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Tesla
(NASDAQ:TSLA)
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Rating:58Neutral
Price Target:
$332.00
▲(6.06% Upside)
Action:Reiterated
Date:07/24/26
Overall score reflects solid underlying financial resilience (low leverage and continued positive cash generation) but materially weaker profitability/returns versus prior peaks. The technical picture is notably bearish (price below all major moving averages with negative momentum), and valuation is a significant headwind given the very high P/E. Earnings-call positives around deliveries, FSD and robotaxi momentum are tempered by margin pressure, negative free cash flow, and a multi-year high-CapEx investment cycle.
Positive Factors
Strong Cash Generation & Low Leverage
Sustained high operating cash flow and positive trailing free cash flow, combined with very low debt-to-equity, provide durable financial flexibility. This supports multi-year CapEx, R&D and factory scaling without immediate solvency risk, cushioning cycles and funding strategic moves.
Negative Factors
Compressed Profitability
Material margin compression versus peak years weakens returns on the expanded asset base and reduces capital efficiency. Lower gross and net margins constrain reinvestment capacity, limit ROE and make it harder to absorb higher operating costs as the company scales production and new businesses.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Cash Generation & Low Leverage
Sustained high operating cash flow and positive trailing free cash flow, combined with very low debt-to-equity, provide durable financial flexibility. This supports multi-year CapEx, R&D and factory scaling without immediate solvency risk, cushioning cycles and funding strategic moves.
Read all positive factors
Tesla Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breakdown of Tesla’s revenue by region, showing which markets drive sales growth and where exposure to local economic conditions, regulation, or currency moves could affect results.
Breakdown of Tesla’s revenue by region, showing which markets drive sales growth and where exposure to local economic conditions, regulation, or currency moves could affect results.
Data provided by:
The Fly
The FlyTesla (TSLA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.23T
Dividend YieldN/A
Average Volume (3M)43.50M
Price to Earnings (P/E)263.7
Beta (1Y)1.84
Revenue Growth11.75%
EPS Growth-37.64%
CountryUS
Employees134,785
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)1.18
Shares Outstanding3,949,547,400
10 Day Avg. Volume42,320,455
30 Day Avg. Volume43,497,609
Financial Highlights & Ratios
PEG Ratio-8.09
Price to Book (P/B)17.66
Price to Sales (P/S)15.29
P/FCF Ratio233.17
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$382.65Price Target Upside22.24% Upside
Rating ConsensusHold
Number of Analyst Covering28
EPS Forecast (FY)1.74
Revenue Forecast (FY)$106.06B
Tesla Business Overview & Revenue Model
Company Description
Tesla, Inc. operates globally, specializing in the creation, production, and distribution of electric vehicles, alongside comprehensive energy generation and storage solutions. Its market reach extends across the United States, China, and various ...
How the Company Makes Money
Tesla makes money primarily through (1) automotive sales and related revenue and (2) energy generation and storage, with additional contributions from software and services.
1) Automotive sales (largest revenue stream): Tesla sells new vehicles d...
Tesla Earnings Call Summary
Earnings Call Date:Jul 22, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call highlighted very strong demand momentum (record deliveries, high FSD attach rates, regional delivery growth), impressive early robotaxi safety and rapid usage growth, large energy deployment growth and significant strategic investments in AI compute, semiconductors and manufacturing (Terafab, refineries, battery scaling). Offsetting these positives were meaningful near-term margin pressures—most notably a large decline in energy gross margins driven by warranty true-ups and lost tariff benefits—negative free cash flow driven by a large CapEx ramp, FX/Bitcoin losses, and ongoing supply-chain and regulatory risks. Management communicated confidence in long-term returns from current investments despite short-term profitability and cash-flow headwinds.Positive Updates
Record Q2 Deliveries and Regional Growth
Tesla reported record Q2 global deliveries with sequential delivery growth across regions: Americas +60%, APAC +27%, EMEA +12%; Model Y noted as the best-selling car globally and set market records in the Netherlands, Australia and New Zealand.
Negative Updates
Automotive Gross Margin Pressure (Excluding Credits)
Automotive gross margins excluding regulatory credits declined sequentially from 19.2% to 16.3% (down 2.9 percentage points); management notes a Q1 benefit (~$230M) did not repeat and higher interest-rate-related subvention costs negatively impacted margins.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Q2 Deliveries and Regional Growth
Tesla reported record Q2 global deliveries with sequential delivery growth across regions: Americas +60%, APAC +27%, EMEA +12%; Model Y noted as the best-selling car globally and set market records in the Netherlands, Australia and New Zealand.
