Tesla is building capacity to meet its expanding addressable market. (BMW.Germany). In the future, Tesla plans to offer lower-priced sedans and a light-duty truck dubbed Cybertruck. Tesla’s lineup today is comparable to, say, In recent years, Tesla introduced a lower-priced Model 3 sedan and Model Y crossover vehicle. Tesla started out selling higher-end cars such as the Model S, Roadster, and Model X SUV. Because it only makes EVs, it costs the company less to make an electric car than other auto makers, which means more profit per car.
Second quarter: Full self-driving beta rolls out.ARK Invest’s Cathie Wood believes full self-driving technology will help Tesla launch its robotaxi business in the coming years.
The company sells residential solar panels, battery backup power, electricity as part of its charging network, as well as self-driving software. Dorsheimer rates Tesla stock Buy with a $1,071 price target, one of the highest price targets on the Street.Īnd Tesla has plenty of services to offer.
Just as Apple sells hardware like phones, computers, and watches and then offers services inside its ecosystem, Cannacord analyst Jonathan Dorsheimer believes Tesla can sell cars, solar panels, and batteries, and then sell services and software to its customers. And many of the most optimistic investors see Tesla become something very similar to, well, Apple. Was once an overpriced computer manufacturer until it decided to do more than build computers. The case for buying Tesla stock: Yes, Tesla stock is pricey, and buying it means that you believe the company can be worth much more than a car manufacturer. At their price targets, Tesla would still be worth almost as much as He rates Tesla a Hold and predicts the stock can hit $150.īrikman and Irwin have two of the lowest price targets for Tesla stock. Roth Capital analyst Craig Irwin worries that the value of credits will decline as other auto makers start selling move EVs. Selling those credits has made Tesla about $2.5 billion over the past two years. It then sells those credits to car companies that make traditional gas-powered cars and need to offset their carbon. Tesla earns those credits by selling electric vehicles. Others worry about Tesla’s ability to continue selling what’s known as Zero Emission Vehicle credits. For Brinkman, the risks of any stumbles aren’t adequately reflected in the current share price. Any slippage in new model timelines, production, or profit margins arising from higher-than-expected start-up costs might disappoint investors. Tesla will have to execute flawlessly as the company ramps up new models and new production. Morgan analyst Ryan Brinkman, who rates Tesla stock a Sell with a $155 price target. For Tesla to warrant that valuation, it will need to sell more cars, introduce new models, and maintain the sky-high profit margins it earns from being the first mover in electric vehicles.