If you had invested $1,000 in Tesla stock in January 2020, when the stock was sitting around just $100 per share, your Tesla holdings today would be worth over $9,000. Just a glimpse at these numbers highlights that Tesla experienced significant growth in both 2020 and 2021.
While Elon Musk, the CEO of Tesla, believes that his company will be able to achieve another year of significant growth in 2022, Tesla’s earnings may be stifled by major supply chain issues and supply shortages that are being felt around the globe.
However, if Tesla is able to hit its production and expansion goals like Musk believe the company will be able to, then this next year might just prove to be a bigger year for Tesla stock than previous ones. So, what does this all mean for Tesla shareholders, and where is Tesla stock predicted to be in one year from now?
A Brief History of Tesla Motors
Tesla, Inc., formerly known as Tesla Motors, Inc., first launched on July 1, 2003, in San Carlos, California. Tesla Motors was not actually founded by Musk as many assume. It was founded by Martin Eberhard and Marc Tarpenning.
The two initially served as the company’s CEO and CFO, respectively. Eberhard and Tarpenning launched Tesla Motors because they wanted to “build a car manufacturer that was also a technology company.” The naming of the company was inspired by the 19th-century inventor Nikola Tesla.
In 2004, Elon Musk invested $6.5 million into Tesla Motors. During this process, Musk became the chairman of the board of directors and the largest shareholder of Tesla Motors. In 2008, Musk became the CEO of the company, and Tesla released its first electric car known as the Roadster. In February 2017, Tesla Motors, Inc. officially became Tesla, Inc.
Tesla’s Initial Public Offering and Rapid Growth Rate
Tesla, under the stock ticker TSLA, began trading on the NASDAQ for $17 per share.
Tesla’s initial public offering or IPO took place in June 2010. The company initially issued 13.3 million shares of Tesla during its initial public offering.
In 2020, ten years after the stock’s IPO, Tesla stock had experienced rapid growth. In January 2020, Tesla stock was trading around $130 per share. By the end year, Tesla was trading around $750 per share in December 2020.
Tesla stock had another huge year in 2021. Just through with the first quarter, 2022 is already stacking up to be even bigger for the company.
During the opening of the year in January 2021, Tesla stock was trading around $880 per share. By the end of the year, Tesla was trading around $1,060 per share. During the fourth quarter of 2021, Tesla stock also hit an all-time high of around $1,240 per share.
2022 Might Be a Massive Year For Tesla Stock
Both 2020 and 2021 were huge years for Tesla and its shareholders.
During a December 2021 call, Elon Musk had this to say about Tesla, “So just to recap 2021, it was a breakthrough year for Tesla and for electric vehicles in general. And while we battled, and everyone did, with supply chain challenges through the year, we managed to grow our volumes by nearly 90% last year. This level of growth didn’t happen by coincidence.”
The great news for investors is that Tesla doesn’t seem to be slowing down any time soon.
Later on in the call, Musk went on to discuss the future of Tesla, saying, “So after an exceptional year, we shift our focus to the future, Texas, and Berlin. So we’ve begun production at both Texas and Berlin. We started that last quarter. But that’s not the most important thing. We focus more on when to get to volume production and when can we deliver cars to customers.”
Musk went on to discuss that there will continue to be supply chain challenges throughout 2022, just as there were in 2021. However, he doesn’t believe this will greatly hinder Tesla as all industries are struggling with supply chain issues as of late.
In regard to his predictions for 2022, Musk said, “I’m not sure what you do for an encore to 2021, 2020. Nonetheless, we do expect significant growth in 2022 over 2021, you know, comfortably above 50% growth in 2022.”
So, how will Tesla find a way to top their 2021 earnings in 2022?
Well, according to Elon Musk, as well as multiple financial analysts, there are a number of factors that will allow Tesla to have a stellar performing year throughout 2022 and beyond. In 2022, demand will not be an issue for Tesla. While supply chain issues will likely be a significant challenge in 2022, Tesla should still be able to maintain production throughout the year.
Tesla’s Stock Should Continue to Be on the Rise Throughout 2022 and 2023
Overall, the following are key factors that should help to negate Tesla’s supply issues and allow the company to increase its earnings throughout 2022 and 2023.
- With rising oil prices and economic uncertainties, both the desire and need for electric vehicles will continue to rise in 2022 and 2023.
- There are over 1 million pre-orders of the Tesla Semi-Truck and Cybertruck.
- The production of Tesla, the Semi-Truck, and Cybertruck are expected to begin in late 2022, following the ramp-up of the Model Y Tesla in both the Berlin and Austin facilities.
- PepsiCo is expected to take delivery of Tesla electric trucks sometime during the fourth quarter of 2022.
- Tesla is looking to build new factories in 2022 and 2023, expanding well beyond just their Austin and Berlin facilities.
Is Tesla Stock a Buy, Sell, or Hold?
Based on our analysis of Tesla, TSLA is a definite buy on our list right now. Tesla is a very attractive growth stock as the need for and adoption of electric vehicles will continue to rise in the upcoming decade.
Furthermore, three key reasons that point to Tesla stock being a great buy right now and in the next year can be summed up through the following points.
- There is a growing need and desire for the world to go green and use renewable energy like electric cars.
- Tesla is in the process of its initial production of semi-trucks and cybertrucks, which will be used by major corporations like PepsiCo.
- Tesla is looking to expand their production facilities in 2022 and 2023.
Where Will Tesla Stock Be In 1 Year? As of March 2022, TSLA had a market cap of around $952 billion. If Tesla is able to work through global supply chain issues and hit its production and expansion goals throughout 2022, Tesla shares could well hit record highs within a year’s time.
Bullish financial analysts believe that Tesla stock could hit over $1,500 a share in just a year’s time.
Even if Tesla is not able to hit all of its production goals this year due to supply chain challenges, the overall outlook of the stock remains promising as renewable energy and electric cars will become a staple in the push for environmental sustainability in the decades to come.
So, if you’re looking for a growth stock to invest in right now, Tesla is one growth stock that appears to be a great buy right now due to its promising future.
The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.