What Wall Street Analysts Think of Teslas Stock Ahead of Robotaxi Event

The growth in deliveries is expected to be powered by Tesla offering more affordable models starting in the first half of next year. However, Musk did not go into detail on what these more affordable models would be — he just said preparations were being made to begin launching them. According to Reuters, the company supposedly backed away from a cheaper Model 2 earlier this year, only to then to put it back on the table. It has also talked about selling its two-seat robotaxi directly to customers for $30,000 in 2026. After a decline in the first two quarters of the year, deliveries increased by 6% in Q3. Model 3/Y deliveries rose by 5% to 43,668 vehicles, while other models, including the Cybertruck, saw deliveries spike 43% to 22,915 vehicles.

For Tesla, this could pose a big problem because its previously high margins are the main thing differentiating it from its uninspiring mass-market rivals. The better-than-expected delivery numbers sparked a double-digit percentage rally in the stock price, but the automaker is not out of the woods yet. The extent of world forex broker the weakness could be revealed when the company releases its full quarterly report.

What is TSLA’s revenue in the next 3 years based on estimates from 12 analysts?

Let’s explore what the next five years could have in store for this innovative EV leader. As Tesla gears up to launch a robotaxi service in the coming years, the automaker looks like it’s building out a teleoperations team. According to a recent job listing, Tesla is hiring a software engi… Large-cap stocks are key additions to any well-rounded portfolio, but how do you find the best ones?

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The company’s high cash burn rate, limited production and heavy competition in the EV market cast doubt on its future viability. Unless Faraday Future achieves breakthroughs in production or secures substantial funding, its stock is expected to face significant downward pressure. Taking this a step further, getting rid of tax credits could be a major barrier preventing new competitors from entering the EV space at all. As I alluded to above, manufacturing EVs and battery technology is still incredibly expensive — even for major forces such as Tesla. Smaller competitors simply do not have the financial flexibility to absorb these costs. Many experts believe the stock market will be up next year, albeit Should i buy apple stock with volatility.

Is TSLA forecast to generate an efficient return?

In 2023, Tesla’s revenue was $96.77 billion, an increase of 18.80% compared to the previous year’s $81.46 billion. For the past seven years, Kat has been helping people make the best financial decisions for their unique situations, whether they’re looking for the right insurance policies or trying to pay down debt. Kat has expertise in insurance and student loans, and she holds certifications in student loan and financial education counseling. From June 1, 2018, to June 1, 2023, the price of the FNCMX increased from $99.46 to $163.68—a 65% increase over five years. Its total revenue was $81.46 billion, up $27.64 billion from the previous year.

First, Tesla announced consensus-beating vehicle production and delivery numbers. A few weeks later, the company reported higher-than-expected revenue and EPS. By year-end, the stock is projected to trade at $1.26, offering a potential profit of just 0.01% for short-term investors. These conservative predictions stem from Faraday Future’s ongoing challenges, including production delays and cash burn. Unless the company achieves significant operational improvements or secures additional funding, its stock is unlikely to experience substantial growth in 2024. I am aligned with Musk’s outlook that the subsidies from the IRA ultimately serve as more useful for smaller EV competitors and not so much Tesla.

• Musk said the company would be producing  2 million Cybercabs a year eventually, and offering driverless ride-hailing in its cars as early as 2025 in Texas and likely California.
• His work has been published by Vanguard, Capital One, PenFed Credit Union, MarketBeat, and Fora Financial.
• Of those 33, the current consensus is a Hold with an average price target of about $207.
• Revenue increased 8% in the quarter from $23.35 billion a year earlier.
• Automakers are required to obtain a certain amount of regulatory credits each year.

Investing

But other analysts who are critics of Tesla were quick to criticize Ark’s analysis, saying it didn’t take into account the cost of the growth that it is projecting for Tesla. In fact, even in the worst-case “bear” scenario, Ark thinks Tesla shares have an absolute bottom of $1,500 for 2025, analyst Tasha Keeney wrote in a note Friday. Meanwhile, Musk said customers in the Bay Area can already hail a ride from its robotaxi, albeit with a safety driver. However, according to the California Public Utilities Commission’s website, Tesla has no license to operate a ride-hailing service in the state. These credits are also pure margin, which helps both with gross margins and profits.

Tesla does not pay dividends and currently has no plans to offer dividends to investors. Stock price appreciation is the only form of profit for investors of TSLA shares. Tesla’s earnings rebounded in the most recent report, but 2024 has been a down year for EV manufacturers overall and buying TSLA shares right now could be risky if the stock remains volatile. The average analyst rating for Tesla stock from 39 stock analysts is “Hold”. This means that analysts believe this stock is likely to perform similarly to the overall market.

In a note on Monday, the bank maintained its “sell” rating on Tesla stock and issued a price target of $226 a share. Though that’s slightly higher from the bank’s previous price target of $197 a share, it implies 35% downside for Elon Musk’s carmaker, which traded at around $353 at midday on Monday. Analysts also expect to see Thursday’s event include the unveiling of a lower-priced Tesla vehicle, and potential updates to Tesla’s other projects like the Optimus humanoid robot. That same NHTSA would also need to give Tesla’s Cybercab xor neural network approval to start operating. The 20% to 30% delivery growth prediction, meanwhile, looks aggressive.