Tesla stock price: Will it soar again or see the downside?

Many research institutes think the Tesla stock price will touch the $1000 mark this year. Tesla stock price is also recently downgraded by many research institutes.  However, the market value of the company hit $ 700 billion recently. Some analysts just disagree with many investors who are still keeping optimistic views will jump in Tesla stock price over the last year.

Views of pessimistic analysts on Tesla Stock Price

The stock value currently exceeds the combined valuations of many popular companies around the world. However, the company only makes a small fraction of the cars of these companies.

That is the worrying point of many pessimistic analysts. They even downgraded Tesla’s stock from hold to sell. Many of them viewed that Tesla’s stock price can go down by 50% by the end of this year.

Views who are overweight on Tesla stock price

On the other hand, over the past five years, the share price of this company has increased by around 12% on average. These investors, who are overweight on Tesla share, are hoping for car manufacturing data, numbers of annual sales, and profitability of the company. They argued that these are the most important data points for investors. As these data are on the behalf of the company, these analysts usually have high hopes each year. Many research institutes viewed that annual sales of the company are expected to grow by more than 20%.

Conclusion

Tesla is a controversial stock. The company, specifically CEO Elon Musk has too many fans. The company sells cars for them. On the contrary, the Company has quite a few critics, especially in the financial world. They viewed that the company’s stock is overvalued. Another reason for worrying is many new players are considering to launch their electric cars. Many companies can launch their first all-electric car in the next two to four years. This can interrupt the bull run of the company as the factor can hamper full advantage of Tesla’s competitive edge in the electric car world and autonomous driving technology.

We are also unaware when the company will start to sell hybrid and gasoline models. However, this can hamper the morale of the company. The company aimed to sell 20 million cars a year in the future. That means, the company wants to replace around 1% of global cars per year. In that case, we can see more bull runs in Tesla stock price and the $1000 mark by the end of this year.You can get more information like balance sheet at https://www.webull.com/balance-sheet/nasdaq-tsla.

Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.

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