First things first, I (like everyone else) has no idea what Tesla will be trading at in 10 years time. They could become the biggest company in the world or they could go bust. As with all ideas related to investing, they are just ideas.
No one can predict the future!
That said and in summary, I do think Tesla shares will be worth a lot more in 10 years time than they are today. A heck of a lot more. The company is currently worth around $60 billion, but I think it could easily be a $1 trillion company in 10 years time.
Tesla is revolutionizing the auto industry and its products are getting better and better. The company is also expanding into other areas such as solar energy and batteries, which gives it a lot of growth potential outside of cars.
According to analysts, Tesla shares could rise to $1,000 in 2022 although we’re currently still at $739 so still some way to go. But if they did hit $1000 it would give the company a market value of $650 billion. That would make it the most valuable car company in the world, worth more than double the value of Toyota.
Some analysts are even more optimistic and say that Tesla could reach a market value of $1.5 trillion by 2025. That would make it one of the most valuable companies in the world, worth more than Amazon and Google.
That’s 2025 which isn’t too far away. If we’re talking about 10 years from now (2032) and Elon is still CEO, the company could be worth even more.
Investors are essentially betting that on two things with Tesla;
- That they will continue to disrupt the auto industry with its electric cars and autonomous driving technology.
- CEO Elon Musk, who has a proven track record of delivering on his promises and, as eccentric as he appears at times, no-one can challenge this track record.
The electric car market will see exponential growth over the next decade as battery prices continue to fall and charging infrastructure improves. So I believe demand for electric cars will be huge.
Tesla is leading the way in this market and as already mentioned, its cars are getting better and better.
If only you’d have invested in Tesla ten years ago
I sometimes hate reading these headlines in magazines. Money Week love putting these columns together – if only you’d have invested in…
Yes, if you’d have invested in Tesla at the beginning you’d be doing very well right now. In fact, lets say you got in back in 2019, Tesla was trading at $47.90 in May of that year and just three years later (May 2022) we were at $865. 00. That’s an increase of 1,798%. So if you had put $10,000 into Tesla in 2019, it would be worth almost $200,000 now.
It’s all if, buts and maybes. But the important thing is to try and learn why the stock rose so much and why investors demonstrate so much confidence in the company. Armed with this type of info, we’re much more likely to spot repeat behaviours in other companies or even again in Tesla.
In conclusion, how much will Tesla be worth in 10 years?
I would not be in the slightest bit surprised if Tesla overtook Google and Amazon as the biggest company in the world and if it did, I think you can work out how much it would be worth.