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Tesla To The Moon? Elon Musk Hints Nvidia’s Large-Cap Dominance Is Only ‘For Now’

Tesla atop tech stocks over the past decade despite challenges.

Tech stocks have been big return generators over the past decade, according to a recent tweet from Bloomberg anchor Jon Erlichman. Tesla, Inc. (NASDAQ: TSLA) ranked third on the list.

For those racking their brains over how the electric vehicle maker can qualify as a tech company, its ascent on autonomous driving technology gives it a tangential claim on the titleto be one.

Tesla co-founder and CEO Elon Musk verbally reacts in front of the newly unveiled all-electric battery-powered Tesla Cybertruck with broken glass on windows following a demonstration that did not go as planned on November 21, 2019, at Tesla Design Center in Hawthorne, California. FREDERIC J. BROWN BENZINGA

Tesla CEO Elon Musk took note of his flagship company’s position in the list and responded cryptically. 

“For now,” the Tesla CEO tweeted.

Data shared by Erlichman showed that Nvidia had the highest 10-year return among big tech stocks with a 10,519%. Advanced Micro Devices, Inc. (NASDAQ: AMD) stood second with a 4,342% gain and Tesla, with a 2,756% gain, took third place.

This puts Tesla’s stock ahead of tech giants including Apple (984%), Microsoft (846%), Alphabet (467%), and Amazon (779%). 

Tesla was cruising along nicely until 2021, when a higher interest-rate environment and production disruptions upset its apple cart. Production suffered initially, and then the economic uncertainties began to take a toll on demand.

The electric vehicle (EV) manufacturer is expected to see intense competition from traditional automotive companies as they start rolling out more EV models.

GM is expected to introduce more EV models, including the Silverado, Equinox, and Blazer EVs . The auto company will also introduce the HummerEV SUV.

Tesla proactively reduced its prices to push volume even if meant sacrificing margin in the near term.

After a 66% stock drop in 2022, things looked up in the new year. The stock rallied into the middle of February before pulling back and being locked in a lackluster phase. May has proved healthy for the stock as it attempts to reverse course.

The average 12-month price target of analysts, based on data compiled by TipRanks, is $201.84, suggesting a little less than 9% upside potential.

Tesla bear Gordon Johnson, who has a Sell rating on the stock, has a price target of $24.33 for the stock.

But bulls including Ark Invest’s Cathie Wood have great expectations. Ark expects the stock to hit $2,000 by 2027, premised on the yet-to-be-launched Robotaxi services contributing about 58% of the expected enterprise value and 45% of the expected EBITDA by 2027. Baron Capital’s Ron Baron sees the stock breaching $1,500 by 2030.

Tesla has other value drivers, including the sub-$30,000 cars, the Cybertruck, and its energy storage business.

The Tesla Cybertruck is expected to be in production soon, which will compete with Rivian, General Motors, Ford, and Stellantis.

Produced in association with Benzinga

Edited by Alberto Arellano and Sterling Creighton Beard

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