Where will Tesla stock be in 5 years?
According to the estimates cited above, Tesla stock could be worth between $564 and $2,326.138 a share in the next five years, implying potential over 1,000% gains based on the last closing price of $181.41, though this seems an ambitious target.
Wall Street expects Tesla earnings per share of just $3.07 a share in 2024, according to FactSet. That would be a 1% decline vs. last year's $3.12. That was a 23% decline vs. 2022. Analyst project a solid increase in 2025 to $4.24 a share.
Analysts currently expect Tesla to earn about $3.08 in 2024, according to FactSet. That's down 20% from the $3.85 expected at the end of December. stock gained 3.9% in Hong Kong trading.
The manager of the Baron Focused Growth Fund expects Tesla's stock to reach $1,200 by 2030, up 550% from current levels, citing its strong brand.
The newest price target for Tesla shares for Tesla came in April 2023, with a call for the stock price to hit $2,000 in 2027 and the company's market capitalization to hit $4.4 trillion. The bear-and-bull case for Tesla stock from Ark Invest are $1,400 and $2,500, respectively, for the same time period.
From a fiscal-2023 base, we forecast Tesla earnings per share grow at a 27% compound annual growth rate through fiscal 2030, achieving $5/share in late fiscal 2025, $10/share in late fiscal 2027, and $15/share by mid fiscal 2029.
Based on 34 Wall Street analysts offering 12 month price targets for Tesla in the last 3 months. The average price target is $220.26 with a high forecast of $345.00 and a low forecast of $23.53. The average price target represents a 9.88% change from the last price of $200.45.
Adding to the challenges, Tesla's management has offered a cautious outlook for 2024. The company anticipates a significant decrease in volumes compared to 2023, falling well below its targeted compound annual growth rate (CAGR) of 50%.
To reach $500 by 2025, Tesla needs to just about double from these price levels. Given the kind of returns that it has delivered in the past – including the 743% rise in 2020 – the price level does not seem unreasonably astronomical, and could be achieved if Tesla delivers on the 50% shipment growth and FSD.
The S&P 500 index had an average annual return of 11.13% between 1973 and 2023. If Tesla stock were to grow at this average rate until 2040, TSLA stock would be worth $1,169 in 2040.
Where will NVDA stock be in 5 years?
Investors can expect the stock to make them richer
Based on a top line of $300 billion after five years, a sales multiple of 20 points toward a market cap of a whopping $6 trillion. That would be way higher than Nvidia's current market cap of around $1.35 trillion.
Elon Musk is the largest individual Tesla shareholder, holding 715.022 million shares, representing 20.6 of Tesla ownership. The Vanguard Group is Tesla's biggest institutional investor, holding 225.94 shares, representing 7% of Tesla ownership.
Baron said he believes Tesla can hit $500 to $600 per share by the year 2025 and the company could be worth $4.5 trillion in the next eight to 10 years. “But that's not including robots, that's not including autonomous vehicles, that's not including batteries,” Baron said in November 2022.
Tesla stock price stood at $184.02
According to the latest long-term forecast, Tesla price will hit $250 by the end of 2024 and then $350 by the end of 2026. Tesla will rise to $450 within the year of 2027, $500 in 2028, $600 in 2030 and $700 in 2033.
Tesla Deliveries Expected to Slow
In the near term, we expect deliveries to grow at just 10% and 6% in 2024 and 2025, respectively. This is far below the 50%-plus annual growth that Tesla has generated over the past decade.
If you invested $10,000 with founder Elon Musk 10 years ago, your stake would be worth $2.1 million now. That works out to a more than 70% average annual return. The same $10,000 put into the S&P 500 during that time grew just 274% to $37,376.
Tesla stock jumped back above $1,000, gaining for a seventh straight session, and without much news, even while the rest of the market is in the red. Late Wednesday morning, Tesla (ticker: TSLA) shares were at $1,029.60, up $35.62 or 3.6%.
Tesla's (NASDAQ: TSLA) stock is up 135% in 2023, but the company's performance doesn't match the stock. Margins are down, FSD continues to be a year away, and billions are being bet on products that will take years to be proven out.
Despite Tesla's historical success, it's advised to avoid its stock in 2024. While the company certainly remains a profitable player in the EV market, challenges and diminishing first-mover advantages raise concerns about its future performance.
Tesla Bulls Wary Of 2024
The consensus among analysts for 2024 has Tesla EPS down to $3.31 as of Thursday afternoon. Before Q4 earnings, Wall Street had Tesla 2024 earnings at $3.63 a share. The consensus view is now 12% below where it was at the end of 2023 and has come down 40% since the end of January 2023.
Can Tesla stock recover?
We forecast segment gross margins will recover to the mid-20% range by the end of the decade—well above the 19% generated in 2023 but below the 29% margin achieved in 2022. Read more about Tesla's fair value estimate.
Key Points. Tesla's sales growth has stalled, and its profitability is taking a hit. Even with the stock falling, shares still look expensive. Investors who buy shares today are hopeful new projects will become huge moneymakers one day.
Is Tesla stock a Buy, Sell or Hold? Tesla stock has received a consensus rating of buy. The average rating score is and is based on 48 buy ratings, 34 hold ratings, and 11 sell ratings.
But in the end, Tesla stock has risen 105% this year into the final week of 2023. While that has stretched the stock's valuation to loftier levels, there are compelling reasons to want to own Tesla shares heading into 2024.
Coming into Monday trading, Tesla shares have fallen about 24% year to date. The reporting on Musk is a small factor in the stock drop. Investors are mainly worried about weaker-than-expected growth for Tesla. The company shipped 1.8 million electric vehicles in 2023, up almost 40% from 2022.
