Electric vehicle (EV) manufacturer Tesla (NASDAQ: TSLA) is seeking to replicate its impressive run from late last year in 2025, with the stock eyeing the $500 mark, supported by key fundamentals.
Although the stock started the year below the crucial $400 level, TSLA has since recovered and is targeting the $450 resistance.
At the close of the last trading session, Tesla was valued at $426.50, ending the day up over 3%. Year-to-date, the equity has rallied over 5%.
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Indeed, 2025 is shaping up to be a crucial year for the Texas-based company as it aims to grow its dominance in the EV market, autonomous driving, and artificial intelligence (AI). The company also plans to launch new, affordable models to expand its market by attracting a broader demographic.
Considering the close ties between CEO Elon Musk and President-elect Donald Trump, attention will be paid to how the new administration’s policies impact Tesla, especially regarding the company’s full self-driving technology (FSD).
Amid this outlook, the firm also faces several challenges in its path to growth, with competition from Chinese manufacturers ranking among the top issues.
At the same time, how the company will navigate the possible removal of EV tax credits remains to be seen. However, some analysts, such as Dan Ives from Wedbush Securities, suggest the company will thrive, banking on its dominant market position.
AI predicts TSLA stock price
With these fundamentals in mind, Finbold used its own AI prediction tool to determine how TSLA’s share price might trade on February 1. This will be the same price as the last day of January, as the month ends on Friday, January 31.
Tesla’s stock price is projected to surpass its current levels on February 1, 2025. GPT-4o and Claude 3 Opus are forecasting an upward trajectory for TSLA, with price targets of $445 and $442.85, respectively. This represents an average predicted increase of 4.09% from its current price of $426.50.
The outlook reviewed trade signals such as the relative strength index (RSI) and the simple moving average (SMA).
GPT predicted Tesla’s stock price to reach $445, highlighting a 4.34% increase from the current level. On the other hand, Claude 3 Opus is slightly more conservative, with a target of $442.85, reflecting a 3.83% gain.
Tesla stock’s mixed outlook
Although the AI tool’s targets are conservative for the start of February, it’s worth noting that some market players have held a mixed outlook for the EV maker.
As reported by Finbold, Morgan Stanley (NYSE: MS) analyst Adam Jonas has projected Tesla’s potential growth based on the impact of the company’s autonomous vehicle technology and embedded AI.
To this end, he increased Tesla’s stock price target to $430 from $400, maintaining an ‘Overweight’ rating. In a bullish case, he sees the equity rising to $800.
Meanwhile, Wall Street analyst Gordon Johnson warned of a potential Tesla ‘bloodbath’ after the company reported 495,570 deliveries in Q4 2024, falling short of the 504,770 deliveries analysts had expected.
At the same time, UBS expert Joseph Spak suggested that TSLA’s share price might be overvalued, noting that the stock is pricing in the impact of AI and autonomous driving, even though the company has no major tangible products in this space yet.
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