Tesla Stock Price – TSLA Price Chart, History and Prediction
Tesla is one of the most divisive company stocks, with passionate investors on both ends of the spectrum. The Tesla stock price has been a huge gainer as well, something that can be attributed to Tesla's huge future plans, including, but not limited to, charging networks, home battery storage, and solar panels. This guide will touch on everything related to TSLA stock price. You’ll find out everything there is to know before buying the company's share.
Tesla Stock Price Chart Today
Tesla Stock Price History
As Tesla price stock surges, it only makes sense that we look at some history and some of the elements that could have contributed to the spectacular rise.
Tesla Stock Price Historical Trends
The company's Initial Public Offering took place on June 29, 2010, at $17 per share. The price shot up by over 40% on opening day, closing at almost $24. This shows that the euphoria of a future with electric cars was real even back then. But by March 2011, stock price of Tesla had crushed, trading at under $5 - the lowest the stock price for Tesla has been.
Since then, the stock has had quite a success story, with a rapid acceleration to its current value of around $780. Add to that the fact that Tesla did a 5-for-1 stock split on August 11, 2020.
The biggest Bull Run for Tesla (so far) started after the 2020 Covid-19 pandemic, with the stock jumping 50% in April 2020. Then, until September 2020, Tesla's stock rose by 370%, and hit a record high of $900 in January 2021, after which it lost 14.9% of its value in February.
Tesla Stock Price Splits
Tesla has only 1 split in its history. Why did the stock split, and what was the Tesla stock price before the split?
In August 2020, Tesla announced a 5-for-1 split of Tesla stock, in the form of stock dividend. A stock split happens when a firm increases its total number of outstanding shares for the price of the same shares, essentially breaking one share into several smaller shares. For example, with a 3-for-1 stock split, one $300 share would become three $100 shares, and all stockholders would get two extra shares for each one they already own.
Why do companies choose to split their shares? This mostly happens when the company's stock price gets too high. A stock split lowers the price, which then makes the shares more appealing and accessible investors who may not have been able to afford the stock before.
In Tesla's case, each investor got 4 extra shares for each one they had. On the first day of the stock split, shares of Tesla jumped 12.6% and were among the best performing worldwide. These gains were mainly attributed to the high volume of small traders who snapped up shares in the company at way lower prices.
Tesla Stock Price Prediction
Let’s now lay out Tesla stock price predictions though analyst consensus and price targets.
Analyst Consensus for Tesla Stock Price
According to the IBD Stock screener, Tesla stock boasts a Distribution/Accumulation Rating of B+. This rating analyzes volume and price changes in stocks over 13 weeks of trading.
Tesla stock price also has a Relative Strength Rating of 86 out of 99. This rating implies that the stock has outperformed 86% of all stocks in the IBD stock screener over the last year.
Its IBD Composite Rating is 97 out of 99. As a general rule of thumb, when picking growth stocks with the biggest potential gains, investors go for those with an IBD Rating of above 90. For even better results, shoot for 95 or higher, especially at the beginning of a new bull market.
Tesla Stock Price Target
The Tesla price chart suggest the price is quietly on the rise again, and the new Tesla stock price target is $1,000. Tesla stock price today per share is up 7.3% in 2021, way below Dow Jones Industrial Average's 14% increase and S&P 500's 19% rise. But after trading sideways for several months, Tesla stock has started making progress and is up more than 21% over between August and October 2021.
In fact, with Tesla stock price today at over $750, it could be poised to break through resistance on the way to more gains. It's undeniable that forces that had been contrived to keep Tesla stock from outperforming in 2021 are starting to dissipate.
Tesla Stock Price Predictions in 1, 2, 5, and 10 Years
- If Tesla stock price predictions come to fruition, the bullish trend should progress in 2022. According to a Tesla stock price prediction by Wallet Investor, January 2022's opening price is $811, while the closing price for December 2022 is $1104.
- This uptrend is projected to continue in 2023, according to the Economy Forecast Agency's predictions. Starting the year at around $1,110, the stock price is expected to increase to $1,400 by the end of the year.
- Regarding more long-term Tesla stock price prediction, the next decade could substantially increase Tesla's business. Wallet Investor predicts that the stock should cross the $2,000 threshold by the end of 2025, after opening the year at $1,711. The predicted closing price for December 2025 is $2,010.
- The most long-term Tesla stock price prediction we have is from investor Ron Baron, who believes Tesla should be worth $1.5 trillion by 2030. That said, note that these long-term forecasts are extremely approximate and are considered speculation. They shouldn't act as reliable investment advice.
How Can I Buy TSLA Stock Today?
If Tesla stock price prospects sound exciting and make you want to trade TSLA, all you'll need to do is find a reliable brokerage account, such as ZFX. ZFX is a regulated broker which provides many advantages, such as the MT4 platform and competitive fees. It also provides educational resources to help you become a successful investor.
Investing in Tesla Stock: Tutorial
Let’s now look at the step-by-step guide on registering with ZFX and invest in TSLA.
Step 1: Register with ZFX
On the ZFX homepage, find and click the button marked "open an account". You can also pick "Try demo”, if you'd like to learn about investing in the stock market without using real money.
On that page, you'll see a form that you'll need to fill with your personal data. Enter the info requested, then hit the next button.
