The stock price of electric vehicle manufacturer Tesla (NASDAQ: TSLA) is showing bullish signs in the short term as it seeks to recover from the overall slowdown that impacted the EV sector in 2024.
Notably, by the close of the market on May 24, TSLA had gained over 3% within 24 hours, trading at $178.95. Despite these short-term gains, Tesla is down over 27% in 2024, a free fall partly alleviated by the company’s strategies, such as rolling out price cuts.
Indeed, the positive short-term gains come despite reports that the company trimmed Model Y production at its Shanghai factory by 20%.
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Overall, attention remains on how TSLA will fare in the coming months as it faces resistance at $200. In this line, Wall Street analysts and OpenAI’s most advanced artificial intelligence (AI) tool, ChatGPT-4o, have offered insights into where the stock might be headed in the next 12 months.
Wall Street TSLA price prediction
According to a consensus of 53 Wall Street analysts compiled by TradingView, the outlook for Tesla’s stock varies. Some analysts are bullish, forecasting a high of $310, which would represent a 72% increase from the current price.
The consensus average price target is $183, indicating modest growth of about 2%. On the bearish end, the forecast goes as low as $85, implying a potential decline of 57%.
Additionally, the analysts’ recommendations are mixed, with 20 advising to hold the stock, while 16 are firmly in the “strong buy” camp.
Factors affecting Tesla’s stock
On the other hand, ChatGPT-4o also provided an array of projections and underlying fundamentals. The AI tool emphasized the importance of company fundamentals, highlighting that success in scaling production and meeting delivery targets, especially with new models or updates, is crucial.
The platform also emphasized that strong revenue growth, profitability, and cash flow are vital, with upcoming earnings reports as critical indicators. Additionally, new factories and increased production capacity, particularly in emerging markets, can boost investor confidence.
Furthermore, ChatGPT-4o pointed out that market trends also play a significant role. The global shift towards electric vehicles and supportive government policies can benefit Tesla. However, increasing competition from established automakers and new entrants in the EV space is a crucial factor to watch.
Finally, ChatGPT-4o advised investors to consider macroeconomic factors such as rising interest rates, which can impact high-growth stocks like Tesla by increasing the cost of borrowing and potentially slowing consumer spending. Global economic stability and consumer confidence will also affect overall market sentiment.
ChatGPT-4o Tesla stock prediction
Considering these factors, ChatGPT-4o presented three potential scenarios for Tesla’s stock over the next 12 months. In a bullish case, achieving significant production milestones, delivering strong financial results, and making technological advancements could see the stock rebound to $250-$300.
In a bearish case, facing production issues, increased competition, or broader economic challenges could result in the stock falling to $120-$150. A moderate case, where Tesla makes steady progress with some headwinds, might stabilize the stock around $180-$220.
As things stand, Tesla stock appears to be losing its grip after rallying in late April. Currently, support levels are at $164 and $154, with the bulls needing to push the equity above $185 to initiate positive momentum.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
