Tesla, Inc.TSLA
NMS • Consumer Cyclical
$393.45
P/E
382.62
PEG
23.05
FCF Yield
0.4%
Rev Growth YoY
+15.8% YoY
Gross Margin
21.1%
Health Score
8/10
D/E Ratio
0.11
Confidence
MEDIUM
Business Snapshot
Tesla, Inc. designs, manufactures, and sells electric vehicles, along with energy generation and storage products. The company generates the vast majority of its revenue from automotive sales, making it a dominant player in the rapidly growing global electric vehicle (EV) market. As a large-cap company with a market capitalisation of $1.48T and TTM revenue of $97.88B, Tesla operates at a significant financial scale. The defining characteristic that sets Tesla apart is its combination of leading EV production scale, brand recognition, and a substantial market valuation that reflects expectations of future growth and technological leadership.
Financial Health
Gross margin improved slightly to 21.1% from 20.1% in the prior year, while net margin for the trailing twelve months stands at 4.0%. The balance sheet is extremely conservative, with a debt-to-equity ratio of just 0.11x and a strong current ratio of 2.04x, indicating ample liquidity...
Risk Assessment
- VALUATION — P/E of 382.62x is 15 times the sector average of 24x, representing an extreme valuation premium.
- REVENUE DECELERATION — Revenue grew 15.8% YoY but declined 10.1% QoQ, signaling a significant near-term slowdown.
- EARNINGS QUALITY — The company beat estimates in only 2 of the last 4 quarters, indicating mixed earnings guidance credibility.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- FCF / CASH BURN — While FCF is positive at $6.22B, the FCF yield of 0.4% is very low, meaning the stock price is extremely expensive relative to cash generation....
Gross margin improved slightly to 21.1% from 20.1% in the prior year, while net margin for the trailing twelve months stands at 4.0%. The balance sheet is extremely conservative, with a debt-to-equity ratio of just 0.11x and a strong current ratio of 2.04x, indicating ample liquidity. The company generated positive free cash flow of $6.22B, though the FCF yield is a modest 0.4%. Overall, Tesla has a fortress balance sheet with low leverage and solid cash generation, providing significant financial flexibility for reinvestment in growth initiatives.
- VALUATION — P/E of 382.62x is 15 times the sector average of 24x, representing an extreme valuation premium. - REVENUE DECELERATION — Revenue grew 15.8% YoY but declined 10.1% QoQ, signaling a significant near-term slowdown. - EARNINGS QUALITY — The company beat estimates in only 2 of the last 4 quarters, indicating mixed earnings guidance credibility. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - FCF / CASH BURN — While FCF is positive at $6.22B, the FCF yield of 0.4% is very low, meaning the stock price is extremely expensive relative to cash generation.
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