Tesla Stock Forecast is revised LOWER to $398 as Fed and Putin push Markets Lower

Tesla Stock Forecast is revised LOWER to $398 as Fed and Putin push Markets Lower

Tesla Stock Forecast for the next 12 months is $398. Fed rate hikes have not helped TSLA nor have increased threats of escalation in Ukraine. It could get better in a few weeks but uncertainty remains high at the moment.

Tesla Stock Forecast 2022: Performance of Tesla Stock in 2022

Stock Name1 MonthYTD
Tesla Inc-0.9%-24.0%
NASDAQ-11.8%-27.0%
  • China’s BYD has overtaken Tesla in Global EV Sales. Tesla however continues to lead in Revenue. It clocked $57 B vs BYD’s $36 B in 2021
  • A Tesla supplier CATL claims that new battery technology could enable an EV to run for 430 Miles
  • Tesla stock is likely to lose value over the next few weeks a Global uncertainty appears to be rising.
    • Inflation is likely to rise higher as Crude prices have risen 10% from the monthly bottom in August
    • The Ukraine conflict has pushed most European economies to the brink of recession with increased concerns around the availability of heating during the winter
    • China’s property market is in a serious crisis with potential domino effects on the financial sector. Growth numbers have been halves
    • With so many loose ends, TSLA’s 104 PE is unlikely to be sustainable.
    • It is likely there will be more clarity on the Global economy over the next 4 weeks

Tesla Stock Price Prediction after split

Following are the post-split price targets for 2022

Target
Overall$398
New Street Research$530
Morgan Stanley$383
Argus Analyst$374
Berenberg Analyst$290
CFRA Analyst$415

Tesla Stock Forecast 2022: Is Tesla a good stock to buy?

Yes, Tesla is a good stock to buy. Here is what is going in favor of Tesla

  1. Outstanding R&D and Execution capability. The company has delivered numerous innovations and has produced its way around chip shortages quite efficiently. Tesla managed Chip shortages by replacing the chips with substitutes and rewriting its firmware. This enabled Tesla to manage production way more efficiently than most Manufacturers.
  2. Twitter Inc is just a legal case and won’t hog Musk’s time: While there was a legitimate concern around how much time Musk would give Twitter, with him pulling out of the deal, Musk’s attention will not be divided away from Tesla and SpaceX
  3. With the stock split, TSLA is much more liquid now and available at a lower price (if not value). It has strong institutional support as well.
  4. EV as a sector will continue to grow and Tesla will be a huge beneficiary.

Here are other specific Positive and negative factors

Positive Factors

  • Starlink Project: For the past many years, Elon Musk has been working on the Starlink project with the intention of providing internet to the remotest space on earth by a network of private satellites in the orbit. It picked up pace in 2021, and Starlink now has more than 2000 satellites to boost. Musk Tweeted that TSLA shareholders may benefit from the Starlink IPO.
  • China: China is a huge market for Tesla and EVs in general, and according to estimates, China will represent 40% of deliveries for the EV maker in 2022, contributing nearly $400 to its share price. If China’s market is handled properly, it could be a big tailwind for Tesla.
  • Gigafactories in Berlin and Austin: The new gigafactories in Berlin and Austin in 2022 will provide a big boost to production.

Negative Factors

  • Interest rates and other economic factors: The Fed has twice increased rates even as there are no signs of the global economy recovering soon. While US inflation may continue to fall, an escalation in Ukraine could pose a huge risk to Global economies.
  • Competition: While Tesla is the undisputed leader of the EV market in the world, a range of competitors are lined up to take a bite out of Tesla. Ford, NIO, LUCID, and VIVIAN to name a few.
  • Regulations, fees, and fines: Lately, Tesla has not been a darling of regulators, and heading into 2022, it could mean trouble for Automaker. There may be various fines and fees involved and potential scrutiny in the expansion plans of Tesla, as China’s plan is not liked by many in the US and increased regulatory scrutiny affects the cash flow and production efficiency, to say the least

Tesla Stock Forecast 2022: Q2 Results

  • Total deliveries up 27%, Model S/X deliveries up 753%, Model 3/Y deliveries up 20%
  • Q1 Revenue up 42%, regulatory credits are down 3%
  • Q1 revenue excluding regulatory credits is up 43%
  • Adjusted EBITA is up 52%, Adjusted EBITA margin is up 159bp
  • Free Cashflow is up 0%

Tesla Stock Forecast: 2021 Review

Tesla had a volatile year in 2021 with prices ranging from $563 in May to $1229 in November. The year started at $705 and ended and $1056

DatePrice
December 31st, 2020$705.7
May 19th, 2021$563.5
November 4th, 2021$1229.9
December 31st, 2021$1056.8

Also Read: Tesla Stock Split

Tesla Stock Forecast 2022: Conclusion(Updated)

Most analysts are optimistic about the stock owing to sustained demand Globally as well as the dramatic rise in prices of Oil. Tesla has also managed the issue of chip shortage better than most competitors. Lastly, opening the new Gigafactory in Berlin reinforces Tesla’s engineering and execution capabilities.

But CEO Elon Musk brings a lot of uncertainty to the business model and it seems that he is keeping his personal interests above the company’s financial health. Investors should be mindful of this without wholly basing their decisions on this factor.

Vineet Agarwal

Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.

Tesla Stock Forecast 2022

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