Michaeli now expects Tesla to earn $14.06 a share in 2022, down from a prior projection of $14.40. His forecast of 2023 earnings, meanwhile, remains at $20.36 a share. That means Tesla is trading at about 34 times the per-share profit he expects for next year.
Stock Price Forecast
The 37 analysts offering 12-month price forecasts for Tesla Inc have a median target of 994.00, with a high estimate of 1,580.00 and a low estimate of 250.00. The median estimate represents a +34.36% increase from the last price of 739.79.
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.
Tesla has received a consensus rating of Hold. The company's average rating score is 2.31, and is based on 19 buy ratings, 9 hold ratings, and 8 sell ratings.
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 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.
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.”
Tesla stock has had a tough 2022, but now UBS has upgraded shares to Buy from Neutral while keeping its price target unchanged at $1,100.
Tesla always attempts to be marginally profitable every quarter as it invests most of its money into growth, and it has been successful doing so over the last two years now. For Q2 2022, the Wall Street consensus is a gain of $1.81 per share, while Estimize's prediction is higher with a profit of $2.06 per share.
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%.
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 currently not a buy.
Key Takeaways
The electric vehicle (EV) maker, Tesla, has a number of key risks that it will face in the next 5-10 years. Notable risks include Tesla cars being too expensive with tax breaks and that the construction of its Gigafactory (battery factory) taking longer than expected.
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.
Tesla faces billions of dollars in losses from its new plants, supply chain problems and Covid lockdowns — enough for chief executive officer Elon Musk to mention the possibility of bankruptcy.
The Bottom Line
There's no way of knowing if the stock market will crash in 2022. While there are absolutely concerning indicators, there are also signs of strength in the underlying economy. Wise investors should keep investing for the long run and stick to their overall financial plan.
But the major indexes will likely end 2022 higher than they stand now, as rock-bottom share prices begin to promise a buy-low opportunity that outweighs the risk of further decline, the experts said. As investors eventually jump off the sidelines, the market will stabilize and begin to recover, they predicted.
Investors might sell a stock if it's determined that other opportunities can earn a greater return. If an investor holds onto an underperforming stock or is lagging the overall market, it may be time to sell that stock and put the money to work in another investment.