The Tesla share price is up nearly 30% year-to-date. And, after reaching the $1,000 mark it now finds itself hovering around $930. So, with a new year upon us, what will 2022 have in store for the EV stock? Let’s take a look.

Tesla share price so far

Compared to the near 700% rise we witnessed last year, 2021 has represented a slowing down in the growth of the Tesla share price. The stock entered the year trading for $730 and got off to a strong start – up 15% by the turn of January. However, these gains were cancelled out as February saw 14% skimmed off the share price. This fall continued from March to mid-May. However, since then we have seen a slow and steady rise.

Towards the end of the year, the Tesla share price rocketed. Late October saw it surge above the $1,000 mark – making the EV firm only the sixth US company to hit a market capitalisation of over $1trn. Yet, after hitting a 52-week high of $1,243, the stock has fallen off.

So, where next?

Well, this depends on a few factors. One reason I think the Tesla share price could thrive in 2022 is that the firm is set to continue with its impressive growth. Tesla is set to launch its much-anticipated electric truck, along with the opening of new factories. Profits are expected to rise 40% for the year, while the firm is expected to sell over 1.5m vehicles. If these predictions are met, a rise in the Tesla share price is more than likely.

However, one concern for me is competition. As my colleague Stuart Blair highlighted, as the sector continues to grow, more and more manufacturers will venture over to the EV space. This includes Ford, which aims to move all-electric by 2030. It further includes Toyota, which recently announced it would be investing $35bn into EV production. This could impact the large grip Tesla currently has on market share, negatively impacting the stock’s price.

Should I buy?

It’s clear to see Tesla has the potential to prosper in 2022. The EV pioneer is on track to continue with its impressive growth, be it through new vehicle models or factory expansion. Based on this, I would be keen to buy Tesla stock. However, what is of major concern to me is the competition it will face in 2022. While Tesla currently enjoys domination over the EV sector, it is unclear how much of a threat more established vehicle manufacturers will pose as they venture into Tesla’s territory. Due to this, while I like Tesla, I intend to keep it on my watchlist for the time being.

The post Where will the Tesla share price go in 2022? appeared first on The Motley Fool UK.

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Charlie Keough has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.