Tesla Stock Price Prediction For 2025: What To Know in June

The company’s global Supercharger network and destination charging partnerships further enhance vehicle usability for long-distance travel. The stock price spiked in July above $290, only to fall to $215 in August. Tesla stock has run up 135% since January, but it’s still 40% off its 2021 highpoint. Is this recent strength building towards a new high stock price for Tesla  TSLA +2.8% in 2025? Read on to learn where Tesla’s opportunities lie and what challenges it faces going forward.

The $85 target comes from Craig Irwin, a Roth Capital analyst. In his view, steeper competition, factory shutdowns and launch delays put Tesla at risk of losing market share. In Q4 2023, Li Auto beat analyst forecasts, reporting YOY increases of 133.8% in sales and 2,068.2% in net income. The company is also highly profitable, boasting a levered FCF margin of 35.94%. With total deliveries for 2023 increasing 182.2% to 376,030 vehicles, Li Auto’s financials are robust and healthy. Farran Powell is the managing editor of investing, retirement and banking at USA TODAY Blueprint.

TSLA Forecast – Frequently Asked Questions

• The stock is up 16% in the last two months but still 35% below its July 2022 peak (82).
• But if you don’t already own it, I think there are better prospects out there—particularly in less famous stocks.
• Of the major commodities, only OPEC-controlled oil has largely escaped deflationary pressures.
• It also acquired solar panel company SolarCity in 2016 to expand its clean energy business.
• Tesla’s performance in 2023 and early 2024 was a bit tepid, with decreased vehicle deliveries and increased competition.

Longer-term, the energy business, driverless taxis and a cloud computing service using Dojo could end up justifying Tesla’s high price tag today. Tesla is often viewed as a long-term buy due to its EV market leadership and growth potential in energy solutions. However, opinions vary, and potential investors should consider market competition and regulatory risks.

His affiliations and controversies, particularly with President Donald Trump’s administration, have sown uncertainty and negatively impacted investor sentiment and Tesla’s brand image. Ives predicted that Tesla’s shares would be “under some pressure” on Monday as investors worry about Trump viewing Musk as a competitor instead of an ally. Tesla shares peaked at about $480 in December as investors wagered Musk’s close association with Trump would benefit Tesla. But the pair’s relationship has deteriorated in recent months as they’ve clashed over government spending. Discover the next wave of investment opportunities with our report, 7 Stocks That Will Be Magnificent bdswiss forex broker review in 2025.

His work has been published by Vanguard, Capital One, PenFed Credit Union, MarketBeat, and Fora Financial. Dan lives in Bucks County, PA with his wife and enjoys summers at Citizens Bank Park cheering on the Phillies. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. And like TSMC, Broadcom seems poised to outgrow Tesla within the next five years, considering its stronger earnings growth and its robust position in the AI chip market. Even better, analysts expect this growth to flow to the bottom line as earnings increase at an annual rate of 26% over the next five years.

Will Musk’s feud with Trump damage Tesla’s government ties?

For instance, in the first quarter of 2025, Tesla delivered 336,681 vehicles, marking a 13% drop compared to the previous year. After its IPO, the stock price fluctuated but remained relatively low. A pivotal moment came in 2012 with the launch of the Model S, Tesla’s first mass-market electric vehicle (EV), which boosted investor confidence and put TSLA at a high of $2.66 in March 2012. Tesla was founded in 2003 by engineers Martin Eberhard and Marc Tarpenning, with the vision of creating electric vehicles that could rival traditional combustion-engine cars in performance and style. Elon Musk joined Tesla shortly after as a chief executive officer, leading a series of investments that would shape the company’s future.

Vehicle Deliveries and Production

As an industry leader, Joby stands to benefit from industry expansion. The Urban Air Mobility market is expected to reach $45.40 billion in 2036, growing at a CAGR of 23.54%. While the industry is still in its early stages, government initiatives and private investments are aiding the market’s development.

