Is the Tesla share price heading back over US$300?

Short sellers have taken a bath betting against the Tesla share price in 2023. Can Elon Musk's EV company keep up the pace?

| More on:
Electric vehicle being charged.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Tesla Inc (NASDAQ: TSLA) share price has gone ballistic in 2023.

Since the opening bell on 3 January, shares in the global electric vehicle and battery manufacturer have soared an eye-popping 165%.

On Friday, Elon Musk's tech company closed the day trading for US$281.38. That gives Tesla a market cap of US$882 billion (AU$1.3 trillion).

The question now is, can the Tesla share price head back over US$300?

What can investors expect ahead?

Despite the big run higher, a number of analysts remain bullish on the Tesla share price over the year ahead.

Among them, Bank of America analyst John Murphy.

Murphy has a positive outlook on the automotive manufacturing sector more broadly, with vehicle production gaining momentum faster than expected.

Among other automotive stocks, this has seen Murphy lift his target for the Tesla share price from $225 to $300.

On the production front, Tesla produced 479,700 vehicles and delivered 466,140 in the quarter just past. That's a new record high for the EV stock. And with that figure beating consensus estimates, the Tesla share price closed up 7% on the day the company reported its quarterly results.

The record deliveries were spurred by some substantial price cuts across the Tesla lineup. And investors should be aware this came with significant reductions in revenue and margin. If the company needs to push through more price cuts in the year ahead, this could put shares under pressure.

As for tailwinds, Tesla certainly has a good-sized moat. Rivals will have their work cut out for them to keep the company from expanding its already sizeable 20% share of the European EV market. Not to mention its 50% EV share in the American market.

Another emerging trend to keep an eye on that could send the Tesla share price soaring beyond US$300 is the evolution of robotaxis.

Musk has been spruiking the potential of robotaxis, self-driven by Tesla's autonomous vehicle technology, since 2016. But earlier this year he said they could be ready to roll within 12 months.

The idea is that Tesla owners would put their self-driving cars to work as robotaxis whenever they're not required. And the vehicles' owners would split the revenue with Tesla, opening a potentially lucrative new revenue stream for the company.

In fact, RBC recently estimated that robotaxis could represent 70% of Tesla's value.

Tesla share price snapshot

The Tesla share price topped US$407 on 5 November 2021.

While the EV stock has some way to go before retaking those highs, investors who bought shares five years ago will still be sitting on gains of 1,246%.

Bank of America is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Bank of America and Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on International Stock News

A female engineer inspects a printed circuit board for an artificial intelligence (AI) microchip company.
International Stock News

ASML stock: Buy, sell or hold?

The semiconductor equipment maker doused hopes for a quick recovery in 2025.

Read more »

Man pointing at a blue rising share price graph.
International Stock News

Why Artificial Intelligence (AI) chipmaker Taiwan Semiconductor Manufacturing charged higher on Thursday

The foundry giant served up convincing evidence that the artificial intelligence (AI) revolution is far from over.

Read more »

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
International Stock News

Oct. 19 is almost here. Could Nvidia's AI PC Day be a game-changer for investors?

Could the next big thing in AI be sitting on your desktop?

Read more »

a man smiles widely as he opens a large brown box and examines the contents in his home.
International Stock News

Prediction: This will be the first $5 trillion US stock

Amazon's investments in artificial intelligence (AI) appear underappreciated by Wall Street, but the company's growth can't be ignored for much…

Read more »

A piggy bank blasts off into the sky.
International Stock News

One Wall Street analyst thinks Nvidia stock is going to $165!

Nvidia's CEO is looking forward to helping to fill a trillion dollars' worth of data center construction.

Read more »

Woman relaxing and using her Apple device
International Stock News

Is it too late to invest in Nasdaq tech stock giants?

Big Nasdaq tech stocks have continued to soar in 2024.

Read more »

tesla cybertruck
International Stock News

Tesla stock investors will likely be more demanding on October 23. Here's why

The electric vehicle (EV) pioneer's stock is at risk of taking another big hit if Musk and his team don't…

Read more »

Multi-ethnic people looking at camera sitting at public place screaming, shouting and feeling overjoyed about their windfall, good news or sports victory.
International Stock News

These are the 4 hottest stocks in the S&P 500 this year — and only one is in the 'Magnificent Seven'. Are they still buys?

All four of these stocks in the S&P 500 have more than doubled. Some of the names might surprise you.

Read more »