Tesla Stock Price Prediction For 2021 And Beyond

Last Updated July 23rd 2021
15 Min Read

Will TSLA go up or crash? Read our Tesla stock Price Prediction 2021 – 2025

On the hunt for TSLA prediction 2021 - 2025? Or have you been struggling to answer the question ‘is Tesla a good investment?’ Read on. Find out the top Tesla stock Price prediction forecast for 2021 and beyond and discover how much TSLA could be worth in 2021-2025. 

The American electric vehicle company Tesla — and its controversial CEO Elon Musk — have often hit the headlines in 2020. From surpassing the production of one million electric cars, to becoming the world’s most valuable American automaker, the company has seen many milestones over the last 12 months. But how will this success affect its stock price in 2021?

If you’re wondering ‘is Tesla a buy or sell?’, you’re in the right place. Despite claims that the Tesla stock is overpriced ($695 at the time of writing), investor interest has never been higher in TSLA — and with the company’s $550 billion market capitalization, many analysts believe that the coming years will take it to new heights. 

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According to The Motley Fool, shares of Tesla’s growth stock are up by almost 800% from the last 12 months.

In this article, we take a look at all the factors that will affect the direction of TSLA share price and review top experts for Tesla stock price prediction for 2021 and beyond. 

Short-term Tesla Stock Price Predictions 2021: What do the analysts say?

Tesla price prediction for 2021

What are stock experts forecasting for Tesla stock in 2021?

August 2020 saw the price of a single Tesla share rise to more than $2,000. It was also accepted into the S&P 500 Index. These factors have led many people to ask ‘should I invest in Tesla?’. If you’re considering adding this stock to your portfolio, read on to discover what some of the top financial analysts expect to see from TSLA in 2021. 

According to Adam Jonas, an analyst from Morgan Stanley, the forecast for Tesla is bright. Jonas recently upgraded his recommendation from hold to buy, claiming that 2021 could see the stock price soar to $1,068 at its most bullish. This is significantly higher than its all-time high (ATH), which is its current price of $695. Jonas’s predictions are shared by analysts at the investment bank Goldman Sachs, which has also upgraded its recommendation from hold to buy. It’s boosted its one-year target from $455 to $780, almost $100 higher than TSLA’s current value. 

This opinion is echoed by the platform WalletInvestor. Using its in-house predictive algorithm, WalletInvestor has given the following forecast, represented in the graph below: 

tesla stock price prediction chart

As per the technical view, Wallet Investor's Tesla share price forecast sees the stock starting 2021 trading at $767 per share.

As we can see, WalletInvestor believes that 2021 could be a breakout year for the electric vehicle (EV) giant. According to its projections, the stock price of Tesla could reach $766.704 by the end of 2021, a figure that would represent a long-term earning potential of +9.01%. Its forecast is also remarkably steady, with around a $20 difference between its minimum and maximum predictions. But could it potentially be underselling the TSLA stock? 

There are currenctly 34 analysts offering one year price forecasts for Tesla stock with an average price of 440, the highest estimate price at $800 and a low price at $40. 

According to the site Long Forecast, it might be. Long Forecast has given an even more bullish prediction for Tesla Stock 2021, which sees the price of TSLA soaring to over $1,000 by the end of the year. (This concurs with Jonas’s target of $1,068). 

Year

Mo

Min

Max

Close

Mo,%

Total%

2020

Dec

541

704

658

12.5%

12.5%

2021

Jan

658

767

717

9.0%

22.6%

2021

Feb

717

837

782

9.1%

33.7%

2021

Mar

662

782

712

-9.0%

21.8%

2021

Apr

625

719

672

-5.6%

14.9%

2021

May

672

783

732

8.9%

25.2%

2021

Jun

732

854

798

9.0%

36.5%

2021

Jul

798

931

870

9.0%

48.8%

2021

Aug

870

1014

948

9.0%

62.1%

2021

Sep

948

1105

1033

9.0%

76.7%

2021

Oct

874

1033

940

-9.0%

60.7%

2021

Nov

897

1033

965

2.7%

65.0%

2021

Dec

965

1126

1052

9.0%

79.9%

Long Forecast’s maximum price prediction of $1,052 would represent a total percentage increase of almost 80. If you’re a would-be investor who’s wondering whether to buy, the advice based on these predictions is clear: buy now to profit later. Unfortunately, however, not everyone agrees. 

Tesla has never been free from sceptics and plenty of analysts believe these stock prices are vastly overrated. Somewhat worryingly, Elon Musk himself agrees. In a leaked email to Tesla staff, the CEO warned that the soaring stock price predictions were only achievable if the business managed to cut costs. With a profit margin of just 1%, he added that the stock price was also dependent on investor confidence: “If, at any point, they conclude [Tesla isn’t able to deliver profits in the future], our stock will immediately get crushed like a soufflé under a sledgehammer!” 

