Tesla’s revenue are predicted to become larger than GM and Ford in the next five years, according to experts.
Tesla’s stock price has been outstanding for a long time, and it currently surpasses companies like GM in terms of value. It became the world’s most valuable car company nearly two years ago.
Tesla has, nevertheless, been accused of under-delivering on sales and revenue when compared to its peers. This is changing quickly, and Morgan Stanley analyst Adam Jonas, forecasts that Tesla’s revenue will soon reach industry-leading levels.
Adam Jonas wrote this week:
Most auto investors we speak still struggle with the idea that Tesla could ever be bigger than either GM or Ford. We expect Tesla revenues to be larger than GM + Ford (combined by 2027). The zero-sum game is hard to see today… should become obvious over the next 24 months.
Many individuals still cannot believe it’s so hard, but those are typically the same investors who predicted Tesla would only be a boutique firm that now produces electric cars at more than one million per year.
The market is projected to grow considerably in the years ahead, but Tesla has significant revenue potential:
We estimate the typical Tesla sold commands an average transaction price (ATP) of approximately $60k or roughly 20% above the US average ATP, implying an adjusted ‘wallet share’ of 4.6%.
Tesla has a $1,300 share price target from Morgan Stanley. Adam Jonas is ranked No. 645 out of 7,779 analysts with a success rate of 53 percent and an average return of 11.8 percent on TipRanks.
Let us know what you think about these predictions.