That redirects you to the page above, where ZFX requires you to select your preferred account types. Then, check the Terms & Conditions box, and click "Sign up now".
Step 2: Make Your First Deposit
Once the account opening procedures are done, you'll need to transfer a minimum deposit to your new ZFX brokerage account from your bank account before you can start investing.
Step 3: Account Verification
As part of the Know Your Customer (KYC) process, newly registered investors on ZFX are required to provide supporting documents.
You need to give confirmation of residence as well as a proof of identity, like a valid passport or any other form of officially issued photo ID.
Step 4: Invest in Tesla Stock at Current Price
Finally, download MT4 and log in using the details sent to your email, find the stock under the symbol TSLA, and invest in it at the current Tesla stock price.
To Buy or Not Buy Tesla Stock?
In 2020, Tesla made history by surpassing Toyota to become the world's most valuable automaker. Since March 2020, Tesla's stock price per share has soared by a whopping 920%, boosting the firm's valuation by 9 times. To put that in perspective, the company is now worth as much as all nine largest car companies globally combined.
To help you better determine whether Tesla stock is a buy or not, let’s now look at some price-linked factors that have contributed to Tesla's success.
1. Vehicle Deliveries
Tesla delivered 241,300 vehicles for the 3rd quarter of 2021, which was above analyst estimates of 232,000. The firm's shipments grew 73% from 2020, and 20% from the prior quarter.
These delivery figures point toward a robust electric vehicles demand trajectory for Tesla. Also, Tesla's revenue doubled $11.9 billion in Q2 of 2021, above analyst estimates of $11.5 billion. The firm's adjusted earnings also shot up 230% to $1.45 per share.
2. A double-edged sword: Chip shortages
As the auto sector grows even more reliant on the use of complex hardware, the coronavirus pandemic has stalled deliveries and auto supply productions worldwide. This resulted in a mass shortage of sophisticated technical hardware for vehicles, including microchips.
Many chip manufacturers had no choice but to close their plants, as auto production collapsed. However, despite this microchip shortage, Tesla still exceeded $1 billion in sales over the Q2 of 2021. This was the first time the company hit that milestone in its history.
3. Tesla is a Story Stock
Tesla has been described as a "story stock." A story stock is a stock whose value is determined by its favorable press coverage and future prospects, rather than by its net income, assets, etc. Often, with this kind of stock, the intrinsic value isn't reflected in its price, since it can still be high even when the fundamental elements disagree.
For example, in 2017, Tesla announced the roll-out of its Model 3 Sedan. Following this, a sharp increase of Tesla stock price occured, and Tesla’s market cap briefly surpassed both GM and Ford. Here, we see that the price increase wasn’t a result of real event, but of a specific, envisioned future for the firm.
4. A worldwide shift to sustainable energy
As the world becomes aware of greener energy solutions and electric vehicles, investors and traders are placing high hopes on Tesla for its role at the forefront of sustainable technological inventions. Even critics acknowledge Tesla as the leader in recharging networks and E.V.s and are confident it'll benefit in share price and sales as the world shifts to green energy.
The only thing that could stand in the way of Tesla's success is the emergence of legitimate competitors with demonstrable advantages.
5. Tesla Regulatory Credits Sales
According to Tesla's earnings report for Q2 of 2021, its revenue hit $1.1 billion that quarter, with about $345 million coming from sales of regulatory credits. But what does this mean?
In California and 10 other states, any auto manufacturers who want to sell their products into the state must sell a certain amount of hybrid electric, electric, or some other ZEVs (zero-emission vehicles.) Automakers who don't manage to sell many of them, or aren't selling these kinds of cars yet, will buy credits from companies that have already complied. Since Tesla only sells ZEVS, it does not need to keep all the credits it has, so it sells them before they expire.
Things to Know About the Tesla Stock Price Before You Invest
Needless to say, investing is risky business. As such, here are several things you'll need to track and learn about the Tesla stock price before investing.
1. The company's fundamentals
Before buying Tesla shares, make sure you know what getting yourself into. Remember, when you buy a stock, you acquire a small portion of the actual business. Because of this, you should carefully analyse company documents including its management, competition, income statement, and balance sheet.
2. The emergence of new competition
It's not just Detroit's "Big Three" that Tesla needs to worry about. Lots of other technology corporations are jumping into this space and creating even more competition. So, ensure you have them in mind before making an investment decision.
3. Demand from other key regions like China
Most of Tesla's sales take place in the U.S. However, revenues from nations like China are playing an increasingly essential role in shaping the company's results. So, keep track of any regulatory or political hurdles imposed in this region, and that might affect Tesla sales.
4. The NHTSA investigation
10 fatal crashes involving Tesla vehicles have occurred in the U.S since 2016, and authorities are investigating whether the company's autopilot feature had anything to do with these incidents. Moving forward, keep in mind that the results of this investigation could impact the company's share price.
Bottom Line: What Can We Expect from Tesla Stock Price?
Tesla has become the largest auto company globally and is sitting comfortably atop the industry right now. If everything continues to go this way, that isn't likely to change anytime soon.
If you feel ready to invest at the current Tesla stock price, ZFX can allow you to do so in a few easy steps. This broker is solidly regulated and offers many benefits. These include competitive fees, the MT4 platform and a wide portfolio of assets.