Tesla Motors is one of the world’s leading electric car manufacturers. Since its emergence in 2003, the company has been on a mission to revolutionize the automotive industry. While the entire automotive industry has been hit hard by the pandemic, Tesla has seen a remarkable stock market performance in 2020, with stock prices surging in spite of the bear market. With great expectations for the year ahead, investors are wondering whether the Tesla stock will continue its meteoric rise, or face a brutal correction.
The Tesla stock price has experienced explosive growth over the past year and is currently trading three times higher than it was at the start of 2020. Analysts have been quick to point out the company’s strong fundamentals, and its impressive array of products spanning the automotive, energy storage, solar, and artificial intelligence sectors. With so many potentials catalysts, it’s no surprise that the company’s stock price has been supported during such trying economic times.
However, some analysts argue that the current stock prices are unsustainable, and warn of a potential correction if the company fails to meet the lofty expectations that are priced into its stock. Specifically, the company could face significant pressure if battery or autonomous vehicle technology fails to meet the expectations of the market. If these developments fail to materialize, or the market’s acceptance of the product is not as strong as anticipated, it could lead to a sell-off of the stock, resulting in a dive in the Tesla stock price.
The markets have proven to be fickle, however, and a strong pop or plunge could certainly occur. If investors remain optimistic and continue to pour money into the company, then the stock price could continue to rise. Similarly, if the company falters and fails to meet the market’s expectations, the stock could drop significantly. Despite the unpredictability, one thing is for sure – investors should proceed with caution when considering Tesla stock.