With more than 26% of the market share in 2022, the company’s leadership position is all but assured for the coming decade if not longer. While specifically an EV manufacturer, however, the company is also engaged in many related and unrelated ventures that could produce significant results for shareholders. For all the hype about electric vehicles, 98% of new cars are still traditional gas-guzzling cars. According to a Pew Research poll, almost 40% of Americans are considering buying an EV as their next car. If America starts tracking the rest of the world in EV adoption, demand could triple in three years. For better or worse, the stock market will respond to further developments in artificial intelligence in 2025.

1. Get Forbes Advisor’s expert insights on investing in a variety of financial instruments, from stocks and bonds to cryptocurrencies and more.
2. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors.
3. Tesla’s automobile segment designs, develops, manufactures, leases, and sells electric vehicles in the U.S., Europe, Asia, and internationally.
4. As interest rates fall, cash deposits will drop, too—making dividend yields look relatively more attractive.
5. And by using a direct sales model rather than dealerships, it appealed to buyers looking for an alternative to the traditional sales model.

Fortunately, the 2020 electric vehicle craze spawned a plethora of both great and terrible Moonshot bets. And with some luck, the next millionaire-makers might be hiding among the tiny startups of the electric vehicle world. Volatility will be a primary challenge for investors in 2025.

See More Zacks Research for These Tickers

The renowned automaker’s stock surged following its third-quarter earnings report, which exceeded expectations. Tesla is now demonstrating promising progress in diversifying its business, with its profitable energy storage segment and the introduction of more affordable vehicles. Share prices of Tesla (TSLA 3.80%) are up roughly 21% in five days since it was reported that second-quarter vehicle deliveries beat Wall Street’s expectations. However, the electric vehicle (EV) manufacturer’s longer-term downward trend remains in effect as it grapples with high interest rates, competition, and other macroeconomic factors.

FREE REPORT: 17 Reddit Penny Stocks to Buy Now

If current trends continue, its previously high-margin EV business could types of commodity futures trading strategies become commodified over the next five years amid rising competition and lower pricing power. This isn’t enough to justify the stock’s forward price-to-earnings (P/E) ratio of 57 compared to the Nasdaq Composite’s average P/E of 32. But this can come at the expense of revenue per car sold and margins. For Tesla, this could pose a big problem because its previously high margins are the main thing differentiating it from its uninspiring mass-market rivals. Many believe CCIV’s market capitalization is closer to $6 billion because most financial websites underreport Lucid’s valuation. Catherine Brock covers investing, stock market news and related money matters.

Elon Musk has never been richer. He’s now worth nearly $350 billion

That’s because we believe the present value of its future stream of earnings is what determines the fair value for its stock. A camp of protesters opposed to the expansion of U.S. electric vehicle maker Tesla’s plant in Grueneheide near Berlin is being cleared, a police spokesperson said on Tuesday. Electric vehicle (EV) demand is expected to plunge as President-elect Donald Trump has indicated he plans to cut EV tax credits during his second term in the White House. In a Nasdaq analysis of recommendations from 30 analysts, Tesla had a “buy” recommendation.

The company also generates revenue by selling excess EV credits to the business at large. Phillip Securities downgraded Tesla from a “moderate sell” rating to a “strong sell” rating in a report on Wednesday, November 13th. white label solution white label forex trading platform Royal Bank of Canada upped their price target on shares of Tesla from $249.00 to $313.00 and gave the stock an “outperform” rating in a research report on Friday, November 15th. Needham & Company LLC reissued a “hold” rating on shares of Tesla in a research note on Thursday, October 24th. Wolfe Research initiated coverage on shares of Tesla in a research note on Thursday, September 5th.

According to 39 analysts, the average rating for TSLA stock is “Hold.” The 12-month stock price forecast is $228.11, which is a decrease of -35.30% from the latest price. For long-term investors looking for a company that could deliver higher-than-usual returns, Tesla may be a good bet. To meet its delivery targets, Tesla will have to ramp up its manufacturing capabilities in its facilities in both the United States and abroad.

The business plan at this point was for CEO Elon Musk and his team to keep the lights on long enough in order to roll out Tesla’s first built-from-scratch car, the Model S sedan. Over the last four quarters, the company surpassed EPS estimates just once. The company topped consensus revenue estimates just once over this period. Here at Zacks, we prioritize appraising the change in the projection of a company’s future earnings over anything else.

TSLA Forecasts

Citing ongoing innovation in AI and falling interest rates, Mahaffy expects the S&P 500 will end 2025 up 14.5% to 19.6%. McKinsey has bearish flag chart pattern predicted healthcare profits will grow at a 7% CAGR between 2022 and 2027. Expected profit drivers after 2024 include cost efficiencies and higher reimbursement rates. Privacy Policy | No cost, no obligation to buy anything ever.Past performance is no guarantee of future results.