Tesla
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Tesla, Inc. designs, develops, manufactures, and sells electric vehicles, and energy generation and storage systems in the United States, China, Norway, and internationally. The last earnings update was 46 days ago. More info.
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TSLA Share Price and Events
Price Volatility
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Value
Is Tesla undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Tesla
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Tesla.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 25 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 8.6% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 3% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 3% |
| Equity Risk Premium | S&P Global | 7.1% |
| Auto Unlevered Beta | Simply Wall St/ S&P Global | 0.62 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.618 (1 + (1- 21%) (22.62%)) |
0.729 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
0.8 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (0.8 * 7.05%) |
8.59% |
Discounted Cash Flow Calculation for NasdaqGS:TSLA using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Tesla is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.
| 2018 | 2019 | 2020 | 2021 | 2022 | |
| Levered FCF (USD, Millions) | -1,548.38 | 159.61 | 1,274.26 | 1,342.00 | 5,872.00 |
| Source | Analyst x13 | Analyst x10 | Analyst x7 | Analyst x2 | Analyst x2 |
|
Present Value Discounted (@ 8.59%) |
-1,425.89 | 135.36 | 995.15 | 965.15 | 3,888.99 |
| Present value of next 5 years cash flows | $4,558.75 |
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2022
× (1 + g) ÷ (Discount Rate – g)
= $5,872.00 × (1 + 2.95%) ÷ (8.59% – 2.95%) |
$107,184.82 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)5
= $107,184.82 ÷ (1 + 8.59%)5 |
$70,987.87 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 5 years cash flows +
Terminal Value
= $4,558.75 + $70,987.87 |
$75,546.62 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $75,546.62 / 170.59 |
$442.85 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $442.85 |
| Current discount | Discount to share price of
$338.69
= -1 x ($338.69 - $442.85) / $442.85 |
23.5% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- Tesla's share price is below the future cash flow value, and at a moderate discount (> 20%).
- Tesla's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Tesla's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Tesla's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-06-30) in USD | $-16.13 |
| NasdaqGS:TSLA Share Price ** | NasdaqGS (2018-08-15) in USD | $338.69 |
| United States of America Auto Industry PE Ratio | Median Figure of 60 Publicly-Listed Auto Companies | 10.17x |
| United States of America Market PE Ratio | Median Figure of 7,193 Publicly-Listed Companies | 18.22x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Tesla.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NasdaqGS:TSLA Share Price ÷ EPS (both in USD) = 338.69 ÷ -16.13 |
-20.99x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Tesla is loss making, we can't compare its value to the US Auto industry average.
- Tesla is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does
Tesla's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | -20.99x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 25 Analysts |
68.1%per year |
| United States of America Auto Industry PEG Ratio | Median Figure of 56 Publicly-Listed Auto Companies | 1.03x |
| United States of America Market PEG Ratio | Median Figure of 5,693 Publicly-Listed Companies | 1.59x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = -20.99x ÷ 68.1% |
-0.31x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Tesla is loss making, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on
Tesla's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-06-30) in USD | $22.91 |
| NasdaqGS:TSLA Share Price * | NasdaqGS (2018-08-15) in USD | $338.69 |
| United States of America Auto Industry PB Ratio | Median Figure of 65 Publicly-Listed Auto Companies | 1.25x |
| United States of America Market PB Ratio | Median Figure of 11,718 Publicly-Listed Companies | 1.87x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NasdaqGS:TSLA Share Price ÷ Book Value per Share (both in USD) = 338.69 ÷ 22.91 |
14.78x |
* Primary Listing of Tesla.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Tesla is overvalued based on assets compared to the US Auto industry average.
Value checks
We assess Tesla's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Auto industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Auto industry average (and greater than 0)? (1 check) Tesla has a total score of 1/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
How is Tesla expected to perform in the next 1 to 3 years based on estimates from 25 analysts?
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Tesla's earnings growth is expected to exceed the low risk savings rate of 3%.
Growth vs Market Checks
- Tesla's earnings growth is expected to exceed the United States of America market average.
