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%.

Created with Highcharts 11.4.3Tesla PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

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

Man smiling at a laptop because of a rising share price.
International Stock News

Prediction: This artificial intelligence (AI) and "Magnificent Seven" stock will be the next company to surpass a $3 trillion market cap by the end of 2025

The artificial intelligence trend will be a huge growth engine for Amazon's cloud computing division.

Read more »

A woman sits at her computer with her hand to her mouth and a contemplative smile on her face as she reads about the performance of Allkem shares on her computer
International Stock News

Nvidia reaches the $4 trillion mark. Can it hit $5 trillion in 2025?

Nvidia is the first company to reach a $4 trillion market capitalization.

Read more »

A tech worker wearing a mask holds a computer chip.
International Stock News

Prediction: Nvidia will be a top stock to own for the back half of 2025

Several potential catalysts could boost Nvidia's growth in the second half of this year.

Read more »

Modern accountant woman in a light business suit in modern green office with documents and laptop.
International Stock News

Where Will Amazon Stock Be in 3 Years?

Amazon's diversified business model allows it to benefit from many sides of the AI equation.

Read more »

A man leans forward over his phone in his hands with a satisfied smirk on his face although he has just learned something pleasing or received some satisfying news.
International Stock News

If you'd invested $10,000 in Apple stock 20 years ago, here's how much you'd have today

Over the past two decades, shares of Apple have performed exceedingly well as the company produced several tech innovations.

Read more »

Disabled skateboarder woman using mobile phone at the park.
International Stock News

Is Meta's $14.3 billion bet on scale AI too little, too late?

Meta just invested more than $14 billion into data labeling start-up Scale AI, acquiring a 49% equity stake in the…

Read more »

woman watching asx share price on digital screen
International Stock News

Think Nvidia Stock Is Expensive? These 3 Charts Might Change Your Mind.

The chipmaker's shares are cheaper than they appear.

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

Will Amazon be a $5 trillion stock by 2030?

Is the $5 trillion level a dream or an actual possibility? Let's take a look.

Read more »