Tesla was a trillion-dollar stock most recently in April, but it has lost over half of its value since. Amidst economic downturn and increasing competition in the electric vehicle sector, some analysts are questioning whether or not Tesla could become a trillion-dollar stock again in the future.
The trillion-dollar stock club currently only belongs to Apple, Microsoft, and Google-parent company Alphabet, according to a report from The Motley Fool. Since holding the title in April, Tesla’s stock has dropped in value more than 60 percent, and bulls and bears both have their own versions of what the tech-forward automaker’s future could hold.
Tesla is largely responsible for bringing the electric vehicle into the public eye by introducing the Roadster as a potential option for buyers with sufficient battery range, speed, and acceleration; and then later on the Model S. Now the company has a lineup of somewhat-affordable EVs for consumers, causing most legacy automakers to start scrambling to catch up.
Legacy automakers are beginning to catch up, though Tesla still held a whopping 64 percent of the EV space’s market share by the end of Q3 in the USA. Although, that will slowly drop as more and more EVs become available to consumers, as evidenced by a drop from 75 percent in the first quarter of 2022. Nonetheless, Tesla may be well-poised to handle the oncoming wave of new EV options.
Looking globally, the Tesla Model Y and Model 3 combined for more than 1 million sales in the first 11 months of 2022, the Model Y achieving ~675,000 on its own. By contrast, the Ford Mustang Mach-E had 68,887 sales in the same time period.
20 Top Selling EVs in the World — January–November 2022
Some think GM and Ford could surpass Tesla’s EV market share, in the US at least, including analysts at Bank of America. Tesla’s market share is currently projected to fall just 11 percent in North America by 2025, and onlookers predict EVs to represent around 10 percent of all cars in just a few years.
Although Tesla’s stock would need to triple in value to hit a one-trillion-dollar valuation again, it certainly isn’t out of the question according to The Motley Fool’s Rich Duprey. Emphasizing the long term, Duprey notes that Tesla still has “plenty of opportunity for growth,” adding, though, that investors may need to wait several years if they hope to see a trillion-dollar value unfold. We will see.
Originally posted on EVANNEX. By Peter McGuthrie.
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