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The automotive industry is witnessing an evolution due to new technological advancements. Automobile companies are incorporating new methods to get a competitive edge over others. One company that has been in the spotlight for quite some time is Tesla.
The Tesla share price saw a rapid surge from 2020 to 2023, where it increased by about $1000 per share. In August 2022, Tesla shareholders approved a 3-to-1 split making each share sell at about $300. Moreover, there are numerous projections about how the Tesla stock will perform through the next few years. Let’s get a brief overview of Tesla.
Overview of Tesla
Tesla is one of the leading car manufacturers in the US. Martin Eberhard and Marc Tarpenning laid the company’s foundation back in 2003. Eberhard became the CEO, while Tarpenning became the CFO, and they both ran the company by obtaining funding from different sources.
The most notable investment in the company is by Elon Musk, the co-founder of Paypal and currently the CEO of Tesla. Their breakthrough came in 2008 when Tesla launched the first electric car, Roadster.
The motor vehicle had lithium-ion cells that helped the car recharge at the charging locations. However, the Roadster was considered a luxury item due to its price of $109,000. Musk became the CEO after Eberhard and Tarpenning resigned from their respective position but stayed with the company on advisory shares.
Tesla under Musk saw regular ups and downs. The company designed the Model S, Model 3, and Model Y cars for their customer base. It redefined the company’s vision regarding electric vehicles and was the reason for its growth.
Tesla Inc: Statistical Overview
Tesla (TSLA) Stock Forecast 2023
Despite the decline of the Tesla stock price in December, 2022, analysts are still optimistic about the price in 2023. The price has been predicted to be $372.53 by this time next year.
While the price is forecasted to retain the same momentum from 2022 in the first half of 2023, it is expected to pick up in the second half to move above the 200 mark. And analysts are hopeful that it will keep improving and cross the 300 mark by December, 2023.
Tesla Stock Price Forecast for Future
As per CNN, the recent consensus among different investment analysts favors the recommendation to buy the stock. The rating shows a steady sign which is why many analysts are giving a positive signal for investments in the Tesla share.
Moreover, other analysts also suggest that the Tesla price can significantly rise over the next few years. According to the Wallet Investor, the expected Tesla share price is around $1415.240 in the next 12 months. Moreover, the projection for the next five years is approx $3116.
The growing demand globally for electric cars is also a factor that we need to look at when calculating the future forecast. Tesla is one of the largest electric car producers, and it can see a demand for its vehicles in the next few years.
Therefore, it can also contribute to the increase of Tesla’s share price in the future. Nevertheless, the concept of work from home and supply chain issues are still worth considering since they can impact Tesla’s revenue in the long run.
Historical Analysis of the Tesla Stock Price
Historical analysis helps us identify the reason behind the increase in the Tesla share price in the last few years. Let’s go over the growth forecast of the Tesla stock value from 2016 to 2023.
Tesla Stock 2022
Tesla stock price ended on a good note in 2021, closing at $1,082.00 on December 31, 2021. This was largely due to the high number of vehicles sold in the last quarter of 2021. As usual, the price fluctuated but it remained relatively stable till around May when there was a noticeable dip.
On August 4, 2022, during the company’s annual meeting, Tesla’s shareholders approved the 3-for-1 stock split and it was enacted on August 25. The split did not affect the price negatively. On the contrary, the price increased slightly in August but by September, the price began to experience gradual decline.
Among other reasons, the acquisition of Twitter by Tesla’s CEO, Elon Musk, affected the price as investors felt he was preoccupied with running his new company and might not focus the needed attention on Tesla. His selling billions of dollars’ worth of his Tesla holdings to finance the acquisition did not also help with the stock prices.
Tesla Stock 2021
The year 2021 also helped continue its growth trajectory from previous years. With the share price of $699.99 on 31st Dec 2020, the share saw a significant rise by the end of the year. Tesla’s share price closed at $1,082.00 on 31st Dec 2021.
The main reason behind Tesla’s share price growth in 2021 was because of its high production and deliveries throughout Europe. As a result, it continued to see a rapid surge in its share value throughout the year.
Another thing to notice is the delay by the company in the delivery of the Tesla Cybertruck and Tesla Semi. Instead of impacting negatively, it boosted the share price to a higher level. The reason for the delays is that the demand is high and the supply is low.
Investors were ready to cash on this opportunity, and they started putting their money into Tesla’s share prices. Moreover, the reason behind the delay in the delivery of vehicles is due to supply chain issues globally. Once those issues would get sorted out, the delivery of Tesla products can continue in the same way.
