Buying Tesla (TSLA) stock today means you’re investing in a leader in electric vehicles and technology. Despite ups and downs, Tesla has become a profitable company and a top player in electric cars1. As of August 2023, its stock price is $352.56 USD, with a market value of $692 billion12.
Before investing, it’s key to weigh the risks and rewards. Analysts have mixed views on Tesla stock, with some saying it’s a Strong Buy and others a Strong Sell3. The average price target is $222.96, showing a possible drop of over 20% from now3.
Despite possible ups and downs, Tesla’s stock has grown more than the market over the last five years3. But, it’s important to remember that Tesla stock is very expensive and can be quite volatile3. When thinking about buying Tesla stock, look at your risk level, goals, and Tesla’s future in tech like batteries and AI.
Key Takeaways
- Buying Tesla stock today means investing in a company that has revolutionized the electric vehicle industry and expanded into other innovative technologies.
- Tesla’s stock has seen significant growth since its IPO, but it also carries risks due to its high valuation and potential for volatility.
- Analysts’ opinions on Tesla stock vary, with a consensus recommendation of Hold and an average price target indicating a potential downside.
- Tesla’s future growth potential lies in areas beyond electric vehicles, such as battery and solar technology, artificial intelligence, and autonomous vehicles.
- Investors should carefully consider their risk tolerance and investment goals before deciding to buy Tesla stock today.
The Value of One Tesla Share Today
As of May 2023, one Tesla (TSLA) share is worth about $167. This is a big jump from its IPO price of $17 in 20104. Tesla’s market value has grown to $1.13 trillion, making it one of the top car makers globally54.
Even with ups and downs, Tesla has shown strong financials. Over the last five years, its stock has been quite volatile, with a beta of 2.305. Yet, the company has consistently made good money. In the last year, Tesla made $97.15 billion in revenue and $15 billion in net income, with a profit margin of 13.08%54.
Tesla’s Stock Performance Since IPO
Since going public, Tesla’s stock has grown a lot. If you bought one share at $17, you’d have made nearly ten times your money, even after splits in 2020 and 2022.
Tesla’s efficiency is clear, with $688,910 revenue per employee and $106,770 net income per employee4. The company’s return on assets and equity are 4.76% and 20.39%, showing it uses its resources well5.
Impact of Stock Splits on Share Price
Tesla has split its stock twice since going public: a 5-for-1 split in August 2020 and a 3-for-1 split in August 2022. These splits have made the stock easier for more people to buy, increasing the number of shares from 2.80 billion to over 3 billion4.
| Date | Split Ratio | Pre-Split Price | Post-Split Price |
|---|---|---|---|
| August 2020 | 5-for-1 | $2,213.40 | $442.68 |
| August 2022 | 3-for-1 | $891.29 | $297.10 |
Despite the splits, Tesla’s stock is still pricey, with a P/E ratio of 96.075. This shows investors are ready to pay more for Tesla’s growth and lead in electric cars.
Tesla’s Dominance in the Electric Vehicle Market
Tesla, founded by Elon Musk, leads the electric vehicle market. It has a market value over three times its closest rival6. This shows Tesla’s success in making sustainable cars popular worldwide.
In the U.S., Tesla’s lead in electric cars is clear. From April to June, it sold 49.7% of electric vehicles7. This is a slight drop from last year’s 59.3% but still shows Tesla’s big role in the future of cars7.
Tesla’s Market Share in the U.S.
The U.S. electric vehicle market is growing fast, up 11.3% from last year7. Electric cars now make up 8% of new car sales, up from 7.2% last year7. Tesla’s strong brand and trust from customers help it keep nearly half the market.
| Quarter | Tesla’s Market Share | Total EV Sales in U.S. |
|---|---|---|
| Q2 2021 | 59.3% | 7.2% of all new cars |
| Q2 2022 | 49.7% | 8% of all new cars |
Competition from Legacy Automakers
More car makers are now offering electric models, with over 100 available in the U.S7. This competition is fierce. But Tesla’s early start and focus on innovation keep it ahead.
Electric cars are getting cheaper, thanks to more models and better tech7. Governments pushing for green policies also help Tesla’s future6. Tesla’s value has hit $1 trillion6, and Elon Musk’s net worth is over $300 billion6. Tesla has passed Toyota and Ford in value and leads the electric car market6.
