Electric vehicle (EV) manufacturer Tesla (NASDAQ: TSLA) lost a significant amount of its share price in 2022 despite delivering a record 1.3 million vehicles. In the eyes of investors, Tesla is not immune to the challenges confronting the automotive sector as a whole.
Like its competitors, Tesla has been dealing with increased costs and supply chain interruptions. As a result, the company has been forced to reduce the prices of its flagship Model 3 sedan and Model Y SUV in China and the United States. In the fourth quarter 2022, Tesla lost 55.39% more from its Q4 capitalization than the cumulative market cap of 10 leading electric vehicle manufacturers.
What’s more, Elon Musk, Tesla’s CEO, although a visionary, has failed to deliver on a large number of his stated goals. Promises baked into Tesla’s value that haven’t come to reality include the delayed launch of the Cybertruck, the absence of robotaxis on the roads, and the continued postponement of level 5 complete self-driving.
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In this line, Finbold asked industry experts about their 2023 TSLA stock outlook and factors expected to define Tesla’s success in the market, to determine if the EV company can regain $400.
Ofir Kruvi – Product Manager at Jika.io
Kruvi points out that 2022 was a difficult year for TSLA since it was well acknowledged that the firm was overpriced and ‘everyone was waiting for the bubble to burst.’ Even yet, a subsequent recession forced the company to slash prices by up to a fifth in order to stimulate demand noting that Tesla’s current valuation is still a little bit overvalued, with “a fair value around $80-$95.”
Tesla is nearing the end of constructing the “Tesla Megapacks Power,” Europe’s biggest battery energy storage system. Kruvi highlights this is expected to multiply Tesla’s current income from energy storage by a factor of ten, resulting in an additional $10-15 billion in revenue for the company by 2023.
However, he stated given that in 2024 and 2025, Tesla is set to release their semis and cybertruck:
“$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.”
Joseph Nagle – Head of Business Development at Orange Charger
With over ten years of experience working in the electric vehicle industry, Nagle suggests Tesla had been ‘overvalued’ for a while, and “the market has now reacted to reflect this change.” At this time, they are being evaluated strictly as a car company, although he stresses, “they are much more than that.”
“$400 a share is highly unlikely this year, however, if they can get back to the $35k entry-level price point that’s been moving away for some time now, things might change. At this point, it’ll come down to orders and deliveries, just like every other OEM. If they can get closer to that lower price point, they’ll likely pull in a number of new customers and see the needle start moving in a better direction,” he said.
Adam Pippington – CFO at Freedom Dividend
According to the Chief Financial Officer at Freedom Dividend, it is possible for Tesla stock to reach $400 in 2023. The experienced financial expert with decades in the industry notes that in the coming years, the firm is projected to increase its production and deliveries, and Wall Street may become more bullish on the stock.
Pippington stated:
“There are a few key factors that would need to happen in order for Tesla’s stock price to reach $400 in 2023. These include continued strong production and delivery growth, expanding into new markets, a successful launch of the Model Y, and improving margins.”
Tesla chart analysis
On January 16, Tesla stock finished trading at $122.40, −$1.16 (0.94%), and in the last month, TSLA has been trading in the $101.81 – $160.99 range. Volume has also been considerably higher in the previous couple of trading days, which is what investors like to see during a strong upwards move.
Since prices have been stabilizing recently and the volatility has decreased, which has given way to a resistance zone just above the current price beginning at $122.41, it is possible that exactly above this resistance zone would be a good point to enter the market at.
Although industry analysts have a variety of opinions on the pricing of Tesla for the end of 2023, Coin Price Forecast, which uses data science and machine self-learning technology for stocks, has predicted that the price of Tesla will climb by the end of the year but not to $400.
As of January 17, the AI forecasted Tesla price mid-year for 2023 is $194. In comparison, the end of 2023 price of Tesla is predicted to increase to $246, a +101% increase from its current price.
On Wall Street, 45 analysts have given a ‘buy’ consensus rating for the stock. Notably, 24 experts advocate a ‘strong buy,’ and five a ‘buy.’ Elsewhere, 12 recommend ‘hold,’ and 4 collectively have opted between ‘sell’ or a ‘strong sell.’
Based on analyst stock evaluations for Tesla over the last three months, the average price forecast for the next year is $216.12; the target indicates a 72.52% upside from its current price and is lower than the Coin Price Forecast prediction. Interestingly, the highest price target over the next year is $436, while the lowest is $85, as per 38 analysts offering 1-year price forecasts.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
