Research memoTesla, Inc. (TSLA) · NASDAQMemo of October 10, 2026

Tesla stock forecast

The weighted price is $336.44 in October 2029, a 10% loss. The outcome hinges on vehicle economics, storage growth and paid software becoming material.

375.00
Share price today, USD
336.44 (-10 %)
Weighted scenario, October 2029
0.2%
Real free cash flow yield
164.0x
P/E, next 12 months
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Every number traced to Tesla's filings8 chapters · 16,632 words160 sources cited

Where could Tesla's shares be by October 2029?

The weighted price is $284.52 in October 2027, a 24% loss including dividends. It rises to $300.93 in October 2028, still a 20% loss. By October 2029, it reaches $336.44, a 10% loss.

The bear case has a 30% probability. The base case has a 55% probability. The bull case has a 15% probability. The October 2029 range runs from $63.43 to $971.74. Today's reference price is $375.00.

Share price in October 2029: our three scenarios (USD)Today 37563.43Bear · 30 % · -83%312.09Base · 55 % · -17%971.74Bull · 15 % · +159%
What the shares could be worthUSD per share at each date; in brackets the return since today's 375.00, dividends included
CaseProbabilityOctober 2027October 2028October 2029
Bear30 %144.10 (-62 %)78.44 (-79 %)63.43 (-83 %)
Base55 %313.03 (-17 %)317.45 (-15 %)312.09 (-17 %)
Bull15 %460.83 (+23 %)685.31 (+83 %)971.74 (+159 %)
Weighted100 %284.52 (-24 %)300.93 (-20 %)336.44 (-10 %)

What has to go right or wrong for Tesla?

EBITDA rises from $17,500M in October 2027 to $25,000M in October 2029, with $21,000M in between. The path assumes vehicle recovery, continued storage growth and better fixed-cost absorption. Energy gross profit rose from $2,640M to $3,802M, but vehicle deliveries fell 8.6% in 2025 and automotive gross margin excluding credits stayed at 15.4%. The bear row falls from $12,500M to $10,000M before recovering to $11,000M, while the bull row rises from $20,000M to $35,000M as battery constraints ease and higher-margin software becomes material.

The forecast's tablebase case, then bear / bull in brackets; USD millions, per share in USD, unless shown
October 2027October 2028October 2029
EBITDA17,500 (12,500 / 20,000)21,000 (10,000 / 27,000)25,000 (11,000 / 35,000)
Shares (millions)3,989 (4,009 / 3,969)4,029 (4,069 / 3,989)4,069 (4,130 / 4,009)
Dividends per share0.00 (0.00 / 0.00)0.00 (0.00 / 0.00)0.00 (0.00 / 0.00)
Enterprise value to ebitda70.00 (45.00 / 90.00)60.00 (32.00 / 100)50.00 (25.00 / 110)
Net debt-23,682 (-15,182 / -29,182)-18,982 (818 / -33,782)-19,982 (13,018 / -45,782)

How much cash does Tesla really make?

The weighted price is $284.52 in October 2027 and $336.44 in October 2029. That implies a 24% loss including dividends by October 2027 and a 10% loss by October 2029. The bear case is $63.43 and the base case is $312.09. The bull case is $971.74; the probabilities are 30% bear, 55% base and 15% bull. Tesla’s real free cash flow was 3.6% of revenue, while stock pay was $0.80 per share in 2025.

Stock compensation creates another gap. Tesla adds this noncash expense back because shares, rather than cash, go to employees. But shareholders still bear an economic cost through dilution. Deducting $2,825 million from reported free cash flow gives a stricter view, without making Tesla’s official measure mathematically wrong.

Follow the money: real free cash flowUS$ millions
20252024202320222021
Cash from operations14,74714,92313,25614,72411,497
− Capital spending8,52711,3428,8997,1726,514
= Free cash flow6,2203,5814,3577,5524,983
− Stock pay2,8251,9991,8121,5602,121
= Real free cash flow3,3951,5822,5455,9922,862
Real free cash flow, % of revenue3.6%1.6%2.6%7.4%5.3%
From the full memo · 1. The business

Tesla is a company that sells electric cars and equipment that makes, stores, and moves electricity. Its business is easiest to understand by following a dollar from the customer, through the product and its costs, to the profit left over.

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Where these numbers come from

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