Two Factors That Could Push Tesla Stock Sky High This Year
Tesla stock may be low right now, but Elon Musk is convinced it is going to shoot up int he near future.
Quick overview
- Tesla stock has seen a slight increase of 0.15% today, currently priced at $339 per share.
- Wedbush analyst Dan Ives has set a target price of $500 per share, anticipating significant growth driven by Elon Musk's return to the company.
- The upcoming launch of Tesla's robotaxi service in June is expected to enhance its market position and potentially lead to a 1,300% increase in stock value.
- Musk's renewed focus on Tesla, stepping back from other commitments, is seen as a positive development for investors.
Tesla (TSLA) stock may be moving very little today with a 0.15% increase, but it could increase by 1,300% in the near future thanks to two important factors.
The target price for Tesla stock has been set by Wedbush’s Dan Ives at $500 per share. Currently, Tesla stock is at $339 and climbing slowly. Like other analysts, Ives is counting on Tesla CEO Elon Musk to make a return to the company and have a major impact on its growth. But that is not the only factor that could help push the stock higher than ever.
In June, Tesla may be launching its robotaxi service, which has been in the works for years. Now, the company will be ready to launch its first automated ride sharing service in Austin, Texas this summer. That is part of the reason that Musk believes the company will eventually become the most valuable company in the world, and its investors will see a 1,300% increase in their stock value. Is Musk simply thinking wishfully out loud, or does he have some firm basis on which to make this prediction?
Musk Steps Back; Robotaxi Steps Forward
As was rumored for months. Musk is stepping away from his work with the government agency DOGE (department of Government Efficiency) to focus more on his company Tesla. That is good news for investors who feared that part of the reason the company has floundered this year has been because of Musk’s hands-off approach to managing it.
The robotaxi service could bring in big business for the company and offer a strong competitor to Uber and other taxi services. If successful, the venture would take the human element out almost completely from hired transportation and turn it over to artificial intelligence.
Investors should keep in mind that Waymo from Alphabet (the parent company of Facebook) has already placed robotaxis on the market in the United States. However, Musk believes that Tesla’s service will gather up most of the market share quickly due to lower operating costs and more efficient services. He says that Tesla has many more cars operating on the roads, so they have more collected data to use to make their ride service more efficient and more reliable.
As it stands now, Tesla is worth about $1 trillion, and its stock price is way down from its 2025 starting point of $403 per share. The two factors we have looked at could right the ship and help the company dominate the market once more, but we may not see that happen for months.
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