Tesla stock forecast and price predictions [November 2021]

This story originally appeared on Best Stocks

What is Tesla’s stock forecast for the next 12 months?

According to the forecast made by 35 analysts, Tesla Inc stock is a HOLD investment opportunity with a potential downside of almost -30% in the next 12 months. 

After impressive Q3 results, analysts have increased their price targets for Tesla. The stock indeed has gained an astonishing 55.58% in the last month; this has trigged the “overpriced” red flag of many forecast analysts. Tesla reported its Q3 results on October 20. Before this date, the average Tesla stock forecast price was $725.18, with $137 representing the minimum price forecast and $1200 the highest. 

 instead the average Tesla stock forecast is $863, with $215 representing the minimum price forecast and $1400 the highest.

Some analysts believe that Tesla’s share price could be due for a rebound, which would help the electric car maker achieve a sustainable positive cash flow. However, despite the major increase in Tesla’s stock price in the past month, some analysts believe that the electric car company will bounce back and maybe close to a major crash similar to the battering it took in 2016. Tesla’s stock price has been steadily rising since the start of 2021, with the stock price exceeding $1,200 on November 1 and also affecting Tesla’s price-to-sales ratio.

According to analysts’ forecasts, is TSLA stock expected to go up?

Investment firms have a wide range of outlooks for Tesla’s stock. However, the consensus is that the company’s prospects will be somewhat worse during the following year, and significantly better in five.

New Street Research predicts that Tesla will have already generated more than enough cash by 2022 to cover its CAPEX and interest payments for two years. That’s a bad sign for shareholders since it suggests that Tesla is increasingly likely to be insolvent by 2023 if it continues to burn through cash at its current pace. That prediction is made all the more ominous by recent data that shows that Tesla will have a negative free cash flow of $3 billion in the second quarter of 2018.

Analysts predict the price of TSLA to reach $725.18 next year. If correct, $7000 invested on Oct 7th, 2021 would result in a profit of $-548. To give a perspective, shares of 7000 bought on Dec 21st, 2020 would have returned on Oct 7th, 2021 $1496, hence a 21.4% return on investment.<br>

How can Tesla stay afloat over the next decade?

At the core of Tesla’s appeal is its innovative manufacturing, primarily built around its ability to mass-produce new vehicles at low costs. Though that process has been slow, the company is starting to break down the barriers that have hampered the mass-market rollout of its products.

As a testament to the company’s manufacturing prowess, Tesla recently built the world’s largest battery in Australia, which will hold enough energy to power up to 30,000 homes for up to an hour. According to Bloomberg, the investment in the Tesla battery was the largest such battery installation in the world. In addition, the battery can be fully charged within an hour, which can significantly decrease the need for consumers to rely on natural gas or the grid.

Tesla is still facing numerous challenges and is struggling with several issues. However, the company seems to be still on the right track and is at least on track to complete the Model S.

In its current state, it is not clear if Tesla will become a profitable and large-scale company in the future. However, if the company can overcome the current problems, it could become a major, globally successful company. Thus, Tesla is still a “Hail Mary” with many potentials to prove its doubters wrong.

Tesla stock predictions

The company’s visionary CEO Elon Musk recently proposed selling 10% of his Tesla stock. As a result, the stock is now losing more than 5% in pre-market. Musk plans to meet the demand for electric vehicles with a large market of Tesla vehicles and the company’s SolarCity solar panel division. Both are doing well in the marketplace and have high growth potential. Musk plans to put in 10,000 Model S a week by late 2021 or early 2022 and 1 million cars per year by 2024.

Tesla has a great vision and is probably on its way to becoming the biggest car manufacturer in the world. Elon Musk will likely accomplish his dream of making Tesla the most prominent car manufacturer than that General Motors will become the biggest car manufacturer in the world. Tesla could ultimately reach its goal of having half of all sales cars be battery-powered by solar energy in 2022.

As per the middle term, analysts expect Tesla stock to downside, reaching a maximum forecasted price of $1200. Today, Tesla, Inc. (TSLA) price ranges between 1,208.00 – 1,239.80 USD, with a 52 week low at $396.03 and 52 weeks high at $1,243.49. Analysts forecast Tesla’s ROE to increase by 23.11% in the next three years. They expect the industry to grow by 153.84% and the US market to grow by 27.65% during the same period. Tesla’s ROA instead is likely to increase by 10.39% versus a 28.93% forecast industry growth. Similarly, Tesla’s EPS is expected to reach $3.39 (+50.67%) in one year, $5.33 (+136.89%) in two years, and $5.64 (+150.67%) in three years.

How competition could shape the future of Tesla in the coming years

Tesla has been dominating the headlines for a while now. From their electric cars to solar panels, Tesla is making waves in the business world. For this reason, it’s no surprise that many companies are trying to take Tesla down.

The question is: who can do it? To find out, we will first look at who Tesla’s competition is: companies that make electric cars and electric motorbikes. These companies will be competing with Tesla on price, quality, and customer service.

Daimler

One of the companies to compete with Tesla is Daimler. Daimler, as the name suggests, is a German car manufacturer. The company has many brands under its umbrella: Mercedes, Smart, BMW, and more.

Daimler’s electric cars are of good quality, but their specs aren’t the best. For example, if you look at their cars, you will see that they have batteries for a range of about 200-300 miles, but they only last for about 30-40 miles before needing to charge the battery again.

Toyota

Another competitor of Tesla is Toyota: a few years ago, Toyota didn’t know the Tesla’s was coming. Toyota had released a fully electric vehicle that lasted for 200 miles. Then, it was the Prius, which immediately stole the hearts of environmentalists and green tech enthusiasts.

This year, Toyota has decided to take on Tesla in the market of electric cars. Their vehicle, called the RAV4 EV, is expected to arrive in late 2020. But Toyota’s first attempt to take down Tesla was not met with success. This is because there isn’t a required number of zero-emission vehicles on the road to get a license plate.

It’s all about technology 

Tesla’s mission is to help the world transition to a new world. To accomplish this, they need millions of electric cars to make it happen. Unfortunately, though, not many people are willing to buy an electric car as of today, let alone switch over to one. With technology evolving however more people embrace the idea to own an electric car, and that would make Tesla one of the best stocks in the market.

So, what will it take for a company to do it? It’s no easy task to get thousands of electric cars on the road, but if they could pull it off, they would be unstoppable.

Can Tesla’s batteries be matched? According to Tesla’s patents, they could have a major advantage over many of their competitors.

That being said, it’s also clear that some companies are taking this opportunity to fight for Tesla’s crown. If you’re in the industry and have a Tesla competitor, you’re looking to improve your technology.