Goldman Sachs remains optimistic about the EV pioneer stock. Analyst Mark Delaney expects the automotive sector to see robust growth in Advanced Driver Assistance Systems (ADAS), which provide safety features such as automatic lane change and emergency braking. The market for cameras, radars, and Light Detection and Ranging (LiDAR) systems is also set to grow to over $60 billion by 2025, he wrote in an industry study. Growing competition will negatively impact the margins of suppliers operating in this segment, but car manufacturers such as Tesla (NASDAQ: TSLA), Volkswagen, BMW, and Daimler should benefit from this development. Delaney sees potential for Tesla stock up to $835.
Dan Levy, an analyst at Credit Suisse, also sees further potential for Tesla stock. He expects Q1 earnings to rise on good supply forecasts and progress on any new capacity Tesla is currently ramping up globally. Levy predicts Q1 earnings per share of 85 cents, while other analysts expect earnings per share around an average of 73 cents. Levy's target price is $800.
Tesla's investment in Bitcoin cryptocurrency could be another catalyst. The company announced that it has invested $1.5 billion in the cryptocurrency. Tesla is estimated to have around 43,000 coins in its portfolio, making it the second-largest Bitcoin owner after Microstrategy.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.