amount of $44 billion for the Twitter takeover.
According to a report published by Times, Elon Musk’s forecast for Twitter include pushing Twitter’s revenue to “$26.4 billion by 2028, up from $5 billion last year,” with a user growth of “217 million at the end of last year to nearly 600 million in 2025 and 931 million six years from now”. Twitter growth forecast and Tesla stock forecast are directly correlated. Investors fear that Musk’s attention would go towards the new purchase rather than Tesla. Many experts have pointed out that such growth for Twitter would necessarily mean a decline in Tesla’s performance.
However, it isn’t clear whether Musk is really intended to buy Twitter, which makes Tesla stock forecast very volatile. Since Musk offered to buy the social media company eleven days ago, Musk has started to criticize the corporation’s actions bitterly. Lastly, Musk began to denounce a large number of bots on the platform, mentioning that users are bombarded with spam and fake accounts. Therefore, according to Musk, the company must reduce the number of bots on its site to improve its user experience.
Musk said he would wait for proof of his belief that only 5 percent of users are spam or fake accounts before making a transaction. However, despite Musk’s declaration that he is still “committed” to the deal, he stated that is experimenting with 100 of his followers to test whether there were a lot of bots.
Battery production barriers strongly influence Tesla stock forecast
Currently, Tesla’s car batteries are manufactured by Panasonic. However, by 2023, the Gigafactory in Nevada aims to manufacture 35 gigawatt-hours (GWh) of cells and 50 GWh (5.7 MW) of battery packs. It’s possible that this amount of manufacturing might provide 500,000 Tesla vehicles a year. Tesla isn’t alone in solar battery production limitations either. Other companies, such as Strata Solar, AES, and NextEra, are finding limitations in the electric energy sector for houses.
In Berlin, Germany, a Tesla plant has officially opened its doors. Chief Executive Officer Elon Musk went to Germany for the same reason. This was done to alleviate strain on the Shanghai facility and make it easier for the company to serve the vast European market.
10,000 Tesla Model Y cars have been added to Hertz Global Holdings’ fleet. Tesla’s market value has risen to $1 trillion due to this acquisition, which has generated enormous attention for the company.
Tesla has also scheduled a second stock split in September 2020, at a ratio of 5 to 1. Their annual meeting is coming up, and they plan to make the request then. Wedbush analyst Dan Ives believes that this is the right move for Tesla’s long-term success. On Monday, Tesla’s shares jumped about 8% after the announcement.
According to Bloomberg’s analysts, there will be about 309,158 automobiles produced once battery limitations are overcome.
The latest news affecting Tesla stock forecast
Tesla’s New Giga-Factory: India’s Loss is Indonesia’s Gain
Tesla’s new Asian Giga-factory has been much awaited, as Tesla had been in talks with Indian authorities for setting up its new EV factory. As the factory plan inches closer to materialization, however, the plan seems to be disappointing for India’s EV industry. While the company remains secretive about the plan, the Indonesian government has recently confirmed its deal with Tesla.
As per some reports, the plan to set up a factory in India was halted when Tesla could not reach an agreement over tax issues with the Indian government.
Industry observers believe this decision to have severe implications for India’s EV industry.
The first time Tesla hinted at its plan to set up a factory in India in 2021, various speculations were made regarding other huge investments in the overall supply chain of the EV industry. But now, as Tesla moves its plan to Indonesia, the local EV industry is worried that it would not be able to take this advantage.
However, some also believe that India’s EV momentum will continue into the future, as there is still a huge demand for electric vehicles among India’s growing middle class. Furthermore, local EV manufacturers may feel they have more freedom in terms of market standardization and pricing in the absence of a multinational giant as their direct competitor.
At the same time, the Indian government is trying to reach an agreement with other international car manufacturers, such as Suzuki.
On the other hand, setting up a Giga-factory in Indonesia will open new doors of investment and opportunities for the Indonesian market.
Some of the indirect benefits earlier forecasted for the Indian market, such as investments in the supply chain of EVs, may now be available for Indonesia. However, only time will tell about how successful Indonesia is gaining maximum out of this mega opportunity.
The Tesla rally
This month, Tesla (TSLA) fell below its lateral consolidation channel, caught in the risk-off mindset. It then dropped all the way to test daily resistance at $880.00. The weekly M-formation, a reversion pattern, allows for a correction to day-to-day support.
The Fibonacci scale shows that a 23.6 percent retracement for the weekly negative impulse can reach the early 2022 resistance at $925.00. A 50% mean reversion to the bearish impulse occurs at $983.60. That coincides with the M-formation’s neckline. If bears continue to sell and stick to the trend, a price rise of $756.00 could be avoided to mitigate the price in March 2022.
