Tesla Investors Just Got Great News From CEO Elon Musk: The Stock Could Soar 1,300% The Motley Fool

That’s why I’d suggest investors eschew all of the negative headline hype and get in on JD stock now. Some of the first-quarter slowdowns may be due to customers waiting for the updated version of the car. Refreshes for Tesla’s full-size Model S and Model X are expected by the end of 2025, potentially setting the stage for a dramatic rebound in deliveries in 2026. For now, the company’s challenge is to steady its EV business while proving that its big ideas can turn into big results. Whether that comeback begins in 2025 is the question investors are asking.

That is a 300 times free cash flow multiple, indicating that investors are pricing in a huge growth in profits over the next five to 10 years. With this in mind, I think it is unlikely that Tesla stock will be much higher five years from now, making it a stock investors should avoid right now. According to 32 professional analysts, the 12-month price target for Tesla stock ranges from a low of $19.05 to a high of $579. The average analyst price target of $289.63 forecasts a -20.19% decrease in the stock price over the next year. So, what should you do now that inflation is sagging again?

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• The founder of ARK Invest — one of the most popular providers of actively managed exchange-traded funds (ETFs) — said that Tesla stock would hit $2,600 in five years.
• Adjusting for splits, Tesla hit that mark two years early in 2021.
• That was almost 10 years ago now and still hasn’t come to fruition.
• If successful, this vehicle could help Tesla compete with Waymo, which is growing its robotaxi network rapidly around the United States.

But NIO isn’t relying solely on its namesake brand to drive future growth. It has launched two sub-brands — ONVO, which targets the mainstream EV market, and Firefly, aimed at smaller premium vehicles. ONVO’s first model, the L60, is already on the roads and receiving positive feedback. Two more ONVO vehicles, the L90 and a yet-to-be-named model, are set to hit the market later this year, potentially widening NIO’s customer base. This does not look like an ideal time to invest in Tesla.

The Powerwall and Powerpack are stationary lithium-ion battery packs for home or industrial use. The power packs can store solar or other green-generated powers for later use or backup power in emergency situations. This segment of the business was merged with Solarcity to form the Energy Generation and Storage segment. Among the many technologies worked on by the company are self-driving/autonomous vehicles, AI, and glass along with EV motors and batteries.

Nio (NIO)

EBITDA in 2021 is expected to end up between $28 million and $31 million. All of this might seem to be the antithesis of a growth narrative, but it isn’t. JD.com operates within China, which is a tough environment now.

Despite a possible 2025 slowdown, TSLA shareholders have reasons for optimism. The stock has outperformed competitors despite declining sales growth and Musk remains a figure investors want to support. However, with interest rates still elevated, bottom lines matter and Tesla’s recent earnings numbers have left analysts wanting more.

• This does not look like an ideal time to invest in Tesla.
• Momentum Master rules tell us it’s better to cash out of mean-reverting commodities when they’re falling.
• Tesla (TSLA) shares jumped nearly 5% Monday to move into the green for the year after several analysts highlighted potential catalysts that could drive the stock’s near-term momentum.
• That’s because guessing economic conditions might earn you 10% here and there; consumer staples are low-risk, low-return by their nature.
• In the fourth quarter of 2024, Tesla’s deliveries grew slightly, but automotive revenue slipped 8% year over year.
• TSLA remains a highly volatile stock with significant upside and downside potential.

During the next five years, I think the stock is in for a world of hurt. I wouldn’t be surprised if shares fall 50% or more five years from now as the stock’s P/E ratio declines. This is a company with falling sales, narrowing profit margins, and no new products to drive growth in the near term. In fact, revenue will almost assuredly fall faster than deliveries in the first quarter when we see the company’s financial report next week, due to the falling sticker prices on its vehicles. The vast majority of Tesla’s current $720 billion market cap comes from its electric vehicle (EV) business, and right now, this business is struggling to grow. In the first quarter of 2025, the company delivered 337,000 vehicles to customers while producing 363,000.

Elon Musk commits to leading Tesla for next five years

This is down from 387,000 in the same quarter a year ago and the lowest delivery figure since the third quarter of 2022. In Q4 2023, Li Auto beat analyst forecasts, reporting YOY increases of 133.8% in sales and 2,068.2% in net income. The company is also highly profitable, boasting a levered FCF margin of 35.94%. With total deliveries for 2023 increasing 182.2% to 376,030 vehicles, Li Auto’s financials are robust and healthy. It has a market cap of $1.1 trillion and generated just $3.6 billion in free cash flow over the past 12 months.

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However, it is still China, and China is, frankly, a retailer’s paradise. Tom Yeung, CFA, is a registered investment advisor on a mission to bring simplicity to the world of investing. On the date of publication, Tom Yeung did not have (either directly or indirectly) any positions in the securities mentioned in this article. Corn, soybeans and lean hogs are also down double-digits Forex trading strategies from their peaks. Of the major commodities, only OPEC-controlled oil has largely escaped deflationary pressures. My challenge involves finding companies like Tesla back in 2010 when it was a split-adjusted $6.

That makes the current valuation of 150 times earnings look very expensive. But the consensus includes estimates from 54 analysts, not all of whom think Tesla will successfully transition into AI and robotics. So, investors need to decide for themselves whether they think the company can make that leap. Tesla’s journey from EV pioneer to tech powerhouse has hit a bumpy patch. Once the undisputed leader of the EV race, the company is now grappling with slowing growth in its core business.

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However, TSLA has also faced internal and external challenges. Increased competition from traditional automakers and emerging EV startups has intensified pressure on Tesla’s market share and pricing. Musk himself isn’t too optimistic about the future profitability of the oft-recalled Cybertruck either. Concerns about the company’s valuation and the sustainability of its growth rate have also led to market volatility.

Regulatory scrutiny, particularly around autonomous driving technology, Cryptocurrency trading for beginners adds another layer of uncertainty. Additionally, broader market trends, such as economic conditions and energy prices, can contribute to volatility in Tesla’s stock price. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. Several factors have recently influenced TSLA’s stock price. On the positive side, Tesla continues to dominate the electric vehicle market, with strong sales and production numbers.

BYD’s March deliveries of 24,218 vehicles weren’t that far behind Tesla which sold 35,478 vehicles in the month. I’m a big fan of deliveries as a great indicator of a given EV stock’s potential. As a leading e-commerce platform, JD.com is still in the right place at the right time.

Musk, who also serves as the CEO of SpaceX and owns other companies including xAI and the neurotech startup Neuralink, has big ambitions for his other ventures. He said his satellite internet service Starlink, which is currently owned and operated by SpaceX, could eventually stand alone as a separate public company. In April, Tesla reported a 20% drop in automotive revenue and a 71% decline in net income for pepperstone forex the first quarter of 2025.

In 2023, nearly 40% of all EVs sold worldwide came from Tesla assembly lines. The company’s expansion into new markets and development of its autonomous driving technology have also contributed to investor optimism. Additionally, Tesla’s recent announcement of a new battery factory in Mexico is expected to boost its production capacity and lower costs. Tesla is a multinational technology company known for its electric vehicles (EVs), energy products, and focus on sustainability.