The Next Tesla TSLA Stock? Here are 3 Potential Candidates

Tesla shares have surged around 35% since election day, with investors betting that CEO Elon Musk’s close relationship with the President elect will benefit the automaker, possibly through eased self-driving regulations. The stock was up slightly at around $339 in recent premarket trading Tuesday. Tesla (TSLA) shares jumped nearly 5% Monday to move into the green for the year after several analysts highlighted potential catalysts review long-term secrets to short-term trading that could drive the stock’s near-term momentum. Still, the Q3 earnings numbers were so strong that BofA also boosted its profit forecasts for full-year 2024 as well as 2025 and 2026.

Second-quarter deliveries beat expectations — or did they?

California Governor Gavin Newsom has unveiled a controversial plan to provide state rebates to electric vehicle python linear programming (EV) buyers, effectively excluding Tesla Inc. from the program. I’ve never been a huge fan of consumer staple plays as Moonshots (unless they’re extraordinarily cheap or have excessive leverage). That’s because guessing economic conditions might earn you 10% here and there; consumer staples are low-risk, low-return by their nature. Unfortunately, shorting these companies is also a recipe to get slowly burned by dividend payments.

Company Overview

This could change if unrest escalates to the point of disrupting global trade or commodities supply, according to Zacks. Another concern is the engagement of U.S. troops on foreign soil, which would likely sour investor sentiment and take a toll on stock prices in the process. Let’s use technical analysis to locate key support levels on Tesla’s chart that gann trading strategy investors may watch during a pullback and forecast a bullish price target to monitor if the stock resumes its move higher.

Tesla rally is sentiment-driven, not on fundamental strength: UBS

The company has 5 Gigafactories in key locations around the world with a 6th planned. The Gigafactories are noteworthy for multiple reasons including their size, end-to-end production capability, and non-reliance on grid-supplied power. After climbing to their current 2024 high in early July, Tesla shares retraced as much as 33% before finding support from a prior multi-month downtrend line and the neckline of an inverse head and shoulders pattern. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. The race to the bottom on price, which has seen some Chinese automakers offer EVs for as little as $10,000, has strained the finances of some smaller EV startups.

And if Tesla becomes just another car company, it could lose much of its $560 billion valuation. Tesla investors don’t have to wait until earnings (expected to be released this month) to get updated on the company’s performance. Management typically releases production and delivery data along with other vehicle manufacturers on a quarterly basis (it used to be released monthly). Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. Other forecasters have turned more cautious on Tesla, despite the stock climbing over 40% from levels since the start of the year.

• It’s also worth noting that the 50-day moving average (MA) crossed above the 200-day MA in late July to form a golden cross, a bullish chart signal that predicts higher prices.
• Qualcomm (QCOM) is reportedly less interested in pursuing an acquisition of Intel, according to a Bloomberg report.
• As an example, semiconductor company Nvidia (NVDA) has increased its stock price by 178% by decisively monetizing demand for high-performance computing resources.
• The nuclear power industry is rapidly changing, with a new generation of advanced reactors under development.

As an example, semiconductor company Nvidia (NVDA) has increased its stock price by 178% by decisively monetizing demand for high-performance computing resources. Nvidia’s graphics processing units are a preferred resource for machine learning workloads. If it’s not and rates remain higher as a new normal, profit margins could suffer. Justin Zacks, vice president of strategy at Moomoo Technologies, and Michael Martin, vice president of market strategy at TradingBlock, expect the 2024 presidential election to have a major influence on the stock market next year.

In a note on Monday, the bank maintained its “sell” rating on Tesla stock and issued a price target of $226 a share. Though that’s slightly higher from the bank’s previous price target of $197 a share, it implies 35% downside for Elon Musk’s carmaker, which traded at around $353 at midday on Monday. “Despite ongoing macroeconomic conditions, we expect to achieve slight growth in vehicle deliveries in 2024,” the company said in its earnings deck Wednesday. The company also reiterated its goal of “launching” more affordable models in the first half of 2025. By that, I mean earning a million dollars by investing in electric vehicles.

Company Insights: TSLA

Zacks believes the first 100 days of either president’s term will set the tone for the next four years. Whether stock prices are heading up or down, there is always a reversal ahead. Keeping that in mind can help you manage whatever’s in store for 2025 and beyond.

With that said, Musk has rescued Tesla from the brink on several occasions, so there is good reason for the market to have some faith in him. Investors who buy the stock now are betting on Elon Musk and his ability to transform the company into more than just an automaker through AI and robotics. And the controversial executive has a track record of overpromising and underdelivering.

Fortunately, the 2020 electric vehicle craze spawned a plethora of both great and terrible Moonshot bets. And with some luck, the next millionaire-makers might be hiding among the tiny startups of the electric vehicle world. UBS analyst Joseph Spak maintained Tesla with a Sell rating on Monday and raised the price target from $197 to $226. Tesla CEO Elon Musk and Newsom have a “tense” relationship dating back to before Musk decided to move Tesla’s headquarters out of California. Musk pushed back against state orders to close the company’s factory during the COVID-19 pandemic, calling them “fascist.” Newsom reportedly said Tesla owed some of its success to California.