Two leading experts on Tesla have given insight into what they expect from Battery Day, which will be held on Tuesday (US time), as a leaked image of a larger, longer battery cell hints at least one major new innovation for the electric car maker. Valuations may not be as high as they seem, but are there clouds on the horizon? If JPR007’s theory plays out, is it possible that Tesla will reduce the cost of batteries in line with “Wright’s Law” which observes that the cost of new technology falls as demand rises? He's a wild card when it comes to making any predictions at all about Tesla's future. Tesla Stock Price Predictions. Then there’s BYD, “China’s Tesla” backed up by Warren Buffett. The stock is a different story. (Getty Images). On the date of publication, Wayne Duggan did not have (either directly or indirectly) any positions in any of the securities mentioned in this article. Extra time at home can be used to work on financial projects that often get overlooked. The idea behind that prediction is that Tesla is not a scam — it’s just extremely overvalued, gaining about 750% in the past year. Turns out, it would have to sell around 1.3 million cars a year to push down its PEG to the big tech level. Eventually, … Share price can become detached from reality in the short-term. ”, 3 Reasons to Inject Your Portfolio with Sorrento Therapeutics, Matt McCall and the InvestorPlace Research Staff, Buy Piedmont Lithium Stock Now for Unique EV Exposure, Louis Navellier and the InvestorPlace Research Staff, Trump vs. Biden: Stocks to Buy No Matter Who Wins the White House, 7 Big Tech Stocks to Buy for Blockchain and Crypto Exposure, Exxon Mobil Stock Is Still a Buy and for the Right Reasons, 7 Highly Rated Pharmaceutical Stocks for Q4, Pricey Plug Power Stock Could Keep Moving Higher, or Attract a Buyer, 7 Value Stocks To Buy in an Overvalued Market. NFLX , and Nvidia And last quarter, it earned $0.06 on every dollar in sales it made (net profit margin). anticipation for Tesla’s Battery Day is enormous. AAPL Compare sector performance when evaluating stock picks. You’ll get the name & ticker of Matt McCall’s top pick when you tune in to his FREE event. According to @skorusARK research, other companies focused on EVs are three to four years behind $TSLA in battery technology already. The stock is a different story. battery-powered Tesla Cybertruck | Tesla stock (TSLA), EY & Citi On The Importance Of Resilience And Innovation, Impact 50: Investors Seeking Profit — And Pushing For Change. It's time for U.S. investors to change their outlook on European investments. As markets continue to faze expectations, firms with a solid foundation for growth will be resilient. Keeping more of what you earn and invest is the key to building wealth. By the end of 2021, competitors are expected to introduce an additional 20 EV models to challenge Tesla's leading market share. Fine. This past July, it released its first electric sedan, Han, which will compete head on with Tesla. Tesla stock investors hate to compare the stock to other auto stocks. Wood’s previous five-year price target on Tesla was $6,000. Back in July, I said the biggest risk for Tesla (NASDAQ:TSLA) investors wasn’t a Tesla stock crash, but that the bubble would result in 10 to 15 years of underperformance. If anyone has seen this battery cell before or if you some information about them, please reach out. Tesla reported $104 million in net income in the quarter based on generally accepted accounting principles, or GAAP. Doug Kass, president of hedge fund Seabreeze Partners Management, says he has resisted shorting Tesla for years. Tesla shares are much, much cheaper Monday after the stock's 5-1 split. He's a wild card when it comes to making any predictions at all about Tesla's future. Tesla co-founder and CEO Elon Musk gestures while introducing the newly unveiled all-electric ... [+] battery-powered Tesla Cybertruck | Tesla stock (TSLA). That valuation is a steep premium to legacy auto stocks Ford Motor Co. (F), General Motors Co. (GM) and Toyota Motor Corp. (TM), which average a forward earnings multiple of 10.3 and a price-to-sales ratio of 0.51. Wayne Duggan has been a U.S. News & World Report contributor since 2016. The irony is that neither can Elon Musk. As noted on The Driven on Friday, anticipation for Tesla’s Battery Day is enormous. It is expected that Tesla boss Elon Musk will unveil a million-mile battery, along with a number of other breakthroughs including a possible wider cell design, that would ideally bring down the cost of making batteries – a critical development given that batteries are the main cause of the high ticket price of EVs. Copyright © 2020 InvestorPlace Media, LLC. Roadrunner refers to a battery production facility Tesla has reportedly been working secretly on at its Kato Road facility. All Rights Reserved, This is a BETA experience. The question is whether these breakthroughs will help #Tesla pull away even faster. During that 20-year stretch, Apple stock’s single best year was an over 200% gain back in 2004. That’s nearly 2X more than Toyota—the world’s ex-largest automaker. The Tesla stock forecast is 527.151 … Finally, Kass and many other Tesla short sellers are extremely skeptical of the stock's valuation. Disney's company reorganization tells us everything we need to know about their new strategy: video streaming. However, in order to maintain a high price-to-book ratio charismatic leadership needs to be paired with expectations of stability based on predictable behavior. Tesla's forward earnings multiple is more than double the average of these tech giants, and