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Tesla Stock Soaring to $1,000 by 2025?

Bullish Predictions from Futurist Brian Wang

Tesla stock has seen a rapid rise in recent weeks, and while it's taking a breather, many remain bullish on the company's future. Our guest today, futurist and popular science blogger Brian Wang, is predicting Tesla stock will reach $450 by February 5th, 2024 - much higher than the stock's all-time high of $409 reached in 2021.

Wang believes several key milestones will drive Tesla's stock to this lofty target, including:

Q3 2023 Performance

  • Margins returned to 19.8%, just shy of the critical 20% level

  • Energy storage (Megapacks) saw over 30% margins

  • Strong cash flow and indications of car volume growth returning in 2025-2026

2025 Milestones

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  1. Full Self-Driving (FSD) reaching "better than human" status by mid-2025

  2. Expansion of Megapack factories, with 4 new lines in Shanghai and announcements of additional factories

  3. FSD adoption rate reaching 25% on the 9.5 million Tesla vehicles on the road, generating $2 billion in additional profit

  4. Refreshed Model Y and a new model announced in the first half of 2024

Wang believes these developments, combined with continued growth in car deliveries and energy storage, could drive Tesla's earnings to $30 billion in 2025. This, in turn, could propel the stock price to $1,000 by the end of 2025.

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The key, according to Wang, is the potential for Tesla's energy storage and FSD businesses to become as profitable as its core automotive operations. If the Megapack factories can triple output and FSD adoption surges, the resulting revenue and margins could supercharge Tesla's overall profitability.

While Wang's $1,000 price target by the end of 2025 may seem aggressive, he has laid out a compelling case based on Tesla's potential milestones and earnings growth. The market's reaction to Tesla's Q4 2023 results and 2024 guidance in January will be crucial, as will the company's progress on FSD and energy storage in the coming year.

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Investors will be closely watching to see if Tesla can execute on these ambitious plans and deliver the kind of exponential growth that Wang envisions. If Tesla can pull it off, a $1,000 stock price may not be out of the question by the end of 2025.