Tesla, Inc.TSLA
NMS • Consumer Cyclical
$377.81
P/E
392.06
PEG
—
FCF Yield
0.4%
Rev Growth YoY
+25.5% YoY
Gross Margin
16.8%
Health Score
5/10
D/E Ratio
0.10
Confidence
MEDIUM
Business Snapshot
Tesla, Inc. designs, manufactures, and sells electric vehicles alongside energy generation and storage products, operating in the Consumer Cyclical sector within the Auto Manufacturers industry. It is the dominant pure-play electric vehicle manufacturer globally, though it faces intensifying competition across its vehicle lineup. At a market capitalisation of $1.49T, it sits firmly in large-cap territory, with trailing twelve-month revenue of $103.62B. What sets Tesla apart is its combination of scale in EV manufacturing with a vertically integrated energy business, though its capital intensity and dependence on vehicle margins make profitability sensitive to pricing pressure.
Financial Health
Gross margin stands at 16.8%, down sharply from 21.1% in the prior year, while net margin is a thin 3.7% — a clear sign of margin compression. The balance sheet is genuinely strong: debt/equity of 0.1x and a current ratio of 1.94x indicate a conservative, liquid financial position with minimal leverage...
Risk Assessment
- VALUATION — P/E of 392.06x versus sector average of 20.2x represents an extreme premium, though this figure may be distorted or reflect a data error.
- EARNINGS QUALITY — Only 2 of the last 4 quarters beat estimates, indicating inconsistent delivery against guidance.
- REVENUE DECELERATION — QoQ revenue growth of 26.1% is not decelerating versus YoY growth of 25.5%, so this is not flagged as a deceleration risk.
- DEBT / LIQUIDITY — Debt/equity of 0.1x and current ratio of 1.94x indicate a strong liquidity position, not a risk.
- 52-WEEK POSITION — Current price of $377.81 is below the midpoint of the 52-week range ($398.11), sitting $121.02 below the high of $498.83.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- FCF / CASH BURN — FCF yield of 0.4% is below 1%, meaning cash generation is thin relative to the $1.49T market capitalisation despite positive absolute FCF of $6.22B....
Gross margin stands at 16.8%, down sharply from 21.1% in the prior year, while net margin is a thin 3.7% — a clear sign of margin compression. The balance sheet is genuinely strong: debt/equity of 0.1x and a current ratio of 1.94x indicate a conservative, liquid financial position with minimal leverage. Free cash flow is positive at $6.22B, but the FCF yield of just 0.4% means the cash generation is modest relative to the $1.49T market capitalisation. Return on equity of 4.7% is low for a company trading at this valuation. Overall, the balance sheet is healthy and the company generates cash, but deteriorating margins and a low ROE mean reinvestment capacity is real while dividend capacity is not a priority — the key risk is that profitability continues to erode.
- VALUATION — P/E of 392.06x versus sector average of 20.2x represents an extreme premium, though this figure may be distorted or reflect a data error. - EARNINGS QUALITY — Only 2 of the last 4 quarters beat estimates, indicating inconsistent delivery against guidance. - REVENUE DECELERATION — QoQ revenue growth of 26.1% is not decelerating versus YoY growth of 25.5%, so this is not flagged as a deceleration risk. - DEBT / LIQUIDITY — Debt/equity of 0.1x and current ratio of 1.94x indicate a strong liquidity position, not a risk. - 52-WEEK POSITION — Current price of $377.81 is below the midpoint of the 52-week range ($398.11), sitting $121.02 below the high of $498.83. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - FCF / CASH BURN — FCF yield of 0.4% is below 1%, meaning cash generation is thin relative to the $1.49T market capitalisation despite positive absolute FCF of $6.22B.
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