- Tesla's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NasdaqGS:TSLA Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 25 Analysts | 68.1% |
| NasdaqGS:TSLA Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 25 Analysts | 25.4% |
| United States of America Auto Industry Earnings Growth Rate | Market Cap Weighted Average | 9.8% |
| United States of America Auto Industry Revenue Growth Rate | Market Cap Weighted Average | 4.4% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 12.1% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 6.3% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 25 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2022-12-31 | 58,030 | 9,651 | 4,637 | 4 |
| 2021-12-31 | 45,003 | 6,647 | 2,740 | 6 |
| 2020-12-31 | 34,295 | 4,699 | 1,289 | 19 |
| 2019-12-31 | 28,189 | 3,263 | -137 | 25 |
| 2018-12-31 | 20,413 | 1,265 | -1,519 | 23 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-06-30 | 13,684 | -319 | -2,722 |
| 2018-03-31 | 12,471 | -389 | -2,341 |
| 2017-12-31 | 11,759 | -61 | -1,961 |
| 2017-09-30 | 10,755 | -1,019 | -1,407 |
| 2017-06-30 | 10,069 | -295 | -766 |
| 2017-03-31 | 8,549 | 56 | -723 |
| 2016-12-31 | 7,000 | -124 | -675 |
| 2016-09-30 | 5,930 | 295 | -874 |
| 2016-06-30 | 4,568 | -332 | -1,126 |
| 2016-03-31 | 4,253 | -642 | -1,017 |
| 2015-12-31 | 4,046 | -524 | -889 |
| 2015-09-30 | 3,788 | -581 | -676 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 25 Analyst Estimates (S&P Global) | See Below |
All data from Tesla Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2022-12-31 | 22.79 | 27.64 | 19.80 | 3.00 |
| 2021-12-31 | 16.97 | 22.51 | 13.44 | 3.00 |
| 2020-12-31 | 7.03 | 14.15 | 2.07 | 10.00 |
| 2019-12-31 | -0.38 | 7.89 | -5.35 | 15.00 |
| 2018-12-31 | -9.17 | -6.83 | -12.93 | 15.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-06-30 | -16.13 |
| 2018-03-31 | -13.97 |
| 2017-12-31 | -11.83 |
| 2017-09-30 | -8.66 |
| 2017-06-30 | -4.85 |
| 2017-03-31 | -4.77 |
| 2016-12-31 | -4.68 |
| 2016-09-30 | -6.32 |
| 2016-06-30 | -8.45 |
| 2016-03-31 | -7.83 |
| 2015-12-31 | -6.93 |
| 2015-09-30 | -5.33 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Tesla's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Tesla has a total score of 5/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has Tesla performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Tesla does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
- Unable to compare Tesla's 1-year earnings growth to the 5-year average as it is not currently profitable.
- Unable to compare Tesla's 1-year growth to the US Auto industry average as it is not currently profitable.
Earnings and Revenue History
All data from Tesla Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-06-30 | 13,683.91 | -2,721.82 | 2,746.65 | 1,439.48 |
| 2018-03-31 | 12,471.23 | -2,340.67 | 2,533.65 | 1,423.13 |
| 2017-12-31 | 11,758.75 | -1,961.40 | 2,450.70 | 1,378.07 |
| 2017-09-30 | 10,755.13 | -1,407.39 | 2,182.53 | 1,269.40 |
| 2017-06-30 | 10,068.89 | -766.13 | 1,912.34 | 1,152.08 |
| 2017-03-31 | 8,549.35 | -722.92 | 1,695.73 | 973.97 |
| 2016-12-31 | 7,000.13 | -674.91 | 1,410.49 | 834.41 |
| 2016-09-30 | 5,929.88 | -873.97 | 1,264.83 | 778.69 |
| 2016-06-30 | 4,568.23 | -1,125.71 | 1,164.38 | 743.18 |
| 2016-03-31 | 4,253.19 | -1,016.75 | 1,045.08 | 733.23 |
| 2015-12-31 | 4,046.03 | -888.66 | 922.23 | 717.90 |
| 2015-09-30 | 3,788.31 | -675.90 | 830.55 | 667.22 |
