NasdaqGS:TSLA

Stock Analysis Report

Executive Summary

Tesla, Inc. designs, develops, manufactures, and sells electric vehicles, and energy generation and storage systems in the United States, China, Netherlands, Norway, and internationally.


Snowflake Analysis

High growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has Tesla's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TSLA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.1%

TSLA

-1.6%

US Auto

1.2%

US Market


1 Year Return

70.8%

TSLA

28.6%

US Auto

24.2%

US Market

Return vs Industry: TSLA exceeded the US Auto industry which returned 24.6% over the past year.

Return vs Market: TSLA exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

TSLAIndustryMarket
7 Day-5.1%-1.6%1.2%
30 Day25.9%8.1%3.5%
90 Day100.4%28.7%11.7%
1 Year70.8%70.8%32.2%28.6%26.9%24.2%
3 Year100.5%100.5%39.9%27.7%53.0%43.2%
5 Year147.8%147.8%44.4%20.6%75.3%56.0%

Price Volatility Vs. Market

How volatile is Tesla's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Tesla undervalued compared to its fair value and its price relative to the market?

15.21x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: TSLA ($537.92) is trading above our estimate of fair value ($453.72)

Significantly Below Fair Value: TSLA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TSLA is unprofitable, so we can't compare its PE Ratio to the Auto industry average.

PE vs Market: TSLA is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TSLA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TSLA is overvalued based on its PB Ratio (16x) compared to the US Auto industry average (3.7x).


Next Steps

Future Growth

How is Tesla forecast to perform in the next 1 to 3 years based on estimates from 31 analysts?

53.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TSLA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: TSLA is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: TSLA's is expected to become profitable in the next 3 years.

Revenue vs Market: TSLA's revenue (20% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: TSLA's revenue (20% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TSLA's Return on Equity is forecast to be high in 3 years time (24%)


Next Steps

Past Performance

How has Tesla performed over the past 5 years?

-21.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TSLA is currently unprofitable.

Growing Profit Margin: TSLA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TSLA is unprofitable, and losses have increased over the past 5 years at a rate of -21.1% per year.

Accelerating Growth: Unable to compare TSLA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TSLA is unprofitable, making it difficult to compare its past year earnings growth to the Auto industry (-13.2%).


Return on Equity

High ROE: TSLA has a negative Return on Equity (-9.31%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Tesla's financial position?


Financial Position Analysis

Short Term Liabilities: TSLA's short term assets ($10.9B) exceed its short term liabilities ($10.1B).

Long Term Liabilities: TSLA's short term assets ($10.9B) do not cover its long term liabilities ($15.2B).


Debt to Equity History and Analysis

Debt Level: TSLA's debt to equity ratio (157.5%) is considered high.

Reducing Debt: TSLA's debt to equity ratio has reduced from 255.5% to 157.5% over the past 5 years.


Balance Sheet

Inventory Level: TSLA has a high level of physical assets or inventory.

Debt Coverage by Assets: TSLA's debt is not covered by short term assets (assets are 0.9x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable TSLA has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: TSLA is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 48.1% per year.


Next Steps

Dividend

What is Tesla's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage3.9%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate TSLA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate TSLA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TSLA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TSLA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TSLA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Tesla's salary, the management and board of directors tenure and is there insider trading?

0.8yrs

Average management tenure


CEO

Elon Musk (47yo)

11.3yrs

Tenure

US$2,284,044,884

Compensation

Mr. Elon R. Musk is a Founder of Tesla, Incorporated and has been its Chief Executive Officer since October 2008 and serves as its Director since April 2004. Mr. Musk is the Chief Executive Officer and Fou ...


CEO Compensation Analysis

Compensation vs Market: Elon's total compensation ($USD2.28B) is above average for companies of similar size in the US market ($USD10.76M).

Compensation vs Earnings: Elon's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

0.8yrs

Average Tenure

43yo

Average Age

Experienced Management: TSLA's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

9.3yrs

Average Tenure

50yo

Average Age

Experienced Board: TSLA's board of directors are considered experienced (9.3 years average tenure).


Insider Trading

Insider Buying: TSLA insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$158,56315 Nov 19
Vaibhav Taneja
EntityIndividual
Role
Chief Accounting Officer
Corporate Controller & Chief Accounting Officer
Shares452
Max PriceUS$350.80
SellUS$115,11101 Nov 19
Andrew Baglino
EntityIndividual
Role
Chief Technology Officer
Chief Technology Officer
Shares366
Max PriceUS$314.51
BuyUS$79,81617 Aug 19
Kathleen Wilson-Thompson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares360
Max PriceUS$221.71
BuyUS$232,72001 Aug 19
Robyn Denholm
EntityIndividual
Role
Chairman of the Board
Independent Chairwoman
Shares1,000
Max PriceUS$232.72
BuyUS$24,999,84007 May 19
Elon Musk
EntityIndividual
Role
Chief Executive Officer
Founder
Shares102,880
Max PriceUS$243.00

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.2%.


