We all know that Tesla stock has been on a downward trend over the past few months but someone else like Dan Ives from Weber Securities believe Tesla stock will triple by the end of 2023.
Tesla Stock Price Forecast 2023
According to Daniel Ives from Wedbush Securities believe Tesla stock might reach $474.61305 in 2023. Tesla Stock’s price is going to Triple in the future.
The lowest price of Tesla stock maybe $412.707 in 2023. However, the price may show an upward momentum because $7500 in EV tax credits coming into effect on January 1st, 2023. The estimated average Tesla stock price will be around $350.80095 in 2023.
Do you agree with them well, we’re going to give you 5 reasons why Tesla’s stock price could triple in 2023.
5 Reasons why Tesla’s stock price could triple in 2023
You’re not going to want to miss out on this as some of them are going to be a surprise for you. No doubt Tesla stock has been trading for a low price but there is a huge possibility that the company’s share price is going to increase exponentially shortly there have been several predictions for Tesla stock but this one from whiteboard analysis by Dan Ives gives some definite interest so why has Dan Ives said that Tesla Stock’s price is going to Triple in the future.
1. $7500 EV TAX CREDIT
$7500 in EV tax credits coming into effect on January 1st 2023 and sales of electric vehicles continue to surge many new and prospective customers have questions about qualifying for federal tax credit on electric vehicles especially now that has slew of new conditions and credits have been reinstated to U.S consumers the inflation reduction Act of 2022 is the most ambitious climate legislation in U.S history and it aims to make electric vehicles a little bit more attainable or at least that’s the Hope in the long run.
The Bill signed into law by Joe Biden on August 16th has allocated over 369 million dollars for climate action with a portion of the budget dedicated to enhancing tax credits for electric vehicle purchases to be eligible for the credit the car’s battery must be a minimum threshold of Parts sourced from the US or countries with which it has a Free Trade Agreement while the requirement for the tax credit may keep several companies from benefiting from this privilege.
Tesla is definitely on the list of car companies to qualify for this tax credit according to Tesla CFO Zachary Kirkhorn the passage of the IRA is a significant boost towards accelerating the automaker’s mission. Kirkhorn told analysis during the company’s Q3 earnings call that it would also result in scaling the battery supply chain at large in the United States although it further cited that the eligibility criteria for the credit won’t be fully clear until the treasury Department publishes guidance likely by the end of the year.
He does believe that Tesla is very well positioned to capture a significant share of that for solar storage and also electric vehicles now this is where it gets interesting because whatever Tesla decides to do with the tax credit it is still in a good position to benefit greatly look at it this way if Tesla keeps prices the same the demand for its cars will inevitably grow especially as the car company continues to improve on its TVs and if the car company chooses to increase the price over the coming years while demand may not be high enough profit will surely soar in the coming years.
2. MORE GIGA FACTORIES
While gigafactories will be announced and start production Tesla CEO Elon Musk had previously hinted at Tesla’s plans to expand its network of factories as the company aims to meet his ambition to build as many as 20 million electric cars per year musk projects that Tesla could make as many as 20 million cars a year by 2030 while several announcers believe this to be too ambitious musk disclosed that the firm had recently completed its 3 millionth vehicle within a few weeks even though 10 years ago it had made less than 3000 cars while addressing stockholders at Tesla’s annual meeting.
Musk said that Tesla was well on track to achieve a production run rate of 2 million Vehicles by the end of the year according to him Tesla may end up building at least 10 or 12 gigafactories in order to meet an output of between one and a half to two million units per Factory by 2030.
The Ultimaker is on the move to scale up production and its already existing factories and swim-on Factory may soon start scaling up with automation just like Tesla’s Factory in Shanghai and will most likely record good production values in the coming years.
3. TWITTER NOISE IS DYING DOWN AND ADVERTISERS
Tesla noise is dying down and advertisers and we know this because winter noise is dying down there have been several comments about Elon musk’s recent involvement with Twitter the Tesla CEO’s purchase of the social media company has caused numerous objections from analysis who believe that musk’s new job may be keeping him away from Tesla.
Elon Musk himself has also confirmed that his workload has increased and he is looking to hire a new CEO for the business however the fears are beginning to die down and musk also seems to be in good control of his work at Twitter likewise the release of the semi-truck also given investors something new to focus on rather them paying attention to the noise it’s better to focus on Tesla’s profitability and its ability to keep scaling up production over the coming years.
4. THE FED WILL PROBABLY PIVOT WITH INTEREST RATES
The FED will probably pivot with interest rates there’s a good possibility the FED is going to be pausing interest rate hikes as inflation seems to be calming Market expectations are running high and policymakers will likely approve another rate hike but this time opting for a 0.5% point or a 50 basis point move.
Federal Reserve Governor Christopher Waller recently said he is open to reducing the level of interest rate increases soon so long as the economic data co-operates according to him the data of the past few weeks has made it more comfortable and prompts him to consider stepping down to a 50 basis point hike in September the FED raised its Benchmark interest rate by 0.75% points.
5. CYBER TRUCK ROLL DELIVERIES
This is highly anticipated and could be a good boost to the stock Tesla’s looking to start making it cyber truck next year and the electric vehicle is reportedly aiming to progress from initial production to mass production within a few quarters while Tesla’s pretty conservative about this recent reports have disclosed that the vehicle could be entering mass production by the end of next year.
At the Tesla semi-delivery event the automaker unveiled its new 1mw DC fast charging technology for the Tesla semi although the car company had previously disclosed that it had something like this for its semi truck.
The big news is that it’s actually going to be used by Tesla’s semi truck, Tesla’s Skeptics have argued about the feasibility of the Cyber truck hitting the market these arguments not only been about the Cyber truck but also its next Generation Roaster but the narratives may soon be changing according to Tesla’s third quarter update the Cyber truck development has reportedly entered the tooling phase during the automakers Q3 2022 earnings call.
Musk noted that Giga Texas facilities are already being prepared for the Cyber truck and recent job listing on Tesla’s careers website suggests that musk’s comments may indeed be accurate Tesla has reportedly started hiring first cyber truck production.
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