Read all positive updates
Company Guidance
The call guided that Tesla is in a heavy investment and scale-up phase: record Q2 deliveries with sequential regional delivery growth of ~60% (Americas), 27% (APAC) and 12% (EMEA) and the largest order backlog since 2023; FSD monetization now reaches nearly 1.5 million paid customers (55% upfront purchases, 45% subscriptions) with ~55% of North American deliveries having FSD subscription enabled at delivery; automotive gross margins (ex‑credits) fell from 19.2% to 16.3% sequentially (Q1 had a one‑time ~$230M benefit), energy deployments were 13.5 GWh in Q2 (up 53% sequential) while energy gross margin fell from 39.5% to 20.4% (including a ~$240M warranty true‑up and no repeat of >$200M tariff benefit from Q1), service & other margin rose from 9.2% to 14.1%, free cash flow was negative as CapEx more than doubled sequentially, and Tesla expects full‑year 2026 CapEx to be >$25 billion (will grow for 2–3 years) while securing debt capacity up to $30 billion; robotaxi has driven >380,000 unsupervised miles across six cities/two states with zero notable incidents and is growing at double‑digit week‑over‑week rates (Elon cited >10% weekly miles growth) as the company scales Cybercab, Semi and Optimus production (Optimus 4 targeted to be ~10x Optimus 3 production aspirationally), pursues on‑shoring of fabs (Terafab/dev fab orders placed), and targets very high reliability (the “march of 9s,” e.g., 99.999%), with Q2 net income helped by a ~$1B mark‑to‑market SpaceX gain offset by ~‑$300M FX and ~‑$100M Bitcoin losses.Tesla Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
78
Positive
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 103.62B | 94.83B | 97.69B | 96.77B | 81.46B | 53.82B |
| Gross Profit | 19.53B | 17.09B | 17.45B | 17.66B | 20.85B | 13.61B |
| EBITDA | 10.41B | 11.76B | 14.71B | 14.80B | 17.66B | 9.63B |
| Net Income | 3.82B | 3.79B | 7.13B | 15.00B | 12.58B | 5.52B |
Balance Sheet | ||||||
| Total Assets | 148.52B | 137.81B | 122.07B | 106.62B | 82.34B | 62.13B |
| Cash, Cash Equivalents and Short-Term Investments | 43.52B | 44.06B | 36.56B | 29.09B | 22.18B | 17.71B |
| Total Debt | 9.34B | 8.38B | 13.62B | 9.57B | 5.75B | 8.87B |
| Total Liabilities | 61.06B | 54.94B | 48.39B | 43.01B | 36.44B | 30.55B |
| Stockholders Equity | 86.86B | 82.14B | 72.91B | 62.63B | 44.70B | 30.19B |
Cash Flow | ||||||
| Free Cash Flow | 5.76B | 6.22B | 3.58B | 4.36B | 7.55B | 3.48B |
| Operating Cash Flow | 18.68B | 14.75B | 14.92B | 13.26B | 14.72B | 11.50B |
| Investing Cash Flow | -21.83B | -15.48B | -18.79B | -15.58B | -11.97B | -7.87B |
| Financing Cash Flow | 2.90B | 1.14B | 3.85B | 2.59B | -3.53B | -5.20B |
Tesla Risk Analysis
Tesla disclosed 40 risk factors in its most recent earnings report. Tesla reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Tesla Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $208.47B | 10.39 | 10.10% | 3.38% | 6.73% | -16.97% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $1.23T | 263.74 | 4.58% | ― | 11.75% | -37.64% | |
52 Neutral | $2.88B | -0.58 | -193.02% | ― | 61.03% | -5.36% | |
52 Neutral | $22.04B | -5.90 | -67.49% | ― | 14.21% | 20.20% | |
47 Neutral | $12.25B | -8.29 | -328.93% | ― | 51.42% | 66.12% | |
46 Neutral | $13.97B | -51.77 | -2.49% | ― | -23.38% | -123.25% |
* Consumer Cyclical Sector Average
TSLA
Tesla
327.35
18.63
6.03%
TM
Toyota Motor
189.17
7.67
4.23%
NIO
Nio
4.76
0.26
5.78%
LI
Li Auto
12.86
-12.73
-49.75%
LCID
Lucid Group
7.78
-16.42
-67.85%
RIVN
Rivian Automotive
15.76
3.61
29.71%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.