Tesla Stock 2020
The year 2020 was disrupted by the pandemic, and many companies suffered significant losses due to the lockdown. However, Tesla share saw immense gains in its share price value. The stock opened at $84.90 on 2nd Jan 2020 and closed at $718.72 on 31st Dec 2020.
Even throughout the peak pandemic months (Mar to Jun), Tesla continued to see a rise in its share value. Many experts termed the growth due to the “Tesla financial complex.”Many technicalities led to these massive capital gains for the investors, such as equity-linked funds and more.
Overall, Tesla enjoyed the year since its share prices soared eight times. Below are some of the reasons we have assessed behind its growth:
- The high number of regulatory credit sales
- Production in the Shanghai facility
- Better and advanced software capabilities and functionalities
- Further technical advancements in battery
- Entry into the Compact SUV market
Tesla Stock 2019
Tesla’s share prices reached an all-time high by the end of 2019. Many reasons led to this growth. For instance, Elon Musk revealed the Model Y to investors with a price range between $39,000 to $60,000. It sparked the interest of many investors that increased the share price.
Most importantly, the company opened its factory in Berlin, making it easy to deliver their cars throughout the European market. As a result, it led to a significant rise in the share price of Tesla by the last quarter of 2019.
Tesla Stock 2018
The Tesla price at the start of 2018 was $62.40, and it closed at $67.84 on Dec 31, 2018. The company’s share price saw a bit of growth, but it remained volatile throughout the year. Tesla delivered 56,000 Model 3 cars to its customers, which helped it regain a better market value by the end of 2018.
The share price of Tesla saw a massive fall on the last Friday of September after the SEC decided to sue Elon Musk for false public statements. The news had a huge impact, and it resulted in the Tesla share price plummeting by 13%.
Tesla Stock 2017
Tesla stock saw a growth of more than 47% by the end of the fourth quarter of 2017. By the end of 2017, Tesla’s share price had reached $62 compared to $45 at the start of the year. Though the Tesla stock price is volatile, the main reason for its rise is due to the Model 3 sedan.
The Model 3 sedan is the most affordable car that customers can get at $35,000. Tesla aimed to change its image from a pricey electric extravagance car manufacturer to a mainstream car marker.
However, the stock continued to go up and down throughout the year since there were concerns regarding Model 3. Many investors were not sure whether it would stand up to its expectations.
Tesla Stock 2016
2016 was a rocky year since Tesla couldn’t stand up to expectations. The stock price opened up at $46.14 on 1st Jan 2016, but it closed at $36.00 on 31st Dec 2016. The most notable reason behind this decline is Tesla’s failure to deliver 4,000 Model X SUVs in the last quarter of 2015.
Investors deemed the stock a bit risky and avoided investing in Tesla. Moreover, there were manufacturing problems with the Tesla cars, which further harmed investor confidence. Overall, 2016 was a year with high volatility for Tesla.
Tesla Energy
How Tesla Energy Ties Together its Stock Levels
The Palo Alto, California-based entity has made significant investments in energy and battery technology. In 2019, Tesla announced that it would acquire Maxwell Technologies, a company that deals in breakthrough storage and energy density technology. This, in turn, had a positive impact on Tesla’s stock in the market. In fact, right from the start, Musk had championed the use of power-efficient batteries and made decisions to pour significant investments into energy.
Back in 2015, Tesla also came into an agreement with Jeff Dahn, a Dalhousie University professor who is an experienced researcher and supporter of energy-efficient batteries. The focus of interest was to produce cost-effective lithium-ion batteries with better energy densities and longer life spans.
And coming back to the present, it has become clear that Tesla’s decision to produce highly energy-efficient batteries was the right move. But the company has more ambitious plans to dive into the energy sector and pave the way for more advanced batteries. These are the stories that continue to increase Tesla’s stock price and lead to more investment opportunities for the company.
Back in 2016, Tesla opened a Gigafactory in Nevada. This dedicated plan covers the large-scale storage of batteries. Within two years, it became the highest battery volume gigafactory plant. At the time, Panasonic would create battery cells and Tesla would assemble these into modules and packs for its attractive line of cars.
Over the years, Tesla has managed to focus more on energy-efficient batteries. Besides, the EV maker understands that large-scale and efficient production of batteries and significant investment in energy would complement its car manufacturing abilities.
Again, this is bound to have a positive impact on its stock levels. When it comes to electric vehicles, Tesla wants to achieve more energy density for its cars. Battery and energy analysts concur that on top of a smaller package, it improves the efficiency of vehicles as well as saves weight.
