Will Tesla Stock Reach New High

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Will Tesla Stock Reach New High

Will Tesla (Tsla) Stock Cross The $500 Level?

The performance of Tesla (TSLA) stock is impressive as it has gained around 72% in a span of 12 months. In the last 5 years, the share price of Tesla (TSLA) has tripled, which makes it an even better option than the S&P 500.

So, does Tesla (TSLA) have what it takes to cross the $500 level? Well, that would depend on the momentum and the fundamentals of Tesla (TSLA).

Tesla'S Market Cap Is $1.4 Trillion

For starters, the P/E ratio of Tesla stock is 300, which is quite a lot. But this also shows that people are willing to pay a premium to buy the Tesla stock.

Also, the market cap of Tesla stock is $1.4 trillion ,which is way higher than even the established car manufacturers. So, if we look at the momentum alone, it becomes clear that Tesla stock can easily touch $500 in 2026.

In fact, a move towards $500 would mean an upside of 12% from Tesla's current trading price. Given the volatility history of Tesla, an upside of this size isn't that unreasonable at all.

But, there must be some good news as well to support an ascent towards $500. After all, it is an important resistance level that wouldn't be broken so easily without any fresh impetus.

According to analysts, strong performance in Q4 could help push Tesla's stock towards $500. But the report must show stronger sales and delivery numbers.

Also, Tesla continues to enjoy growth in the energy storage business. Meanwhile, Tesla is also delving into new areas such as robotics and self-driving taxis. If this becomes profitable, then Tesla stock could reach new highs even beyond $500.

But despite all the optimism, it's also a reality that Tesla stocks are way too overvalued. So, the best option is to wait for a decent pullback in the Tesla stock before taking any entry.

In fact, we might see more competition in the EV space in the year 2026. So, things might turn sour for Tesla stock amidst the growing competition, as consumers will have more options.

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