Tesla’s Potential Beyond Electric Vehicles
Tesla is known for its electric cars, but it’s looking to grow in other areas too. It’s investing in battery and solar tech, artificial intelligence, and self-driving cars. This makes Tesla a leader in these fields8.
As of 2023, Tesla’s profit margin is around 13%. This is one of the highest in the car industry. It shows Tesla is financially strong8. This strength lets Tesla build new factories, fund research, and maybe buy other companies. This helps Tesla stay on top8.
Battery and Solar Technology Business
Tesla’s work on batteries and solar tech is key to its growth. It’s making better energy storage and solar panels. Tesla wants to change how we use energy8.
Even with legal issues, Tesla’s future looks bright. Morgan Stanley’s Adam Jonas thinks Tesla shares could hit $500. This is 50% higher than now9. Tesla’s earnings and profit margins are also improving9.
Investments in Artificial Intelligence and Autonomous Vehicles
Tesla is working hard on AI and self-driving cars. Its FSD tech could change the car industry. A Trump administration might help Tesla’s FSD plans and its Robotaxi service10.
Bank of America thinks Tesla’s stock could go to $350, up from $265. They believe a Trump administration could help Tesla’s self-driving goals10. Trump’s policies might also help Tesla stay ahead in electric cars10.
| Key Growth Areas | Potential Impact |
|---|---|
| Battery and Solar Technology | Revolutionize energy generation and consumption |
| Artificial Intelligence | Enhance vehicle performance and safety |
| Autonomous Vehicles | Redefine the transportation industry |
Tesla is innovating and growing in these areas. Its stock forecast and valuation look good. With Elon Musk leading and loyal customers, Tesla is ready to meet the demand for green tech and change the future of cars.
Tesla Stock Outlook and Price Targets
Tesla is leading the electric vehicle market, and investors are watching its stock closely. Analysts have different views on Tesla’s stock, with price targets ranging from high to low11. Yahoo Finance offers research and trade ideas for those looking to invest in Tesla11.
Despite mixed ratings, the average price target for Tesla stock is $230.18, which is 34.71% lower than its current price12. Analysts’ predictions vary widely, from $400.00 to $24.8612.
Recently, Wedbush kept its “Outperform” rating with a $400.00 target, showing a 15.85% gain12. Royal Bank of Canada also raised its “Outperform” rating to $313.00, indicating a 1.99% drop12. However, Phillip Securities downgraded Tesla to “Strong Sell” on November 13, 202412.
Over time, analyst targets have changed. Guggenheim upgraded Tesla to “Outperform” on October 24, 2024, with a $276.00 target, showing an 8.27% gain12. Goldman Sachs Group also raised its “Neutral” rating to $250.00, suggesting a 17.01% gain12. These changes highlight the market’s varied expectations for Tesla’s future.
| Analyst | Rating | Price Target | Potential Upside/Downside |
|---|---|---|---|
| Wedbush | Outperform | $400.00 | +15.85% |
| Royal Bank of Canada | Outperform | $313.00 | -1.99% |
| Guggenheim | Outperform | $276.00 | +8.27% |
| Goldman Sachs Group | Neutral | $250.00 | +17.01% |
Before buying Tesla stock, investors should look at the research, analyst ratings, and price targets11. Some analysts see big gains, while others warn of risks and volatility. It’s important to consider your risk tolerance and investment goals before deciding.
Considerations for Buying Tesla Stock Today
Thinking about investing in Tesla stock? You should look at several factors that might affect the company’s success and stock price. Political events, like Donald Trump’s possible re-election, are important. If Trump wins, Tesla might get better policies, helping it grow13.
Elon Musk’s leadership is key to Tesla’s success. The company’s strong financials, with revenue up 8% to $25.2 billion and net income 17% to $2.2 billion in the third quarter, show Musk’s smart choices13. Tesla plans to launch a cheaper car by early 2025. Musk’s success in this will be crucial for Tesla’s future13.
Potential Impact of Trump’s Re-election on Tesla
Trump’s re-election could greatly affect Tesla. Trump supported fossil fuels in his last term, which could slow electric vehicle adoption. But Musk’s good relationship with Trump and his political savvy might help Tesla get good policies. This could keep Tesla ahead in the EV market.
