Will Tesla reach 1000?
Latest Tesla Stock Price
Latest Tesla News
- Tesla’s first-quarter margins are expected to have hit a more than three-year low as the company cut prices on its cars five times between January and April in a bid to lure more buyers in the face of rising competition and a weak economy.
- Tesla is facing criticism from its employees at Gigafactory Shanghai, who have complained about their performance bonuses being cut. The workers claim that the bonuses were reduced due to a safety accident that resulted in the death of a Tesla worker at the factory’s welding workshop on February 4.
- Tesla reported record quarterly earnings and all-time high forecasts during the Q4 earnings call.
Tesla: Strengths and Weaknesses
The all-time high Tesla stock closing price was 409.97 on November 04, 2021. Since then Tesla has not been able to touch $400. However, with the demand for Electric vehicles set to rise in the future, TSLA’s share price is expected to rise higher and could also reach $1000. However, before determining how Tesla stock price could reach $1000, let us look at some favorable factors that could push Tesla above $1000
- EV Demand continues to rise and Tesla remains a dominant player. Cybertruck likely to contribute significantly over the next 5 years
- FSD and other software-related revenues are likely to increase in share of revenue and are likely to grow even faster than EV sales
- Megapack revenues are likely to become a significant contributor over the next 3-5 years
Let us look at factors that don’t favor Tesla
- Raw Material availability and cost
- Competition may or may not beat Tesla on quality but at some point will bleed Tesla on Margins
- Elon Musk’s own conduct on Twitter though he has been fairly silent over the last few weeks
Our $1000 Forecast is done in Multiple ways
Can Tesla Stock reach $1000? EPS Estimate Method
Tesla Earnings Per Share Forecast 2030
- Motley Fool: $24.3
- Gary Black: $40
Average Earnings Per Share: $32.2
Using the current EPS multiples on future forecasts Tesla will hit $1000 in the year 2027. In reality, it will take longer given that EPS Multiples will fall over time.
Will Tesla reach 1000? Using the last quarter’s growth (YOY)
Tesla’s EPS(non-GAAP) gained around 40% in the 4th quarter of 2022. Taking this growth as a base, Tesla stock will reach $1000 in 2029. In reality, EPS may not rise at the rate of 40% through the next 5-7 years.
Caution: Long Term Forecasts are a good topic to discuss but are quite unreliable due to the vagaries of the economic environment and the limited data available.
Latest Tesla Stock Video
Will Tesla reach 1000? Conclusions
Considering the fundamentals and the current forecasts, it is likely that the earliest Tesla stock would reach $1000 is between 2027 and 2029. While EPS may not rise at the pace estimated, Multiples which are also a function of the economic environment at that point in time could push Tesla to $1000 in the next Bull Cycle.
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.