I predict more pain for Tesla’s EV sales over the next few years with the rising supply of cars available from competitors around the globe, especially from China. Bob Haegele is a freelance writer specializing in topics such as insurance, investing and credit cards. His work has appeared on Business Insider, CreditCards.com, and other nationally recognized outlets. Analysts expect Tesla to earn lower earnings in 2024, projecting earnings per share of $2.28, down from $4.30 in 2023. Concerns have also been raised about Tesla factory conditions.

Meanwhile, analysts’ average price target of $297.31 reflects about 6% downside potential. Further, the lowest price target for Tesla stock is $115, implying 64% downside potential from current levels. Its once-dominant automotive business is now showing signs of strain, with slowing delivery growth and declining profit margins.

Challenges and Risks

Financial projections for 2025 indicate a robust increase in revenue, potentially reaching $127.61 billion, up from $107.12 billion in 2024. According to Stock Analysis, earnings per share (EPS) are also expected to rise to $3.87, marking a 37.08% increase from the previous year​. Tesla does not pay dividends and currently has no plans to offer dividends to investors. Stock price appreciation is the only form of profit for investors of TSLA shares. Thanks to such solid tailwinds, it is easy to see why Broadcom’s earnings are forecast to increase at an annual rate of 20% for the next five years.

• Projections by Allied Market Research indicate that the energy storage market could reach $435 billion by 2030, presenting a lucrative opportunity for Tesla.
• Tesla stock dropped sharply on Monday as traders reacted to Elon Musk’s announcement that he would start a new political party.
• Tesla is a risky stock, but one that could play big rewards down the line.
• Humanoid robots are still in the very early stages of development, and it is unclear whether Tesla is the leader here.

But as competition heats up, its growth trajectory may be tempered relative to the company’s history. Famous growth investor Cathie Wood has a similar vision, albeit with a longer timeline. Citing Dojo as a growth factor for Tesla, Wood predicts Tesla will hit $1,400 or more by 2027. The bullish camp predicts steep growth for TSLA, while Tesla bears believe the stock is only headed down. If you don’t have that confidence, Tesla is an expensive risk.

Here’s a closer look at the reasons why these two semiconductor stocks may be able to surpass Tesla by market cap over the next five years. With this challenging outlook, it won’t be surprising to see Tesla overtaken in the list of world’s largest companies. Specifically, Taiwan Semiconductor Manufacturing (TSM -2.38%), popularly known as TSMC, and Broadcom (AVGO -0.37%) are fast on Tesla’s heels. Both companies are expected to enjoy strong growth due to unprecedented demand for their chips too. Tesla (TSLA -6.72%) is currently the eighth-largest company in the world with a market cap of just over $1.05 trillion as of this writing. So, if the top risks to the world right now are climate change and geopolitical conflict, the growth of nuclear energy in both America and China is essential.

Price Target and Rating

Recently, the company announced a $1.3 billion investment in Indonesia to build an electric car factory. This move, in combination with on-going factory construction in Thailand, Brazil, Hungary and Uzbekistan, will greatly increase BYDDY’s global presence. The automaker has experienced immense success in Southeast Asia as the top-selling EV brand after only recently entering its market. With the company committed to growth, there’s no doubt that BYDDY will experience future prosperity. Making long-term predictions for individual stock prices is very difficult. Whether a stock has done well or fared poorly, the tide can shift overnight.

What’s next for Tesla and Elon Musk?

A few weeks later, the company reported higher-than-expected revenue and EPS. All this has led Tesla to aggressively drop its selling prices for new vehicles to try to inspire more customer demand, although this has not done much to turn the tide. Tesla’s automotive revenue sank 20% year over year last quarter. Its operating income of $7 billion has been moving in the wrong direction for multiple years now, showing the pressure the EV business is facing with declining volumes and selling prices. In its most recent earnings report, Tesla reported record growth in vehicle deliveries, up more than 6% from last quarter.

Analytical forecasts for Tesla (TSLA) stock in the next 12 months range from $218 to $786. This wide range reflects differing expectations about Tesla’s production capabilities, market demand, and overall economic conditions. Tesla’s ongoing development of Full Self-Driving (FSD) technology is a critical factor in its long-term outlook. By 2026, Tesla aims to fully integrate autonomous driving capabilities, potentially revolutionising the transportation industry.