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

Nvidia Corp. NVDA gave the markets a much-needed lift with its stellar quarterly results and the stock promptly reacted with a steep move to the upside.

What Happened: Tech stocks have been big return generators over the past decade, data shared by Bloomberg anchor Jon Erlichman showed. Tesla, Inc. TSLA ranked third on the list.

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

Tesla CEO Elon Musk took note of his flagship company's position in the list and had an interesting observation to make, saying, “For now.”

Data shared by Erlichman showed that Nvidia had the highest 10-year return among big techs with a 10,519% return over the past decade. Advanced Micro Devices, Inc. AMD stood second with a 4,342% gain and Tesla, with a 2,756% gain, took third place.

See Also: Everything You Need To Know About Tesla Stock

Why It's Important: 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 company proactively took down 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 and it is attempting 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.

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

Tesla closed Thursday's session up 0.86% at $184.47, according to Benzinga Pro data.

Check out more of Benzinga’s Future Of Mobility coverage by following this link.

Read Next: Tesla Sees Near 1500% Surge in New UK Car Registrations, Gains Market Share