Where will Tesla stock be in 5 years? Here’s what the experts say

The analysts’ outlook for Tesla stock in the next few years seems to be all over the place, as the price is starting to climb again.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Electric cars charging in station

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

So, Tesla (NASDAQ: TSLA) stock is up among the biggest of the techies, is it? Well, it comes bottom of the so-called ‘Magnificent 7’, named that way to mark their market dominance.

Created with Highcharts 11.4.3Tesla PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

The other six are Microsoft, Apple, Nvidia, Alphabet, Amazon.com, and Meta Platforms.

At close on Friday 12 July, Apple was the biggest with a market cap of $3.5trn, with Microsoft at $3.4trn. Nvidia did briefly top the table, but it’s slipped back to a mere $3.2trn.

Should you invest £1,000 in Nostrum Oil & Gas Plc right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Nostrum Oil & Gas Plc made the list?

See the 6 stocks

Meta is valued at £1.3trn in sixth place, but Tesla can’t even make a measly trillion. It’s worth a paltry $790bn, only around three and a bit times AstraZeneca, the biggest UK-listed company.

The way is up?

Tesla must be cheap, then, mustn’t it?

Cathie Wood seems to think so, for sure. She might not be as well known this side of the pond. But she’s the founder and CEO of Ark Invest, which has assets under management of around $6.7bn.

She’s put a price target on Tesla stock of $2,600 by 2029, with a range that reaches $3,100 at the bullish end.

To put that into perspective, Tesla closed on 12 July at $248. That $2,600 would need a 10-fold rise, plus a bit. It would push the Tesla market cap close to $8.3trn.

That much money today would be enough to buy up Microsoft, Nvidia, and Meta. Oh, and with enough left to buy AstraZeneca twice over.

Bears too

Not everyone is not quite so enthusiastic, though. And when I say “not quite,” I mean not within a million miles. UBS Group has just downgraded its price target to $197, labeling Tesla a ‘sell’.

That’s short-term, though. And it reflects a bit of bearishness creeping in following a delay for the firm’s big Robotaxi event, now scheduled for October.

The self-drive taxi business is what Cathie Wood’s optimism is all about. She reckons 90% of Tesla’s business could come from it by 2029. Without that, Ark Invest’s price target would only be around $350.

But if UBS is a bear, it looks like Global Equities Research is feeling bullish after setting a price target of $340-400. The mid-price of that range would mean a 50% rise from today.

So, how much?

So what do these analyst extremes mean? To me, they shout out one thing. Nobody really has much of a clue, and most of them are just sticking their fingers in the air. Some into the stratosphere and beyond.

I’d never buy based on a broker’s price target, but I do think they can be worth watching. The last time I saw what seemed like outrageous price forecasts being put on stocks, it was in the middle of the dot com boom.

Where do I think Tesla could be in five years? Though it’s a big risk, especially with competition heating up, I’m generally bullish for the long term. But what about Cathie Wood’s belief that it could be worth close to half the GDP of China? I have my doubts there.

But this isn’t the only opportunity that’s caught my attention this week. Here are:

5 Shares for the Future of Energy

Investors who don’t own energy shares need to see this now.

Because Mark Rogers — The Motley Fool UK’s Director of Investing — sees 2 key reasons why energy is set to soar.

While sanctions slam Russian supplies, nations are also racing to achieve net zero emissions, he says. Mark believes 5 companies in particular are poised for spectacular profits.

Open this new report5 Shares for the Future of Energy — and discover:

  • Britain’s Energy Fort Knox, now controlling 30% of UK energy storage
  • How to potentially get paid by the weather
  • Electric Vehicles’ secret backdoor opportunity
  • One dead simple stock for the new nuclear boom

Click the button below to find out how you can get your hands on the full report now, and as a thank you for your interest, we’ll send you one of the five picks — absolutely free!

Grab your FREE Energy recommendation now

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has recommended Alphabet, Amazon, Apple, AstraZeneca Plc, Meta Platforms, Microsoft, Nvidia, and Tesla. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Investing Articles

2 FTSE 100 and FTSE 250 stocks to consider as stock markets plummet!

Looking for lifeboats as growth-crushing trade tariffs loom? Here are two (including a FTSE 100 gold stock) I think merit…

Read more »

Number three written on white chat bubble on blue background
Investing Articles

Just released: the 3 best growth-focused stocks to consider buying in April [PREMIUM PICKS]

Our goal here is to highlight some of our past recommendations that we think are of particular interest today, due…

Read more »

Happy young plus size woman sitting at kitchen table and watching tv series on tablet computer
Investing Articles

£10,000 invested in Watches of Switzerland shares 1 year ago is now worth…

Watches of Switzerland shares have been decimated by Trump’s tariffs on Switzerland. Dr James Fox explores whether this is an…

Read more »

Hand flipping wooden cubes for change wording" Panic " to " Calm".
Investing Articles

Growth stocks are crashing! Here’s what I’m doing now

Our writer shares his thoughts as growth stocks get crushed, as well as a favourite from the Nasdaq that he…

Read more »

Investing Articles

What’s going on with the Nvidia share price now?

The Nvidia share price is tanking. Once the most valuable listed company, Nvidia has seen more than $1trn wiped off…

Read more »

Investing Articles

This FTSE AIM stock has £2.3bn in net cash, and a market cap of £2.4bn!

I love this FTSE AIM stock, but it really hasn’t delivered for me yet. The stock trades with crazily low…

Read more »

Smart young brown businesswoman working from home on a laptop
Investing Articles

Down 15% in a week! Are these 5 FTSE 100 fallers screaming buys as markets plunge?

Five of Harvey Jones's favourite FTSE 100 stocks all have the same thing in common – they've fallen around 15%…

Read more »

Hand of person putting wood cube block with word VALUE on wooden table
Investing Articles

2 stocks that have been crushed and now offer a ton of value

Edward Sheldon has been scanning the market for stocks that offer value after the sell-off. Here are two shares he…

Read more »