Here’s a closer look at the reasons why these two semiconductor stocks may be able to surpass Tesla by market cap over the next five years. With this challenging outlook, it won’t be surprising to see Tesla overtaken in the list of world’s largest companies. Specifically, Taiwan Semiconductor Manufacturing (TSM -2.38%), popularly known as TSMC, and Broadcom (AVGO -0.37%) are fast on Tesla’s heels. Both companies are expected to enjoy strong growth due to unprecedented demand for their chips too. Tesla (TSLA -6.72%) is currently the eighth-largest company in the world with a market cap of just over $1.05 trillion as of this writing. So, if the top risks to the world right now are climate change and geopolitical conflict, the growth of nuclear energy in both America and China is essential.
Tesla Stock Price Prediction Beyond 2030
Meanwhile, analysts’ average price target of $297.31 reflects about 6% downside potential. Further, the lowest price target for Tesla stock is $115, implying 64% downside potential from current levels. Its once-dominant automotive business is now showing signs of strain, with slowing delivery growth and declining profit margins.
This story explores how Elon Musk’s political ambitions are creating fresh uncertainty around Tesla’s growth, stock performance, and leadership stability. Analytical Tesla stock forecasts in 2025 see its performance depending on production targets, market demand, and competition. Analysts are divided, with some predicting growth due to new vehicle models the little book that still beats the market and advancements in autonomous driving, while others point to challenges from increased competition and economic factors.
According to analysts, Tesla’s stock has a predicted upside of 2.60% based on their 12-month stock forecasts. From a technical standpoint, TSLA stock is showing signs of life. In late July 2024, the stock’s 50-day moving average crossed back above its 200-day moving average. However, the Relative Strength Index (RSI) currently shows 52.01, indicating that the stock has not reached the overbought territory.
Longer-term, the energy business, driverless taxis and a cloud computing service using Dojo could end up justifying Tesla’s high price tag today. Tesla is often viewed as a long-term buy due to its EV market leadership and growth potential in energy solutions. However, opinions vary, and potential investors should consider market competition and regulatory risks.
He is saying so again with the potential launch of Tesla robotaxis with no humans at the wheel in Austin, Texas, which was supposed to happen on June 12. Now, the delay is for a release later this month, although I wouldn’t cross your fingers. Tesla has claimed launches such as these repeatedly in its history, most famously with the “one million robotaxis on the road by the end of the year” proclamation in 2019. In China — one of Tesla’s largest markets — the company is getting pummeled by local players like BYD, which now sells more cars globally than Tesla by a wide margin.
- These include vehicle quality issues, labor disputes and dubious behavior from Musk.
- Since then, TSLA shares have decreased by 27.2% and is now trading at $293.94.
- Even better, analysts expect this growth to flow to the bottom line as earnings increase at an annual rate of 26% over the next five years.
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The company’s global Supercharger network and destination charging partnerships further enhance vehicle usability for long-distance travel. The stock price spiked in July above $290, only to fall to $215 in August. 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 +2.8% in 2025? Read on to learn where Tesla’s opportunities lie and what challenges it faces going forward.
Company
The $85 target comes from Craig Irwin, a Roth Capital analyst. In his view, steeper competition, factory shutdowns and launch delays put Tesla at risk of losing market share. In Q4 2023, Li Auto beat analyst forecasts, reporting YOY increases of 133.8% in sales and 2,068.2% in net income. The company is also highly profitable, boasting a levered FCF margin of 35.94%. With total deliveries for 2023 increasing 182.2% to 376,030 vehicles, Li Auto’s financials are robust and healthy. Farran Powell is the managing editor of investing, retirement and banking at USA TODAY Blueprint.
Stock Performance
As an industry leader, Joby stands to benefit from industry expansion. The Urban Air Mobility market is expected to reach $45.40 billion in 2036, growing at a CAGR of 23.54%. While the industry is still in its early stages, government initiatives and private investments are aiding the market’s development.
Recently, the company announced a $1.3 billion investment in Indonesia to build an electric car factory. This move, in combination with on-going factory construction in Thailand, Brazil, Hungary and Uzbekistan, will greatly increase BYDDY’s global presence. The automaker has experienced immense success in Southeast Asia as the top-selling EV brand after only recently entering its market. With the company committed to growth, there’s no doubt that BYDDY will experience future prosperity. Making long-term predictions for individual stock prices is very difficult. Whether a stock has done well or fared poorly, the tide can shift overnight.
For instance, in the first quarter of 2025, Tesla delivered 336,681 vehicles, marking a 13% drop compared to the previous year. After its IPO, the stock price fluctuated but remained relatively low. A pivotal moment came in 2012 with the launch of the Model S, Tesla’s first mass-market electric vehicle (EV), which boosted investor confidence and put TSLA at a high of $2.66 in March 2012. Tesla was founded in 2003 by engineers Martin Eberhard and Marc Tarpenning, with the vision of creating electric vehicles that could rival traditional combustion-engine cars in performance and style. Elon Musk joined Tesla shortly after as a chief executive officer, leading a series of investments that would shape the company’s future.
I predict more pain for Tesla’s EV sales over the next few years with the rising supply of cars available from competitors around the globe, especially from China. Bob Haegele is a freelance writer specializing in topics such as insurance, investing and credit cards. His work has appeared on Business Insider, CreditCards.com, and other nationally recognized outlets. Analysts expect Tesla to earn lower earnings in 2024, projecting earnings per share of $2.28, down from $4.30 in 2023. Concerns have also been raised about Tesla factory conditions.
- In 2025, analysts expect Tesla to navigate through significant challenges while continuing to capitalise on its technological innovations and market presence.
- So, if the top risks to the world right now are climate change and geopolitical conflict, the growth of nuclear energy in both America and China is essential.
- With these weak fundamentals, Tesla should probably be cheaper than it is, but the market still has faith in Musk.
- These developments are crucial for Tesla to maintain its market share amid growing competition from both traditional automakers and new EV entrants.
- Tesla’s core business centers on the design, development and manufacture of electric vehicles.
I’ve never been a huge fan of consumer staple plays as Moonshots (unless they’re extraordinarily cheap or have excessive leverage). That’s because guessing economic conditions might earn you 10% here and there; consumer staples are low-risk, low-return by their nature. Unfortunately, shorting these companies is also a recipe to get slowly burned by dividend payments. Yet, all three companies reached a $5.5 billion valuation without generating significant sales. My challenge involves finding companies like Tesla back in 2010 when it was a split-adjusted $6. That means buying up promising startups that could 10x your money in two to three years, and then doing it again and again until we reach $1 million by 2030.
Analytical Tesla price targets in 5 years range from $321 to $2036. Tesla’s first car, the Roadster, launched in 2008 and set the stage for what the brand would become—an innovator in high-performance electric vehicles. The Roadster could travel over 200 miles on a single charge, shattering public scepticism about EV capabilities and proving that electric cars could be fast, efficient, and practical. Electric vehicle sales growth may have slowed, but more and more EVs are still sold every year and investors have shown no shortage of enthusiasm for Musk’s projects. While the present price action is volatile, Tesla’s continued stranglehold on the EV market gives it an advantage. Becoming a Teslanaire from electric vehicles, however, isn’t straightforward.
In 2023, nearly 40% of all EVs sold worldwide came from Tesla assembly lines. The company’s expansion into new markets and development of its autonomous driving technology have also contributed to investor optimism. Additionally, Tesla’s recent announcement of a new battery factory in Mexico is expected to boost its production capacity and lower costs.