Elon Musk’s Influence on Tesla’s Success
Elon Musk’s leadership has driven Tesla’s success. His innovative ideas and bold moves have made Tesla a top electric vehicle maker. Analysts predict Tesla’s production will grow 20% to 30% next year, thanks to a new EV model14. Musk’s success in meeting these goals is key to Tesla’s future and investor trust.
Even with the optimism for Tesla, remember the stock can be unpredictable. Analysts like Bank of America and Wedbush have raised Tesla’s price targets. But JPMorgan has set lower targets, showing a possible risk14. Before buying Tesla stock, it’s important to weigh these opinions and think about your risk level.
Risks and Volatility of Tesla Stock
Investing in Tesla stock is risky, despite its huge market value of $1.13 trillion and $97.15 billion in revenue over the last year15. Its stock price swings a lot, with a beta of 2.37. This means it moves more than the whole market16.
Many things can make Tesla’s stock price go up and down. These include big events in the industry, politics, and the company’s own performance16. The stock’s standard deviation of 4.66 shows it can change a lot from day to day16.
Execution Missteps and Earnings Misses
Investors need to watch out for mistakes Tesla might make. For instance, in 2018, Tesla lost about $14,000 on each Model 3 car sold17. These errors can hurt the company’s profits and its stock price.
Potential for Significant Price Corrections
Because Tesla’s stock is so volatile, big price drops are possible. The company’s coefficient of variation is 530.65, showing big swings in its returns16. Tesla’s alpha of 0.5887 means it might beat the Dow Jones Industrial Average by 0.59%. But, this comes with a lot of risk16.
Investors should think about how much risk they can handle and plan to hold onto Tesla stock for the long term. Volatility measures like standard deviation and beta help gauge the stock’s risk. But, remember, past results don’t predict the future, and investing in individual stocks is always risky.
Diversifying Your Portfolio with Tesla Stock
Investing in Tesla stock can be exciting, but it’s key to keep your portfolio balanced. Tesla’s stock trades on the Nasdaq under TSLA18. It doesn’t pay dividends, and its P/E ratio is often higher than average18.
Many factors affect Tesla’s stock price, like EPS growth and global expansion18. Yet, employee satisfaction and a shift in hiring might impact its future19.
Recommended Maximum Allocation to a Single Stock
Experts suggest not to put more than 20% of your portfolio in one stock, like Tesla. This limits the risk of big losses if the company faces problems.
Spreading your investments is crucial for long-term success. Even selling Tesla to rebalance your portfolio might be needed, even if it means losses19.
Strategies for Managing Risk
There are ways to manage risk when investing in Tesla:
- Dollar-cost averaging: Invests a fixed amount regularly, no matter the price, to reduce short-term risks.
- Investing in index funds or ETFs that include Tesla: This gives you Tesla exposure while diversifying across other sectors.
- Balancing stock investments with more stable assets: Adding real estate, bonds, or cash can balance out the risks of stocks like Tesla.
Using these strategies and keeping your portfolio diverse can help you enjoy Tesla’s growth while reducing risks. This includes avoiding the impact of delays or Elon Musk’s ventures outside Tesla19.
“Diversification is the only free lunch in investing.” – Harry Markowitz, Nobel Prize-winning economist
| Risk Management Strategy | Description |
|---|---|
| Dollar-cost averaging | Invests a fixed amount at regular intervals |
| Investing in index funds or ETFs | Provides Tesla exposure while diversifying across other companies |
| Balancing with stable assets | Incorporating real estate, bonds, or cash to offset volatility |
Tesla’s Future Growth Potential
Tesla’s growth depends on its electric vehicle market lead, battery and solar tech expansion, and autonomous vehicle development. Its stock price is $352.51, with a positive tesla stock forecast for 2024-2025. Analysts predict a rise to $448.87 by December 23, 2024, showing a 27.32% increase20. Tesla’s stock has seen significant returns, with 50% in 2021, -65% in 2022, and 102% in 202321.
