Teslas TSLA Journey to Achieving a 4 Trillion Market Capitalization
Tesla, the electric vehicle company, has set a target of reaching a market capitalization of $4 trillion, a goal that has been mentioned by CEO Elon Musk and is now being outlined by an analyst. This target has gained traction after Tesla’s recent surge in stock price, driven by better-than-expected Q3 2024 results. The stock is currently valued at $269.19, experiencing a 23% increase in just one week. As a result, Tesla has reversed its losses from 2024 and has gained over 8% year-to-date, resulting in a market cap of $864 billion.
According to JC Parets of AllStarCharts, Tesla’s path to a $4 trillion market cap could be sustainable if it overcomes certain obstacles. Parets analyzed the stock’s historical growth trends and chart patterns and highlighted Tesla’s massive gains over the past decade, including a 3,300% return from 2018 to 2020. After this rally, Tesla entered a multi-year consolidation phase, creating a stable base around its 2021 highs. This consolidation has been instrumental in establishing support at higher price levels.
In 2024, Tesla’s stock started breaking out from this consolidation zone and reached new 12-month highs. This bullish formation resembles a “cup-and-handle” pattern, indicating a potential breakout. The stock’s price action also aligns with Fibonacci extension levels, which some traders use to estimate long-term price targets. Key interest levels include approximately $600, $800, and $1,200 per share, with the possibility of reaching $1,243 in an extended bullish scenario. If Tesla reaches these levels, its market cap could surpass $4 trillion, assuming share issuance remains stable.
Achieving this level would likely require additional catalysts, primarily related to the company’s product lineup and the success of autonomous technology. Tesla could benefit from advancements in artificial intelligence and should not be seen solely as an electric vehicle stock but as an AI equity. Tesla’s fundamentals are expected to come into play in 2025.
From a technical perspective, SmartReversals analysis highlighted future expectations for Tesla’s share price. The analysis noted a “double gap” formation, which is an unusual pattern where multiple price gaps have occurred. These gaps often attract price action and indicate potential future volatility. While there may be some healthy consolidation before breaking higher, indicators like the stochastic oscillator support the current rally.
With Tesla’s impressive Q3 results, analysts have set mixed targets for the company, ranging between $250 and $300.
