After breaking out from its major resistance last December 2019, Tesla share price has grown by around 970% with only minor corrections along the way. Is there still room for new investors to participate? Or is it too late?
In the midst of the challenging environment, Tesla has proven to have benefited from the opportunities out there. Tesla share price has outperformed all other major stocks growing by 748% from a year ago. Tesla has been bullish since March 2020 with only minor corrections along the way.
Since it broke-out from major resistance last December 2019, its price has grown by 970% from 76 to 811 per share. Al Root of Barrons places Tesla in an elite listed company with market capitalizations close to $1 trillion. Is the enormous growth supported by fundamentals? Are there still rooms for further growth? Or has Tesla reached the peak? More questions can be asked.
With the continuing bullish run, Tesla shares surpassed that of Facebook. Making Elon Musk, the CEO of Tesla, the richest man in the world replacing Jeff Bezos of Amazon. Will Elon be able to protect his first place? We will see…
Analysts forecast of Tesla
Some economic analysts forecasted Tesla share price to hit $1,000 by the end of the year 2021. Only a little over 20% potential growth. According to CNN, 34 analysts offered 12-month price forecasts of Tesla to a range of $40 to $900 with $487 as the median price. If forecasts are correct, there is little growth potential with high risk of losing.
Furthermore, 37 analysts gave their recommendations. 12 recommended to buy, 10 recommended to sell and 15 recommended to hold. To hold means, not buying stocks if one doesn’t have and not selling stocks if one has.
Adam Jonas, an analyst from Morgan Stanley, is known to be one of the top auto analysts on Wall Street. Early this year, Jonas’ recommendation for Tesla is to buy, says Isidore of CNN. Jonas increased his target price for Tesla from $540 to $810 which was breached last January 7, 2021.
Difficult to forecast
Tesla share price is a bit difficult to forecast, investors are setting its pricing not based on the fundamentals of the company. Rather, they are betting on Tesla’s capability to grow fast, getting the bigger pie of the growing electric vehicles market. Some analysts predicted that the company will become the world’s top car maker within 10 to 20 years.
Dan Ives, a tech analyst from Wedbush Securities, set his target price for Tesla to a range of $715 to $1,000. His buy recommendation on Tesla is based on his conviction that Tesla will continue its bullish run.
Dan believes that with the current trend and projection, Tesla will be able to sell 10 to 12 million vehicles a year 10 to 15 years down the road.
Tesla manufactures and sells cars including electric vehicles, solar energy generation and energy storage products. They also sell some accessories and few apparels such as cup holders and car covers.