Tesla, Inc. (NASDAQ: TSLA)

Sector: Consumer Cyclical Industry: Auto Manufacturers CIK: 0001318605
Market Cap 1,320.28 Bn
P/B 16.07
P/E 347.99
P/S 13.92
ROIC (Qtr) 3.52
Div Yield % 0.00
Rev 1y % (Qtr) -3.14
Total Debt (Qtr) 8.38 Bn
Debt/Equity (Qtr) 0.10
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About

Tesla, Inc., known by its stock symbol TSLA, is a trailblazer in the electric vehicle (EV) and clean energy industry. The company's main business activities involve designing, developing, manufacturing, selling, and leasing EVs, as well as energy generation and storage systems. Tesla's mission is to accelerate the world's transition to sustainable energy. Tesla operates in two primary segments: automotive and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales, and leasing of EVs, along with...

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Investment thesis

Bull case

  • Strong operating cash flow of 14.75B provides robust 1.76x coverage of total debt 8.38B, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 16.51B provide 10.07x coverage of short-term debt 1.64B, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 137.81B provides 16.45x coverage of total debt 8.38B, indicating robust asset backing and low credit risk.
  • Operating cash flow of 14.75B provides exceptional 241.75x coverage of minority interest expenses 61M, showing strong core operations.
  • Operating cash flow of 14.75B provides exceptional 43.63x coverage of interest expenses 338M, showing strong debt service capability.

Bear case

  • Operating cash flow of 14.75B barely covers its investment activities of (15.48B), with a coverage ratio of -0.95, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (15.48B) provide weak support for R&D spending of 6.41B, which is -2.41x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating earnings of 5.55B show weak coverage of depreciation charges of 6.15B, with a 0.90 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 6.15B relative to operating cash flow of 14.75B, which is 0.42x suggests significant maintenance capital requirements affecting free cash flow.
  • Free cash flow of 6.22B represents just -88.86x of debt issuance (70M), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Product and Service Breakdown of Revenue (2025)

Geographical Breakdown of Revenue (2025)

Peer comparison

Companies in the Auto Manufacturers
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TSLA Tesla, Inc. 1,320.28 Bn 347.99 13.92 8.38 Bn
2 TM Toyota Motor Corp/ 319.29 Bn 13.45 0.99 293.92 Bn
3 GM General Motors Co 77.56 Bn 24.39 0.42 130.28 Bn
4 RACE Ferrari N.V. 66.95 Bn 35.53 8.04 3.38 Bn
5 F Ford Motor Co 56.20 Bn 7.14 0.35 163.34 Bn
6 HMC Honda Motor Co Ltd 41.25 Bn 12.95 0.30 88.85 Bn
7 STLA Stellantis N.V. 24.00 Bn -8.53 0.14 -
8 RIVN Rivian Automotive, Inc. / DE 19.56 Bn -5.36 3.63 4.99 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 9.50 1.21
EV to Cash from Ops. EV/CFO 88.81 3.90
EV to Debt EV to Debt 156.36 29.88
EV to EBIT EV/EBIT 235.77 12.72
EV to EBITDA EV/EBITDA 124.70 8.45
EV to Free Cash Flow [EV/FCF] EV/FCF 210.56 10.17
EV to Market Cap EV to Market Cap 0.99 308,127.46
EV to Revenue EV/Rev 13.81 11.91
Price to Book Value [P/B] P/B 16.07 3.20
Price to Earnings [P/E] P/E 347.99 12.53
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.42
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.47
Dividend per Basic Share Div per Share (Qtr) 0.00 0.36
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.50
Interest Coverage Int. cover (Qtr) 16.43 8.29
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 24.82 -57.61
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 2.32 59.50
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.34
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -45.18 -1,066.49
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -15.60 -19.23
EBIT Growth (1y) % EBIT 1y % (Qtr) -40.13 -1,024.45
EBT Growth (1y) % EBT 1y % (Qtr) -41.57 -231.75
EPS Growth (1y) % EPS 1y % (Qtr) -47.09 -70.11
FCF Growth (1y) % FCF 1y % (Qtr) 73.69 -16.56
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -2.04 -5.98
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.69 0.34
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 0.52 0.37
Current Ratio Curr Ratio (Qtr) 2.16 1.19
Debt to Equity Ratio Debt/Equity (Qtr) 0.10 1.05
Interest Cover Ratio Int Coverage (Qtr) 16.43 8.29
Times Interest Earned Times Interest Earned (Qtr) 16.43 8.29
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 12.30 -2,590.34
EBIT Margin % EBIT Margin % (Qtr) 5.86 -104,390.42
EBT Margin % EBT Margin % (Qtr) 5.50 -3,158.64
Gross Margin % Gross Margin % (Qtr) 18.00 -649.03
Net Profit Margin % Net Margin % (Qtr) 4.00 -3,160.67