Boom Or Bust: Where Is Tesla Stock Headed Next?

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After Tesla action reached its historical peak last week, everyone wants to know what happens next. | Image: LA Times / Ringo W. H. Chiu

  • Tesla securities had a wild start February with price hundreds of dollars rolling back and forth.
  • When predicting the future of stocks, analysts are divided into two, with many remaining rather skeptical.
  • Meanwhile, Ark Investment Management indicated that TSLA could reach a whopping $ 15,000 per share for the year 2024.

    Tesla (NASDAQ: TSLA) headlines last week with its price fluctuations crazy. Seeing this roller coaster, the market has been divided into two. Some believe that the population is severely overvalued, while others say the rally has just begun.

    As this electric car maker Silicon Valley is attracting so much attention, everyone asks: What does the future look like TSLA

    Graphic historical cost in a nutshell

    Since its IPO, shares of Tesla has experienced extreme volatility. While fluctuations here and there, the share price managed to climb from $ 23.83 in June 2010 to $ 383 in June 2018.

    A downtrend began in November 2018 amid doubts about consumer demand and profitability of the company. TSLA historical stock price chart. | Source: Yahoo Finance

    The action struggled through the first half of 2019, reflecting an ongoing shift in investor sentiment. On May 25, 2018, its shares fell below $ 200 for the first time in more than two years.

    The second half of the year saw action arises from the ashes. The business finally reported gains in both the third and fourth quarters, sending TSLA to new highs.

    A Fast-forward to 2020, Tesla became the first US automaker to hit a market capitalization of $ 100 billion. This figure is now at nearly $ 135 billion.

    What happened to Tesla last week

    On Monday, Tesla shares soared 19.9% ​​as Argus Research raised its price target for the shares to $ 808 from $ 556 previously.

    The next day, the action beyond sounded $ 800 per share on the way to an intraday high of $ 970.

    The demonstration ended on Wednesday after Chinese Vice President Tao Lin said the car deliveries to customers would be delayed due to the outbreak of coronavirus. Tesla previous news the closure of its factory in Shanghai only added fuel to the fire. frightened investors caused the action to fall 17.2% in a single day.

    On Thursday, Tesla shares initially fell more than 6%, but later rebounded from its lows.

    The action ended the week up 15%, with price up 75% since the beginning of 2020.

    Analysts divided on investability Tesla

    There is no shortage of Tesla price predictions.

    In May 2019, the CEO Ark Investment Management Catherine Wood said "Tesla should be valued somewhere between $ 700 and $ 4,000 in five years."

    Recently, Arca published an update to its valuation model. TSLA now expects a value of $ 7,000 to 2024 in the base case. In a bull case, its price estimate is $ 15,000.

    Wood added:

    This is an exponential growth company. We lived in a world of linear growth for so long. The law of large numbers Pulling growth rates - this is a good example of exponential growth .

    On Monday, Bill Selesky, an analyst at Argus Research upgraded its forecast year-end Tesla from $ 556 to $ 808. He said:

    Despite the delays of the past, parts shortages production, wage labor costs and other difficulties, we expect Tesla to benefit from its dominant position in the industry of electric vehicles and to improve performance in 2020 and beyond.

    Forecast Tesla investor Ron Baron largest company to $ 1 trillion in revenue in a decade. Said on CNBC:

    is far from finished at that point and time. There are a lot of opportunities for growth from that point forward.

    Gov Capital offers the most optimistic of all perspectives. Based on a thorough internal algorithm learning, Tesla predicted values ​​to reach an overwhelming price of $ 3,025 in February 2025.

    This is what its outlook for 2020 looks like: A year price prediction Tesla. | Source:. GovCapital.com

    Not everyone is being so optimistic

    On Wednesday, Brian Johnson, an analyst at Barclays automaker said in a note to clients:

    I do not want to sound like a 'Okay, Boomer' younger investors rushing into action TSLA, but recent price action brings to mind NASDAQ c. 1999.

    While Barclays raised its price target from $ 200 to $ 300 per share, the forecast is calling for a 65% drop in store:

    We continue to believe TSLA is fundamentally overvalued.

    According to CNN business, 27 analysts have offered their own predictions Tesla 12-month share price. Have set an average target of $ 506, with a low estimate of $ 222 and a high estimate of $ 800. The current consensus among analysts it is to sell the shares.

    Investor popular prediction service Wallet refers to TSLA as a "good long-term investment is not." Given his view, it is expected that the shares to trade at $ 756,389 in February 2025. < / p> Tesla stock forecast for 2020. | Source: WalletInvestor.com

    These are the predictions of other online service, Longforecast.com: Tesla 2020 stock forecast in a month | Source: Longforecast.com

    The baseline

    As with the other actions, there are some factors that influence the price of shares of Tesla. These include, among others, quarterly earnings announcements and the financial performance of the broader stock market values. The value of securities Tesla is also strongly affected by emerging competitors in the electric vehicle industry.



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