its price-to-sales ratio is more than 50% higher. Analysts' positive predictions caused one computer stock to climb today. It appears that investors are again putting Tesla in a similar situation. JPR007 breaks down how he thinks the bigger battery, which also appears to be “tabless” (refer to this article here on why Tesla’s tabless electrode patent is way more important than it sounds according to Musk), could equate to longer range, lower production costs and less need for factory floor space. In fact, he is calling for 21% compound annual revenue growth for the company through 2029. I know, it looks like Covid’s meteoric rally, but the correct answer is 2013. Every week, I put out a story that explains what’s driving the markets. They say the company is closer to Apple (NASDAQ:AAPL), which started by selling hardware and transitioned its growth story to a services model. Based on our forecasts, a long-term increase is expected, the "TSLA" stock price prognosis for 2025-10-08 is 861.748 USD. Eventually, the company’s actual growth will likely catch up to its stock price. Tesla’s revenue growth in the last four quarters has been 3%. Other automakers aren’t sitting idle either. Of course, demand for BEVs will pick up over the years, but so will competition. The idea behind that prediction is that Tesla is not a scam — it’s just extremely overvalued, gaining about 750% in the past year. Are they more fundamental breakthroughs? Stay ahead with “big picture” insights you won’t find elsewhere. And it looks as if they are starting to nail electric cars. The higher the expected growth relative to P/E, the lower the ratio. However, in order to maintain a high price-to-book ratio charismatic leadership needs to be paired with expectations of stability based on predictable behavior. And right out of the gate, it’s outselling Tesla 3X in Norway—Tesla’s biggest market in Europe. Apple and Google have done them as their share prices have risen, and it didn’t hurt shareholders. Yes, Tesla has an excellent long-term growth opportunity. In short, it fine tunes a P/E’s reading based on a stock’s expected growth. And that great company just happens to have a stock price that is absolutely ridiculous. The image shows a wide cylindrical battery, that is estimated to be 29mm longer, and with a much larger diameter that the 2170 cells made in Nevada for Tesla by Panasonic. Tesla's revenue was down nearly 5% last quarter, but many Tesla bulls say the automaker is more like a high-growth tech stock than an auto company. Tesla is up 772% in the past year alone. The Man Who Recommended 23 1,000% Winners Is Revealing His #1 Stock for 2020. But Gill still can’t find the upside for Tesla stock. Which electric car is the cheapest to run? Copyright © Bearish investors think a stock market correction is likely. I wish all the best for Elon Musk and Tesla stock investors. Tesla, Inc. quote is equal to 442.065 USD at 2020-10-13. It’s big — Elon Musk (@elonmusk) September 20, 2020 Two experts – one, Tesla bull and founder of Ark Invest Cathie Wood, and the other, a Tesla company and stock watcher known only as “JPR007” – have delved into some of the potential breakthroughs expected to be revealed this week on Twitter.. The billionaire investor Ron Baron said in an interview with CNBC on Tuesday that he thinks Tesla shares could hit $3,000 in five years. Some reduced confidence in markets today, with all 11 sectors of the S&P closing in the red. That’s some pretty crazy long-term growth. For the next six years, Tesla stock went nowhere. "Faced with an onslaught of competition, Tesla's market cap is now nearly four times that of Ford, General Motors and Fiat Chrysler (FCAU) combined – despite selling only about (400,000) cars per year, compared to the big three's sales of 17 million units," Kass says. As Laura Gonzalez, associate professor of finance at California State University, Long Beach, wrote in an email to InvestorPlace: “Tesla has overcome numerous obstacles and there is demand for alternatives to traditional automobiles. A lot of sales numbers pool battery electric cars (BEV) like Tesla’s with hybrid plug-in electric cars (PHEV). But investors could be disappointed by how long that realignment may take. TESLA (TSLA) Meanwhile in Markets. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. You may opt-out by. He is skeptical of Tesla's valuation until it can prove that its auto business can be significantly and consistently profitable. She has a keen interest in the role that zero emissions transport has to play in sustainability and is co-organiser of the Northern Rivers Electric Vehicle Forum. They’ve bid up the stock to a price that suggests it will sell more cars than is even theoretically possible. For now, Tesla can sell these credits at a 100% profit, but analysts say Tesla's window of regulatory credit sales is closing. I hate to break it to Tesla investors, but Apple reported 39% revenue growth in 2004. "Tesla, that's going to be $2,000 or $3,000 in five years and a multiple of that over the next five years," Baron said. Sign up for stock news with our Invested newsletter. 1125 N. Charles St, Baltimore, MD 21201. Tesla stock price predictions for October 2020. Just two more sleeps (well, in Australia). These legacy automakers need the credits to avoid regulatory penalties until they roll out their own EV models. From 2000 to 2015, Microsoft reported impressive revenue growth. The stock begin trading on a split-adjusted basis on Aug. 31 following a 5-for-1 stock split. Subscribe to our daily newsletter to get investing advice, rankings and stock market news.