How Much Will Tesla Stock Be Worth In 1 Year

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How Much Will Tesla Stock Be Worth In 1 Year – Tesla TSLA released its second quarter earnings report on Wednesday, July 19, 2023. Here’s what to think about Tesla’s earnings and stock.

Price declines: There were few surprises in Tesla’s financial results, as sales and earnings per share fell within consensus. However, a surprise appeared in the forward-looking announcements, where management reiterated their plan to cut prices to support volume growth. The subsequent sell-off may have been due to improved expectations of future market returns, as investors had previously thought that the price reduction had occurred too much.

How Much Will Tesla Stock Be Worth In 1 Year

How Much Will Tesla Stock Be Worth In 1 Year

Giving up short-term gains: The results are consistent with our view that investors should be cautious about Tesla stock right now. To drive growth in self-driving cars, executives are sacrificing short-term profits, assuming Tesla generates other revenue streams (such as autonomous driving software, charging and insurance) that will outpace them. do for a long time. While we understand the rationale, we believe that current stock prices suggest that a lot of good news is being priced in, leaving investors with a margin of safety if market sentiment changes. badly.

Tesla Stock Price (tsla): Value Cut In Half After Elon Musk Stake Sales

In response to weak demand, Tesla began cutting prices in the fourth quarter of 2022 and continued throughout the first half of this year, leading to third quarter price cuts normal sales and decline in the car network. We believe the company may cut prices in the second half of the year due to price cuts by other automakers, leading to further network congestion. As such, we have lowered our outlook for large auto gains in 2023. However, we believe prices will begin to stabilize by the end of the year as economic conditions improve, resulting in low cyclical rates in 2023.

We estimate the fair value of Tesla stock at $215 per share. We use a weighted average cost of less than 9%. Our purchase price is non-refundable and non-discountable.

More recently, we expect Tesla to increase annual vehicle shipments to 1.8 million by 2023, about 37% from 2022. As prices continue to decrease beyond cost savings, we expect that Total revenue will decline in the automotive industry in 2023. to 19% from 29% achieved in 2022.

In the long term, we expect Tesla to deliver about 5 million vehicles per year by 2030. This includes fleet sales – a growing opportunity for the company. Our forecast falls short of management’s desire to sell 20 million vehicles over that period. However, that’s about four times more than the 1.31 million vehicles delivered in 2022. We predict that Tesla will accelerate the delivery of the Model Y and successfully launch its light trucks, SUVs, trucks, and finally its affordable sedan and SUV platforms. We believe that Tesla will succeed in reducing production costs per vehicle.

Tesla Becomes World’s Most Valuable Carmaker Without Making A Profit

We give Tesla a low moat rating, due to intangibles and cost benefits. The company’s powerful luxury car brand commands a premium price, and its expertise in producing electric vehicles allows the company to produce its cars at a lower price than its competitors.

Tesla’s reputation is unlikely to be damaged if other automakers enter the battery electric vehicle market, as we expect the company to continue to improve to stay ahead of up and coming competitors. they are there.

Tesla has several high-tech vehicles, and the company can make improvements to the powertrain and other devices beyond Wi-Fi or cellular connectivity, keeping customers from visiting the store for more requests. service. Instead, Tesla collects the car at home and can often return it the same day, offering a free fully loaded loan, or technicians can visit the customer’s home or workplace to repair the car there. The experience is much easier than many other automakers’ services, which helps Tesla’s brand value. And this was achieved with little or no advertising money, which is unusual for a consumer brand.

How Much Will Tesla Stock Be Worth In 1 Year

That strong brand equity has also spilled over into Tesla’s energy generation and storage business, where the company can charge fees for fully integrated solar panels, inverters and home battery storage devices. which it sells.

Here’s How Much $1,000 Invested In Tesla Stock Will Be Worth If It Hits Cathie Wood’s Price Target For 2027

We give Tesla a very high hold rating because we see many possible outcomes for the company.

The car market is very cyclical, and depending on the economic conditions, demand decreases significantly. As the leader in the electric vehicle market, Tesla faces increasing competition from traditional automakers and new entrants. As new, cheaper electric cars go on sale, Tesla will be forced to continue cutting prices, cutting into the company’s industry-leading profits. If more electric cars are chosen, consumers will view Tesla unfavorably. The company is investing heavily in capacity expansion, which carries the risk of delays and cost overruns.

The company also invests in research and development to maintain its technological edge, and there is no guarantee that these investments will pay off. And Tesla’s CEO owns more than 20% of the company’s stock, using it as collateral for personal loans, which increases the risk of a major sale to pay off debt.

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Elon Musk Buys Another $25 Million Worth Of Tesla (tsla) Stock As He Pushes For Profit

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How Much Will Tesla Stock Be Worth In 1 Year

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Tsla Stock Falls 6.5% In December After Rollercoaster 2021

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To protect the integrity of our content, we strictly separate our marketing teams and writers to avoid any pressure or influence in our analysis and research. Tesla is not involved in the Twitter deal, but its shares have been targeted by analysts. after Musk refused to publicly disclose where his income came from.

Twitter shares also fell 3.9% to close at $49.68 on Tuesday, despite Musk agreeing on Monday to buy it for $54.20 per share.

Tesla Inc. lost $126 billion on Tuesday as investors worried that Chief Executive Elon Musk might have to sell shares to pay for his $21 billion injection to buy Twitter Inc. for $ 44 billion.

Elon Musk’s Tesla Is Worth $26 A Share, Analyst Says: ‘one Of The Most Overvalued Stocks In The Market’

Tesla is not involved in the Twitter deal, however its stock has become the target of analysts after Musk refused to publicly disclose where the money for the purchase came from. Tuesday’s 12.2% drop in Tesla shares represents a $21 billion drop in Tesla’s stock value, along with $21 billion in cash taken from the Twitter deal.

Wedbush Securities analyst Daniel Ives said worries about Musk’s upcoming stock sale and Twitter’s potential to distract him weighed on Tesla shares. “That’s (why) they call it a bear festival,” he said.

Of course, the decline in Tesla’s stock came amid a difficult environment for many technology-related products. The Nasdaq closed at its lowest level since December 2020 on Tuesday as investors worried about slowing global growth and the US Federal Reserve’s role in raising interest rates even more strongly.

How Much Will Tesla Stock Be Worth In 1 Year

Twitter shares also fell 3.9% to close at $49.68 on Tuesday, despite Musk agreeing on Monday to buy it for $54.20 per share. The growing disclosure reflects investor concerns that a sharp drop in Tesla shares, which make up the bulk of Musk’s $239 billion fortune, could prompt the world’s richest man to consider also in partnership with Twitter.

Don’t Worry About Twitter’s Risk To Tesla

“If Tesla’s share price continues to free fall, it puts the money at risk,” said Ed Moya, chief market analyst at OANDA.

As part of the Tesla deal, Musk also took out a $12.5 billion margin loan tied to his Tesla stock. He has already borrowed almost half of his Tesla assets.

Professor at the University of Maryland

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