Is Tesla a good long-term stock?
Key Morningstar Metrics for Tesla
Currently, 32 Wall Street analysts follow Tesla stock, and they have a consensus “buy” rating on the company. Their average 12-month price target is $207.30, marking a potential gain one year out of about 27%.
Ashwath Damodaran Sees a Buying Opportunity in Tesla Stock
I believe that while 2024 could be a tough year for Tesla amid the slowing sales growth and falling margins, the company could see much better days in 2025 and beyond, especially as interest rates revert to more normalized levels.
Wall Street expects Tesla earnings per share of just $2.96 a share in 2024, according to FactSet. That would be a around a 5% decline vs. last year's $3.12. That was a 23% decline vs. 2022. Analyst project a solid increase in 2025 to $4.13 a share.
Tesla (TSLA) stock is angling lower in 2024, falling around 30% as analysts project 2024 vehicle deliveries could undercut last year's total with profit forecasts continuing to fall ahead of first-quarter earnings.
The next decade is going to be a tougher slog than the last 10 years. Tesla won't be a bust like Rivian and Lucid but I don't see it outperforming the market either. The share price will have to come down significantly from these levels to make TSLA stock a buy.
He forecasts Tesla stock to gain about 550% to hit $1,200 a share by 2030, and for SpaceX to triple in valuation over the same period, according to a recent interview conducted by Bloomberg. Baron runs the Baron Focused Growth Fund, which counted Tesla and SpaceX as its largest holdings as of December 31, 2023.
Tesla Shares: A Fair Value Estimate
With its 3-star rating, we believe Tesla's shares are fairly valued compared to our long-term fair value estimate. In 2024, we forecast Tesla will see a far slower growth rate, with deliveries increasing just 10% to a little under 2 million, from a little over 1.8 million in 2023.
Projections for the TSLA rate in 2025 vary significantly among analysts, with estimates ranging from a stock price above $300 to $3,000 per share. These projections are based on various factors and assumptions, including Tesla's market performance, EBITDA margins, and the broader electric vehicle market.
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 45 buy ratings, 33 hold ratings, and 16 sell ratings.
Will Tesla hit $2,000 a share?
Tesla (TSLA) stock is down more than 30% so far in 2024, but Ark Invest CEO Cathie Wood thinks "now is not the time to run for the hills." In fact, Ark has been buying the stock and thinks it could rise to $2,000 per share in the next five years, representing an increase of more than 1,000% from today's levels.
| S.No. | Company | Industry/Sector |
|---|---|---|
| 1. | Tata Consultancy Services Ltd | IT - Software |
| 2. | Infosys Ltd | IT - Software |
| 3. | Hindustan Unilever Ltd | FMCG |
| 4. | Reliance Industries Ltd | Refineries |
It's unlikely Tesla's returns going forward will come anywhere near resembling the last five years. So, investors shouldn't expect a $1,000 price per share by the end of the decade.
Tesla has a conensus rating of Hold which is based on 9 buy ratings, 19 hold ratings and 7 sell ratings. The average price target for Tesla is $196.72. This is based on 35 Wall Streets Analysts 12-month price targets, issued in the past 3 months.
The life expectancy of a Tesla car can vary, but many Tesla owners report their vehicles lasting well over a decade with proper maintenance. Tesla's battery and drive unit warranty usually spans 8 years or a specified mileage limit, which can offer a useful guideline.
Tesla stock's average annual return for the past ten years has been around 40%. If this average annual return were to continue until 2040, Tesla stock would reach a price of $101,597.
Bullish Tesla investors also point out that the company's revenue growth beyond 2024 is expected to surpass all of the Magnificent Seven other than Nvidia Corp. Its earnings are also projected to bounce back in 2025 after dropping this year, and will be climbing at a faster pace than most other mega-caps.
Tesla Stock Forecast 2026-2030
These five years would bring a significant increase: Tesla price would move from $218 to $441, which is up 102%. Tesla will start 2026 at $218, then soar to $257 within the first six months of the year and finish 2026 at $257. That means +57% from today.
Tesla was incorporated in July 2003 by Martin Eberhard and Marc Tarpenning as Tesla Motors. The company's name is a tribute to inventor and electrical engineer Nikola Tesla. In February 2004 Elon Musk joined as the company's largest shareholder and in 2008 he was named CEO.
This means that your $1,000 10 years ago — technically, $1,002 — would have bought 60 shares of Tesla. As of Mar. 3, 2024, those 60 shares of Tesla would be worth $12,158.40. That marks a 28.342% annual rate of return.
How much is $10,000 in Tesla stock 10 years ago?
A $10,000 investment in Tesla back in April of 2014 would now be worth roughly $121,460 right now -- and that's even factoring in the stock's pullback this year.
Ark Invest has laid out several price targets for Tesla over the years, factoring in items like full self-driving and robotaxis. 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.
Key Takeaways. Shares of Tesla fell as Wells Fargo said the EV maker is likely to see no sales growth in 2024. The bank cut its rating on the stock to underweight and lowered its price target to $125 from $200. Tesla's struggling to sell cars even as it lowers prices in various markets, and that's affecting its profit.
The analyst says weak EV demand, weak prices, and a huge layoffs announcement all bode poorly for Tesla stock. GLJ is largely correct -- but wrong on one point.
As of 2024-04-17, the Fair Value of Tesla Inc (TSLA) is 117.74 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 157.11 USD, the upside of Tesla Inc is -25.1%.
