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Fundamentals for Tesla, Inc.
Business Operations:
Sector: Consumer CyclicalIndustry: Auto Manufacturers
Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally. The company operates in two segments, Automotive; and Energy Generation and Storage. The company offers electric vehicles, as well as sells automotive regulatory credits; and non-warranty maintenance services and collision, automotive insurance services, as well as part sales and retail merchandise sale. It also provides sedans and sport utility vehicles through direct and used vehicle sales, a network of Tesla Superchargers, and in-app upgrades; purchase financing and leasing services; services for electric vehicles through its company-owned service locations and Tesla mobile service technicians; and vehicle limited warranties and extended service plans. In addition, the company engages in the design, manufacture, installation, sale, and leasing of solar energy generation and energy storage products, and related services to residential, commercial, and industrial customers and utilities through its website, stores, and galleries, as well as through a network of channel partners. Further, it provides services and repairs to its energy product customers, including under warranty and extended service plans; and various financing options to its residential customers; lithium-ion battery energy storage products, such as Powerwall and Megapack; energy generation products, including solar panels and solar roof; self-driving development and artificial intelligence software, vehicle control and infotainment software, and battery and powertrain. The company was formerly known as Tesla Motors, Inc. and changed its name to Tesla, Inc. in February 2017. Tesla, Inc. was incorporated in 2003 and is headquartered in Austin, Texas.
Revenue projections:
Investors may be wary of TSLA as its revenues are expected to fall below the prior year's levels. A revenue decrease often leads to concerns about profitability, as it is likely to affect the company's bottom line, prompting investors to take a more cautious approach.
Financial Ratios:
| currentRatio | 1.84400 |
|---|---|
| forwardPE | 104.86507 |
| debtToEquity | 18.07800 |
| earningsGrowth | 0.17000 |
| revenueGrowth | 0.07800 |
| grossMargins | 0.18229 |
| operatingMargins | 0.10789 |
| trailingEps | 3.59000 |
| forwardEps | 3.24000 |
TSLA's current ratio is 1.844, showing the company's capacity to service its short-term debt through its cash reserves and current assets. This is a positive indicator of liquidity, suggesting TSLA has no trouble covering its short-term financial obligations.
TSLA's forward PE ratio is too high, raising concerns that future price increases may be restricted and a correction could be imminent. It's essential to weigh this parameter carefully in conjunction with other fundamentals to get a clearer picture of the stock's valuation.
TSLA's low Debt-to-Equity ratio means the company is not over-leveraged, highlighting its conservative use of debt. This suggests reduced financial risk and a stable balance sheet, making TSLA a financially resilient company with lower exposure to debt-related pressures.
Tesla, Inc.'s forward EPS being less than trailing EPS suggests the company may see a drop in profitability this year. This signals potential financial challenges and a less optimistic outlook for earnings growth.
Price projections:
Over time, price projections for TSLA have gradually risen, signaling growing optimism about the company's future. This upward revision reflects increasing confidence in TSLA's ability to achieve strong financial results.
Recommendation changes over time:
Analysts are favoring Tesla, Inc. with a buy bias, highlighting the stock's potential as a solid investment. This recommendation might drive more investors to consider Tesla, Inc. as a secure and profitable option for their money, contributing to a broader positive sentiment in the market.
DISCLAIMER: We provide information and our musings based on events, but nothing on this site can be considered professional advice of any kind.
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