Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month.
- Tesla, Inc.’s name change came in 2017 shortly after then and current CEO Elon Musk agreed to acquire SolarCity and expand the company’s product line.
- Adjusting for splits, Tesla hit that mark two years early in 2021.
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- These returns cover a period from January 1, 1988 through January 1, 2024.
- It’s hard to trust that a cannabis rally is coming since there’s been no evidence of one.
Enter your email address below to receive the latest news and analysts’ ratings for Tesla and its competitors with MarketBeat’s FREE daily newsletter. The focus has been on its batteries division, though, where it reported positive test results earlier this year, exceeding its previously stated targets. It will be testing its batteries in its flagship electric SUV, the Mullen Five, enabling it to go over 600 miles on just one charge. Tom Yeung is a market analyst and portfolio manager of the Omnia Portfolio, the highest-tier subscription at InvestorPlace. He is the former editor of Tom Yeung’s Profit & Protection, a free e-letter about investing to profit in good times and protecting gains during the bad. Yet, all three companies reached a $5.5 billion valuation without generating significant sales.
Tesla Stock Is Outperforming EV Rivals as Elon Musk Takes a Swipe at Rivian
Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. Zacks may license the Zacks Mutual Fund rating provided herein to third parties, including but not limited to the issuer. To form an opinion on Tesla’s https://forexhero.info/ pricing, start by deciding what kind of company Tesla is. Considering Tesla’s current valuation, it’s clear most investors don’t view Tesla as a carmaker. Investors are paying a steep premium because they believe in Tesla’s ability to innovate, open new markets, diversify its business model and create massive shareholder value.
Revenue Forecast
The company was founded by Jeffrey B. Straubel, Elon Reeve Musk, Martin Eberhard, and Marc Tarpenning on July 1, 2003 and is headquartered in Austin, TX. If there aren’t any major changes to how this business operates, Tesla will still derive the vast majority of its revenue from electric vehicles in 2034, just like it does today. This can come from its existing cars, as well as new models like the Cybertruck; the cheaper design, codenamed “Redwood,” that’s expected to sell for $25,000; and the reintroduction of the Roadster.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock’s fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Is this recent strength building towards a new high stock price for Tesla TSLA in 2025? Read on to learn where Tesla’s opportunities lie and what challenges it faces going forward. © 2024 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions.
Nevertheless, the EV market is expected to grow at an incredible 24.3% annually, from $287.4 billion last year to a whopping $1.3 trillion in 2028. Therefore, EV stocks remain great long-term bets, and investors must look past the short-term volatility. Thanks to the stock currently sitting 51% below its peak price, its valuation has come down meaningfully. However, I still think this is a steep price to pay, as the next 10 years for Tesla will most likely be much more difficult than the past decade. Interest rates could stay higher for longer, and industry competition will only intensify. Over the last four quarters, Tesla surpassed consensus EPS estimates two times.
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The bullish camp predicts steep growth for TSLA, while Tesla bears believe the stock is only headed down. One of Tesla’s related products is the Tesla Powerwall and Tesla Powerpack battery packs. The Powerwall and Powerpack are stationary lithium-ion battery packs for home or industrial use.
Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart’s disclaimer. Tesla shares split on the morning of Thursday, August 25th 2022. The newly minted shares were payable to shareholders after the closing bell on Thursday, August 25th 2022.
The facts discussed here and much other information on Zacks.com might help determine whether or not it’s worthwhile paying attention to the market buzz about Tesla. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term. Tesla is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Tesla has generated $4.31 earnings per share over the last year ($4.31 diluted earnings per share) and currently has a price-to-earnings ratio of 44.5. Earnings for Tesla are expected to grow by 39.45% in the coming year, from $2.56 to $3.57 per share. Tesla has not formally confirmed its next earnings publication date, but the company’s estimated earnings date is Wednesday, April 17th, 2024 based off prior year’s report dates.
The company has 5 Gigafactories in key locations around the world with a 6th planned. The Gigafactories are noteworthy for multiple reasons including their size, end-to-end production capability, and non-reliance on grid-supplied power. Technical analysis (TA) is also proving less than favorable for Tesla Inc. in late February.
Adjusting for splits, Tesla hit that mark two years early in 2021. The average analyst rating for Tesla stock from 36 stock analysts is “Hold”. This means that analysts believe this stock is likely to perform similarly to the overall market. Tesla saw a increase in short interest in the month of January.
For those who are comfortable selling on strength, her article is certainly one to read. Famous growth investor Cathie Wood has a similar vision, albeit with a longer timeline. Citing Dojo as a growth factor for Tesla, Wood predicts Tesla will hit $1,400 best math software or more by 2027. Upgrade to MarketBeat All Access to add more stocks to your watchlist. 2,063 employees have rated Tesla Chief Executive Officer Elon Musk on Glassdoor.com. Elon Musk has an approval rating of 79% among the company’s employees.
For the current and next fiscal years, $111.96 billion and $133.61 billion estimates indicate +15.7% and +19.3% changes, respectively. While earnings growth is arguably the most superior indicator of a company’s financial health, nothing happens as such if a business isn’t able to grow its revenues. After all, it’s nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it’s important to know a company’s potential revenue growth. Tesla is an interesting long-term stock that may face near-term headwinds.
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