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Tesla stock among biggest potential winners over the next year: analysts

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Tesla (NASDAQ: TSLA) stock is just one of eight companies poised for a rally over the next twelve months, according to analysts who see major upside for some of 2021’s slowest movers.

Tesla, along with Penn National Gaming, Etsy, Mosaic, Mohawk Industries, Under Armour, Enphase Energy, and Freeport-McMoRan, is one of the stocks that has not had a great start to 2021 and has suffered a significant slide in comparison to the stock’s 52-week high. A report from Investors.com says that Tesla is poised for a big 52-week stretch as the automaker could hit its stride through major product developments over the next year that should provide a substantial boost to the company’s stock.

Tesla stock has not performed well in 2021, down 14.28% on the year at the time of writing. Interestingly, Tesla’s meteoric rise in 2020 still puts the automaker’s stock at 214.52% in the black over the past 52 weeks. Tesla shares exploded last year even though the COVID-19 pandemic struck. Despite last year being extremely tough for many companies, Tesla continued to report growth, profitability, an increasing adoption of electrification.

2021 hasn’t told the same story, unfortunately. Although Tesla has proven growth and profitability for seven consecutive quarters, released new, groundbreaking products like the 4680 battery and the Model S Plaid, the stock hasn’t been affected much for some reason. At least not in the positive direction.

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But now, analysts are calling for Tesla to have a successful second half to 2021, and the momentum could continue into the first half of 2022. Shares are down 31% currently since its 52-week and record high of $900.40 a share that was reached in early 2021. Regardless, the shares are only down less than 15% on the year, and analysts expect the stock to hit an upside of 5% in one year, giving it a price of $654.03 per share.

While this sounds low, and many Tesla investors believe the stock could reach numbers as high as $700 or $800 if the company can achieve one million deliveries or production units this year thanks to two new production facilities, analysts have a reason for their prediction.

Investors.com says:

“No, that’s not a whopping gain for an S&P 500 stock that dominated in 2020. But simply seeing the stock move higher would be a welcome change. Additionally, analysts think fundamentals back up their target. Tesla’s profit is expected to jump more than 45% just this year to $6.68 a share. Profit growth is propping up Tesla’s still decent 75 IBD Composite Rating.”

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Unfortunately, Tesla stock has lagged over the first six months of the year, plagued by media coverage that hasn’t necessarily told the most candid stories regarding the company. Everything from Teslas being banned on Chinese government bases to potential brake problems in China to a six-month delay at the German facility known as Giga Berlin have halted Tesla’s potential growth on Wall Street. Many of these claims have been disproven, yet the automaker hasn’t been able to rebound on Wall Street, not recovering to its record highs.

Despite this, Tesla is still the most valuable automaker on the planet and the ninth-most valuable company in the world. With a market cap of $604.91 billion, Tesla leads Toyota, the thirty-fifth most valuable company globally, with a market cap of $250.58 billion.

Disclosure: Joey Klender is a TSLA Shareholder.

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Elon Musk

SpaceX IPO could push Elon Musk’s net worth past $1 trillion: Polymarket

The estimates were shared by the official Polymarket Money account on social media platform X.

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Gage Skidmore, CC BY-SA 4.0 , via Wikimedia Commons

Recent projections have outlined how a potential $1.75 trillion SpaceX IPO could generate historic returns for early investors. The projections suggest the offering would not only become the largest IPO in history but could also result in unprecedented windfalls for some of the company’s key investors.

The estimates were shared by the official Polymarket Money account on social media platform X.

As noted in a Polymarket Money analysis, Elon Musk invested $100 million into SpaceX in 2002 and currently owns approximately 42% of the company. At a $1.75 trillion valuation following SpaceX’s potential $1.75 trillion IPO, that stake would be worth roughly $735 billion.

Such a figure would dramatically expand Musk’s net worth. When combined with his holdings in Tesla Inc. and other ventures, a public debut at that level could position him as the world’s first trillionaire, depending on market conditions at the time of listing.

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The Bloomberg Billionaires Index currently lists Elon Musk with a net worth of $666 billion, though a notable portion of this is tied to his TSLA stock. Tesla currently holds a market cap of $1.51 trillion, and Elon Musk’s currently holds about 13% to 15% of the company’s outstanding common stock.

Founders Fund, co-founded by Peter Thiel, invested $20 million in SpaceX in 2008. Polymarket Money estimates the firm owns between 1.5% and 3% of the private space company. At a $1.75 trillion valuation, that range would translate to approximately $26.25 billion to $52.5 billion in value.

That return would represent one of the most significant venture capital outcomes in modern Silicon Valley history, with a growth of 131,150% to 262,400%.

Alphabet Inc., Google’s parent company, invested $900 million into SpaceX in 2015 and is estimated to hold between 6% and 7% of the private space firm. At the projected IPO valuation, that stake could be worth between $105 billion and $122.5 billion. That’s a growth of 11,566% to 14,455%.

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Other major backers highlighted in the post include Fidelity Investments, Baillie Gifford, Valor Equity Partners, Bank of America, and Andreessen Horowitz, each potentially sitting on multibillion-dollar gains.