| 2015-06-30 | 3,703.32 | -520.75 | 749.29 | 624.30 |
| 2015-03-31 | 3,517.69 | -398.42 | 681.47 | 550.31 |
| 2014-12-31 | 3,198.36 | -294.04 | 603.66 | 464.70 |
| 2014-09-30 | 2,856.91 | -202.68 | 508.18 | 393.59 |
| 2014-06-30 | 2,436.46 | -166.46 | 430.14 | 314.07 |
| 2014-03-31 | 2,072.25 | -135.06 | 356.08 | 258.66 |
| 2013-12-31 | 2,013.50 | -74.01 | 285.57 | 231.98 |
| 2013-09-30 | 1,704.61 | -147.68 | 229.99 | 232.36 |
| 2013-06-30 | 1,323.37 | -219.99 | 190.72 | 237.90 |
| 2013-03-31 | 944.88 | -295.09 | 166.84 | 260.45 |
| 2012-12-31 | 413.26 | -396.21 | 150.37 | 273.98 |
| 2012-09-30 | 146.30 | -387.77 | 132.02 | 266.35 |
| 2012-06-30 | 153.86 | -342.04 | 121.84 | 258.53 |
| 2012-03-31 | 185.38 | -295.34 | 110.47 | 236.21 |
| 2011-12-31 | 204.24 | -254.41 | 104.10 | 208.98 |
| 2011-09-30 | 201.15 | -224.28 | 101.89 | 185.39 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- It is difficult to establish if Tesla has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
- It is difficult to establish if Tesla has efficiently used its assets last year compared to the US Auto industry average (Return on Assets) as it is loss-making.
- It is difficult to establish if Tesla improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
Past performance checks
We assess Tesla's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Auto industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Tesla has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is Tesla's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Tesla's finances.
The net worth of a company is the difference between its assets and liabilities.
- Tesla's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
- Tesla's long term commitments exceed its cash and other short term assets.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is not covered by short term assets, assets are 0.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Tesla Company Filings, last reported 1 month ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-06-30 | 5,267.11 | 13,412.25 | 2,236.42 |
| 2018-03-31 | 5,720.41 | 12,570.34 | 2,665.67 |
| 2017-12-31 | 5,632.32 | 12,115.95 | 3,367.91 |
| 2017-09-30 | 6,177.66 | 11,720.15 | 3,530.03 |
| 2017-06-30 | 6,582.12 | 9,557.41 | 3,035.92 |
| 2017-03-31 | 6,161.09 | 9,667.73 | 4,006.59 |
| 2016-12-31 | 5,905.13 | 8,588.12 | 3,393.22 |
| 2016-09-30 | 2,680.49 | 3,172.26 | 3,084.26 |
| 2016-06-30 | 2,520.29 | 3,667.07 | 3,246.30 |
| 2016-03-31 | 970.37 | 3,409.04 | 1,441.79 |
| 2015-12-31 | 1,083.70 | 2,898.99 | 1,196.91 |
| 2015-09-30 | 1,314.66 | 2,846.78 | 1,426.04 |
| 2015-06-30 | 715.93 | 2,790.49 | 1,150.67 |
| 2015-03-31 | 826.00 | 2,645.85 | 1,510.08 |
| 2014-12-31 | 911.71 | 2,540.48 | 1,905.71 |
| 2014-09-30 | 958.09 | 2,468.82 | 2,370.74 |
| 2014-06-30 | 952.33 | 2,469.83 | 2,674.91 |
| 2014-03-31 | 912.06 | 2,200.75 | 2,583.02 |
| 2013-12-31 | 667.12 | 606.88 | 845.89 |
| 2013-09-30 | 564.17 | 676.90 | 795.12 |
| 2013-06-30 | 629.43 | 593.68 | 746.06 |
| 2013-03-31 | 168.58 | 455.54 | 214.42 |
| 2012-12-31 | 124.70 | 466.67 | 201.89 |
| 2012-09-30 | -27.88 | 474.51 | 85.69 |
| 2012-06-30 | 62.22 | 438.97 | 210.55 |
| 2012-03-31 | 153.87 | 365.91 | 243.58 |
| 2011-12-31 | 224.05 | 280.15 | 280.33 |
| 2011-09-30 | 294.12 | 226.05 | 278.39 |
- Tesla's level of debt (254.6%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (94.6% vs 254.6% today).
