Tesla (TSLA) AI Stock Analysis

• Market Cap: $916.55B
• Dividend Yield: N/A
• Average Volume (3M): 137.51M
• Price to Earnings (P/E): 156.7
• Beta (1Y): 1.96
• Revenue Growth: 1.03%
• EPS Growth: -53.71%
• Country: US
• Employees: 125,665
• Sector: Consumer Cyclical
• Sector Strength: 63
• Industry: Auto - Manufacturers
• EPS (TTM): 1.82
• Shares Outstanding: 3,216,517,000
• 10 Day Avg. Volume: 113,549,441
• 30 Day Avg. Volume: 137,511,302
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 8.19
• Price to Cash Flow (P/CF): 41.50
• P/FCF Ratio: 89.80
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 50.94
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $284.74
• Price Target Upside: -0.07% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 40

Tesla's overall score reflects its strong financial foundation and positive future outlook in autonomous technology and energy storage. However, high valuation metrics and operational challenges such as delivery declines and tariff impacts temper the score. While technical indicators suggest potential momentum, the stock's high P/E ratio signifies reliance on future growth.

Positive Factors

Energy Business Growth

Non-auto revenue continues growing with energy generation and storage revenue increasing by 67% year-over-year and services revenue by 15% year-over-year.

Focus on Core Operations

Elon Musk's time allocation to DOGE will likely drop significantly, allowing more focus on Tesla.

New Product Launch

A lower-priced vehicle is on track for production, which could boost Tesla's addressable market.

Negative Factors

Earnings Decline

Earnings decline to a 4-year low due to lower auto revenue, lower margins from lower average selling prices, and higher operating expenses from AI projects.

Market Share Loss

Market share loss in China as TSLA's main competitor, BYD, continues to dominate the Chinese EV market.

Tariffs and Cost Concerns

Concerns exist about how much cost increase Tesla can pass to customers without causing significant push-outs or cancellations.

Tesla Business Overview & Revenue Model

Company Description

Tesla, Inc. (TSLA) is a leading American electric vehicle and clean energy company headquartered in Palo Alto, California. Founded in 2003, Tesla specializes in the design, manufacturing, and sale of electric vehicles and energy storage products. The company's core automotive offerings include the Model S, Model 3, Model X, and Model Y, along with the Cybertruck and Tesla Semi, which are in development. Beyond vehicles, Tesla also produces energy solutions, such as the Powerwall, Powerpack, and Solar Roof, to provide sustainable energy options for homes and businesses.

How the Company Makes Money

Tesla generates revenue primarily through the sale of electric vehicles. The bulk of its revenue comes from the production and sale of its various car models, including the Model S, Model 3, Model X, and Model Y. In addition to automotive sales, Tesla also earns money from its energy generation and storage segment, which includes the sale of energy products like the Powerwall, Powerpack, and Solar Roof. Another significant revenue stream comes from regulatory credits, which Tesla earns by selling credits to other automakers who need them to comply with environmental regulations. Tesla also offers services and other revenues, including vehicle maintenance, insurance products, and sales of used vehicles. Partnerships with suppliers and advancements in its autonomous driving technology also contribute to Tesla's earnings, along with its Supercharger network, which provides charging services to Tesla owners.

Tesla Financial Statement Overview

Summary

Tesla demonstrates a strong financial position with healthy profit margins, robust balance sheet, and positive cash flow. Despite a slight decline in revenue growth, the company maintains operational efficiency and financial stability. The income statement score is 85, balance sheet score is 88, and cash flow score is 80.

Income Statement

Tesla's income statement demonstrates strong financial performance with notable gross and net profit margins. The TTM (Trailing-Twelve-Months) gross profit margin is approximately 17.66%, and the net profit margin is around 6.70%, which are healthy figures for the auto-manufacturing industry. However, the revenue growth rate from 2024 to 2025 showed a minor decline of 2.01%, which slightly dampens the overall score. Despite this, the company maintains solid EBIT and EBITDA margins at 6.58% and 14.58% respectively, indicating efficient operational management.

Balance Sheet

Tesla's balance sheet is robust, characterized by a low debt-to-equity ratio of 0.10 in TTM (Trailing-Twelve-Months), reflecting strong financial leverage management. The equity ratio stands at 59.65%, indicating a healthy proportion of equity financing. The return on equity (ROE) is at a solid 8.59%, showcasing the company's ability to generate profit from shareholders' equity. These metrics collectively point to a stable financial position with managed leverage and substantial equity.

Cash Flow

Tesla's cash flow statement presents a positive outlook with a notable improvement in free cash flow from 2024 to TTM (Trailing-Twelve-Months), showing a growth rate of 89.21%. The operating cash flow to net income ratio is 2.63, indicating strong cash generation relative to net income. However, the free cash flow to net income ratio stands at 1.06, suggesting room for improvement in free cash flow generation relative to profitability. Overall, the cash flow position is strong, but with potential to enhance free cash flow.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
97.69B	96.77B	81.46B	53.82B	31.54B
	Gross Profit
17.45B	17.66B	20.85B	13.61B	6.63B
	EBIT
7.08B	8.89B	13.66B	6.52B	1.99B
	EBITDA
14.71B	14.80B	17.66B	9.63B	4.22B
	Net Income Common Stockholders
7.13B	15.00B	12.58B	5.52B	721.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
36.56B	29.09B	22.18B	17.71B	19.38B
	Total Assets
122.07B	106.62B	82.34B	62.13B	52.15B
	Total Debt
13.62B	9.57B	5.75B	8.87B	13.28B
	Net Debt
-2.52B	-6.83B	-10.51B	-8.70B	-6.11B
	Total Liabilities
48.39B	43.01B	36.44B	30.55B	28.47B
	Stockholders Equity
72.91B	62.63B	44.70B	30.19B	22.23B
Cash Flow		Free Cash Flow
3.58B	4.36B	7.55B	3.48B	2.70B
	Operating Cash Flow
14.92B	13.26B	14.72B	11.50B	5.94B
	Investing Cash Flow
-18.79B	-15.58B	-11.97B	-7.87B	-3.13B
	Financing Cash Flow
3.85B	2.59B	-3.53B	-5.20B	9.97B

Tesla Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 284.95
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSLA, the sentiment is Positive. The current price of 284.95 is above the 20-day moving average (MA) of 253.14, above the 50-day MA of 270.59, and below the 200-day MA of 291.34, indicating a neutral trend. The MACD of -3.94 indicates Negative momentum. The RSI at 58.13 is Neutral, neither overbought nor oversold. The STOCH value of 87.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSLA.

Tesla Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TM	75 Outperform	$219.94B	6.82	14.59%	2.58%	-0.59%	7.56%
LI	75 Outperform	$23.50B	22.37	12.29%	―	15.50%	-32.48%
GM	74 Outperform	$43.41B	6.85	9.44%	1.02%	9.08%	-15.25%
HMC	74 Outperform	$48.21B	7.02	8.11%	4.00%	4.37%	6.93%
TSLA	74 Outperform	$916.55B	156.70	9.16%	―	1.03%	-53.71%
F	73 Outperform	$37.10B	6.38	13.42%	7.47%	5.00%	35.92%
Sector *	60 Neutral	$6.86B	11.61	3.16%	4.15%	2.41%	-21.45%