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Long-Term TSLA Price Predictions: 2022-2025

What are stock experts forecasting for Tesla stock price in 2022 and beyond?

The short-term predictions for the stock price of Tesla are a mixed bag. From breaking the $1,000 barrier to deflating like a crushed soufflé, the forecasts encompass both sides of the spectrum. If you’re feeling even more confused about the answer to the question ‘should I buy Tesla stock 2021?’, keep reading. We’re looking ahead to 2022-2025 to see whether the long-term predictions can help us come to a consensus. 

For our first long-term price prediction, we’re returning to WalletInvestor. The platform that predicted a maximum price of $766.704 for Tesla stock in 2021 has given the following forecast for 2022: 

tesla stock price prediction table

According to its predictions, Tesla stock price won’t hit $1,000 in 2022 and will continue trading between $870 and $970 for the majority of 2023. In November and December, however, it will rise to over $1,000 very briefly, eventually closing the year at $1,018.480. WalletInvestor believes 2024 and 2025 will see TSLA manage to defend its position more consistently, with the stock price hitting $1,200 by July 2025. Although this is less bullish than the predictions of platforms such as Long Forecast, which believe TSLA will hit $1,000 much sooner, it does show a steady growth rate that should reassure investors. 

A more bearish prediction comes from LeoProphet.com. For exactly half of 2022, LeoProphet.com forecasts a negative growth rate, with the stock price eventually closing the year at a disappointing value of $561. This will be an improvement upon its November prediction, which is just $533. 

tesla stock price prediction forecast graph

We can see the first six months of 2022 mapped out on this chart. Although the year starts relatively strong with a new ATH of $717.07 in May, the subsequent decline will take it to lower than its current price of $695. 

For a much brighter prediction, let’s turn to Catherine Wood, known as Wall Street’s biggest Tesla bull. Wood — who is the CEO and founder of Ark Investment Management — has given a staggering forecast that TSLA will be worth $7,000 by 2025. To arrive at this conclusion, Ark Investment Management analyzed 10 different company outcomes, even considering the possibility (and potential effects) of Tesla going bankrupt. Wood confirmed: “Our confidence that this stock is heading for $7,000 over the next five years is very high.” 

 

How Has The Stock Price Of Tesla Changed Over Time? 

Tesla entered the EV market as Tesla Motors in 2003, but it wasn’t until 2013 that the company started making a profit (Elon Musk took on the role of CEO in 2008). Tesla’s aim is to expedite the switch to more sustainable forms of transport, making use of electricity and solar energy to power its vehicles. 

Since 2003, the business has hit many milestones. It became the world’s best-selling plug-in and battery electric passenger car manufacturer back in 2019, with a market share of 17% (plug-in segment) and 23% (battery electric segment) respectively. The same year, its global sales increased by a staggering 50%. In 2020, it produced its one millionth electric car. 

But it’s not all good news. The company has frequently been at the centre of lawsuits and controversies, partly due to Elon Musk’s (at-times) outrageous conduct. One particular example of this occurred in August 2017, when he tweeted that he had secure funding to take the company private at $420. This claim later proved to be completely false. 

So, how have these events affected the TSLA stock price? We can see how its stock price has changed from this period onwards in the graph from MacroTrends below: 

tesla stock historical price  chart

This shows just how stratospheric Tesla’s growth in 2020 has been. Before this year, the ATH stock price of TSLA was just $70 —  a figure that has since jumped by almost 900% to hit $695. Throughout December 2020 alone, Tesla has gained more than $100, opening at a value of $584.76 at the beginning of the month and now trading at $695. It’s a jump that has caused many investors and analysts to ask ‘is Tesla stock overpriced?’ and ‘why is Tesla stock price so high?’ (More on that later). 

For others, however, its success has been a huge reassurance after the coronavirus crash that occurred back in March. As investor uncertainty grew to a fever pitch in response to news of the COVID-19 outbreak sweeping across the world, the stock market saw one of its biggest crashes in history. The crash began on March 9th, 2020, when the Dow fell by 7.79% (2,013.76 points) in just one day. At the time, this was a record — but on March 12th and again on March 16th, this record was broken. 

Like most companies, TSLA wasn’t immune to this crash. Between March 6th and March 16th, the stock price of Tesla crashed from $140.696 to $89.014, its lowest price of the year. The fact it’s recovered so strongly is a result of various factors. In the section below, we’ll be exploring some of the factors that have affected the stock price of Tesla.

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What Factors Affect The Stock Price Of Tesla?

If you’re wondering ‘is now a good time to buy Tesla?’, we recommend taking some time to understand the types of factors that can affect its stock price. Analyzing the historic prices of the stock can be a great way to identify potential patterns, but by exploring some of these factors, you can predict how different events may affect its valuation. This increases your chances of predicting breakout periods in advance. 

