Electric vehicle and clean energy company Tesla is currently the 7th most valuable company on the planet, commanding a market capitalization of approximately $649.5 billion.

Of course, many investors are wondering how Tesla will perform over the long term. After all, the electric vehicle market still has substantial room for growth and Tesla seems to be positioned very well to take advantage of this. 

In this article, we will be taking a look at some long-term scenarios for the price of Tesla stock, including a Tesla stock price prediction for 2040 and 2050. 

Tesla stock price prediction for 2040

Tesla stock’s average annual return for the past ten years has been 56.7%. If this average annual return were to continue until 2040, Tesla stock would be priced at $671,757. Needless to say, this figure seems impossible to achieve, so we need to use a more conservative benchmark to make a Tesla stock prediction for 2040. 

The S&P 500 index had an average annual return of 11.8% between 1957 and 2021. If Tesla stock were to grow at this average rate until 2040, TSLA stock would be worth $1,541 in 2040. This would be more than 4x the stock’s current all-time high price of $407. 

Meanwhile, the tech-heavy Nasdaq-100 index has displayed an average annual return of 17.5% between its inception in 1986 and 2022. If TSLA were to grow by 17.5% per year on average, Tesla stock would be worth $3,770. This would be more than 9x the current Tesla stock price all-time high. 

Tesla stock price prediction for 2050

When it comes to the Tesla stock price prediction for 2050, Tesla stock would be trading at $4,700 in 2050 if it were to grow at the same 11.8% average rate as the S&P 500. 

If TSLA were to grow at the same rate as the Nasdaq 100’s 17.5% average annual return, it would be worth $18,900 by 2050. 

Tesla stock price prediction for 2023 & 2024

When it comes to more short term predictions, the algorithmic Tesla price prediction from CoinCodex is currently forecasting TSLA to trade at $480 in February of 2023.

Based on the current technical indicators, Tesla stock is forecasted to recover throughout 2023 and start a substantial bullish rally in November 2023. The prediction is forecasting TSLA to exceed its current all-time highs in early 2024, before going through a significant price correction. 

In the very short term, the algorithmic price prediction expects TSLA to hit a low in March of 2023 somewhere around the $165 price level. 

If we take a look at forecasts made by Wall Street analysts, the 1-year forecast for TSLA is positive at the time of writing. Out of a sample of 31 analysts, 22 have given TSLA a buy rating, 6 have given it a hold rating, and 3 analysts have given it a sell rating in the past 3 months. From this sample of analysts, 1-year TSLA stock price forecasts are ranging from $89 on the low end to $300 on the high end, with the average forecast being just under $205.

What’s next for Tesla?

In January 2023, Tesla announced price cuts to their vehicles in the United States and Europe. The company’s high profit margins give it significant room to maneuver and potentially pressure its competitors by cutting prices further. In the fourth quarter of 2022, Tesla saw $9,000 in net profit per vehicle sold, which was more than 7 times higher than the comparable figure for Toyota Motor Corp.

In the face of a potential recession in 2023, the company said in an earnings release that it was working towards “accelerating our cost reduction roadmap and driving towards higher production rates”. Tesla aimed to outperform its competitors in 2023 mainly through cost control and cost innovation.

In 2023, Tesla aims to produce 1.8 million vehicles, which would be about 31% more than the number of vehicles the company produced in 2022. 

Of course, there have also been challenges for Tesla. The company’s shares declined substantially in the last quarter of 2023, and the stock’s 1-year performance is an uninspiring -29% at the time of writing.

In 2022, Elon Musk announced that the company would reduce its salaried headcount by 10%, which translated to about 10,000 employees at the time. There have also been reports of another wave of layoffs at Tesla coming in 2023.  

Some of the factors that have contributed to the drop in Tesla’s valuation are increasing competition in the electric vehicle market, the gloomy macroeconomic outlook, as well as Elon Musk’s controversial acquisition of social media platform Twitter. Elon Musk’s $44 billion Twitter acquisition introduced concerns about whether Musk would be able to dedicate the same amount of focus to Tesla as he did before, and also harmed Tesla’s brand image among some consumers.

Still, some of the concerns that led to the Tesla stock crash in 2022 appear to have been overblown. The stock has mounted an impressive recovery in 2023 so far, as TSLA is posting a year-to-date performance of +90% at the time of writing. 

The bottom line—Tesla’s long-term prospects appear to be solid

With the increasing adoption of electric vehicles, Tesla is positioned well to continue growing in the future. While Tesla could certainly be negatively impacted if there is a recession in 2023, the company is likely to continue its success over the long term. 

If you’re interested in other stocks that could be good candidates for long-term holding, check out our list of the best dividend stocks.

Tesla stock predictions for 2040 & 2050—summary

  S&P 500 yearly avg. (+11.8%) Nasdaq 100 yearly avg. (+17.5%) TSLA price in 2040 $1,541 $3,770 TSLA price in 2050 $4,700 $18,900

The table shows what the Tesla stock price would be in 2040 and 2050 if it grew at the same rate as the yearly average returns of the S&P 500 and the Nasdaq 100 indices.