According to Bloomberg’s research, Tesla’s Model 3 packs around 24% more energy density than, say, the Nissan Leaf model. It means Tesla’s Model 3 offers 90 miles of more range due to its smaller battery and weight. What’s interesting is that Tesla utilizes unique battery chemistry than other automakers in the industry. Battery researchers at Tesla want to maximize efficiency and minimize the potential risk of fire throughout its life span.
Tesla is aware of the tradeoff that involves higher material capacity and a higher degree of density that results in more heat. And that means having a more robust cooling system and proper temperature control management system to maintain the battery life.
Most recently, Tesla’s vehicles have caught fire which had a negative impact on its stock price. But researchers believe that Tesla is committed to investing more in energy-efficient batteries to extend the life cycles of its vehicles.
Ever since traditional auto competitors have started to roll out their line of electric vehicles, Tesla wants to step up the game and make its vehicles bigger and greener. Experts believe that as long as the company sets new high standards, it is bound to maintain and increase its stock levels in the market.
Tesla Energy Stock Forecast 2022
When it comes to Tesla Energy, the company managed to achieve an average CAGR of over 90% in Q1 of 2022. This figure usually would’ve taken Tesla a decade to achieve. Despite supply chain and regulatory hurdles, it looks like Tesla Energy is heading in the right direction. In fact, market reports suggest that Tesla Energy is performing 370 times better than Tesla Auto.
As of now, Tesla Energy has set the most ambitious targets for the next three years. As per Bloomberg, the annual deployment of energy storage around the globe has managed to cross the threshold of 58GW or 178GWh. It means that the current trajectory of growth of Tesla Energy is better than the company had anticipated. Practically, the average CAGR of Tesla Energy will be around 93% from 2022 to 2030.
As mentioned earlier, the fact that the energy deployments of Tesla have had an increase of 90% in Q1 of 2022 represents how ready it is to address supply chain issues. If Tesla Auto is expected to sell more than 20 million electric vehicles by the end of this decade, Tesla Energy is expected to enter into new uncharted terrorizes to bring more growth for the Tesla stock.
What’s interesting is that Tesla Energy continues to rally in the market while Tesla Auto often ends on a lower trajectory in S&P 500 index. When it comes to the energy index, it is hard to overlook oil. And that’s because when oil rallies, the energy index also picks up speed.
As Tesla Energy leads in the market, there is strong optimism among Tesla shareholders. In fact, after each new initiative and progressive announcement from Tesla Energy, the market response is leaning in a positive direction.
Whether Tesla Energy expands its battery programs, dives into energy storage, or decides to operate Tesla Energy in China, each announcement had a positive impact on the Tesla stock price in the market. The truth is that Tesla is gradually expanding and growing its energy business. On top of storage, Tesla continues to acquire more companies that would suit the specific needs and goals of Tesla Energy in the foreseeable future.
The current market perception as well as some investors’ belief that Tesla Energy is on its way to becoming the most profitable and growth-driven subsidiary of Tesla. On the downside, the recent closing of TSLA stock on DOW, NASDAQ, and S&P 500 somewhat startled investors.
But again, investors in the company believe that Tesla Energy is more than capable to turn the tables and revitalize growth. Despite inflation and skyrocketing energy prices, it looks like the global energy infrastructure cycle is going through a massive change and Tesla Energy is at the center of it.
In total, Tesla Energy is expected to receive over $50 trillion of investments by the end of 2040. It means Tesla Energy has the opportunity to update the global energy infrastructure and standards for good. Plus, this is bound to create more third-party opportunities for individuals and businesses and that means more growth for Tesla Energy and Tesla stock.
Tesla Energy: Historical Performance and Stock Analysis
By the end of Q4 2021, it became clear that Tesla Energy will supply dedicated Power Packs to SpaceX for on-site expansion of energy sources. In fact, at the Starbase facility, the Megapack unit has commissioned 730MWh BESS or battery energy storage system during Moss Landing.
Consequently, this managed to render a 4GWh figure in energy storage in 2021. As a result, it increased its market share of Tesla by 15% on the S&P Global index. As per Bloomberg, there has been a relatively lower grab of market share by the end of 2021. But when it comes to Tesla Energy, there is strong momentum and a direct impact on its stock levels. In fact, in 2021, Tesla Energy had an increased market share of over 18%.