Let’s take a look at the top factors that can affect the price of Tesla stock. 

Stock Splits

Tesla announced its first-ever stock split as a public company in August 2020. The five-for-one split was effective from August 28th, as the firm aimed “to make stock ownership more accessible to employees and investors” following a leap in share price. Although splits don’t automatically affect a stock’s value, because it merely reduces the price of each share, it’s not unusual for the increased investor confidence to drum the price up as a result.  

This is precisely what happened to Tesla. News of the stock split broke on August 11th, when the stock price of TSLA was $274.878. By the end of the month, the stock price had soared to a staggering $498.32 — with many analysts believing that the split was the catalyst for this growth. Since then, the stock price has continued to climb to its current price of $695. 

The Introduction Of Model 3

The Tesla Model 3 is an electric sedan car that began production in the middle of 2017. In March 2020, it became the best-selling electric car in the world, having achieved the accolade of Europe’s top-selling plug-in car the year before. 

This model was largely responsible for the fact that Tesla’s total vehicle sales soared by a whopping 50% in just one year. As the Model 3 has increased in popularity, investor confidence in the long-term prospects of the company has also grown, driving up the price of the stock. 

The Success Of Elon Musk’s SpaceX

Space Exploration Technologies Corp, or SpaceX, is an aerospace manufacturer. The company was founded by Elon Musk with the intention of making space travel more affordable and eventually enabling humans to land on Mars. It’s no secret that SpaceX (and Elon Musk) himself are hugely controversial — but the success of the company has undoubtedly had a beneficial effect on the stock price of Tesla. 

On Saturday 30th May, 2020, SpaceX successfully launched its SpaceX Dragon, the first private spacecraft to carry astronauts to the International Space Station. Although Tesla isn’t financially dependent on SpaceX, the voyage caused investor confidence in Elon Musk to soar. As a result, the stock price of TSLA rose from $161.162 on Friday 28th May to $179.62 on Monday 1st June. 

With long-term plans for SpaceX’s Mars colonization still underway, as well as a variety of smaller missions, we may well see further effects on Tesla’s stock price in the future. Existing and would-be investors alike should monitor the news around SpaceX, as developments could cause the price of TSLA to change. 

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Key Points

  • Tesla’s growth stock are up by almost 800% from the last 12 months
  • Adam Jonas, an analyst from Morgan Stanley, recently upgraded his recommendation from hold to buy, claiming that 2021 could see the stock price soar to $1,068 at its most bullish
  • Goldman Sachs has boosted its one-year target from $455 to $780, almost $100 higher than TSLA’s current value. 
  •  According to WalletInvestor, the stock price of TSLA could reach $766.704 by the end of 2021
  • Long Forecast believes the price of TSLA will soar to over $1,000 by the end of 2021
  • Long Forecast’s maximum price prediction of $1,052 would represent a total percentage increase of almost 80
  • Elon Musk has warned that: “If, at any point, [investors believe Tesla isn’t able to deliver profits in the future], our stock will immediately get crushed like a soufflé under a sledgehammer!”
  • WalletInvestor believes TSLA won’t hit $1,000 in 2022 and will continue trading between $870 and $970 for the majority of 2023 and hit $1,200 by July 2025
  • For 2022, LeoProphet.com forecasts a negative growth rate, with the stock price eventually closing the year at a disappointing value of $561
  • Catherine Wood of Ark Investment Management has given a staggering forecast that TSLA will be worth $7,000 by 2025
  • Tesla was affected by the coronavirus crash but gone from strength to strength ever since
  • Factors affecting the stock price of Tesla include its stock split, the popularity of Model 3, and the success of Elon Musks’ SpaceX

 

Despite fears that the Tesla stock price may be overvalued, the majority of analysts have given bullish predictions for 2021-2025. Wood’s prediction of $7,000 by 2025 is a stand-out forecast that would reflect the company’s recent growth. Only time will tell which of these projections is closest to the truth.

If you’ve been looking for Tesla stock price predictions for 2021-2025, we hope you’ve found this article helpful. Stock investing is notoriously risky and it’s vital to have a robust risk management strategy in place if you’re considering adding TSLA to your portfolio.

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FAQs

Is Tesla a buy right now? 

Analyst advice is quite split regarding Tesla. Due to uncertainty about whether the stock has been overvalued, some investors are choosing to hold in order to see how 2021 affects TSLA before committing to buy or sell. Others have seen the company’s market domination as a sure sign to buy. 

Will Tesla stock reach $1,000?

According to the predictions of analysts such as Adam Jonas, Long Forecast, and Catherine Wood, the Tesla stock price could hit $1,000 as soon as 2021. 

Is Tesla overvalued? 

Considering Tesla’s profit margins are just 1%, many people (including Elon Musk himself) agree that the stock has been slightly overvalued. However, others argue that it’s actually been undervalued relative to its long-term intrinsic value. 

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