Where Will Tesla Stock Be in 5 Years?

Over the long term, Tesla (NASDAQ: TSLA) has been one of the best-performing auto stocks in history, with shares increasing by 1,580% over the last decade due to the success of its mass-market electric vehicles, such as the Model S and Model Y. However, in recent months, the company's growth story stalled. CEO Elon Musk's foray into politics has damaged Tesla's brand, while low-cost Chinese rivals pose a threat to its business model.

The next five years will make or break the company. If things go well, Tesla could transition from being just another automaker into a diversified technology giant, maintaining or even growing its $813 billion market capitalization. If things go poorly, expect the company's valuation to fall back down to earth. Let's delve deeper into what the future may hold.

With shares down 37% year to date as of this writing, it might look like Tesla is melting down. But that's not actually true. When you zoom out, the stock is still slightly above its level from just six months ago. This dynamic means that while investors have tempered some of the arguably irrational excitement about Tesla, they remain highly optimistic about its long-term potential.

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Source Fool.com