Tesla, Inc. designs, develops, manufactures, and sells electric vehicles, and energy generation and storage systems in the United States, China, Norway, and internationally. More info.
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value. We use
analyst's estimates of cash flows going forward 5 years.
See our documentation to learn about this calculation.
|Levered FCF (USD, Millions)||$-2,563.41||$-755.48||$954.40||$4,103.36||$5,658.70|
|Source||Analyst x13||Analyst x11||Analyst x7||Analyst x3||Analyst x3|
Discounted (@ 8.49%)
Present value of next 5 years cash flows:
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = $5,659 × (1 + 2.47%) ÷ (8.49% – 2.47%)
Terminal value based on the Perpetuity Method where growth (g) =
Present value of terminal value:
Equity Value (Total value) = Present value of next 5 years cash flows +
$68,501 = $4,469 + $64,032
Value = Total value / Shares Outstanding ($68,501 / 169)Discount to Share Price
Value per share:
Current discount (share price of $313.56): 22.68%
The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.
Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
Discount rate = 8.49% = 2.47% + (0.8 * 7.53%)
The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm). Note the market value of equity is used not the book value ($54,282,423,040).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
0.795 = 0.653 (1 + (1- 2.7%) (22.32%))
Levered Beta used in calculation = 0.8
Mr. Elon R. Musk founded Space Exploration Technologies Corporation in June 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. 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.S. in Physics from the University of Pennsylvania and BS in Economics from The Wharton School of the University of Pennsylvania in 1995.
Average tenure and age of the Tesla management team in years:
Average tenure and age of the Tesla board of directors in years:
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 article
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 article
The single most important question to ask when you’re investing in a loss-making company is – will they need to raise cash again, and if so, when? … How fast Tesla runs down its cash supply over time is known as the cash burn rate. … Not surprisingly, if Tesla continues to ramp up expenditure at this rate for the upcoming year, it’ll likely need to come to market within the next few months, given the its current level of cash reserves.Simply Wall St - – Full article
5-year cash flow estimate 2018 2019 2020 2021 2022 Levered FCF ($, Millions) $-2,301.95 $-877.37 $888.26 $4,103.36 $5,658.70 Source Analyst x12 Analyst x9 Analyst x7 Analyst x3 Analyst x3 Present Value Discounted @ 8.49% $-2,121.73 $-745.37 $695.54 $2,961.53 $3,764.34 Present Value of 5-year Cash Flow (PVCF)= $4,554 The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … Terminal Value (TV) = FCF2022 × (1 + g) ÷ (r – g) = $5,659 × (1 + 2.5%) ÷ (8.5% – 2.5%) = $96,256 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = $96,256 / ( 1 + 8.5%)5 = $64,032 The total value is the sum of cash flows for the next five years and the discounted terminal value, which results in the Total Equity Value, which in this case is $68,587. … NasdaqGS:TSLA Intrinsic Value Feb 13th 18 Important assumptions I'd like to point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.Simply Wall St - – Full article
TSLA can create value to shareholders by increasing its profitability, which in turn is reflected into the share price and the investor's ability to sell their shares at higher capital gains. … In the past year, TSLA released negative earnings of -$1,407.4M , which is a further decline from prior year's loss of -$874.0M. … Normally I would use earnings and market cap to account for variations in performance, however, TSLA's negative earnings reduces the usefulness of my formula.Simply Wall St - – Full article
Based on this beta value, TSLA appears to be a stock that an investor with a high-beta portfolio would look for to reduce risk exposure to the market. … I examine TSLA’s ratio of fixed assets to total assets to see whether the company is highly exposed to the risk of this type of constraint. … Thus, we can expect TSLA to be more volatile in the face of market movements, relative to its peers of similar size but with a lower proportion of fixed assets on their books.Simply Wall St - – Full article
New opportunities driving future growth in the auto sector is connected and intelligent cars, in particular, web networking, sensors and software, which is not the traditional focus for most automobile companies. … Tesla is an automobile industry laggard in terms of its future growth outlook. … If your initial investment thesis is around the growth prospects of Tesla, there are other automobile companies that are expected to deliver higher growth in the future, and perhaps trading at a discount to the industry average.Simply Wall St - – Full article
It’s trading around 6% above my intrinsic value, which means if you buy Tesla today, you’d be paying a relatively reasonable price for it. … Furthermore, it seems like Tesla’s share price is quite stable, which means there may be less chances to buy low in the future now that it’s fairly valued. … It seems like the market has already priced in Tesla’s positive outlook, with shares trading around its fair value.Simply Wall St - – Full article
NasdaqGS:TSLA Historical Debt Jan 4th 18 A simple way to determine whether the company has put debt into good use is to look at its operating cash flow against its debt obligation. … Last year, TSLA’s operating cash flow was -0.09x its current debt. … TSLA’s high debt levels are not met with high cash flow coverage.Simply Wall St - – Full article
View our latest analysis for Tesla Was TSLA's weak performance lately a part of a long-term decline? … I like to use the ‘latest twelve-month’ data, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. … Tesla's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story.Simply Wall St - – Full article
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.
3500 Deer Creek Road,
|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|
|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|
|Company Analysis updated:||2018/03/20 10:16|
|Last estimates confirmation:||2018/03/19|
|Last earnings update:||2017/12/31|
|Last annual earnings update:||2017/12/31|
All dates 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.