Management Team

  • Elon Musk (47yo)

    Founder

    • Tenure: 11.3yrs
    • Compensation: US$2.28b
  • JB Straubel (43yo)

    Senior Advisor

    • Tenure: 0.5yrs
    • Compensation: US$11.67m
  • Franz von Holzhausen

    Chief Designer

    • Martin Viecha

      Senior Director for Investor Relations

      • Jerome Guillen (46yo)

        President of Automotive Division

        • Tenure: 1.3yrs
        • Compensation: US$17.75m
      • Dave Arnold

        Senior Director of Global Communications

        • Tenure: 1.3yrs
      • Zachary Kirkhorn (34yo)

        Chief Financial Officer

        • Tenure: 0.8yrs
      • Brian Scelfo

        Senior Director of Corporate Development

        • Vaibhav Taneja (41yo)

          Corporate Controller & Chief Accounting Officer

          • Tenure: 0.8yrs
        • Drew Baglino

          Chief Technology Officer

          • Tenure: 0.5yrs

        Board Members

        • Ira Ehrenpreis (50yo)

          Independent Director

          • Tenure: 12.7yrs
          • Compensation: US$9.91m
        • Steve Jurvetson (52yo)

          Independent Director

          • Tenure: 10.6yrs
          • Compensation: US$27.50k
        • Larry Ellison (75yo)

          Independent Director

          • Tenure: 1.1yrs
        • James Murdoch (46yo)

          Independent Director

          • Tenure: 2.5yrs
          • Compensation: US$9.03m
        • Elon Musk (47yo)

          Founder

          • Tenure: 11.3yrs
          • Compensation: US$2.28b
        • Robyn Denholm (56yo)

          Independent Chairwoman

          • Tenure: 1.2yrs
          • Compensation: US$6.89m
        • Antonio Gracias (49yo)

          Lead Independent Director

          • Tenure: 9.3yrs
          • Compensation: US$13.32m
        • Kathleen Wilson-Thompson (62yo)

          Independent Director

          • Tenure: 1.1yrs
        • Kimbal Musk (46yo)

          Director

          • Tenure: 15.8yrs
          • Compensation: US$6.86m

        Company Information

        Tesla, Inc.'s company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: Tesla, Inc.
        • Ticker: TSLA
        • Exchange: NasdaqGS
        • Founded: 2003
        • Industry: Automobile Manufacturers
        • Sector: Automobiles
        • Market Cap: US$92.015b
        • Shares outstanding: 180.24m
        • Website: https://www.tesla.com

        Number of Employees


        Location

        • Tesla, Inc.
        • 3500 Deer Creek Road
        • Palo Alto
        • California
        • 94304
        • United States

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        TSLANasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 2010
        US_TSLAKAS (Kazakhstan Stock Exchange)YesCommon StockKZKZTJun 2010
        TL0XTRA (XETRA Trading Platform)YesCommon StockDEEURJun 2010
        TSLA *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJun 2010
        TSLASWX (SIX Swiss Exchange)YesCommon StockCHCHFJun 2010
        0R0XLSE (London Stock Exchange)YesCommon StockGBUSDJun 2010
        TL0DB (Deutsche Boerse AG)YesCommon StockDEEURJun 2010
        TSLABIT (Borsa Italiana)YesCommon StockITEURJun 2010
        TSLAWBAG (Wiener Boerse AG)YesCommon StockATEURJun 2010
        TSLABVL (Bolsa de Valores de Lima)YesCommon StockPEUSDJun 2010
        TL0DBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURJun 2010
        TSLA34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EA REPR 1/4 COM SHS USD0.001BRBRLJul 2016

        Biography

        Tesla, Inc. designs, develops, manufactures, and sells electric vehicles, and energy generation and storage systems in the United States, China, Netherlands, Norway, and internationally. The company operates in two segments, Automotive, and Energy Generation and Storage. The Automotive segment offers sedans and sport utility vehicles. It also provides electric vehicle powertrain components and systems to other manufacturers; and services for electric vehicles through its company-owned service centers, Service Plus locations, and Tesla mobile technicians. This segment sells its products through a network of company-owned stores and galleries. The Energy Generation and Storage segment offers energy storage products, such as rechargeable lithium-ion battery systems for use in homes, commercial facilities, and utility grids; designs, manufactures, installs, maintains, leases, and sells solar energy systems to residential and commercial customers; and sell renewable energy to residential and commercial customers. The company was formerly known as Tesla Motors, Inc. and changed its name to Tesla, Inc. in February 2017. Tesla, Inc. was founded in 2003 and is headquartered in Palo Alto, California. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/21 00:27
        End of Day Share Price2020/01/17 00:00
        Earnings2019/09/30
        Annual Earnings2018/12/31


        Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.