Many investors worldwide are looking forward to buying Tesla stock. The company is famous for the manufacture and sales of the electric vehicle. Last few years the growth of Tesla stock was exceptional. As the stock market and the share prices grow it is important to forecast the future performance of the company. The Tesla company provides an excellent opportunity for the investors in the stock market but the challenges of the company have to be considered mindfully. Here in this article, we will focus on the factors that influenced Tesla’s Stock price. Read further to know more about the key driving factors and market trends that influenced the surge in Tesla stock price.
Current Stock Performance of Tesla
Tesla stocks showed a significant surge this week. The value of Tesla stocks has increased by 65% recently. After Donald Trump’s presidential election win investors have hope in the future of Tesla. The Trump government policies could benefit Tesla. Last Wednesday, Tesla stocks hit $420.13 which was the all-time high value of Tesla. Another factor that contributed to the increase in the value of Tesla shares is the sales metrics of Tesla. According to the reports, 21900 electric cars were sold in the first week of December in China.
Last month 73,000 units of Tesla were sold. In November there was an increase in the sales of the vehicle.0 % interest loans for 5 years are provided by the company to increase sales. Promotion for the new model of Tesla has increased the number of sales of the vehicle.
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Factors that Influenced Tesla’s Stock Price
Financial analysts are anticipating a further increase in the stock price of Tesla. The main factors behind the increase in the value of Tesla are the presidential elections, increase in sales, and innovation measures of the electronic vehicle Tesla.
As the stocks have shown an increase of 65 % after the US presidential elections investors are optimistic about the future Tesla share value. The impressive performance in sales of the electronic vehicle also was a factor behind the tesla’s performance in the stock market.
The self-driving car Tesla has more market value than other competitor car manufacturers. The policy shift of the new Trump government can enhance the growth of the company by incorporating more innovative technologies in the electronic vehicle.
Future Tesla Stock Prediction
Several factors can impact the stock value of Tesla in the future. The rapid growth in the electronic vehicle market will be a driving factor for the increase in the share value of the stocks. The Tesla company is well known and has a global reputation which can result in the growth of the share value of Tesla in the stock market. Tesla uses advanced technology and innovation in the manufacturing of electronic vehicles.
The inclusion of Artificial intelligence and self-driving capability in the vehicle will enhance the surge in the stock value of the company in the future. The market capitalization of the company also has increased significantly. The revenue growth of the company also has surged. Although the Tesla company is facing challenges in electric vehicle production the company has managed to increase its profit margins. The investors are confident in buying Tesla shares as the company has performed well in the market.
The recent market trend also enhanced the performance of Tesla in the stock market. People are now interested in purchasing electric vehicles. This trend has helped in the surge of the Tesla market price. The self-driving technology implemented in Tesla is also a driving factor for its growth. However, sustaining in the evolving market and remaining competitive will be challenging for the company in the future.
Financial Analysts have predicted that in the next six to twelve months the stock price will be volatile. Some other financial experts have said that the Tesla stock will grow and experience a bullish trajectory. They have predicted that the stocks cross $900 shortly. However, some other forecast that external factors like inflations and challenges in the company like supply chain may disrupt the surge in the stock price per share of the company.
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After two or three years the financial analysts are optimistic that the stock price will surge. However, it will be solely based on the performance of the Tesla company in its production of electronic vehicles and revenue growth. Morgan Stanley has predicted that the share price will reach $1200 within this time. The key factors that will drive the growth of the company will be the new markets of Tesla and the incorporation of autonomous technology in the electric vehicle. This growth will be achieved by Tesla in the stock market if they can overcome the production challenges experienced by them.
Looking forward to five to ten years it is predicted that the share price will reach $ 2000 per share. As the company is focussing on more innovative technology and AI the Tesla share price will achieve new heights in the future. This bullish prediction comes with its own risk with technical challenges and policy shifts by the new governments.
Conclusion
The stock price of Tesla in the share market is influenced by various factors. The uncertain nature of the stock market will be a challenging factor for investors. However, it is undeniable that the Tesla company has great potential in the electronic vehicle market. Investors must be cautious while investing in the share markets. By studying past and future predictions investors can make a decision to buy the Tesla stock. In this article we have discussed the factors that have influenced the surge in the stock price of Tesla. It is believed that the company will grow in terms of profit and revenue in the future.
