From Nasdaq: 2024-05-19 05:06:00

Since going public in 2010, Tesla (NASDAQ: TSLA) has defied expectations, with CEO Elon Musk proving skeptics wrong. Despite its success, Wall Street is divided on Tesla’s future, with stock trading at $177.46. Ark expects a 1,027% increase to $2,000, while GLJ Research predicts an 87% drop to $23.53. Tesla faces challenges in its EV business due to softening demand.

Tesla’s success may depend on autonomous driving technology. Musk sees Tesla as an AI company, not just a car manufacturer. Full self-driving (FSD) technology could be a game-changer, with the Cybercab and autonomous ride-hailing network promising substantial revenue. Ark believes Tesla could generate over $1 trillion in revenue by 2027, while GLJ Research questions if Tesla is overvalued.

Despite Tesla’s potential, its current P/E ratio of 65.0 raises concerns, trading at twice the Nasdaq-100 index. If Tesla were to match the index’s P/E ratio, its stock would need to drop 55% to $80.54. GLJ Research’s target price of $23.53 may be more realistic than Ark’s $2,000 prediction. It may be best to wait on the sidelines for more information on Tesla’s upcoming products.



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