For Tesla (NASDAQ: TSLA), 2023 has been a year of challenges and breakthroughs.
On the one hand, the company was compelled to reduce prices due to a slowdown in the electric vehicle (EV) market, issue an over-the-air (OTA) update to 2 million vehicles due to issues with the autopilot system, and faced increasing competition from companies like China’s BYD (SHE: 002594).
On the other hand, the company has had a number of significant successes, including achieving record-breaking delivery figures and laying the groundwork for a new production plant – likely to be located in Gujarat, India.
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Elon Musk’s EV maker also saw significant growth in the stock market. In the last 52 weeks, it is up 109.83%, though recent weeks brought a slight decline. In the last 24 hours, the company’s stock is down 4.01% and, at the time of publication, stands at $238.45.
While Wall Street analysts foresee a slight upside for the company in 2024 – and some even see it reaching $1 trillion in market cap this year – Finbold decided to consult the artificial intelligence (AI) of ChatGPT – OpenAi’s flagship platform – on how the stock might fare in the coming months.
ChatGPT assesses TSLA’s prospects in 2024
In its analysis of Tesla, ChatGPT took into account the company’s leading position in the EV market, strong reputation, past challenges and successes, and the rising competition from players like BYD, which, for the first time ever, beat Elon Musk’s firm when it comes to deliveries in Q4 2023.
With all this in mind, the AI proved rather bullish on TSLA, stating that the stock is likely to find its yearly high in the range between $300 and $320. ChatGPT also expressed a decent degree of confidence – 60% – in its prediction but noted that the year-end price is likely to be slightly lower and stand between $285 and $305.
The platform also conceded that, should Tesla make significant technological breakthroughs in areas like self-driving, its stock might rally even higher and reach $370 in 2024. The AI considers that there is approximately a 30% chance of this outcome. ChatGPT also added that this yearly high would also likely lead to some retracement by the end of December.
Finally, the artificial intelligence considers a somewhat more conservative high of up to $270 slightly more feasible at 35%. ChatGPT considers possible technological or production setbacks and increased competition as the main factors that could lead to such performance. It estimates that such yearly highs could lead to Tesla’s December 2024 prices being rather close to those in January 2024.
It is also noteworthy that ChatGPT does not consider a decline from the current price as a likely outcome for Tesla in 2024 and that it – despite being generally optimistic – did not match the current highest 12-month price target of $380 in its offering of hypothetical scenarios.
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