Tesla, Inc.TSLA
NMS • Consumer Cyclical
$393.45
P/E
357.68
PEG
21.55
FCF Yield
0.4%
Rev Growth YoY
+15.8% YoY
Gross Margin
21.1%
Health Score
7/10
D/E Ratio
0.11
Confidence
MEDIUM
Business Snapshot
Tesla designs, manufactures, and sells electric vehicles, energy generation and storage systems, and related software and services, with automotive sales representing the vast majority of its revenue. The company operates in the global automotive and clean energy markets, holding a dominant position as the largest pure-play electric vehicle manufacturer by market share and production volume. With a market capitalisation of $1.48 trillion and trailing twelve-month revenue of $97.88 billion, Tesla is a large-cap multinational with the scale of a top-tier automaker. The company's defining characteristic is its vertically integrated technology stack spanning hardware, software (including autonomous driving features), and energy storage, creating a brand and ecosystem moat that competitors have struggled to replicate.
Financial Health
Gross margin improved slightly to 21.1% from 20.1% in the prior year, while net margin stands at 4.0% — a thin but positive profitability level. The balance sheet is conservatively structured with a debt-to-equity ratio of just 0.11x and a current ratio of 2.04x, indicating ample short-term liquidity and very low leverage...
Risk Assessment
- VALUATION — The P/E ratio of 357.68x is distorted but still indicative of extreme premium vs the sector average of 24x; the stock is priced for perfection.
- REVENUE DECELERATION — Revenue declined 10.1% quarter-over-quarter despite increasing 15.8% year-over-year, signalling potential demand weakness in the most recent period.
- 52-WEEK POSITION — At $393.45, the stock trades 21.1% below its 52-week high of $498.83 and above the midpoint of $393.80, suggesting limited upside momentum within the recent range.
- TECHNICALS — Price is below both the 50-day moving average of $406.42 and the 200-day moving average of $418.61, with a death cross crossover indicating a bearish trend.
- INSIDER ACTIVITY — Zero insider buys versus 2 insider sells over the last 90 days, a net-selling pattern that often signals caution among those closest to the business....
Gross margin improved slightly to 21.1% from 20.1% in the prior year, while net margin stands at 4.0% — a thin but positive profitability level. The balance sheet is conservatively structured with a debt-to-equity ratio of just 0.11x and a current ratio of 2.04x, indicating ample short-term liquidity and very low leverage. Free cash flow of $6.22 billion is positive and substantial in absolute terms, though the FCF yield of 0.4% is low, reflecting the stock's elevated valuation relative to cash generation. Overall, Tesla has a fortress-like balance sheet and solid cash flow that supports reinvestment in growth initiatives and provides capacity for weathering demand cycles, though margins remain relatively lean for its valuation tier.
- VALUATION — The P/E ratio of 357.68x is distorted but still indicative of extreme premium vs the sector average of 24x; the stock is priced for perfection. - REVENUE DECELERATION — Revenue declined 10.1% quarter-over-quarter despite increasing 15.8% year-over-year, signalling potential demand weakness in the most recent period. - 52-WEEK POSITION — At $393.45, the stock trades 21.1% below its 52-week high of $498.83 and above the midpoint of $393.80, suggesting limited upside momentum within the recent range. - TECHNICALS — Price is below both the 50-day moving average of $406.42 and the 200-day moving average of $418.61, with a death cross crossover indicating a bearish trend. - INSIDER ACTIVITY — Zero insider buys versus 2 insider sells over the last 90 days, a net-selling pattern that often signals caution among those closest to the business.
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