Is Tesla a Safe Stock to Buy Now? | The Motley Fool (2024)

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Its production increased 47% in 2022 versus 2021. But deliveries only increased 40%, leading investors to believe Tesla might not, in fact, meet its previous projections to average 50% growth over the next few years. That said, now seems to be a good time to begin buying, or adding to your position.

Tesla is one of the worst-performing stocks of 2022. The company is going to face margin pressure from multiple angles in 2023 and beyond. The stock is still much more expensive than its automotive peers.

While there may be short-term challenges and fluctuations in Tesla's growth, the long-term outlook for the company remains positive. Its strong brand loyalty and expanding market for EVs give it a solid foundation for continued growth in the future.

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Stock Price Forecast

The 38 analysts offering 12-month price forecasts for Tesla Inc have a median target of 195.50, with a high estimate of 338.00 and a low estimate of 24.33. The median estimate represents a +0.49% increase from the last price of 194.54.

Meanwhile in 2023, analysts expect Tesla earnings per share to grow a cooler 40% to $5.66, with sales up 42% to $118.2 billion. That's a strong pace, but the era of triple-digit growth and idea of unlimited demand that long fueled Tesla stock may be over.

Is Tesla stock a Buy, Sell or Hold? Tesla stock has received a consensus rating of buy. The average rating score is and is based on 59 buy ratings, 26 hold ratings, and 10 sell ratings.

The electric vehicle (EV) maker, Tesla, has a number of key risks that it will face in the next 5-10 years. Notable risks include Tesla cars being too expensive with tax breaks and that the construction of its Gigafactory (battery factory) taking longer than expected.

Will Tesla prices go down in 2023? ›

The new prices will make some models much more attractive for 2023. For example, the Model Y Performance drops from $69,990 to $56,990 (a drop of 18.6%), which undercuts the brand-new Kia EV6 GT ($62,925).

Robotaxi: Tesla expects to reach volume production of a new robotaxi vehicle without a steering wheel or pedals by 2024, Musk said on an earnings call this year. The goal of the model, which would use Tesla's still-incomplete Full Self-Driving software, is to reach the lowest cost per mile for a taxi-type vehicle.

Tesla is on pace to be one of the worst-performing stocks in the S&P 500 in 2022. Economic uncertainty has hit the S&P 500 like a wrecking ball this year, sending the benchmark index spiraling into a bear market. But the drawdown has been especially devastating for electric car company Tesla (TSLA 0.91%).

According to the latest long-term forecast, Tesla price will hit $300 by the end of 2023 and then $500 by the end of 2024. Tesla will rise to $600 within the year of 2025, $700 in 2026, $900 in 2027, $1,000 in 2029, $1,100 in 2031, $1,200 in 2033 and $1,300 in 2034.

The five stocks that make up the “FAANG” acronym—Meta (META), Amazon (AMZN), Apple (AAPL), Netflix (NFLX), and Alphabet (GOOG)—are all well-known brands among consumers.

The double-down signal often indicates that the stock is one of The Motley Fool's top stock picks, but the alert is distinct from others like The Motley Fool's ultimate buy alerts, which are issued when both Tom and David Gardner recommend the same stock.

Will Tesla stock recover in 2023? ›

Key takeaways

Due to various issues, Tesla's stock was down over 50% in 2022. Hopes are high for a good 2023 with the Cybertruck and Tesla Semi rolling out. With a fair price-to-earnings ratio, investors are jumping into the stock in 2023.

Tesla stock took a nosedive in 2022. Only time will tell if the free fall is over or not. Unfortunately, Tesla stock might fall more in the coming year. Nevertheless, we may also see a big rebound of this once-coveted stock.

Tesla owners reportedly only lose 5% after 100,000 miles. Tesla CEO Elon Musk claimed in a Tweet that a Tesla battery can last between 300,000 to 500,000 miles. If you're driving within the national average of 273 mile per week, expect your battery life to last anywhere from 21 to 35 years.

According to our research, it costs around $67,623 to own a Tesla for 5 years, or around $13,000 to $15,000 per year. This estimate includes the original cost of the Tesla (or your financing payments), the depreciation of the Tesla, maintenance, and “fuel” costs.

Incredible growth

Driven primarily by a 40% year-over-year increase in deliveries, Tesla's 2022 revenue increased 51% year over year and earnings per share more than doubled. Free cash flow also soared, rising 51% year over year to almost $7.6 billion. Looking to 2023, Tesla expects more strong growth.

The Motley Fool has positions in and recommends Amazon.com, MercadoLibre, and Tesla. The Motley Fool has a disclosure policy. Neil is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel.

Orman recommends I bonds, which are backed by the U.S. government and don't lose value. They earn interest on both a fixed rate and a variable rate, changing every six months. The variable rate is based on inflation and is now a record 9.6% through October 2022.