Tesla (TSLA stockholders) are naturally interested in the transaction. However, Tesla (TSLA stock) has been used as security for the Twitter acquisition deal is even more fascinating. In addition, according to multiple sources, Morgan Stanley has pledged $22.5 billion in loans to finance the transaction.
The last time Tesla had a block sale of $10 billion or more was when Elon Musk conducted a Twitter poll. As a result, Tesla’s stock dropped by 11%. It isn’t that significant when compared to Tesla’s market capitalization. China’s continued closure should be even more concerning.
Covid-19’s recent gains are also causing an increase in lockdowns throughout Shanghai and Beijing. Giga Shanghai workers returned to work last week despite being suspended by the company. Other lockdowns have yet to be announced. Two Foxconn Shanghai facilities were closed Monday due to Covid cases.
Elon Musk, the Tesla CEO, was challenged by Bill Gates, the former richest man in America, in a heated exchange that quickly went viral. According to leaks and other sources, Elon Musk allegedly asked Bill Gates if he was short Tesla.
At a minimum, the author is in the company of some of the most talented writers (I am currently not short). Tesla stock could be on the verge of a rebound after yesterday’s solid market finish. Although Tesla reported positive results last week, the stock price didn’t respond as positively as it should. Tesla seems poised to rally. I might even reverse my decision and go long.
Tesla’s competitive advantages in the coming years
Aggressive Production: Tesla has dealt with chip shortages by replacing chips with other options and updating its software. That allows Tesla to manufacture goods much more effectively than other manufacturers.
Starlink Project: Elon Musk has been working on the Starlink Project for several years. The Starlink Project intends to deliver an internet connection to distant places on Earth using a network of private satellites. Starlink has over 2,000 satellites to improve and will gain speed in 2023 . Musk tweeted that the Starlink IPO could be good for TSLA stockholders.
New Gigafactories: To be opened in Berlin, Austin, and elsewhere: The opening of new gigafactories in Berlin and Austin could significantly increase output, which will increase Tesla’s global reach and allow it to produce 2 million units per year, up from 1 million currently.
China: China is a significant market for Tesla and EVs in general. According to forecasts, China is expected to account for 40% of Tesla’s 2022 deliveries. That would add approximately $400 to Tesla’s stock price. So it could be a significant tailwind for Tesla if China’s market is managed well.
Tesla’s disadvantages in the coming years
Regulations, costs, and fines: Tesla is not a favorite of regulators as of late, which could spell trouble for the automaker as it moves into 2022. Due to China’s plans being rejected by the US, there may be many penalties, taxes, and possibly further scrutiny into Tesla’s development plans. This can harm both manufacturing efficiency and cash flow.
Interest rates and other economic factors: Fears of rising interest rates and the Fed’s announcement of bond tapering have influenced the thinking of retail investors. As a result, they are less likely to book profits in high-growth equities and are more inclined to migrate toward cheaper ones. That could change Tesla’s 2022 projection.
How Q1 2022 earning results have affected the Tesla stock forecast favorably
Tesla reported Q1 2022 in April and exceeded projections. Experts are generally optimistic about the stock because of the steady global demand and the massive rise in oil prices. Tesla has also addressed chip shortages better than any other competitor.
The launch of the new Gigafactory Berlin supports Tesla’s engineering capabilities and execution ability.
TSLA shares have been on a rollercoaster ride over the past year. In March, the stock hit its lowest point in over two years. However, since then, the stock has seen a steady recovery.
Will Tesla Worth More Than Apple by 2030?
Will the EV expert be able to overtake the biggest firm in the world before the decade’s end?
The market for electric vehicles is predicted to expand rapidly by 2030. According to AlixPartners’ projections, EVs will account for one-third of the market by 2028 and almost half by 2035. If it happens, it would be a significant increase from the first quarter of 2022, when EVs represented 10% of worldwide car sales. As a result, the total number of vehicles sold is projected to rise to 122.8 million units in 2030, up from 85.3 million in 2020. This bodes well for Tesla’s potential sales.
Analysts predict that the worldwide smartphone industry will expand at a CAGR of 7.6% between now and 2030. This is nothing compared to the anticipated 29% yearly increase in EV sales until the decade’s end. Therefore, Tesla is poised to outpace Apple in sales and profit growth until 2030.
Consistent with the company’s promising market outlook, analysts anticipate 45% annual profit growth for Tesla over the next five years. Over the next five years, analysts predict Apple’s profits will expand by 9.5% each year on average. The Australian financial management firm The Future Fund thinks Tesla will be worth $4 trillion by 2030.
All this points to Tesla maintaining a quicker rate of market capitalization growth than Apple over the next eight years, which could make this electric car play more valuable than the iPhone manufacturer by 2030.