As Tesla stock takes a breather from its previous rapid climb, the anticipation surrounding events like the robotaxi reveal has piqued my curiosity about its future growth prospects. Let’s delve into the numbers and expert analyses to gauge what lies ahead for Tesla in the next couple of years.
Exploring the Forecast
- The Price-to-Earnings (P/E) ratio stands at 62 currently, reflecting the multiple at which the stock trades in relation to earnings.
- For 2024, analysts estimate an EPS of $2.28, following a dip from the previous year.
- Despite a slight setback in deliveries and market share concerns due to intensifying competition, the forecast suggests a potential uptick in share price in the upcoming year.
Connecting Earnings to Share Price
- Given the current P/E ratio, a forecasted EPS of $3.12 for 2023 could lead to a projected share price of $141 for the next year, a considerable drop from the current $220.
- It’s crucial to remember that these forecasts are not set in stone and can be influenced by various external factors affecting Tesla’s performance.
Peering into the Future
- The Q3 financial results reveal on October 23 is expected to act as a pivotal moment for Tesla’s stock trajectory. Positive outcomes from this event could potentially trigger a rally irregardless of the earnings report, driven by factors like new ventures, partnerships, or product launches.
- While the growth forecast may appear less favorable on paper, the upcoming earnings report will be closely monitored for any significant developments that could alter perspectives on Tesla’s future performance.
Conclusion:
As the landscape evolves for Tesla in the coming months, the stock remains on the radar for potential investment considerations. The unveiling of the company’s financial results and subsequent events could potentially steer Tesla towards a path of resurgence, making it a compelling prospect for future investment endeavors.
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