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.
- Tesla has less than a year of cash runway based on current financial obligations.
- Tesla has less than a year of cash runway if financial obligations continue to grow at historical rates of 58% each year.
Financial health checks
We assess Tesla's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Tesla has a total score of 0/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is Tesla's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Tesla
shares you are expected to receive
$0
in your first year as a dividend.
Dividend Amount
- Unable to evaluate Tesla's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
- Unable to evaluate Tesla's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 25 Analyst Estimates (S&P Global) | See Below |
| United States of America Auto Industry Average Dividend Yield | Market Cap Weighted Average of 56 Stocks | 3.6% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 5588 Stocks | 2.9% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.5% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.8% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2022-12-31 | ||
| 2021-12-31 | ||
| 2020-12-31 | 0.00 | 3.00 |
| 2019-12-31 | 0.00 | 5.00 |
| 2018-12-31 | 0.00 | 5.00 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Unable to perform a dividend volatility check as Tesla has not reported any payouts.
- Unable to verify if Tesla's dividend has been increasing as the company has not reported any payouts.
Income/ dividend checks
We assess Tesla's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Tesla afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Tesla has a total score of 0/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | $49,920 |
| AGE | 46 |
| TENURE AS CEO | 9.8 years |
CEO Bio
Mr. Elon R. Musk serves as Chief Executive Officer and Founder at The Boring Company and Neuralink Corp. He founded Space Exploration Technologies Corporation in May 2002 and serves as its Chief Executive Officer, Chief Rocket Designer and Chief Technology Officer. Mr. Musk is a Co-Founder of Tesla Motors, Inc. (also known as Tesla Inc.) and has been its Chief Executive Officer since October 2008 and serves its Product Architect. He co-founded PayPal and served as its Chief Executive Officer from May 2000 to September 2000. Prior to PayPal in 1995, he Co-founded Zip2 Corp. with investments from the New York Times Co., Knight-Ridder, MDV, Softbank and the Hearst Corp. After, he served as the Chairman, Chief Executive Officer and Chief Technology Officer since March 1999, he sold Zip2 to Compaq for the largest cash deal in Internet history. He founded X.com Corporation in March 1999, which merged with Confinity, Inc. in March 2000. He served as the Chief Executive Officer of X.com from March 1999 to December 1999. He served as the Chairman of the Board at SolarCity Corporation from July 2006 to November 21, 2016. He served as the Chairman of PayPal, Inc. and Zip2 Corp. He served as a Director of Everdream Corporation and Halcyon Molecular Inc. He has been the Chairman of the Board at Tesla Motors, Inc. since April 2004. He has been a Director of Tesla Motors, Inc. since April 2004 and PayPal, Inc. since March 1999. He serves as a Director of Space Foundation. He serves as a Director of XPRIZE Foundation, Inc. He served as a Director of Perquest Inc. He served as a Director of SolarCity Corporation from 2006 to November 21, 2016. He served as a Non Executive Director of Surrey Satellite Technology Limited. In addition, he is a trustee of the X Prize Foundation and the Musk Foundation, both of which have a strong interest in promoting renewable and environmentally friendly energy technologies. Mr. Musk holds a B.A. in Physics from the University of Pennsylvania and B.S. in business from The Wharton School of the University of Pennsylvania in 1995.
CEO Compensation
- Elon's compensation has increased whilst company is loss making.
- Elon's compensation appears reasonable for a company of this size and profit level.
Management Team Tenure
Average tenure and age of the Tesla management team in years:
- The average tenure for the Tesla management team is less than 2 years, this suggests a new team.
