Tesla Stock Price Prediction: MS Says ‘Top Pick,’ 40% Upside on EV Credits

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 in 2025? Read on to learn where Tesla’s opportunities lie and what challenges it faces going forward. One of Tesla’s related products is the Tesla Powerwall and Tesla Powerpack battery packs.

How Will TSLA Perform Over the Next Few Years?

Tesla (TSLA) shares jumped on Monday after Morgan Stanley named the EV maker its top U.S. automaker pick, replacing Ford (F). The investment bank touted the company’s energy what is a collusion business, arguing that it … Tesla stock skidded lower last week after Musk said the company’s highly-anticipated Robotaxi Day would be pushed out to early October.

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2. Investors will now be tuned into the earnings call for updates on hotly anticipated initiatives including the company’s Robotaxi and full self-driving tech.
3. One bright spot was Tesla’s energy storage business, which the company revealed set a record during the quarter for profits in the segment.
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The Powerwall and Powerpack are stationary lithium-ion battery packs for home or industrial use. The power packs can store solar or other green-generated powers for later use or backup power in emergency situations. This segment of the business was merged with Solarcity to form the Energy Generation and Storage segment. Among the many technologies worked on by the company are self-driving/autonomous vehicles, AI, and glass along with EV motors and batteries. Tesla, Inc.’s name change came in 2017 shortly after then and current CEO Elon Musk agreed to acquire SolarCity and expand the company’s product line.

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The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities. 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.

NASDAQ: TSLATesla Inc Stock Forecast, Predictions & Price Target

Musk acknowledged earlier this month that Tesla had decided to delay its Robotaxi event, which was initially set to take place August 8, so that the company could make a design change he requested. The Tesla CEO also gave vague answers to questions regarding Tesla’s updated Roadster and a next-generation, lower-cost vehicle. Musk said the company would unveil its cheaper EV in the first half of 2025, but failed to give any further specifics about the product — which Tesla has been promising for years. Regulatory approval for the Robotaxi and its unsupervised full self-driving technology will also be a key hurdle for Tesla to overcome. Musk argued regulators would have a “moral obligation” to approve Tesla’s autonomous technology when shown the driving data. The Tesla CEO confirmed Tesla’s Robotaxi event had been delayed until October 10, but didn’t have much to say on when the first Robotaxi rides on the autonomous service could be expected.

Analysts polled by Visible Alpha forecast that Tesla will deliver 2.2 million units in 2024. Compared to the 37% growth between 2022 and 2023, Tesla’s growth in 2024 is expected to be slower. If things go well, we’ve got a shot at 2 million vehicles this year, but that is the upside case. And we feel comfortable with 1.8, and we’ll see how this year unfolds,” Musk replied to a question from Goldman Sachs’ Mark Delaney. 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.

Tesla missed earnings estimates while reporting better-than-expected revenue in the quarter. Its adjusted earnings margin also dropped from 18.7% to 14.4% year-over-year as the company executed price cuts in an attempt to drive sales amid a challenging demand environment. The better-than-expected delivery numbers sparked a double-digit percentage rally in the stock price, but the automaker is not out of the woods yet. The extent of the weakness could be revealed when the company releases its full quarterly report. In its Q and FY 2022 earnings call, Tesla deviated from its usual practices and announced its delivery goals for 2023.

Analyst Adam Jonas has designated the electric vehicle maker as a top pick, citing Tesla’… Tesla is recalling over 1.8 million vehicles in the United States due to risk of software failure to detect unlatched hood, the National Highway Traffic Safety Administration (NHTSA) said on Tuesday. TSLA is recalling over 1.8 million vehicles in the U.S. because software may fail to detect an unlatched hood, according to the National Highway Traffic Safety Administration. Tesla is recalling 1.8 million cars in the US, the NHTSA said. The concerns revolve around issues with the software that detects when a hood is unlatched. Interest in Tesla’s vehicles remains strong, and one factor affecting the demand is the federal tax credits available.

Let’s explore what the next five years could have in store for this innovative EV leader. Famous growth investor Cathie Wood has a similar vision, albeit with a longer timeline. Citing Dojo as a growth factor for Tesla, Wood predicts Tesla will hit $1,400 or more by 2027. 2,063 employees have rated Tesla Chief Executive Officer Elon Musk on Glassdoor.com. Elon Musk has an approval rating of 79% among the company’s employees.

Enter your email address below to receive the latest news and analysts’ ratings for Tesla and its competitors with MarketBeat’s FREE daily newsletter. Jonas’ bullish outlook on Tesla stock is partly thanks to the company’s significant cost-cutting measures implemented over the past few months as it grappled with slowing EV sales and lowered its headcount. Tesla stock is going to soar 40% over the next year as it corners the zero-emission vehicle-credit market, according to a Monday note from Morgan Stanley. Artificial intelligence remains central to Tesla’s growth story, Oppenheimer analysts said.

And revenue from automotive regulatory credits increased by 21% from the prior year. Nelson maintained his “buy” rating on Tesla and raised his price target for the stock to $250 a share, implying 4% upside from current levels. If current trends continue, its previously high-margin EV business could become commodified over the next five years amid rising competition and lower pricing power. This isn’t enough to justify the stock’s forward price-to-earnings (P/E) ratio of 57 compared to the Nasdaq Composite’s average P/E of 32. The company is working on Dojo, a supercomputer designed to help train its machine-learning models for full self-driving (FSD).

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. Tesla investors don’t have to wait until earnings (expected to be released this month) to get updated on the company’s https://www.1investing.in/ performance. Management typically releases production and delivery data along with other vehicle manufacturers on a quarterly basis (it used to be released monthly). And the much-anticipated second-quarter numbers were no exception.