Investor's Corner

Tesla (TSLA) analysts are adjusting price targets based on long-term growth

Credit: Tesla Brothers | YouTube

Published

4 years ago

October 15, 2020

Joey Klender

Tesla (NASDAQ: TSLA) analysts from several Wall Street firms are adjusting their price targets based on the company’s forecast for overwhelming growth in the coming years. Today, Baird analyst Ben Kallo boosted his price target by 25% from $360 to $450, citing significant long-term upside potential for gross margin and credit revenue.

The price target comes as TSLA stock enjoys a six-day streak of finishing a trading session in the black. While this is far from a company record, which stands at eleven straight days, the six-day streak is still impressive. The surge in price is likely based on the company’s recent release of its Q3 delivery figures.

On October 2nd, Tesla released its third-quarter delivery figures, showing a company record of 139,300 deliveries during the three-month period. Additionally, the electric automaker recorded a total production rate of 145,036 cars during Q3, which is another company best.

Tesla releases Q3 2020 results: New record reached with nearly 140k deliveries

Kallo, who holds a 61% success rating and an average return of 11.7%, according to TipRanks.com, cited that Tesla’s regulatory credits could be “a significant swing factor” for the company’s future quarters. He also believes the company’s outlook, which shows credit revenue could roughly increase by 100% in 2020, is conservative.

“With share prices at current levels, we think [Tesla] may no longer be incentivized to maintain strict cost controls (particularly on the OpEx line) and could reprioritize investment in growth,” a note to investors from Kallo said, according to MarketWatch.

So far, in 2020, Tesla stock has skyrocketed to over five-times its price from the first trading day of the year, exploding to over 451% its January 2nd price. During the six-day winning span, 11.4% of that growth has occurred.

Interestingly, Kallo has seen more investors looking at TSLA stock from a long-term perspective. While the growth in 2020 has made many investors gain a considerable amount of wealth, the cutting edge technology that Tesla has developed so far in terms of vehicles is not what is manipulating its growth.

Instead, long-term projects, like battery production and vehicle autonomy, are what the true investors and believers in Tesla are looking toward.

“We have experienced increased inbound interest in TSLA, particularly deciphering the bull/bear case from here,” Kallo added in the note. “Interestingly, we have found investors increasingly focused on 2025+ blue-sky scenarios, in stark contrast to a few months ago when the primary focus was on the upcoming quarter.”

Becoming a large-scale battery manufacturer and leading the self-driving charge in the coming years is where Tesla’s valuation will continue to skyrocket, and many analysts have misvalued the automaker in this sense. Instead of looking at Tesla as a software, battery, EV, and energy company, many analysts look at it as a simple carmaker.

At the time of writing, TSLA stock was trading at $453.13.

Disclaimer: Joey Klender is a TSLA Shareholder.

Investor's Corner

Tesla stock surges on Wednesday, but there’s still more room to go

Published

5 days ago

March 12, 2025

Joey Klender

Credit: Tesla

Tesla stock (NASDAQ: TSLA) surged over 7 percent on Wednesday, canceling out some of the losses it has felt this week.

It has been a less-than-ideal start for Tesla in 2025, as the company has wiped out all of its gains felt from the victorious election campaign of President Donald Trump. The stock is down 34 percent so far this year.

The losses have mostly been felt due to reports of decreased demand due to pushback against CEO Elon Musk and his support of President Trump, as well as investor concern over the CEO’s personal use of time between the Department of Government Efficiency (DOGE) and Tesla itself.

In a note this week from Wedbush, analyst Dan Ives wrote:

“Musk needs to step up as Tesla CEO at this critical juncture. In a nutshell, the word ‘balance’ has been missing with Elon Musk and his ability to run Tesla as CEO….while instead focusing all of his energy and time driving his DOGE initiative within the Trump Administration. Since Trump’s White House 2nd term kicked off in January, we have seen Musk and Trump connected at the hip with Musk essentially living at the White House and Mar-a-Lago in Palm Beach. There has been little to no sign of Musk at any Tesla factory or manufacturing facility the last two months and perception has become reality for Tesla shares. Trump getting elected President was a huge moment for Musk and Tesla in our view as this will create the fast track for an autonomous federal roadmap…however the DOGE efforts have now intertwined Tesla into this brewing political firestorm.”

Wednesday’s slight bump for Tesla shares is likely related to the support the company received from President Trump yesterday, who purchased a Model S sedan at the White House and pledged to pay for it with a check.

