Garrett Nelson, vice president and senior equity analyst at CFRA Research, reiterated Tesla as a “strong buy” last week, giving it a price target of $1,200 per share on the company's “long-term growth potential.”
UBS lowered its estimate for 2022 earnings per share by 12% because of the lockdowns, but raised its predictions for the next three years by up to 40%. Tesla will probably deliver 1.4 million units this year despite that setback, meeting its target for 50% growth, UBS said.
Tesla stock price stood at $736.59
According to the latest long-term forecast, Tesla price will hit $800 by the end of 2022 and then $1,300 by the end of 2023. Tesla will rise to $1,800 within the year of 2024, $2,000 in 2025, $2,500 in 2026, $3,000 in 2027, $3,500 in 2028 and $4,000 in 2031.
Not only does Tesla expect vehicle production to grow 50% this year, but management also expects the company to average 50% annualized growth for the foreseeable future. And the company's recent staggering growth during a challenging time for automotive companies gives substance to management's rosy outlook.
Tesla earnings are expected to grow about 30% between 2022 and 2023. That is down from about 75% growth expected for 2022 from 2021. And rising interest rates can have a depressing impact on stock valuations. Interest rates, and inflation, can alter expected returns.
Today, as part of the release of its prospectus for its 2022 annual shareholder meeting, Tesla announced that it is going with a three-for-one stock split – meaning that if you own one Tesla share, you will get two more.
Tesla stock is up about 16-fold, to almost $1,000 from about $60 in April 2018, including the effect of a five-for-one stock split in 2020. At $4,600 a share, Tesla's market valuation, including stock options, would be roughly $5.4 trillion or $5.5 trillion. Wood's old price target was $3,000 a share, for 2025.
According to the IBD Stock Checkup tool, Tesla stock has an IBD Composite Rating of 66 out of 99.
Plus, Tesla does not pay a dividend to shareholders, which is also an important factor for income investors to consider. As a result, we believe income investors looking for lower volatility should consider high-quality dividend growth stocks, such as the Dividend Aristocrats.
Don't get distracted from your long-term investing goals.
With the stock market's rough start to 2022, many people may wonder if now is the right time to invest. Simply put, the answer is yes.
Tesla net worth as of July 15, 2022 is $746.41B. Tesla is the market leader in battery-powered electric car sales in the United States, with roughly 70% market share. The company's flagship Model 3 is the best-selling EV model in the United States.
Analysts also believe that Tesla faced challenges in its Austin, Texas, and Berlin factories. JPMorgan dropped its second-quarter earnings estimate to $1.70 from $2.26. The 2022 full-year estimate fell to $10.80 from $11.50. The analyst also trimmed the December 2022 price target to $385 from $395.
If you have a long-term investment outlook, the answer is “yes,” it is time to consider investing in the stock market. With the S&P 500 index down approximately 20% from its record highs, this is a good time to consider investing in stocks.
In the fourth quarter of 2021 Tesla earned even more than analysts predicted. Tesla reported a profit of $2.3 billion, or $2.05 a share, a record for the company. Operating profits of $2.54 a share easily beat the average analyst forecast of $2.36.
Apple already has enviable gross margins of nearly 44%, but its services gross margins are even better, at nearly 73%. Investors should also consider that Apple still has more opportunities in the services space, including a potential subscription plan for its iPhone and other devices.
“The fundamentals of the company and the stock price have not changed.” The price of Tesla shares soared after the company's last stock split, but there's no guarantee that will happen again.
In general, I don't recommend any one stock position be greater than 20% of your entire portfolio. Therefore, if your Tesla stock is greater than 20% of your entire portfolio, I recommend taking some profits down to 20%.
Fundamentals will determine the direction of the stock in the long run. On that front, Bernstein analyst Toni Sacconaghi noted Monday that Tesla lost market share in 2021. Its deliveries increased about 87% compared with 2020, but the overall EV market grew even faster, by about 100%.
Stock splits are generally a sign that a company is doing well, meaning it could be a good investment. Additionally, because the per-share price is lower, they're more affordable and you can potentially buy more shares.
It's important to note, especially for new investors, that stock splits don't make a company's shares any better of a buy than prior to the split. Of course, the stock is then cheaper, but after a split the share of company ownership is less than pre-split.
A 3-for-1 stock split means that for every one share held by an investor, there will now be three. In other words, the number of outstanding shares in the market will triple. On the other hand, the price per share after the 3-for-1 stock split will be reduced by dividing the old share price by 3.