Will Tesla shares climb to US$3,000 in next few years?
Electric carmaker Tesla continues to invite mixed sentiment from analysts and investors.
- Tesla (Nasdaq: TSLA) share price rises to US$733.57
- Ark Investment's Cathie Wood says her base case on Tesla is US$3,000 a share
- The EV giant might receive more than a billion euros in German state subsidies
- Keen to trade Tesla shares? Open an account with us to start trading the stock.
How do analysts view Tesla’s stock?
US electric-vehicle (EV) giant Tesla’s shares advanced 0.2% to finish at US$733.57 last Friday (03 September 2021).
The EV leader’s stock attracted mixed sentiment among research teams, with 22 analysts recommending ‘buy’ on TSLA shares, 14 suggesting ‘hold’, and nine with ‘sell’ calls as of Monday.
Their average target price was US$679.97, Bloomberg data showed. That implies a potential 7.3% downside based on Friday’s close.
Last week, Cowen rated TSLA ‘market perform’ with a US$562 target, Mizuho said ‘buy’ while eyeing US$825 per share, and Bernstein suggested ‘underperform’ alongside a US$300 target.
At Tesla’s recent AI Day event, the US car manufacturer set a ‘bold vision’ to develop a high-performance neural network with very scalable underlying compute and accurate and fast data labelling, Deutsche Bank wrote.
This platform could ultimately be sold ‘as a service’ to other machine-learning use cases, Deutsche Bank noted.
Star stock picker says Tesla stock worth US$3,000
Cathie Wood, CEO and CIO of Ark Innovation ETF, has remained bullish on Tesla, saying in a recent Yahoo interview that her base case on the stock is US$3,000 per share by 2025.
Ark predicts Tesla will deliver 5-10 million vehicles as early as 2025.
Dubbed a star stock picker, Wood said Ark’s ‘estimate for Tesla’s success has gone up’, given the carmaker’s ballooning market share.
The EV leader’s CEO Elon Musk told employees that he agrees with her price target, ‘if we execute really well’.
Wood’s innovation-focused exchange-traded funds, including the flagship Ark, are closely followed by many investors and have maintained Tesla as a top holding.
Tesla’s upcoming German factory: what’s the latest?
Over in Europe, Tesla’s 5.8 billion euro (US$6.9 billion) EV ‘gigafactory’ is expected to open in the Gruenheide municipality in Germany, just outside Berlin, in late 2021.
Europe is rapidly shifting away from fossil-fuel transport, but this risks substantial job losses as fewer auto workers are needed in the new EV sector, unions warned this week.
Unions are thus watching the upcoming Tesla plant as a ‘test case’, Reuters reported. This is partly because Musk has used social media to threaten workers with losing their stock options if they formed a union.
Meanwhile, German daily newspaper Der Tagesspiegel reported that the US company will receive a 1.14 billion euro (US$1.35 billion) government subsidy for its Gruenheide factory.
That means roughly a third of the total funds from a state programme to support battery-cell projects in Germany will go to Tesla, Der Tagesspiegel noted.
An economy ministry spokesperson said on Sunday that Germany will likely decide by the end of the year as to how much state aid Tesla will receive.
Thinking of trading Tesla shares?
*Based on revenue excluding FX (published financial statements, June 2020)
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Live prices on most popular markets