President Donald Trump buys a Tesla at the White House – Here’s which model he chose

The move was one that signaled a buying spree from high-profile Republicans, including Sean Hannity, among others, who announced their support for Musk and Tesla:

As promised yesterday, I Just ordered my new self driving Tesla! Over 1000HP, 0-60 in 2.0 seconds!
Details on how to win the Tesla of your Choice soon on https://t.co/9hkyEX1UVi! pic.twitter.com/PSCCtUsXK2
— Sean Hannity 🇺🇸 (@seanhannity) March 11, 2025
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Tesla shares closed at $248.09 on Wednesday, up 7.59%.

Investor's Corner

Tesla bull ARK loads up on over $20M in TSLA shares after stock slide

Published

6 days ago

March 11, 2025

Joey Klender

(Credit: Tesla)

Tesla bull ARK Invest loaded up on over $20 million worth of the automaker’s shares on Monday after the company saw its largest slide on the market since late 2020.

Shares dropped over 15 percent on Monday, mostly due to pushback on the stock as CEO Elon Musk heads the Department of Government Efficiency (DOGE). His involvement with the U.S. government directly has sent some investors into a predicament over Musk’s dedication to Tesla.

There are also concerns regarding Q1 deliveries, which will be a big indication of where the year could be headed for Tesla.

The Monday slide was the biggest since late 2020 when shares dropped over 21 percent.

However, the slide presents a massive buying opportunity for investors, especially those who operate ETFs, like ARK. Long term, ARK believes Tesla shares (NASDAQ: TSLA) will be exponentially more expensive, especially leaning on the thesis that Robotaxi and AI/Optimus will translate to major growth in yet another sector for the company.

ARK bolstered its position on $TSLA in its ARKK Innovation ETF with a purchase of 68,164 shares. Tesla is the largest holding in ARKK with over $531 million in value. Tesla makes up exactly 10 percent of the ARKK ETF.

It also bought another 11,154 shares in its ARKQ Autonomous Technology & Robotics ETF.

It’s no secret Tesla shares have taken a substantial hit in 2025, especially as the company’s price on Wall Street exploded following President Trump’s successful election campaign last year.

So far in 2025, Tesla shares are down over 38 percent. They are up nearly 5 percent as of 2:30 p.m. on the East Coast. Even bullish analysts are hoping some focus returns to Tesla on Musk’s part.

Dan Ives of Wedbush said in a note last night following the broad sell off:

“This is a gut check moment for the Tesla bulls (including ourselves) after this massive sell-off in Tesla shares with fears mounting/accelerating. The bears own the Tesla narrative in the near-term as lackluster sales numbers from Europe, China, and the US in January/February along with Musk protests/brand worries have created many concerns.”

He continued:

“While the DOGE/Trump Musk iron clad partnership has created major brand worries for Tesla…..we estimate less than 5% of Tesla sales globally are at risk from these issues despite the global draconian narrative for Musk. Importantly, we expect Musk will better balance his time between DOGE and Tesla/SpaceX over the course of 2025 and some of these distraction issues will fade.”

Investor's Corner

Elon Musk praises Ray Dalio’s Bridgewater for accumulating TSLA stock

Published

1 month ago

February 14, 2025

Simon Alvarez

Credit: Tesla Asia/X

A recent 13-F filing from legendary investor and billionaire Ray Dalio’s Bridgewater Associates has revealed that the hedge fund has added over $62 million worth of Tesla stock (NASDAQ:TSLA) to its portfolio.

Elon Musk has praised the billionaire’s investment in a post on X.

Bridgewater’s TSLA stake:

As per Bridgewater’s 13-F filing, it currently holds 153,589 shares of TSLA, which costs $62,025,382.
The firm added the TSLA shares in the fourth quarter.
Tesla shares gained momentum after its Q3 2024 earnings call, and it only gained more strength after the election of U.S. President Donald Trump.
At the end of 2024, Tesla shares were up 62%, as noted in a MarketWatch report.
Tesla stock is still up 88% over 12 months despite a steep drop over the past month.

Smart move
— Elon Musk (@elonmusk) February 14, 2025

A vote of confidence:

Bridgewater Associates is one of the largest hedge funds in the world, so the firm’s stake in TSLA could be interpreted as a vote of confidence in the electric vehicle maker.
Elon Musk has praised the firm’s investment. In a post on X, Musk noted that Bridgewater’s investment was a “smart move.”
Elon Musk has been quite consistent on his idea that Tesla could eventually become the world’s most valuable company. He emphasized this point during the Q4 2024 earnings call.
“I see a path. I’m not saying it’s an easy path but I see a path of Tesla being the most valuable company in the world by far. Not even close. There is a path where Tesla is worth more than the next top five companies combined,” Musk said.