Tesla‘s (NASDAQ: TSLA) journey through 2023 has been nothing short of remarkable. A significant surge in its stock price, fueled by the broader rebound of the electric vehicle (EV) industry and the resurgence of tech stocks, has left investors and enthusiasts alike captivated.
However, as we look ahead, forecasting Tesla’s stock market trends for 2024 presents a formidable challenge. Numerous pivotal factors, ranging from the highly-anticipated Cybertruck launch to Tesla’s Q3 and Q4 earnings, intensifying EV competition, and macroeconomic variables, cast a veil of uncertainty.
Seeking insights into future market trends, Finbold has consulted leading financial experts to predict Tesla’s value as we step into 2024.
Robert R. Johnson, Professor of Finance
Robert R. Johnson, Professor of Finance at Creighton University and former Senior Managing Director at CFA Institute offered a mixed view with regard to TSLA’s 2024 outlook.
In the first part of his analysis, Mr. Johnson noted “an awful lot of red flags” related to the Tesla stock, most notably its “atmospheric valuation.”
“Any investment in Tesla at the current valuations is purely speculative, in my opinion. The company’s fundamentals simply don’t justify the atmospheric valuation of the stock.”
– Professor Johnson wrote in his response to Finbold.
The professor also noted that for the most part, the bull case for Tesla circling around the internet is based on “a narrative of Elon Musk being a genius and electric vehicles being the future of transportation.”
“The bottom line is that many investors are swayed by stories and ignore fundamentals.”
– he added.
Johnson concluded that investing in TSLA shares at the moment is “highly speculative,” although it does not mean that investors who buy the stock at this valuation cannot turn a profit.
“While I wouldn’t bet on Tesla at these valuation levels, I wouldn’t bet against the firm either.”
Michelle Delker, founder of The William Stanley CFO Group
Meanwhile, Michelle Delker, the founder of financial services firm The William Stanley CFO Group, said there are numerous risks associated with Tesla’s stock right now, and its performance mainly depends on how the company can address them.
According to Delker, there are a number of factors that could differently influence Tesla’s share price in 2024, including the outcome of the upcoming Cybertruck, rising capital costs, competition from traditional automakers in the EV market, and sticky inflationary pressures.
“Factoring all these elements, there seems to be considerable risk and uncertainty about TSLA’s future stock price. However, given Tesla’s proven resilience and technological expertise, it can leverage these challenges into its favor.”
– said Delker.
Andrew Lokenauth, Founder of TheFinanceNewsletter.com
Andrew Lokenauth, experienced finance expert with 15 years of experience at top Wall Street firms like Goldman Sachs, Citi, and JP Morgan, was also consulted by Finbold regarding Tesla’s 2024 outlook.
In contrast to Johnson, and Delker, Lokenauth’s case for TSLA is largely bullish. His optimism is mainly based on continued demand, particularly in China, robust backlog of Tesla’s Model 3 and Model Y orders to fulfill, growing production capacity at its Giga Texas and Giga Berling plants, and a potential surge in investors’ enthusiasm following the Cybertrucj launch.
Because of these factors, Lokenauth expects TSLA stock price to hit around $350 at the start of 2024, implying a possible upside of around 40% from its current levels.
The current macroeconomic conditions could pose risks for TSLA, but are “outweighed by bull case,” the expert concluded.
Tesla stock price analysis
Shares of Tesla are trading at $251.03 at the time of writing, almost unchanged since the last trading session.
Over the past week, the stock fell around 2.5%, and more than 5.2% in the past month.
Year-to-date, TSLA’s performance remains strong at +132%.
The company is expected to report its Q3 earnings on Wednesday, with the majority of analysts expecting a sharp drop in margins and earnings per share (EPS) due to lower profitability caused by the current pricing war in the EV industry.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.