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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.

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.

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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.”

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.

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Disclosure: Joey Klender is a TSLA Shareholder.

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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Investor's Corner

Tesla gets its best analysis from Morgan Stanley as ‘it’s all about to change’

He maintained its ‘Overweight’ rating and the $410 price target Morgan Stanley had on the stock.

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(Credit: Tesla)

Tesla has gotten perhaps its best analysis from Morgan Stanley in quite some time, as the Wall Street firm claims that “it’s all about to change.”

That phrase could be used for both the company’s status and the world in general.

Analyst Adam Jonas said in a new note on Thursday to investors that Tesla could be one of the major winners in terms of the global transition from what it is now to what it will be.

He describes the global shift that will occur over the next few years:

“Have you interacted with a robot today? Have you even seen a robot today? No? Well, take a mental picture because it’s all about to change. When we meet someone who has never been in a Waymo or a Tesla Cybercab (which is most people), we frequently see a wince and a response such as ‘I’m not sure I’d feel comfortable getting in a car without a driver.’ We imagine going back in time to 1903 and asking people if they’d feel comfortable in an airplane.’”

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The same technological revolutions that have occurred over the past 150 years will continue to occur again and again. We are on the verge of another, Jonas believes, as companies like Tesla are working on artificial intelligence tech, which includes changing the way we look at things like transportation and labor.

Jonas includes an interesting tidbit in his note about how humanoid robots could change wages, and how it could work into the advantage of Tesla, especially as it is developing its own Optimus robot:

“We estimate 1 humanoid robot at $5/hour can do the work of 2 humans at $25/hour, generating an NPV of approximately $200k/humanoid. 1 robot shaped car can potentially drive down cost/mile of a ride share vehicle to <$0.20 mile (1/10th human-driven ride-share).”

Jonas sees Tesla as a key player in how AI will impact things like manufacturing and various automotive industries, and he believes there is long-term potential for AI, robomobility, and even autonomous eVTOL platforms.

Tesla stock: Morgan Stanley says eVTOL is calling Elon Musk for new chapter

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He maintained its ‘Overweight’ rating and the $410 price target Morgan Stanley had on the stock.

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Tesla stock gets crazy prediction from CEO Elon Musk

Musk says this is what it would take to be a millionaire from a Tesla investment right now.

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A red Tesla Roadster driving around a turn
(Credit: Tesla)

Tesla stock (NASDAQ: TSLA) got a crazy prediction from CEO Elon Musk recently, as the future of the company seems to be moving more toward AI, autonomy, and robotics, and away from automotive, which is what it has traditionally been recognized as.

Over the past few years, as Tesla has prioritized its Full Self-Driving suite, its rollout of a dedicated Robotaxi program, and the development of the Optimus bot, the company has gained a new reputation from analysts.

It was always looked at as a stock with tremendous potential by many Wall Street firms, some more than others.

The most bullish analysts, like Cathie Wood of ARK Invest, believe the company will eventually reach a multi-trillion-dollar valuation and a share price of over $2,000. Her $2,600 price target does not include any contributions of Optimus. Instead, it leans on Full Self-Driving and Robotaxi.

Tesla tops Cathie Wood’s stock picks, predicts $2,600 surge

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Based on where the company is now, there are a lot of potential catalysts. The Robotaxi expansion, as well as affordable vehicles, its prowess in AI and Robotics, and its powerful energy division are all arguments for investment.

One X user said that a $150,000 investment in Tesla right now would likely make you a millionaire. Musk said he thinks that sentiment is “probably correct.”

He’s echoed this belief in recent earnings calls, including the one for Q2, which happened in July:

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“I do think if Tesla continues to execute well with vehicle autonomy and humanoid robot autonomy, it will be the most valuable company in the world. A lot of execution between here and there. It doesn’t just happen. Provided we execute very well, I think Tesla has a shot at being the most valuable company in the world. Obviously, I am extremely optimistic about the future of the company.”

Tesla is trading at $316.50 at the time of writing, and has a market cap of just under $1 trillion.

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

“Tesla is morphing right now. It’s in transition from being a car company to being a technology company.”

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Credit: CNBC Television/YouTube

Tesla stock (NASDAQ: TSLA) got its latest analysis from Jim Cramer, and investors will like what he has to say.

Cramer has flip-flopped his thoughts on Tesla shares many times over the years. One time, he said CEO Elon Musk was a genius; the next, he said Ford stock was a better play. He’s always changing his tune.

However, Cramer’s most recent analysis is of a bullish tone, as he talks about the company’s evolution from an automaker to a tech powerhouse. He made the comments on CNBC’s Mad Money:

“Tesla is morphing right now. It’s in transition from being a car company to being a technology company. You wanna be in there because the tech is worth a lot more than what it’s selling for right now. Don’t care where you bought it, care where it’s going to.”

Tesla has always been looked at by the mainstream media as an automaker. While that is its main business currently, Tesla has always had other divisions: Energy, Solar, Charging, AI, and Robotics. Some came after others, but the important point is that Tesla has not been an automaker exclusively for a decade.

It launched Powerwall and Powerpack in April 2015, marking the start of Tesla Energy.

But Cramer has a point here: Tesla is truly becoming much more than a car company, and it is turning into an AI and overall tech company more than ever before. Eventually, it will be recognized as such, more so than it will be as an automotive company.

Cramer’s comments also follow a recent prediction by Musk, who stated on X that he believes a $150,000 investment in Tesla shares right now would eventually turn someone into a millionaire:

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Musk has said he believes Tesla could be headed to a serious increase in valuation. Eventually, it could become the most valuable company in the world. He said this during the Q2 Earnings Call:

“I do think if Tesla continues to execute well with vehicle autonomy and humanoid robot autonomy, it will be the most valuable company in the world. A lot of execution between here and there. It doesn’t just happen. Provided we execute very well, I think Tesla has a shot at being the most valuable company in the world. Obviously, I am extremely optimistic about the future of the company.”

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