Shortly thereafter, Elon Musk joined the company, assuming the role of CEO and spearheading critical investment rounds that played a pivotal role in defining Tesla’s long-term strategic direction. Yesterday, a major institutional investor, Norway’s sovereign-wealth fund — which owns more than 1% stake in the electric vehicle (EV) giant — disclosed that it would vote against Musk’s massive remuneration package. While the Norwegian fund recognizes the value Musk has created for Tesla, it’s worried about how huge the pay package is, the potential share dilution and the company’s heavy reliance on him.

Broadcom

Tesla faces several potential challenges, including increased competition from other electric vehicle manufacturers and traditional automakers entering the EV market. Regulatory changes, supply chain constraints, and economic fluctuations could also impact Tesla’s growth trajectory. Despite these risks, many analysts remain optimistic about Tesla’s ability to navigate these challenges and continue its upward momentum​.

Tesla’s Stock Just Got Riskier, but Is It Still a Buy?

• The stock fell roughly 50% as tariffs ramped up, but it’s rebounded sharply from 2025 lows.
• This article represents the opinion of the Companies operating under the FXOpen brand only.
• In July, market sentiment remained fragile as Musk’s announcement of the “America Party” raised concerns about distraction from Tesla’s core business.
• And let’s not forget that Tesla has a track record of delayed timelines and lofty promises that take longer to materialize.

But the third-quarter earnings report exposed weaknesses in the company, which, as it evolves into a hybrid automaker and artificial intelligence company, faces the growing pains of trying to juggle both. The investment bank believes Broadcom has a revenue opportunity of $20 billion to $30 billion in custom AI chips, which could grow at an annual rate of 20% in the future. The company has already landed key customers such as Meta Platforms and Alphabet, and a recent report from Reuters states that even OpenAI is looking to build an in-house chip with Broadcom’s help.

Why these plans increase risk

Beyond automotive, Tesla’s energy division, including solar and energy storage products, is poised for substantial growth. The demand for renewable energy solutions is expected to surge, and Tesla’s innovations in battery technology and energy storage systems could capture a significant share of this market. Between late April and early September 2025, Tesla’s stock demonstrated notable resilience and volatility. Following a dip in April as global EV sales slowed and Chinese demand softened, TSLA rebounded in May amid optimism over its upcoming robotaxi initiative. However, the price needed to correct, and despite the S&P 500 index continuing to rise, TSLA moved down.

Tesla Stock Price Predictions for 2029

• You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer.
• Maintaining an objective outlook and regularly reassessing valuation metrics against operational performance is important in evaluating Tesla’s progress throughout its next growth cycle.
• Financially, Tesla is solid, ending third quarter with more than $41 billion in cash/investments and generating a record $4 billion in free cash flow.
• The forecast range in this table is based on algorithmic projections provided by CoinCodex.

The company is forecasting a 30% increase in revenue in full-year 2024 to $90 billion, which would be a solid improvement over the 9% decline it witnessed last year. More importantly, the revenue forecast for the next couple of years has been rising as well with the company expected to maintain top-line growth of around 20%. With this challenging outlook, it won’t be surprising to see Tesla overtaken in the list of world’s largest companies. Specifically, Taiwan Semiconductor Manufacturing (TSM 1.50%), popularly known as TSMC, and Broadcom (AVGO 0.91%) are fast on Tesla’s heels. Both companies are expected to enjoy strong growth due to unprecedented demand for their chips too.

The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Apple, JPMorgan Chase, Meta Platforms, Nvidia, Qualcomm, Taiwan Semiconductor Manufacturing, and Tesla. Meanwhile, the stock is roboforex overview trading at 34 times earnings, a big discount to Tesla’s earnings multiple of 90. Investors looking to add a tech stock to their portfolios should consider TSMC — it may not be long before the company surges past Tesla with a higher market cap. From Nvidia to Apple to AMD to Qualcomm, all the major fabless chipmakers use TSMC’s fabrication plants for their chip manufacturing. The Taiwan-based company’s revenue in the first 10 months of 2024 increased 31% year over year. The company is reinvesting in initiatives like Optimus and Cybercabs to reward long-term investors.

This long-term outlook considers potential growth in production, technological advancements, and market expansion, though long-term predictions are inherently speculative. Looking ahead, analysts and algorithmic-based sources project that TSLA stock will continue to grow from 2026 onward, though estimates vary widely due to numerous influencing factors. Tesla’s ongoing development of Full Self-Driving (FSD) technology is a critical factor in its long-term outlook. By 2026, Tesla aims to fully integrate autonomous driving capabilities, potentially revolutionising the transportation industry. The success of FSD could open new revenue streams through autonomous ride-hailing services, with ARK Invest projecting a substantial market for these services.

Elon Musk is either the company’s greatest strength or weakness, depending on how you view the billionaire entrepreneur. The company also intends to begin external sales of its Optimus humanoid robot, with progress on this initiative likely to influence sentiment as investors weigh both risks and opportunities. It’s possible this thinking is also causing some reticence to deliver lower-cost (say $25,000) vehicles, as robotaxis and unsupervised FSD should increase Tesla EV values anyway. The company’s plans to aggressively ramp up production are based on the assumption that its unsupervised full self-driving solutions will become a reality.

The highest forecast is $548 (Baird), while the lowest is $19 (GLJ Research). The three most recent ratings from Mizuho, Piper Sandler, and Baird suggest a near-term average target of $499.33, which implies a 15% upside from current levels. As the EV market enters a new growth phase driven by regulatory support and consumer adoption, the company’s strategic execution will be central to its valuation path. This article provides analytical predictions for Tesla’s potential through 2030, focusing on innovation, operational efficiency, and macroeconomic variables influencing investor sentiment and stock performance.

Elon Musk’s $1 Trillion Pay Package Passes: What’s at Stake for Tesla Stock

Following the US presidential election, Tesla surged amid speculation that Elon Musk’s strong relationship with Donald Trump could benefit the company. As a result, by the end of the year, on 17th December 2024, Tesla reached its all-time high of $479.86. Even better, analysts expect this growth to flow to the bottom line as earnings increase at an annual rate of 26% over the next five years.

Challenges and Risks

Looking further ahead, forecasts envision Tesla as a more diversified company with several new revenue streams. By then, the financial impact of Optimus could be far clearer, and its success or failure may play a defining role in Tesla’s long-term trajectory. The company’s broader business mix could also help reduce the political and regulatory pressures that previously weighed on vehicle sales. At the same time, an autonomous ride-hailing network — Tesla’s so-called Cybercabs — may be operating widely in major cities, creating another recurring source of revenue. Benzinga reports that TSLA has a consensus Buy rating with an average price target of $333.80 based on the ratings of 28 analysts, implying a small downside from current levels.

Centrus provides an integrated solution for meeting the industry’s engineering, manufacturing and fuel needs. Drawing on decades of experience, Centrus can help with the design and manufacture of critical components as well as the design and licensing of facilities to produce new fuels. Top stories, top movers, and trade ideas delivered to your inbox every weekday before and after the market closes. Marc Guberti is an investing writer passionate about helping people learn more about money management, investing and finance. He has more than 10 years of writing experience focused on finance and digital marketing. If Optimus underdelivers and Tesla’s EV lineup continues to lose ground to competitors, the long-term picture could look much weaker than current models suggest.