Elon Musk may become the world’s very first trillionaire. What would it take to get there? Is this a good time to invest in Tesla? What’s the future of tesla stock? In this article, we will answer these questions and more. But let’s start with a little insight into the historic run Tesla has had so far.
Tesla Stock Price
Tesla stock price is very volatile this year, creating a lot of opportunities for investors and day traders alike. Tesla stock opened at $424.50 a share on January 2nd of 2020.
Price advanced over 129% in just 33 days, to form the annual high at $968.99. The rally is attributed to surprising profitability and unit sales.
Also, the stock has an aggressive amount of short-sellers, who constantly bet it will decrease in value. Some even believe that it will be bankrupt. However, Tesla stock price continues to advance, holding the market structure of higher highs and higher lows.
Here is an interactive chart of tesla stock price below:
Will Elon Musk become the Worlds, Richest Man?
In order for Elon Musk to climb on top of the world’s richest charts, Tesla will need to hit a market capitalization of $650 billion US dollars.
Elon Musk will own roughly 30% of the company by that point, which would make his stake in the company a total of $195 billion. This would make him the richest man on the planet.
Tesla has a total of 184,389,000 shares outstanding currently.
Dividing Tesla’s projected $650 billion market cap by those shares, the Tesla stock price will need to get to $3,525.15 to get him the richest man award. For this to happen, the stock price will need to increase another 365% from 2020 highs.
Keep in mind however, this assumes the stock does not split in the future, and the shares outstanding remain the same. Furthermore, this calculation also assumes that Jeff Bezos’ net worth, and Amazon, stay stagnant at the current level. This, of course, is a long shot.
At this point it is a pretty big feat, but what is more important for shareholders is if we can actually continue higher to that level? After all, it is not so much about Elon becoming the richest man as it is about investors becoming wealthier.
Tesla Stock Predictions
Now that we have gotten the fun stuff out of the way, it is time to get down to business.
Where is Tesla stock price going, and where is a good price to get in?
For this, let’s do some technical analysis to identify low risk, high probability opportunities and create Tesla stock forecast.
First, let’s start our Tesla stock forecast with some basic trend analysis.
Looking at the weekly stock price chart below, we can see a continuous series of higher highs and higher lows. You will also notice long consolidation cycles, which are highlighted in orange. Each of these consolidation cycles last two and a half years on average.
However, at this point, the stock price has broken to new record highs and is pulling back down. How low will it go? Where is a good entry?
Let’s flip down to the daily chart and do more technical analysis.
Looking at the daily chart below, you will find a buying zone based on the confluence from the Fibonacci retracement and trend line.
This simple technical analysis identifies a pretty good buying zone between $541.56 and $579.28.
At this level, you will also notice there is a previous gap; which occurred between January 29th and January 30th of the year.
So do you just put a buy limit there?
No, you will need to go to the hourly chart and find a high probability, low-risk buying opportunity with a narrower stop loss. Then you can split your entry into multiple positions.
So if you wanted to buy 10 shares in total, you can put in limits of two shares at five levels. Or, five-share limits at two levels. Whatever fits with your strategy, outlook and risk profile is the right decision for you.
Keep checking back for more Tesla stock forecast and prediction updates. We are watching this opportunity very closely ourselves.
Latest Tesla Stock News
If you are planning to invest or day trade Tesla, you need to stay current on news and developments.
Elon Musk is a very polarizing and vocal character, and it can cause some pretty big fluctuations and volatility in the stock price.
Furthermore, Tesla is just reporting a profit after nearly a decade of being in business. Production and delivery numbers for their vehicle models are very important, as well as the quarterly earnings reports. If you want to take part in the action, you need to stay current.
Here is a list of the latest headlines:
Can Elon Musk become the world’s first trillionaire?
No one knows, and no one should really care. What is more important is reading the real-time price action, and finding good entry levels with little risk.
When everyone is looking at stock at the same time, because it has made big moves; this is the optimal time for you to be selling and making a profit.
When the media and masses fall in love with a stock, this is a good time to make a profit. When everyone hates a company and it falls out of favor, it becomes a great pick up for your portfolio.
One thing I strongly recommend is to create a concrete trading plan and a strategy that you will execute methodically. Tesla stock is not a place for emotional investors.
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The information contained in this post is solely for educational purposes and does not constitute investment advice. The risk of trading in securities markets can be substantial. You should carefully consider if engaging in such activity is suitable for your own financial situation. TRADEPRO Academy is not responsible for any liabilities arising as a result of your market involvement or individual trade activities.