Tesla's below-average operational and financial risk scores pull the overall risk score below the sector average.
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.
Yes, Tesla is profitable.
Starting with just $862 million of profit in 2020, Tesla quickly grew over the next couple of years to make $5.6 billion in 2021 and more than double that by the year 2022.
Tesla's net profit fell by nearly a quarter to $2.51 billion from a year earlier, hurt by higher raw-materials, logistics and warranty costs as well as the production ramp-up of its 4680 battery cells.
The EPS Rating for Tesla stock is 93 out of 99. The market status is showing a "confirmed uptrend." Tesla stock has formed a valid base but TSLA is not a buy right now. However, Tesla stock is signaling a move above the 200-day line and 200 level and is approaching its current buy point.
With its 4-star rating, we believe Tesla stock is undervalued when compared with our fair value estimate. Our fair value estimate for Tesla stock is $215 per share.
We believe, Tesla is a solid long-term investment option at current price levels based on its market leadership, progressively broadening global operations and new product developments that promise to take it to dizzy heights in the coming years.
If you replace the battery pack, though, it's possible to cover over 1 million miles with your Tesla if you look after the rest of the vehicle. In fact, one of the longest-lasting Teslas had surpassed one million miles as of 2022.
In the current long-term reliability study, however, which stretches to three full years of ownership, Tesla cars in aggregate would've occupied 28th out 32 places in total with 242 issues per one hundred vehicles reported in the period.
Baron said he believes Tesla can hit $500 to $600 per share by the year 2025 and the company could be worth $4.5 trillion in the next eight to 10 years. “But that's not including robots, that's not including autonomous vehicles, that's not including batteries,” Baron said in November 2022.
Economic Moat Rating. Tesla's narrow economic moat is based on its intangible assets and cost advantage. The company's strong brand cachet as a luxury automaker commands premium pricing, while its EV manufacturing expertise allows the company to make its vehicles cheaper than its competitors.
Tesla's first-mover advantage allowed it to become North America's leading electric-vehicle (EV) manufacturer. However, a long list of factors, including cyclical headwinds, growing EV competition, and unfulfilled promises, make Tesla an incredibly risky investment.
Apple Investment Opportunity
Apple Inc has a volatility of 1.16 and is 1.43 times more volatile than NYSE Composite. 10 of all equities and portfolios are less risky than Apple.
The stock is volatile. Tesla gives investors opportunities to buy when the shares get too cheap, as Barron's recommended when the stock was near $100—it's now just over $160—and to take profits when it rises, as we did in early February when it approached $200.
According to the latest long-term forecast, Tesla price will hit $400 by the end of 2023 and then $600 by the end of 2024. Tesla will rise to $800 within the year of 2025, $900 in 2026, $1100 in 2027, $1300 in 2028, $1500 in 2029, $1600 in 2031, $1700 in 2032 and $1800 in 2033.
Tesla's less expensive models have shorter mileage limits. The Model 3 RWD is covered for 8 years or 100,000 miles, while Performance, Long Range AWD, and Standard Range AWD versions of the Model 3 and Model Y are guaranteed for 8 years or 120,000 miles.
If you had invested $1,000 in Tesla 5 years ago, you'd have $4,973 today, a gain of 397% Tesla share prices have fluctuated quite a bit since the company went public in 2010.
However, as per recent predictions, Tesla's stock price might see a moderate price strength to $1750 in 2040. This can significantly impact the percentage growth of electric cars in 2040, as well as the highly competitive automotive industry.
“$400 is a price tag that is more relevant for 2025-2026 than 2023. While things are looking positive for the company overall, it's unlikely that 2023 is the year that takes Tesla to new heights. The price target for 2023, in my opinion – is more like $130-$140.”
Stock Price Forecast
The 34 analysts offering 12-month price forecasts for Tesla Inc have a median target of 205.00, with a high estimate of 335.00 and a low estimate of 71.00. The median estimate represents a -21.31% decrease from the last price of 260.53.
Average Price Target
Based on 29 Wall Street analysts offering 12 month price targets for Tesla in the last 3 months. The average price target is $203.83 with a high forecast of $300.00 and a low forecast of $85.00. The average price target represents a -16.60% change from the last price of $244.40.