The company’s profitability has improved, with a 7% adjusted profit margin in Q3 2024 and a 17% margin in 202221. Tesla’s net margins hit about 15% in 2023, aiming for a 25% rise in the future21. TSLA shares have risen by over 93% since April 2024, with a $2.1 billion net profit increase in Q3 202422.
Analysts foresee Tesla’s growth at about 35% annually, aiming for revenues of $400 billion by 2029. If Tesla’s P/E multiple drops to 30x by 2029, its market cap could hit $3 trillion. This could make the stock price over $930 per share21. Long-term estimates for 2030-2040 suggest TSLA shares could reach $682.56-842.0022.
“Tesla’s future success is not just about electric vehicles; it’s about leading the charge in battery technology, solar energy, and autonomous driving. If they can maintain their edge in these areas, their growth potential is tremendous.”
Tesla’s growth isn’t just in electric vehicles. Its battery and solar tech, and autonomous driving, are key to its success. With over 1.3 billion miles logged by Tesla’s Full Self-Driving (FSD) users21, Tesla is ready to benefit from favorable regulations and reduced red tape under a potential Trump administration21.
| Year | Potential Average Price | Potential ROI |
|---|---|---|
| 2026 | $605.46 | 181.53% |
| 2027 | $465.88 | 98.36% |
| 2030 | $1,700.41 | 382.30% |
If Tesla executes its growth plans and reaches profitability goals, it could join trillion-dollar companies like Apple and Amazon. However, investors should be aware of the risks and volatility of Tesla stock. The Fear & Greed Index shows a sentiment of fear at 3922, and monthly volatility is 6.52%22. Despite these risks, Tesla’s growth potential is strong, making it a good choice for investors.
Alternatives to Buying Tesla Stock Directly
If you want to invest in Tesla but are unsure about buying the stock, there are other ways. These options let you enjoy Tesla’s growth and innovation while reducing risks. They are great for those who want to be part of Tesla’s success without the full responsibility of owning the stock.
Investing in Funds that Hold Tesla Stock
One smart move is to invest in mutual funds or ETFs that include Tesla in their mix. These funds spread out your investment across many stocks. This can help soften the blow of market ups and downs. 
For example, the Vanguard Growth Index Fund and the Fidelity Contrafund are known for their Tesla holdings23.
When looking at funds with Tesla, check their investment strategy, past performance, and fees. Choose funds with a strong track record and a team that knows the tech and auto sectors well.
Exposure to Tesla Through Other Investment Vehicles
Another way to get into Tesla is through funds like those from Ark Invest. These funds focus on new, innovative companies, including Tesla. The Ark Innovation ETF (ARKK) is a good example. It lets you invest in Tesla and other tech leaders without having to buy their stocks23.
Keep in mind, these funds come with their own set of risks. Their performance can be affected by Tesla and other companies in their portfolio.
| Investment Vehicle | Tesla Exposure | Diversification |
|---|---|---|
| Mutual Funds | Varies by fund | High |
| Exchange-Traded Funds (ETFs) | Varies by fund | High |
| Ark Invest Funds | Significant | Moderate |
Before investing in Tesla through alternatives, do your homework. Understand your risk level and investment goals. By carefully weighing your options, you can make a choice that fits your financial plans.
Conclusion
Thinking about buying Tesla stock today means looking at many things. This includes how fast the company is growing, its leadership in the market, and its investments in new tech. Even with a 30.4% drop in stock price this year, Tesla’s shares went up over 5% on November 18. This was after news about Trump’s team wanting to make rules for self-driving cars24.
Tesla’s money situation is strong, with $29.1 billion in cash and only about $4.6 billion in debt at the end of 202325.
Tesla has done well, with earnings of $0.72 per share in Q3 beating expectations24. Its energy business saw a 52% revenue jump and a 30.5% gross margin in Q324. But, there are risks too. Morningstar thinks Tesla’s deliveries might stay the same in 2024, with prices possibly needing to drop in some markets25. Wall Street also has doubts, with a “Hold” rating on Tesla stock because of its high price and competition24.
Investing in Tesla motors should be part of a well-rounded portfolio. It’s important to manage risks and think long-term. Whether to buy Tesla stock today depends on your financial goals, how much risk you can take, and your faith in Tesla’s future. Always do your homework, check your finances, and talk to a financial advisor before investing.