Tesla Stock Forecast: What Lies Ahead?

This past Tuesday, January 17, marked one of the most significant milestones in the history of Tesla. The electric car manufacturer released its fourth-quarter and full-year 2018 financial results, and the results were eye-opening. Tesla reported a staggering $719 million in revenue for the quarter, which marked a 420% year-over-year increase. These positive results were in spite of continued challenges with Model 3 production, which was the company’s main focus until recently. Now that the company has turned the corner, let’s take a look at how the stock reacted following the results announcement. Tesla Stock Forecast: What to Expect in 2022 The year 2022 will be a critical year for Tesla. The company is expected to report its first-ever quarterly profit in the first quarter of the year. Additionally, the company will be able to provide more insight into its Model 3 production timeline. As it stands, Tesla currently does not have a confirmed production timeline for its Model 3. Nevertheless, CEO Elon Musk has stated that the company is on track to produce at least 5,000 units per week by the end of the first quarter of 2022. Additionally, Tesla’s Autonomy program will be a key focus going forward. This program aims to provide Tesla owners with the option to rent out their cars. This endeavor could prove to be a major revenue driver for the company in the long term. Read also: AMC stock forecast for 2025 rnElon Musk’s 2023 Challenges Tesla’s Model 3 Production: Tesla’s struggles with Model 3 production are well-documented. However, the company has recently announced positive developments. Tesla recently announced that it is continuing to increase its weekly Model 3 production rate to 5,000 units per week by the end of Q1 2022. - Tesla’s Model 3 Sales: In a year where Tesla finally buckled down on Model 3 production and delivered some positive Model 3 sales, it was surprising to see Tesla’s Model 3 deliveries fall by a whopping 50%. - Model 3 Pricing: Tesla’s Model 3 is still largely expensive due to its higher-quality materials and features compared to competitors’ vehicles. - Model 3 Customer Satisfaction: In addition to Model 3 price, Model 3 customer satisfaction is another key factor that could influence long-term Model 3 sales. Tesla Stock Analysis Tesla had two major announcements this year - the unveiling of its new Roadster in January and the launch of Model 3 in July. The Roadster launched in 2008 had a base price of $98,000, which was obviously way higher than the Model 3 price of $35,000. This may reflect a clear intent on Tesla’s part to create a niche market for itself. However, it certainly put pressure on Tesla’s stock price. The Model 3 also put a spotlight on Tesla’s financial health. The car is priced at $35,000, and Tesla is promising to produce as many as 500,000 units of the car by the end of next year. This is a huge, but challenging target. The Model 3 may be a hit, but it is also a risk, as we will see in the next section. Conclusion Tesla has plenty of reasons to keep riding the wave of positive news. The company reported its best quarterly revenue in the past year, its Model 3 production rate is on track to reach 5,000 vehicles per week by the end of the first quarter of 2022 and it is set to unveil its first affordable EV, the Model Y, later this year. As such, it is not surprising to see the stock surging by almost 15% from Tuesday’s close to Thursday’s open. Tesla’s stock has surged by more than 20% since the start of the year and it has more than proven its resilience to the ups and downs of the market. As the company continues to make progress on its Model 3 production, the Tesla stock forecast for 2022 looks bright.