Tesla (NASDAQ: TSLA) has dominated the electric vehicle (EV) market, having essentially made it from scratch when few others believed such cars were commercially viable. Since 2020, the company has been turning a profit; year by year, it grew in prominence, sales, and customer base. That is, until 2023, when the stock price started plummeting.
Truth be told, the entire electric car market has plunged, and EV companies apart from Tesla have also seen their stocks devalued. However, Tesla was hit particularly hard. As frightened investors abandoned their positions, TSLA became the worst-performing component of the S&P 500 index this March.
So, does this spell a lowly end to Tesla’s existence? Certainly not. The stock still has a faithful investor base, and loyal customers are still eager to buy its products. It has broken the losing streak with several price surges, e.g., on March 15 and March 18, after some models increased in price on the Asian market.
This article will examine Tesla’s financial performance in 2023, summarize information on its 2024 position, and provide a 2025 Tesla stock prediction based on multiple sources.
Tesla stock’s 2023 performance
Before the second half of 2023, Tesla has experienced continuous success for several years, ever since it became fully net profitable in 2019. Under the guidance of its eccentric billionaire CEO, Elon Musk, the company has stuck to its EV course and reaped rewards. The three years were stellar for the EV company, with inclining margins, revenues, and general profitability.
The wave of success would wind down in Q3 2023 and come to a crashing halt in Q4 2023. Tesla’s financial reports for the period let down the expectations of its investors with a meager 3% increase in revenue and a nearly 50% drop in operating income. Its 2023 full-year data showed a poor 19% increase in revenue, which was 32% less than its 2022 revenue surge. Furthermore, its margin contracted to reduce non-GAAP net income by 23%.
When it comes to the automotive industry, its revenues increased a meager 1% from the previous year. This underperformance came in the wake of product price cuts as the company tried to entice consumers to buy more cars, which was not nearly as successful as Tesla hoped.
The electric car manufacturer also warned that its vehicle volume growth in 2024 will likely be “notably lower” than in 2023 as the company focuses on launching its new model, codenamed “Redwood,” during the second half of 2025 at its Gigafactory Texas facilities. While it delivered a record amount of cars in Q4, BYD (HKEX: 1211) overtook its top EV market spot. Ultimately, Tesla stated its lower performance was due to the company being “between two growth waves.”Â
Tesla stock’s 2024 performance (so far)
Certain market conditions from last year continue to dampen Tesla’s performance. A period of high inflation that caused interest rates to soar has eaten away the customers’ purchasing power, making car financing more prohibitive for potential buyers.
Furthermore, the competition has intensified, especially in the Chinese market, with Tesla’s rivals delivering new models while Tesla still primarily relies on its Model 3, introduced way back in 2017. In short, these conditions will keep the company’s 2024 performance low, perhaps even worse than last year, with even slower revenue growth, more margin declines, and further cuts in product prices.
Is Tesla stock expected to rise?
That said, Tesla’s long-term prospects remain optimistic. The general car market trend of transitioning from conventional internal combustion cars to electric vehicles is as strong, if not stronger than ever before. The market is growing, and Tesla is evolving to meet future demands. Furthermore, it has both the means and ability to persevere and chase a greater market share due to the financial position it has made in the last couple of years.
To highlight this, the EV company aims to sell 20 million EVs by 2030, more than ten times the amount it sold in 2023, which was 1.8 million. Tesla has also been investing substantially in artificial intelligence, which could provide disruptive advances in self-driving cars and robotics. Additionally, it has made significant strides in the renewable energy domain, mainly within the solar panels and energy storage sectors.
Tesla stock prediction 2025
According to the opinions of market analysts at TipRanks, Tesla stock price in 2025 will be as follows:
| Metric | Value |
| Tesla average price target | $198.72 |
| Tesla high forecast | $320.00 |
| Tesla low forecast | $23.53 |
| Tesla change from the last price | 19.26% |
We have also gathered opinions of several experts and researchers who have given their own takes on Tesla stock prediction for 2025:
- Nathan Jacobs, Senior Researcher at The Money Mongers, has an extremely bullish stance on the company, forecasting Tesla’s 2025 stock price at somewhere between $800 and $1,200. He bases his opinion on the company’s solid market position, rising market share, and potential for EV technology advances;
- Adam Garcia, the owner of Stork Dork, is similarly bullish on TSLA shares, giving the same stock price range – between $800 and $1,200. Garcia’s optimistic view on Tesla stock price in 2025 is based on various factors, including market presence, company performance, and technological supremacy. However, he acknowledged that uncertainties exist;
- Markus Kraus, the founder and owner of Trading Verstehen, also expressed a bullish opinion that was more grounded than the previous ones. The analyst provided a Tesla stock price range as somewhere between $450 and $600, acknowledging the company’s logistical problems but highlighting its growing production capacities, the rollout of the Cybertruck, and Tesla’s investment into AI and renewable energy;
- Ethan Keller, the President of Dominion, did not give precise 2025 Tesla stock price numbers. Still, he reiterated the potential of the company’s expanding production capacity and desire for new markets, as well as the cutting-edge advances in the related EV technology. Ultimately, the expert acknowledged that the overall state of the global economy and regulatory challenges regarding EVs, renewables, and environmental efforts could be impactful factors outside Tesla’s control.
Tesla stock price today
As of April 3, Tesla’s stock price is $166.63, marking a -33.37% year-to-date and a -16.65% year-to-year decline.
What is the prediction for Tesla stock price in 2025?
Although the last several months have been rough for Tesla, and the price has been plummeting from its 2022 peaks, analysts remain optimistic for the electric carmaker’s future amid the unquenched demand for EVs and Tesla’s sizable assets and the ability to adapt to the changing market.
It remains to be seen whether the downward trends prove to be a bump in the road of progress or a permanent and insurmountable obstacle. However, if the company manages to recover to its previous heights, the investors who decided to stick through the rough patch will likely see their loyalty rewarded.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
