Tesla did not pay out dividends in 2022, but that’s typical of a company focused on growth. According to the company’s annual report, it has never https://www.forex-world.net/ paid dividends, nor does it anticipate paying dividends in the foreseeable future. However, the company missed its 2022 delivery target numbers.
It sold 1.3 million vehicles in 2022, but that number was lower than the required amount to meet Musk’s pledge of growing deliveries by 50% nearly every year. Despite those challenges, Tesla still has good growth prospects. But as competition heats up, its growth trajectory may be tempered relative to the company’s history. The company has expressed a long-term goal of expanding vehicle production to 20 million by 2030. The consensus estimate doesn’t tell the whole story, however. The bullish camp predicts steep growth for TSLA, while Tesla bears believe the stock is only headed down.
The electric vehicle pioneer has more than one avenue for growth in the coming years.
There’s also a VGM Score (‘V’ for Value, ‘G’ for Growth and ‘M’ for Momentum), which combines the weighted average of the individual style scores into one score. The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.
- Investors are paying a steep premium because they believe in Tesla’s ability to innovate, open new markets, diversify its business model and create massive shareholder value.
- So by itself, there is not too much to read into this latest move, and the company’s long-term growth plans remain where intact.
- Launch of driverless taxis and a possible move into cloud computing with Dojo are also potential growth engines.
- Between June 1, 2018 and June 1, 2023, Tesla’s stock price increased from $19.06 to $203.93 per share.
Obviously, the company plans to do this differently than traditional insurance companies. Tesla’s long-term growth won’t solely be coming from selling EVs. The company has established itself as a disruptor, and it could continue living up to that image in the years to come.
Following the poll’s results, Musk sold around $5 billion of the stock (which works out to around 2.6% of his holdings after exercising options) on Wednesday. Long-time followers of Tesla stock have often seen its price fluctuating wildly on news announcements, or Musk’s tweets, along these lines. To meet its delivery targets, Tesla will have to ramp up its manufacturing capabilities in its facilities in both the United States and abroad. And because the company relies on global suppliers of many of the components needed to build its vehicles and energy systems, it can be derailed by supply chain issues and shortages.
Love him or hate him, Elon Musk disrupted the auto industry with Tesla. Since its founding in July 2003, Tesla has grown into one of the world’s largest publicly-traded companies based on market capitalization. If you don’t have that confidence, Tesla is an expensive risk. You might prefer an exchange-traded fund that includes Tesla as a major holding, as recommended by Erik Sherman in his coverage of the best EV stocks. The stock price spiked in July above $290, only to fall to $215 in August.
The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. An industry with a larger percentage of Zacks Rank #1’s and #2’s will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4’s and #5’s. The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. Its total revenue was $81.46 billion, up $27.64 billion from the previous year. That will be a liability if other EV makers begin innovating and executing faster.
If you had invested $1,000 in Tesla in June 2018, your investment would have been worth $10,604 in June 2023. Sales revenue increased 52% from the prior year as the company increased deliveries of its Model 3 and Model Y vehicles. And revenue from automotive regulatory credits increased by 21% from the prior year.
Forecast return on equity
In this case, investing in Tesla rather than the index fund would have allowed you to grow your money by almost $9,000 more. From June 1, 2018, to June 1, 2023, the price of the FNCMX increased from $99.46 to $163.68—a 65% increase over five years. Tesla’s multiples are high by most standards, though not nearly as high as they were in 2020 and 2021. Still, analysts don’t agree on whether Tesla is overpriced, fairly priced or underpriced. Sign-up to receive the latest news and ratings for TSLA and its competitors with MarketBeat’s FREE daily newsletter.
Investors are paying a steep premium because they believe in Tesla’s ability to innovate, open new markets, diversify its business model and create massive shareholder value. In a Nasdaq analysis of recommendations from 30 analysts, Tesla had a “buy” https://www.currency-trading.org/ recommendation. Those analysts gave Tesla an average 12-month price target of $198.54, with a high target of $280 and a low target of just $85. In August, the stock dipped on news that Tesla had cut prices in China to defend its market share.
The consensus rating score for Tesla is 2.03 while the average consensus rating score for auto/tires/trucks companies is 2.43. For perspective, that’s a number close to what each of Volkswagen or Toyota Motor sold in 2020. To sell that many EVs, Tesla needs to first produce https://www.forexbox.info/ them. The company currently has a production capacity of roughly 1 million cars per year. It is constructing two new Gigafactories, one in Berlin and the other in Texas. Beyond that, the company plans to launch new models including its Cybertruck, Semi, and Roadster.
Tesla Stock Forecast FAQ
To attract the best AI talent, Tesla hosted an AI day event in August. Notably, attracting the best talent is key for Tesla to lead on the FSD front. Several automakers and technology companies are working to make autonomous driving a reality, and most have the financial resources to achieve that objective. Technological know-how could well separate the winner here. Tesla is also expanding its FSD beta testing to more drivers; that should help smooth the rollout of its FSD functionality.
There are several other potential growth avenues for Tesla. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. Musk built Tesla’s reputation with innovative technology.
Second, continuous improvements in vehicle software and battery packs are required for Tesla to maintain its edge in EVs and FSD, and the company is focusing on these aspects, too. Energy storage and solar deployments are other potential growth areas for Tesla; the company has been progressing well in both segments. Electric vehicle (EV) maker Tesla (TSLA -2.32%) management made headlines (again!) last week after CEO Elon Musk conducted a poll about whether he should sell 10% of his Tesla stock.
Over the previous 90 days, Tesla’s stock had 2 downgrades by analysts. Enter your email address below to receive the latest news and analysts’ ratings for Tesla and its competitors with MarketBeat’s FREE daily newsletter. As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style. The scores are based on the trading styles of Value, Growth, and Momentum.
While there have been hybrid vehicles and other attempts at electric vehicles, Tesla disrupted the industry with its all-electric vehicles that were sleek and powerful. And by using a direct sales model rather than dealerships, it appealed to buyers looking for an alternative to the traditional sales model. Compare Tesla’s performance to that of the Nasdaq Composite index, which tracks the performance of 3,000 stocks listed on the Nasdaq exchange. For comparison’s sake, we chose to use the Fidelity Nasdaq Composite Index Fund (FNCMX), an index fund that aims to mirror the price and returns of the Nasdaq Composite Index. Between June 1, 2018 and June 1, 2023, Tesla’s stock price increased from $19.06 to $203.93 per share.