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Will Tesla stock shoot to new ATH after Q4 delivery report?

Will Tesla stock shoot to new ATH after Q4 delivery report?

Despite 2023 being a challenging year for the electric vehicle (EV) industry, Elon Musk’s Tesla (NASDAQ: TSLA) managed to continue steadily increasing its number of vehicle deliveries. 

In fact, its figures for the first three quarters of the year surpassed the total number of vehicles delivered in 2022 – 1,324,074 compared to 1,313,851 – and, in total, it shipped 1,808,581 in the entire year.

The company’s successes are also reflected in the stock market as its shares are up 129.86% in the last 52 weeks up to the price of $248.48 at the time of publication, and, at the start of 2024, Tesla commanded an impressive market cap of $778.60 billion. 

TSLA 1-year price chart. Source: Finbold

Tesla poised for new ATH despite recent challenges?

Still, given the challenges the company faced throughout the year, including reported battery production issues that may have an impact on Cybertuck production and the over-the-air (OTA) software update – often referred to as a recall in the media – affecting 2 million vehicles due to problems with the autopilot systems, the delivery figures for the final quarter of 2023 may prove crucial when it comes to the company’s performance in the coming months. 

Many investors are now wondering if the stock of Elon Musk’s EV maker has a real chance to shoot up as high as $400 – near its previous all-time high (ATH) – as it both met and exceeded the analyst consensus of approximately 480,000 Q4 deliveries having shipped 484,507.

While surpassing the company’s current all-time high share price of above $400 – after accounting for the stock split – reached in November 2021 might appear like a tall order given its share price of $248.48, some analysts are forecasting a significant upside. 

While below the ambitious ATH figure, Wedbush analyst Dan Ives raised his price target for Elon Musk’s company to $380 by the end of 2024 in late December 2023. The number might become even higher in the coming months, depending on Tesla’s performance this year. 

Still, the current Wall Street analyst consensus for the company is significantly more conservative at just $243.59, per the data retrieved on January 2, 2024, from TipRanks.

Analyst forecast for TSLA stock price. Source: TipRanks

TSLA well-positioned to shoot up

While the recent massive vehicle recall proved that Tesla is still facing significant technical and technological challenges that might hamper its future performance, the company appears well-positioned to achieve greater success in 2024.

Despite 2023 being a challenging year, the company not only managed to surpass its previous delivery figures but also achieved a technical breakthrough set to enable its Berlin gigafactory to start producing a $27,000 model this year.

The EV maker is also actively seeking a location for a new production plant and has likely set its sights on the Indian state of Gujarat. Tesla is also reportedly in talks with India’s government on reducing the tariff burden on importing new vehicles – a move that could unlock a massive new market for the company.

Still, despite multiple positive factors, many investors and experts remain worried that Tesla is at least somewhat overvalued and have also expressed their concerns over depressing margins. Additionally, with the rise of China’s BYD, Elon Musk’s EV maker received a new and powerful competitor in the industry.

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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.

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