Summary
Company Overview
Tesla, Inc. designs, develops, manufactures, and sells electric vehicles, energy generation and storage systems. Founded in 2003, the company is led by CEO Elon Musk and has expanded beyond automotive to sustainable energy production and storage.
Performance Summary
Tesla's stock has declined approximately 38% since January 2025, and about 45% from its all-time high in December 2024. Recent challenges include weak sales in Europe and the U.S., increased competition, and controversy surrounding CEO Elon Musk.
Investment Recommendation
The current analyst consensus is Hold with an average price target of $347.96, representing a 32.47% upside from the current price. Ratings distribution: 13 Buy, 11 Hold, and 11 Sell ratings from 35 analysts.
Key Metrics
Market Cap
$844.88B
P/E Ratio
128.76
Revenue (TTM)
$97.69B
EPS
$0.47
Profit Margin
7.26%
EV/EBITDA
55.88
Return on Equity
10.42%
Short Interest
2.41%
Price Target Range
Financial Data
Revenue Trends
Tesla's quarterly revenue growth (YoY): 2.10%
Total revenue (TTM): $97.69B
Profit Margins
Gross profit (TTM): $17.45B
Operating margin (TTM): 6.16%
Balance Sheet Analysis
Tesla's debt-to-equity ratio has improved from 4.76 (end of 2018) to 0.68 (end of 2023).
Cash Flow Analysis
Cash flow from operations (TTM): $10.52B
Capital expenditures (Q3 2024): $3.51B
Market Sentiment
Analyst Ratings
Based on 35 analysts: 13 Buy, 11 Hold, 11 Sell
Average price target: $347.96 (32.47% upside)
Sentiment Indicators
News Impact
Declining Sales Impact
Tesla's registrations in key European markets saw significant drops, including a 60% decrease in Germany and a 63% decrease in France.
CEO Controversies
Elon Musk's political involvements have impacted the company's image and potentially led to lower sales and investor skepticism.
Increased Competition
Tesla faces growing competition from other EV manufacturers, with BYD surpassing Tesla in global EV sales.
Financial Underperformance
Recent earnings reports have missed Wall Street's expectations, contributing to declining investor confidence.
Technical Analysis
Price Trends (1 Year)
Technical Indicators
9-day, 18-day, 40-day
44.044
-31.13
UB: 394.52, LB: 245.54
Support & Resistance
Compare Assets
| Company | Market Cap | P/E Ratio | Revenue (TTM) | Profit Margin | YTD Return |
|---|---|---|---|---|---|
| Tesla (TSLA) | $844.88B | 128.76 | $97.69B | 7.26% | -38.2% |
| BYD Company | $103.75B | 21.3 | $87.04B | 5.8% | +12.5% |
| Ford (F) | $48.62B | 6.7 | $172.08B | 3.4% | +5.3% |
| General Motors (GM) | $52.18B | 6.6 | $171.84B | 6.2% | +8.7% |
| Rivian (RIVN) | $10.31B | N/A | $4.43B | -128.4% | -15.8% |
EV Market Share
Market Position
Tesla held a 55% market share of the electric vehicle market as of 2023, down from 62% the previous year. BYD has surpassed Tesla in global EV sales, reflecting intensifying competition in the sector.
Competitive Landscape
Tesla faces increasing competition from virtually every major vehicle manufacturer. Competitors range from high-end brands like BMW and Mercedes-Benz to more affordable options from Ford, GM, and emerging EV-focused companies like Rivian.
Competitive Advantages
Tesla maintains advantages in battery technology, software integration, and charging infrastructure. However, competitors are rapidly closing these gaps through significant R&D investments and strategic partnerships.
Value Investor Analysis
Intrinsic Value Analysis
DCF Model Inputs
WACC (Discount Rate)
7.1%
Terminal Growth Rate
4.0%
Free Cash Flow (Current)
$9.01B
FCF 5-Year CAGR
38.2%
Valuation Metrics
P/E Ratio (Current)
128.76
Industry Avg. P/E
17.0
Price/Sales Ratio
9.41
Price/Book Ratio
11.59
Estimated Intrinsic Value
Based on DCF model with 5-year projection period and sensitivity analysis
Growth Potential & Risk Factors
Growth Catalysts
Autonomous Driving Technology
Potential to unlock new revenue streams through robotaxi services and FSD subscription.
Energy Storage Expansion
Growing demand for Megapack and Powerwall products amid global energy transition.
New Product Launches
Cybertruck ramp-up and potential new affordable EV model could expand market reach.
Risk Factors
Intensifying Competition
Declining market share as traditional automakers and new entrants expand EV offerings.
Management Distractions
CEO Elon Musk's involvement in other ventures and political activities may impact focus.
Regulatory Challenges
Evolving regulations around autonomous driving and EV subsidies could impact growth.
Valuation Premium
High P/E multiple relative to industry creates vulnerability to sentiment shifts.
Investment Thesis
SWOT Analysis
Strengths
- Industry-leading EV technology and battery efficiency
- Robust global Supercharger network
- Strong brand recognition and customer loyalty
- Vertically integrated manufacturing
- Advanced software capabilities and OTA updates
Weaknesses
- CEO distractions and controversies
- Limited vehicle lineup compared to competitors
- Quality control and service issues
- High valuation multiples
- Delay in delivering promised autonomous capabilities
Opportunities
- Expanding energy storage business
- Robotaxi network deployment
- Entry into lower-priced EV segments
- Growing EV adoption globally
- AI and robotics development
Threats
- Intensifying competition from traditional automakers
- Rising battery material costs
- Regulatory changes affecting EV incentives
- Potential economic slowdown impacting luxury purchases
- Consumer backlash to CEO controversies
Recommendations by Investor Type
Growth Investors
Tesla remains a cornerstone growth stock but faces near-term headwinds. Current shareholders should hold positions while monitoring for signs of renewed momentum in deliveries and FSD progress.
Risk Level: High | Timeframe: 3-5 years
Value Investors
Despite the recent share price decline, Tesla's valuation metrics remain significantly above industry averages. P/E ratio of 128.76 compared to industry average of 17 indicates the stock is still trading at a substantial premium.
Risk Level: High | Timeframe: Current
Long-Term Investors
Consider phased entry into Tesla stock on continued weakness. The company maintains leadership in key EV technologies and has several potential catalysts for long-term growth, including energy storage and autonomy.
Risk Level: Moderate | Timeframe: 5+ years
Income Investors
Tesla does not pay dividends and is unlikely to initiate a dividend program in the foreseeable future as the company prioritizes reinvestment for growth. Income-focused investors should look elsewhere.
Risk Level: Low | Timeframe: Current