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Elon Musk hints Tesla investors will be rewarded heavily

“Hold onto your Tesla stock. It’s going to be worth a lot, I think. That’s my bet,” Musk said.

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Credit: Grok

Elon Musk recently hinted that he believes Tesla investors will be rewarded heavily if they continue to hold onto their shares, and he reiterated that in a new interview that the company released on its social accounts this week.

Musk is one of the most successful CEOs in the modern era and has mammothed competitors on the Forbes Net Worth List over the past year as his holdings in his various companies have continued to swell.

Tesla investors, especially those who have been holding shares for several years, have also felt substantial gains in their portfolios. Over the past five years, the stock is up over 78 percent. Since February 2019, nearly seven years ago to the day, the stock is up over 1,800 percent.

Musk said in the interview:

“Hold onto your Tesla stock. It’s going to be worth a lot, I think. That’s my bet.”

It’s no secret Musk has been extremely bullish on his own companies, but Tesla in particular, because it is publicly traded.

However, the company has so many amazing projects that have an opportunity to revolutionize their respective industries. There is certainly a path to major growth on Wall Street for Tesla through its various future projects, including Optimus, Cybercab, Semi, and Unsupervised FSD.

  • Optimus (Tesla’s humanoid robot): Musk has discussed its potential for tasks like childcare, walking dogs, or assisting elderly parents, positioning it as a massive long-term driver of company value.
  • Cybercab (Tesla’s robotaxi/autonomous ride-hailing vehicle): a fully autonomous vehicle geared specifically for Tesla’s ride-sharing ambitions.
  • Semi (Tesla’s electric truck, with mentions of expansion, like in Europe): brings Tesla into the commercial logistics sector.
  • Unsupervised FSD (Full Self-Driving software achieving full autonomy without human supervision): turns every Tesla owner’s vehicle into a fully-autonomous vehicle upon release

These projects specifically are some of the highest-growth pillars Tesla has ever attempted to develop, especially in Musk’s eyes, as he has said Optimus will be the best-selling product of all-time.

Many analysts agree, but the bullish ones, like Cathie Wood of ARK Invest, are perhaps the one who believes Tesla has incredible potential on Wall Street, predicting a $2,600 price target for 2030, but this is not even including Optimus.

She told Bloomberg last March that she believes that the project will present a potential additive if Tesla can scale faster than anticipated.

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Tesla stock gets latest synopsis from Jim Cramer: ‘It’s actually a robotics company’

“Turns out it’s actually a robotics and Cybercab company, and I want to buy, buy, buy. Yes, Tesla’s the paper that turned into scissors in one session,” Cramer said.

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Credit: Tesla Optimus/X

Tesla stock (NASDAQ: TSLA) got its latest synopsis from Wall Street analyst Jim Cramer, who finally realized something that many fans of the company have known all along: it’s not a car company. Instead, it’s a robotics company.

In a recent note that was released after Tesla reported Earnings in late January, Cramer seemed to recognize that the underwhelming financials and overall performance of the automotive division were not representative of the current state of affairs.

Instead, we’re seeing a company transition itself away from its early identity, essentially evolving like a caterpillar into a butterfly.

The narrative of the Earnings Call was simple: We’re not a car company, at least not from a birds-eye view. We’re an AI and Robotics company, and we are transitioning to this quicker than most people realize.

Tesla stock gets another analysis from Jim Cramer, and investors will like it

Tesla’s Q4 Earnings Call featured plenty of analysis from CEO Elon Musk and others, and some of the more minor details of the call were even indicative of a company that is moving toward AI instead of its cars. For example, the Model S and Model X will be no more after Q2, as Musk said that they serve relatively no purpose for the future.

Instead, Tesla is shifting its focus to the vehicles catered for autonomy and its Robotaxi and self-driving efforts.

Cramer recognizes this:

“…we got results from Tesla, which actually beat numbers, but nobody cares about the numbers here, as electric vehicles are the past. And according to CEO Elon Musk, the future of this company comes down to Cybercabs and humanoid robots. Stock fell more than 3% the next day. That may be because their capital expenditures budget was higher than expected, or maybe people wanted more details from the new businesses. At this point, I think Musk acolytes might be more excited about SpaceX, which is planning to come public later this year.”

He continued, highlighting the company’s true transition away from vehicles to its Cybercab, Optimus, and AI ambitions:

“I know it’s hard to believe how quickly this market can change its attitude. Last night, I heard a disastrous car company speak. Turns out it’s actually a robotics and Cybercab company, and I want to buy, buy, buy. Yes, Tesla’s the paper that turned into scissors in one session. I didn’t like it as a car company. Boy, I love it as a Cybercab and humanoid robot juggernaut. Call me a buyer and give me five robots while I’m at it.”

Cramer’s narrative seems to fit that of the most bullish Tesla investors. Anyone who is labeled a “permabull” has been echoing a similar sentiment over the past several years: Tesla is not a car company any longer.

Instead, the true focus is on the future and the potential that AI and Robotics bring to the company. It is truly difficult to put Tesla shares in the same group as companies like Ford, General Motors, and others.

Tesla shares are down less than half a percent at the time of publishing, trading at $423.69.

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