Tesla Stock Price Today : Op-Ed
Tesla Stock Price Today : My Favorite Stock
Tesla is a company that specializes in clean energy and electric vehicles. In addition to electric vehicles, they sell solar panels and batteries.
There is no question that electric vehicles and clean energy are the future.
Fossil fuels are bad for our environment since burning them makes the air polluted, which in turn can lead to health problems for some people. Fortunately, President Joe Biden’s clean energy plan strives to accelerate the transition. Many electric vehicles and energy companies will benefit, but one stock that happens to be my favorite that will benefit strongly even after rising so much is Tesla.
It doesn’t take too much of an expert to look at a chart of Tesla’s stock and see that it has gone up since its inception in 2012. It has risen so much to the point that Tesla’s CEO, Elon Musk, even said “I’ve gone on record already saying the stock prices have been high, and that was well before the current level. But also if you ask me, do I think if Tesla will be worth more than this in five years? I think the answer is yes.”
Furthermore Musk & Tesla declared a 5 to 1 stock split in August when it was trading around the $1400 mark. However, many people, myself included, had never heard of Tesla before 2020.
From the March 2020 lows to its January 25th, 2021 high, the stock has run up over 1300%. In addition to the stock-split catalyst, another catalyst that contributed to the massive run-up is the S&P 500 inclusion.
However, Tesla has pulled back considerably, currently down roughly 20% from its highs, although the stock was at one point down about 40% from its highs. This was, in a large part as a result of the recent rise in treasury yields that affected growth stocks since rising yields make it more expensive to borrow money.
Nevertheless, the notion that stocks go up over time is generally true, and I believe that Tesla’s share price will continue to go up in the long run. I present two reasons why Tesla is my favorite stock without delving into the fundamentals.
Cathie Wood is a Tesla Bull
Cathie Wood, the CEO of Ark Invest, is one of the most highly respected analysts on Wall Street. Her reputation blossomed as a result of being one of the few analysts that were bullish on Tesla. In early 2020, the majority of Wall Street analysts at the time were bearish on Tesla, with 45% of analysts with sell ratings and 36% with hold ratings.
However, Cathie set Tesla’s share price target at an aggressive $7,000/share for 2025. Since this announcement was made before any idea of a stock split, her target was technically $1,400/share post-split. This target has almost been met, and will almost certainly exceed it very soon. As a result of Tesla’s performance, she has recently revised her 2025 price target to $3,000/share (or $15,000/share pre-split). [Analysts forecast Tesla’ earnings growing by 98.73% per year over the next 3 years.]
Thanks to Cathie, investors and call option traders have made tons of money off Tesla. She has a cult following in the sense that whatever stocks she buys for her ARK ETFs, others will join along and buy those specific stocks. As long as she is committed to Tesla, there is no doubt that Tesla’s share price will increase. On the other side of the trade, short-sellers have lost tens of billions of dollars trying to short Tesla, citing not good profitability as their reasons for shorting Tesla. In 2020 alone, short-sellers collectively lost $38.2 billion.
I believe that Elon Musk is one of the smartest individuals of our generation and that he will continue to produce brilliant ideas. Although some of these ideas sound unrealistic and impossible, his passion and devotion to his work has led to many accomplishments.
The fact that Tesla vehicles come with Autopilot, which is their advanced driver-assistance system, and can be upgraded to either Enhanced Autopilot or Full Self-Driving is remarkable. In terms of sales, Tesla recently reported 185,000 vehicle deliveries for the first quarter of the year, exceeding expectations of 160,000 – 170,000 set by Wall Street.
This is impressive considering that we are in a pandemic and that there was a global chip shortage. Musk not only founded Tesla, but he founded several other companies too. In addition to Tesla, he is the founder and CEO of SpaceX, an aerospace company.
The goal of SpaceX is to find ways to transport humans to Mars under the assumption that there will be life on Mars in the future. Additionally, he founded The Boring Company, which aims to solve the problem of reducing traffic by building a mode of transportation similar to a subway, except the vehicles used are Tesla vehicles on skates.
Musk also has a strong presence on Twitter. His tweets are a mix of satire, memes, facts, and accomplishments. A few of his tweets have harmed Tesla share prices, although these impacts were short-lived. Additionally, his recent purchase of $1.5 billion in Bitcoin has further extended the Bitcoin rally to new records.
Whenever Musk tweets or signals something about Tesla, you can be sure of an impact (or even a laugh).
Musk loves to rip on short-sellers who bet against his stock. He even sold short-shorts last summer for $69.420 which sold out quickly.
Tesla has been one of the most-talked about stocks that have yielded some of the highest returns in this market. It is silly to bet against Elon Musk and his ideas. Additionally, we are supported by Cathie Wood, who is one of the biggest Tesla bulls in this market. As long her ARK ETFs indicates that she is holding a major position in Tesla, we are safe with smart company and because many people follow her trades and will own the stock because of Wood’s ownership. I believe at current prices, Tesla is still a buy for the long run.
Written by Jay Devon
Tesla Stock Price Today