TSLA Stock Price Prediction 2025 My Tesla 

Tesla, is an American famous multinational corporation that specializes in best electric vehicles, energy stored manufacturing based in Palo Alto, California. The company was founded in 2003 and has since become one of the leading players in the electric vehicle market. Tesla’s stock, which trades under the ticker symbol TSLA, has been one of the most closely watched stocks in recent years and its performance has been the subject of much debate and speculation. In this article, we will take a look at what factors are likely to influence Tesla’s stock price in 2025 and make a prediction for the stock’s performance in the coming years.

TSLA stock should keep going up (for now)

I'm skeptical of the recent reports, but I acknowledge that there are many things that could keep these leading EV stocks high.

For example, more investors are likely to continue investing in TSLA stock just a few weeks before Tesla's long-awaited investor day (March 1), which is expected to include the unveiling of its third-generation vehicle plan. The next automotive platform could allow Tesla to further reduce manufacturing costs.

In addition to improving the chances of winning the nascent “EV price war,” cutting manufacturing costs could allow Tesla to offer cheaper models to the mass market. Beyond that, there are two other things that could help TSLA stock maintain (and possibly increase) its current valuation.

First, upcoming shipments data could show Tesla's recent price cuts are creating huge demand, suggesting the company has a chance of hitting CEO Elon Musk's goal of 2 million shipments this year. Second, if the next few quarterly reports show that price cuts have not had a significant impact on margins, or that higher demand outweighs the impact, this could also boost investor sentiment.

Targets for 2024 and 2025

As such, TSLA stock could continue to rise until 2023. However, next year may be a different story, just like next year. Why? While Tesla may be outshining the competition today, that may not be the case in the coming years.

As the aforementioned “EV price war” is just getting started, it’s not clear how far automakers will go to capture more market share. Traditional automakers are also adjusting their sales model through dealers, which could also hurt Tesla's profits from a consumer-facing model.

As existing competitors catch up over the next few years, Tesla could have a major impact on its future growth, not to mention profit margins. The company will likely continue to grow at a double-digit pace, but it is safe to say that growth will slow down significantly in 2024 and 2025. In turn, this is expected to have a significant impact on the future performance of TSLA stock.

Now, with growing confidence that Tesla can return to 50% annual growth, the stock is back at a very high valuation (50x earnings without dividends). If growth slows, this estimate could drop significantly.

My Tesla price prediction for 2025

Do not misunderstand me. After years of trading technology valuations, I don't think TSLA stock will trade at a price-to-earnings (P/E) ratio like traditional automakers (less than 10x earnings).

However, it is possible that Tesla's valuation will shrink to a 20- to 30-fold increase in profits as growth slows. According to current forecasts, Tesla expects to earn $6.68 per share by 2025. Applying a 30x multiple gives a price of about $200 per share.

Of course, factors such as new model launches can outweigh negative growth factors such as competition. However, given the Cybertruck's precedent for delays, it could still be many years before a less expensive model arrives. Consensus is perhaps the best course of events.

With that in mind, I expect TSLA stock to trade at or near its current level in 2025 (at best).

As of the date of publication, Thomas Neal did not hold (whether directly or indirectly) any positions in the securities referred to in this document. The opinions expressed in this article are those of the author and are subject to the InvestorPlace.com Publication Rules.

Thomas Neal is a staff member at InvestorPlace.com and has been analyzing individual stocks for online publications since 2016.

Factors That Will Impact Tesla’s Stock Price
Electric Vehicle Market Share

One of the most important factors that will impact Tesla’s stock price in 2025 is its market share in the electric vehicle (EV) market. Tesla has been at the forefront of the EV revolution and has been instrumental in popularizing electric vehicles. As more and more consumers adopt EVs, Tesla’s market share is likely to grow, which will have a positive impact on the company’s stock price.

Competition

Another important factor that will impact Tesla’s stock price is competition. As the EV market continues to grow, more and more players are entering the market, which is likely to lead to increased competition. This increased competition will put pressure on Tesla to continue to innovate and improve its offerings in order to maintain its market share.

Battery Technology

Battery technology is another important factor that will impact Tesla’s stock price. Tesla has made significant investments in battery technology and has been working to improve the range, cost, and durability of its batteries. As battery technology continues to improve, Tesla’s stock price is likely to benefit.

Government Subsidies and Incentives

Government subsidies and incentives play an important role in the adoption of EVs. Tesla has benefited from government subsidies in the past and is likely to continue to do so in the future. As governments around the world continue to offer subsidies and incentives for EVs, Tesla’s stock price is likely to benefit.

Global Economic Conditions

Finally, global economic conditions will also play a role in Tesla’s stock price. If the global economy experiences a downturn, consumer spending is likely to decrease, which will have a negative impact on Tesla’s stock price. On the other hand, if the global economy is strong, consumer spending is likely to increase, which will have a positive impact on Tesla’s stock price.

Tesla Stock Price Prediction for 2025

Based on the factors discussed above, it is likely that Tesla’s stock price will continue to grow in the coming years. As the electric vehicle market continues to grow, Tesla’s market share is likely to grow, which will have a positive impact on the company’s stock price. Additionally, as battery technology continues to improve and governments around the world continue to offer subsidies and incentives for EVs, Tesla’s stock price is likely to benefit.

However, it is important to keep in mind that stock prices are subject to a high degree of uncertainty and can be impacted by a variety of factors. As a result, it is impossible to predict with certainty what Tesla’s stock price will be in 2025.