Tesla, Inc. (NASDAQ: TSLA)

Sector: Consumer Cyclical Industry: Auto Manufacturers CIK: 0001318605
Market Cap 1,386.72 Bn
P/B 17.34
P/E 263.09
P/S 14.50
ROIC (Qtr) 3.72
Div Yield % 0.00
Rev 1y % (Qtr) 11.57
Total Debt (Qtr) 7.70 Bn
Debt/Equity (Qtr) 0.10

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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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 15.75B provides robust 2.04x coverage of total debt 7.70B, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 18.29B provide 9.51x coverage of short-term debt 1.92B, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 133.35B provides 17.31x coverage of total debt 7.70B, indicating robust asset backing and low credit risk.
  • Operating cash flow of 15.75B provides exceptional 262.47x coverage of minority interest expenses 60M, showing strong core operations.
  • Operating cash flow of 15.75B provides exceptional 45.12x coverage of interest expenses 349M, showing strong debt service capability.

Bear case

  • Operating cash flow of 15.75B barely covers its investment activities of (16.55B), 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 (16.55B) provide weak support for R&D spending of 5.90B, which is -2.80x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating earnings of 7.15B show weak coverage of depreciation charges of 6B, with a 1.19 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 6.83B represents just -78.55x of debt issuance (87M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Short-term investments of 23.36B represent 0.70x of working capital 33.36B, suggesting potentially excessive financial asset allocation versus operational needs.

Product and Service Breakdown of Revenue (2024)

Geographical Breakdown of Revenue (2024)

Peer comparison

Companies in the Auto Manufacturers
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TSLA Tesla, Inc. 1,386.72 Bn 263.09 14.50 7.70 Bn
2 TM Toyota Motor Corp/ 286.80 Bn 9.26 0.87 287.20 Bn
3 GM General Motors Co 81.08 Bn 25.50 0.44 130.28 Bn
4 RACE Ferrari N.V. 59.53 Bn 31.60 7.15 3.38 Bn
5 F Ford Motor Co 55.12 Bn 17.49 0.30 161.94 Bn
6 HMC Honda Motor Co Ltd 42.13 Bn 9.65 0.29 88.09 Bn
7 STLA Stellantis N.V. 29.73 Bn -10.57 0.17 -
8 XPEV Xpeng Inc. 17.74 Bn -44.29 1.79 4.87 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 10.31 1.20
EV to Cash from Ops. EV/CFO 87.53 5.88
EV to Debt EV to Debt 178.96 28.94
EV to EBIT EV/EBIT 192.72 11.38
EV to EBITDA EV/EBITDA 130.90 7.73
EV to Free Cash Flow [EV/FCF] EV/FCF 201.69 8.79
EV to Market Cap EV to Market Cap 0.99 304,683.06
EV to Revenue EV/Rev 14.41 16.98
Price to Book Value [P/B] P/B 17.34 3.04
Price to Earnings [P/E] P/E 263.09 9.04
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.59
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 6.04
Dividend per Basic Share Div per Share (Qtr) 0.00 0.36
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.58
Interest Coverage Int. cover (Qtr) 20.49 8.74
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 17.99 -59.34
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 0.98 62.23
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.34
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -58.53 -1,057.18
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -16.83 -19.82
EBIT Growth (1y) % EBIT 1y % (Qtr) -19.73 -1,011.94
EBT Growth (1y) % EBT 1y % (Qtr) -20.85 -216.80
EPS Growth (1y) % EPS 1y % (Qtr) -59.71 -59.11
FCF Growth (1y) % FCF 1y % (Qtr) 89.31 -21.21
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -8.16 -10.92
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.72 0.33
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 0.58 0.40
Current Ratio Curr Ratio (Qtr) 2.07 1.21
Debt to Equity Ratio Debt/Equity (Qtr) 0.10 0.99
Interest Cover Ratio Int Coverage (Qtr) 20.49 8.74
Times Interest Earned Times Interest Earned (Qtr) 20.49 8.74
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 13.80 -2,589.89
EBIT Margin % EBIT Margin % (Qtr) 7.48 -104,371.67
EBT Margin % EBT Margin % (Qtr) 7.11 -3,156.67
Gross Margin % Gross Margin % (Qtr) 17.00 -649.09
Net Profit Margin % Net Margin % (Qtr) 5.50 -3,158.82