After reporting impressive results for Q3 2024, Tesla (NASDAQ: TSLA) was on track to claim the $300 mark, but the share price has since retraced.
Despite the stock’s decline, $300 remains a key target for the electric vehicle manufacturer as it navigates the rollout of new technologies and products.
At the close of the last trading session, TSLA was valued at $242.84, dropping almost 2.5% for the day. Over the past week, the share price has plunged more than 8%, marking a five-day losing streak.
Picks for you
With these extended losses, TSLA investors might find some relief in the pre-market, where the stock shows strength ahead of the November 5 session, gaining over 2%.
This current price movement is generally concerning for investors, especially given the company’s shares surged 26% in the two days following the impressive Q3 results, rising from $214 to $270.
During the quarter ending September 2024, Tesla’s revenue hit $25.18 billion, up 7.85% year-over-year. The Elon Musk-led company’s guidance for Q4 indicated an expectation to sell at least 515,000 vehicles, surpassing Wall Street’s estimate of 490,000 units.
When will TSLA stock hit $300
To assess when Tesla might breach the $300 resistance, Finbold explored insights from OpenAI’s ChatGPT-4o.
The AI model identified catalysts likely to drive TSLA to $300, including the company’s upcoming quarterly earnings in early 2025, expansion of production and demand, innovations, technological advancements, EV market outlook, and overall stock market sentiment.
If these factors boost investor confidence, ChatGPT predicted Tesla could reach $300 within the first six months of 2025.
Tesla stock key fundamentals
Tesla’s strong fundamentals, such as its advancements in self-driving technology and artificial intelligence, could push its share price toward the $300 mark.
Notably, Wall Street sees more upside potential for the equity, with analysts like Wedbush Securities’ Dan Ives considering Tesla an undervalued AI equity.
Meanwhile, with the next Tesla earning report slated for January 2025, the stock’s reaction to the outcome of the United States presidential election will be crucial.
Historically, Democrats in the White House have generally favored EV stocks. However, Musk’s close association with Republican nominee Donald Trump adds another layer of uncertainty.
To this end, the correlation between Tesla’s stock price and the likelihood of a Trump victory has increased since July. Though this correlation dipped recently, it remains positive.
On the other hand, in an X post on November 5, stock market analyst Market Maestro warned of a potential sell-off if Vice President Kamala Harris secures the White House.
The analyst identified the $222-$212 range as the first support area likely to be tested in a potential post-election decline. A further drop could bring Tesla into the $198-$195 zone, which may present a buying opportunity for long-term investors.
As reported by Finbold, Ives has noted that Tesla could face headwinds under a Trump administration if tax credits are repealed. However, the company may still benefit from its leadership position in the EV market.
He cautioned that harsher tariffs on Chinese imports could impact Tesla if Beijing opts for retaliatory measures.
In conclusion, Tesla seems to be on track to claim the $300 based on its strong fundamentals. Still, investors should brace for potential volatility in the short term, which could stem from the impact of the presidential polls.