As of May 16, 2021, S&P 500 closed TSLA at a slightly lower rate. Unlike the momentous rise of Tesla Energy, the stock growth of other Tesla subsidiaries lost significant ground in the Chinese market. The current economic data, however, suggests that increased interest rates are the major reason for the sudden slowdown.
In late April 2021, the economic activities in China started to cool down due to strict COVID-19 lockdowns. This, in turn, had a significant impact on industrial production, employment, and consumption. In the end, it added more fear to the economy and startled investors which significantly decreased the growth of Tesla Energy in Q2 2021.
In Q3 2021, there was high optimism around energy stocks in China. Increased demand managed means recovery for the market. After the receding impact of the pandemic, Tesla Energy started to gain ground in the Chinese market. At the moment, Musk believes that the journey of Tesla Energy has just begun and it would acquire, partner, and evolve for years before it can gain significant market share.
In 2021, the energy index on S&P 500 was as high as in 2014. In fact, Tesla Energy closed at over 2.6% which reflected the strongest performance of the decade. Unlike old days, Tesla investors no longer question the most radical strategies of Tesla Energy to gain market position.
However, there was a mixed signal on whether or not investors should be worried about a sell-off. By the end of Q4 2021, investors realized and recognized that Tesla Energy has become highly sustainable. However, investment strategists profess that it will take a consistent and proactive approach to Tesla to maintain its thrust in the Chinese energy market.
After the long-term goals of Tesla Energy started to out, it saw a gradual increase in its market share. From 2019 to 2020, however, there was strong capitulation in the market that no longer exists for Tesla Energy. In fact, even when TSLA stock fell to 6% in Q3 2021, Tesla Energy stood its ground and played an important role to push the company in a growth-driven direction.
One of the most worrisome issues for investors has been significant hikes in interest rates by Federal Reserve in order to compact the high inflation rate. But there is clear data that hints this decision is bound to backfire and would propel the economy into the rabbit hole of recession. Amidst the conflicting situation in Ukraine and the reemergence of COVID-19 in China, the economic turmoil continues to exacerbate.
After the interest rate hikes in June 2021, traders started to price over 85% of the 50-base points. After that, the word was out that S&P 500 dwindled by 0.39% and ended the session at 4,008 points. Similarly, NASDAQ also declined by 1.20% with 11,662.79 points. On the other hand, the industrial average of the Dow increased by 0.08% with 32,223.42 points.
These figures represent the uptick in investments from investors after the growing sales and growth of Tesla Energy. Although inflation worries will continue to linger, investors understand that consumer sentiment and market perception have become more positive toward Tesla Energy.
According to Bloomberg, Tesla stock had a significant gap throughout 2021. Some market analysts believe that Tesla stock has the biggest divide in the market. In some cases, analyst prices range between $250 and $1,620 per share. Since Tesla’s IPO back in 2010, its shares have increased by 22,000%.
However, the company leadership understands that this feat is not enough to sustain the future growth of Tesla. It needs a subsidiary like Tesla Energy to become more mature and stable in the coming years. The long-term profit margins and production goals of the company hint that Musk would make more radical changes, ann0uncements, and partnerships in line with Tesla Energy.
Some decisions around Tesla Energy pose a high risk for TSLA’s stock. But since 2019, Tesla has had its fair share of challenges. As Tesla continues to scale up its production, it is also weighing more progressive initiatives for Tesla Energy. Musk believes that it is the moral and ethical obligation of the company to make Tesla more energy-driven and render radical changes across the world.
As of now, Tesla Investors believe that the sell-down value of its energy subsidiary is much higher than EVs. When it comes to the energy sector, market dynamics change all the time. And whether it’s battery storage or energy programs, Musk is ambitious enough to take Tesla Energy in a new direction.
You may not be aware of it but even IKEA has decided to be part of the solar energy business with state-of-the-art solar roofs. In the energy space, other players have started to come into play. This, in turn, means Tesla has to make sure that its energy subsidiary continues to retain a strong market position.
In the last few years, the energy sector has become a highly competitive market. With the advent of energy-efficient solutions, there are bound to be many companies competing for a higher market share. But the revolutionary approach of Tesla Energy is one of the main reasons it continues to have a major advantage over others. In fact, Musk has had a long-term vision to move forward with its energy subsidiary.
Conclusion
Tesla has been an exciting stock to watch over the past few years, with its innovative technology and momentum-building successes. Unfortunately, in recent months it’s taken a bit of a dive without much indication as to when or if investors can expect recovery. Nonetheless, faith remains strong that Tesla will make another grand leap forward after its 2023 split – so here’s hoping!
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