Of all of the manufacturers that build electric vehicles, there’s only one make that has a cult following around the stock and share price. Obviously, that company is Tesla (TSLA).
2020 was an interesting year for the stock, where it reached astronomical highs and then went through a 5 for 1 stock split. While the resulting split did lower the price per share, that number didn’t stay low for long and is hovering over $700 as this post is written.
So what will the stock do for 2021? Will the bubble burst and it crash and burn?
While it’s hard to understand why the stock price and market cap of Tesla is as high as it is — they aren’t that profitable compared to other automakers or even other industries — there seems to be no stopping the stock.
While it is my opinion that Tesla is more speculation than investment, I expect the growth of the stock to continue through 2021.
In fact, I wouldn’t be surprised if the stock splits again toward the end of the year. There are some people already calling for it on Twitter already.
— Adam (@AdamHoov) January 4, 2021
My prediction for the end of the year share price will be around $500 after another stock split. I’m not sure if the next split will be 5 for 1, but it probably will be on the higher end of the spectrum
Note: I am not a financial adviser, nor do I own stock in any of the companies I cover. Neither does any employee of EV Pulse. Always consult your investment adviser before making any financial decision.