Management Team
Elon Musk
Co-Founder
$50K
46
9.8 yrs
Deepak Ahuja
Chief Financial Officer
$15M
55
1.4 yrs
JB Straubel
Chief Technology Officer
$250K
42
13.3 yrs
Dave Morton
Chief Accounting Officer
46
Gary Clark
Chief Information Officer
1.5 yrs
Todd Maron
General Counsel
Gabrielle Toledano
Chief People Officer
51
1.3 yrs
Franz von Holzhausen
Chief Designer
James Zhou
Chief Financial Officer of China
0.3 yrs
Alexandra Veitch
Senior Director for North American Government Relations & Policy
0.3 yrs
Board of Directors Tenure
Average tenure and age of the Tesla board of directors in years:
- The tenure for the Tesla board of directors is about average.
Board of Directors
Ira Ehrenpreis
Director
$38K
49
11.3 yrs
Elon Musk
Co-Founder
$50K
46
14.3 yrs
Robyn Denholm
Independent Director
$45K
55
4 yrs
Antonio Gracias
Lead Independent Director
$38K
48
7.9 yrs
Kimbal Musk
Director
$25K
45
14.3 yrs
Steve Jurvetson
Director (Leave of Absence)
$28K
51
9.2 yrs
Brad Buss
Director
$20K
54
8.8 yrs
Linda Johnson Rice
Director
60
1.1 yrs
James Murdoch
Director
45
1.1 yrs
Recent Insider Trading
- More shares have been bought than sold by Tesla insiders in the past 3 months.
Who owns this company?
Management checks
We assess Tesla's management by checking for:- Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of market cap)? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Tesla has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
External News
Simply Wall St News
Tesla Inc's (NASDAQ:TSLA) Shift From Loss To Profit
The US$56.65b market-cap posted a loss in its most recent financial year of -US$1.96b and a latest trailing-twelve-month loss of -US$2.34b leading to an even wider gap between loss and breakeven … Many investors are wondering the rate at which TSLA will turn a profit, with the big question being “when will the company breakeven?” … Below I will provide a high-level summary of the industry analysts’ expectations for TSLA.
Simply Wall St - – Full articleShould You Buy Tesla Inc (NASDAQ:TSLA)?
Let's talk about the popular Tesla Inc (NASDAQ:TSLA). … received a lot of attention from a substantial price increase on the NasdaqGS over the last few months. … With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price?
Simply Wall St - – Full articleIs Tesla Inc (NASDAQ:TSLA) Excessively Paying Its CEO?
See our latest analysis for Tesla What has TSLA's performance been like? … Usually I'd use market cap and profit as factors determining performance, however, TSLA's negative earnings lower the usefulness of my formula. … On the whole, although TSLA is loss-making, it seems like the CEO’s pay is appropriate.
Simply Wall St - – Full articleHow Much Money Does Tesla Inc (NASDAQ:TSLA) Have Left?
Cash is crucial to run a business, and if a company burns through its reserves fast, it will need to come back to market for additional capital raising. … NasdaqGS:TSLA Income Statement May 24th 18 When will Tesla need to raise more cash? … My cash burn analysis suggests that, if Tesla continues to spend its cash reserves at this current high rate, it’ll have to raise capital within the next 8 months, which may be a surprise to some shareholders.
Simply Wall St - – Full articleMay Insights Into Auto Stocks: Tesla Inc (NASDAQ:TSLA)
Automobile analysts are forecasting for the entire industry, a strong double-digit growth of 14.39% in the upcoming year , and an optimistic near-term growth of 26.36% over the next couple of years. … However, this rate came in below the growth rate of the US stock market as a whole. … If Tesla has been on your watchlist for a while, now may be the time to enter into the stock, if you like its growth prospects and are not highly concentrated in the automobile industry.
Simply Wall St - – Full articleShould You Be Holding Tesla Inc (NASDAQ:TSLA) Right Now?
A widely-used metric to measure a stock's market risk is beta, and the broad market index represents a beta value of one. … See our latest analysis for Tesla An interpretation of TSLA's beta Tesla has a beta of 1.1, which means that the percentage change in its stock value will be higher than the entire market in times of booms and busts. … A high level of beta means investors face higher risk associated with potential gains and losses driven by market movements.
Simply Wall St - – Full articleIs It The Right Time To Buy Tesla Inc (NASDAQ:TSLA)?
