Tesla Stock Price Could Hit New All-Time High This Year

The world’s largest electric vehicle maker Tesla stock price fell close to 25% from its previous all-time high of $900 that it had hit early this year. The selloff is totally blamed on investor’s profit takings and rotation towards value stocks that are benefiting from economic reopening.

Nevertheless, the downward trend in Tesla stock looks short-term as Elon Musk’s eclectic company is set to generate robust growth in financial numbers. Their aggressive production plans along with the strategy of diversifying the revenue base would support the upside momentum.

$TSLA - Tesla stock

The company projects 50% delivery growth every year over the next few years. The market analysts claim the guidance is conservative.

Wedbush analyst Dan Ives says Tesla will top 1M deliveries in 2022, with the potential to reach 5M deliveries annually by the end of the decade.

“While there are 150+ auto makers aggressively going after the EV opportunity globally, right now in the EV market we believe it’s Tesla’s world and everyone else is paying rent. However, competition will be fierce within EV battery technology (GM and Nio in particular stand out) as this represents the key differentiator over time and remains a major focus area for Musk & Co. to maintain its formidable leadership position in the EV market,”

writes analyst Dan Ives.

Tesla Stock Could Double From Its Current Level

Tesla’s stock price has recently hit the $900 mark but failed to sustain the upside trend amid the broader market shift from growth stocks. The profit-taking strategy also backed the bearish trend. Shares of Tesla rallied almost 700% during the pandemic year.

New Street Research analyst Pierre Ferragu presented a bullish outlook for Tesla shares, citing $90 billion in annual revenue by 2023 and projects stock to be valued at around $3 trillion stock by 2030.

“Tesla addresses today the entire premium segment, with high-end and mid-end sedan and SUV models. This is globally a 9m unit market. In addition, Model 3 has clearly demonstrated drivers “trade-up” to the Tesla brand, with 2/3 of buyers trading in non-premium cars, which represents an additional 13m addressable market,”

he writes.

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William Edwards
William Edwards
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