Tesla, Inc.TSLA
NMS • Consumer Cyclical
$345.13
P/E
292.48
PEG
4.94
FCF Yield
0.5%
Rev Growth YoY
+25.5% YoY
Gross Margin
16.8%
Health Score
6/10
D/E Ratio
0.10
Confidence
MEDIUM
Business Snapshot
Tesla operates as a vertically integrated electric vehicle manufacturer, generating revenue primarily from automotive sales alongside energy generation and storage products. The company operates in the global auto manufacturing sector as a dominant EV market leader, though it faces intensifying competition from legacy automakers and EV-focused challengers. With a market cap of $1.36T and TTM revenue of $103.62B, Tesla sits firmly in the large-cap tier with financial scale rivaling the world's largest automakers. The company's defining characteristic is its vertically integrated EV production, direct-to-consumer sales model, and software differentiation through autonomous driving features. Gross margin compression to 16.8% from 21.1% a year earlier highlights the competitive pressure on its core automotive business.
Financial Health
Tesla's gross margin contracted sharply to 16.8% from 21.1% in the prior year, reflecting aggressive price cuts and competitive pressures, while net margin stands at just 3.7% on a TTM basis. The balance sheet is exceptionally conservative with a debt-to-equity ratio of 0.1x and a current ratio of 1.94x, positioning the company with substantial liquidity flexibility...
Risk Assessment
VALUATION — P/E of 292.48x versus the sector average of 22.6x, representing an extreme premium that prices in near-perfect execution.
EARNINGS QUALITY — Only 2 of 4 recent quarters beat analyst estimates, indicating inconsistent earnings delivery relative to expectations.
REVENUE DECELERATION — Revenue growth of 25.5% YoY against a 4.9% decline in earnings, showing top-line expansion is not translating into bottom-line growth.
MARGIN PRESSURE — Gross margin deteriorated from 21.1% to 16.8% year-over-year, a 4.3 percentage point decline driven by competitive pricing dynamics.
52-WEEK POSITION — Current price of $345.13 sits 30.8% below the 52-week high of $498.83 while the 200-day MA of $404.41 confirms a sustained downtrend.
TECHNICALS — Price trades below the 200-day MA of $404.41 with a death cross pattern, indicating an established downtrend.
DCF DIVERGENCE — The Python DCF estimate of $28.13 versus the implied market value suggests the stock trades at a substantial premium to fundamental FCF-based valuation, though the FMP DCF estimate was unavailable for comparison....
Tesla's gross margin contracted sharply to 16.8% from 21.1% in the prior year, reflecting aggressive price cuts and competitive pressures, while net margin stands at just 3.7% on a TTM basis. The balance sheet is exceptionally conservative with a debt-to-equity ratio of 0.1x and a current ratio of 1.94x, positioning the company with substantial liquidity flexibility. Tesla generated $6.22B in free cash flow, though the FCF yield of 0.5% is thin relative to its $1.36T market valuation. Return on equity of 4.7% indicates moderate efficiency in generating returns on shareholder equity. The combination of low leverage and positive FCF provides ample capacity for reinvestment in new vehicle models and manufacturing capacity, though margin deterioration is an ongoing watch item.
VALUATION — P/E of 292.48x versus the sector average of 22.6x, representing an extreme premium that prices in near-perfect execution. EARNINGS QUALITY — Only 2 of 4 recent quarters beat analyst estimates, indicating inconsistent earnings delivery relative to expectations. REVENUE DECELERATION — Revenue growth of 25.5% YoY against a 4.9% decline in earnings, showing top-line expansion is not translating into bottom-line growth. MARGIN PRESSURE — Gross margin deteriorated from 21.1% to 16.8% year-over-year, a 4.3 percentage point decline driven by competitive pricing dynamics. 52-WEEK POSITION — Current price of $345.13 sits 30.8% below the 52-week high of $498.83 while the 200-day MA of $404.41 confirms a sustained downtrend. TECHNICALS — Price trades below the 200-day MA of $404.41 with a death cross pattern, indicating an established downtrend. DCF DIVERGENCE — The Python DCF estimate of $28.13 versus the implied market value suggests the stock trades at a substantial premium to fundamental FCF-based valuation, though the FMP DCF estimate was unavailable for comparison.
Unlock the full AI report
Full 8-section analysis includes:
Metric deep-dives