It’s trading around 12.86% below my intrinsic value, which means if you buy Tesla today, you’d be paying a fair price for it. … Since Tesla’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. … TSLA’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value.
Simply Wall St - – Full articleIs Tesla Inc (NASDAQ:TSLA) A Financially Sound Company?
View our latest analysis for Tesla How does TSLA’s operating cash flow stack up against its debt? … TSLA has built up its total debt levels in the last twelve months, from US$8.59B to US$12.12B , which comprises of short- and long-term debt. … With this growth in debt, TSLA currently has US$3.37B remaining in cash and short-term investments for investing into the business.
Simply Wall St - – Full articleWho Are The Major Shareholders Of Tesla Inc (NASDAQ:TSLA)?
NasdaqGS:TSLA Insider_trading Mar 14th 18 General Public Ownership The general public holds a substantial 15.85% stake in TSLA, making it a highly popular stock among retail investors. … With this size of ownership, retail investors can collectively play a role in major company policies that affect shareholders returns, including executive remuneration and the appointment of directors. … Thus, investors not need worry too much about the consequences of these holdings.Next Steps: The company's high institutional ownership makes margin of safety a very important consideration to existing investors since long bull and bear trends often emerge when these big-ticket investors see a change in long-term potential of the company.
Simply Wall St - – Full articleTesla Inc (NASDAQ:TSLA): When Will It Breakeven?
Many investors are wondering the rate at which TSLA will turn a profit, with the big question being “when will the company breakeven?” In this article, I will touch on the expectations for TSLA’s growth and when analysts expect the company to become profitable. … If this rate turns out to be too aggressive, TSLA may become profitable much later than analysts predict. … For a more comprehensive look at TSLA, take a look at TSLA’s company page on Simply Wall St.
Simply Wall St - – Full articleCompany Info
Map
Description
Tesla, Inc. designs, develops, manufactures, and sells electric vehicles, and energy generation and storage systems in the United States, China, 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.
Details
| Name: | Tesla, Inc. |
| TSLA | |
| Exchange: | NasdaqGS |
| Founded: | 2003 |
| $59,305,000,580 | |
| 170,593,144 | |
| Website: | http://www.tesla.com |
| Address: |
Tesla, Inc. 3500 Deer Creek Road, Palo Alto, California, 94304, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NasdaqGS | TSLA | Common Stock | Nasdaq Global Select | US | USD | 29. Jun 2010 | |
| DB | TL0 | Common Stock | Deutsche Boerse AG | DE | EUR | 29. Jun 2010 | |
| XTRA | TL0 | Common Stock | XETRA Trading Platform | DE | EUR | 29. Jun 2010 | |
| LSE | 0R0X | Common Stock | London Stock Exchange | GB | USD | 29. Jun 2010 | |
| SWX | TSLA | Common Stock | SIX Swiss Exchange | CH | CHF | 29. Jun 2010 | |
| BIT | TSLA | Common Stock | Borsa Italiana | IT | EUR | 29. Jun 2010 | |
| WBAG | TSLA | Common Stock | Wiener Boerse AG | AT | EUR | 29. Jun 2010 | |
| BMV | TSLA * | Common Stock | Bolsa Mexicana de Valores | MX | MXN | 29. Jun 2010 | |
| BVL | TSLA | Common Stock | Bolsa de Valores de Lima | PE | USD | 29. Jun 2010 | |
| BATS-CHIXE | TL0D | Common Stock | BATS 'Chi-X Europe' | GB | EUR | 29. Jun 2010 | |
| BOVESPA | TSLA34 | BDR EA REPR 1/4 COM SHS USD0.001 | Bolsa de Valores de Sao Paulo | BR | BRL | 27. Jul 2016 |
Number of employees
Current staff
Industry
| Automobile Manufacturers | |
| Automobiles |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2018/08/15 23:06 |
| End of day share price update: | 2018/08/15 00:00 |
| Last estimates confirmation: | 2018/08/14 |
| Last earnings update: | 2018/06/30 |
| Last annual earnings update: | 2017/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
