Tesla (TSLA) AI Stock Analysis

• Market Cap: $1.44T
• Dividend Yield: N/A
• Average Volume (3M): 93.52M
• Price to Earnings (P/E): 302.3
• Beta (1Y): 1.79
• Revenue Growth: -1.56%
• EPS Growth: -59.09%
• Country: US
• Employees: 125,665
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): 0.50
• Shares Outstanding: 3,325,819,000
• 10 Day Avg. Volume: 81,345,190
• 30 Day Avg. Volume: 93,524,997
• PEG Ratio: -3.43
• Price to Book (P/B): 17.71
• Price to Sales (P/S): 13.22
• P/FCF Ratio: 360.54
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 16.11
• Enterprise Value/Gross Profit: 94.71
• Enterprise Value/Ebitda: 116.58
• 1Y Price Target: $382.54
• Price Target Upside: -16.94% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 35

• Rating: 73 Outperform
• Price Target: $483.00 ▲(4.87% Upside)

Tesla's strong financial performance and technical indicators are the primary drivers of its stock score. The company's robust earnings call further supports its growth potential, despite valuation concerns due to a high P/E ratio. The absence of a dividend yield also impacts the valuation score.

Positive Factors

Record Deliveries and Financial Performance

Record deliveries and financial performance indicate strong market demand and operational efficiency, supporting Tesla's growth trajectory.

Advancements in Full Self-Driving (FSD) and Robotaxi Expansion

Advancements in FSD and robotaxi expansion highlight Tesla's leadership in autonomous driving technology, potentially opening new revenue streams.

Energy Sector Growth and Megapack Developments

Growth in energy storage with new products strengthens Tesla's position in the renewable energy market, diversifying its revenue base.

Negative Factors

FSD Adoption Challenges

Limited FSD adoption could slow revenue growth from software services, impacting Tesla's ability to capitalize on its autonomous technology.

Tariff Impacts on Energy Business

Tariff impacts on the energy business could pressure margins and profitability, challenging Tesla's expansion in the energy sector.

Challenges in Scaling Optimus Production

Challenges in scaling Optimus production could delay market entry and revenue realization from this innovative product line.

Tesla Business Overview & Revenue Model

Company Description

Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally. It operates in two segments, Automotive, and Energy Generation and Storage. The Automotive segment offers electric vehicles, as well as sells automotive regulatory credits; and non-warranty after-sales vehicle, used vehicles, retail merchandise, and vehicle insurance services. This segment also provides sedans and sport utility vehicles through direct and used vehicle sales, a network of Tesla Superchargers, and in-app upgrades; purchase financing and leasing services; services for electric vehicles through its company-owned service locations and Tesla mobile service technicians; and vehicle limited warranties and extended service plans. The Energy Generation and Storage segment engages in the design, manufacture, installation, sale, and leasing of solar energy generation and energy storage products, and related services to residential, commercial, and industrial customers and utilities through its website, stores, and galleries, as well as through a network of channel partners; and provision of service and repairs to its energy product customers, including under warranty, as well as various financing options to its solar customers. The company was formerly known as Tesla Motors, Inc. and changed its name to Tesla, Inc. in February 2017. Tesla, Inc. was incorporated in 2003 and is headquartered in Austin, Texas.

How the Company Makes Money

Tesla generates revenue through several key streams. The majority of its income comes from the sale of electric vehicles, which includes both retail sales and leasing of its cars. Additionally, Tesla earns revenue from energy generation and storage solutions, which encompasses the sale of solar panels, solar roofs, and energy storage products. The company also generates income through regulatory credits, which it sells to other automakers who need to comply with environmental regulations. Moreover, Tesla has established partnerships for battery technology and charging infrastructure, which can contribute to its revenue through collaborative projects and shared technology initiatives. Lastly, Tesla's growing subscription and software services, including its Full Self-Driving (FSD) software, represent an emerging revenue stream as the company expands its offerings.

Tesla Financial Statement Overview

Summary

Tesla demonstrates strong financial health with consistent revenue growth and profitability. The balance sheet is robust with low leverage, and cash flow generation is solid. While there are some fluctuations in margins and free cash flow, the company maintains a stable financial trajectory, positioning it well for future growth.

Income Statement

Tesla's income statement shows a solid performance with a consistent revenue growth trend, albeit at a slower pace recently. The gross profit margin has decreased over time, indicating potential cost pressures. However, the net profit margin remains positive, reflecting effective cost management. The EBIT and EBITDA margins have shown some volatility but remain healthy, supporting overall profitability.

Balance Sheet

Tesla's balance sheet is strong, with a low debt-to-equity ratio indicating prudent financial leverage. The return on equity has decreased from its peak but remains robust, showcasing efficient use of shareholder funds. The equity ratio is healthy, suggesting a stable financial position with a good proportion of assets financed by equity.

Cash Flow

Tesla's cash flow statement highlights a positive trend in operating cash flow, which supports ongoing operations. Free cash flow has shown significant growth recently, although it has been volatile in the past. The operating cash flow to net income ratio is stable, indicating efficient cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	95.63B	97.69B	96.77B	81.46B	53.82B	31.54B
Gross Profit	16.26B	17.45B	17.66B	20.85B	13.61B	6.63B
EBITDA	13.21B	14.71B	14.80B	17.66B	9.63B	4.22B
Net Income	5.31B	7.13B	15.00B	12.58B	5.52B	721.00M
Balance Sheet
Total Assets	133.74B	122.07B	106.62B	82.34B	62.13B	52.15B
Cash, Cash Equivalents and Short-Term Investments	42.23B	36.56B	29.09B	22.18B	17.71B	19.38B
Total Debt	13.79B	13.62B	9.57B	5.75B	8.87B	13.28B
Total Liabilities	53.02B	48.39B	43.01B	36.44B	30.55B	28.47B
Stockholders Equity	79.97B	72.91B	62.63B	44.70B	30.19B	22.23B
Cash Flow
Free Cash Flow	6.83B	3.58B	4.36B	7.55B	3.48B	2.70B
Operating Cash Flow	15.75B	14.92B	13.26B	14.72B	11.50B	5.94B
Investing Cash Flow	-16.55B	-18.79B	-15.58B	-11.97B	-7.87B	-3.13B
Financing Cash Flow	1.41B	3.85B	2.59B	-3.53B	-5.20B	9.97B

Tesla Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 460.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 460.55 is above the 20-day moving average (MA) of 439.62, above the 50-day MA of 402.94, and above the 200-day MA of 336.40, indicating a bullish trend. The MACD of 11.48 indicates Positive momentum. The RSI at 60.63 is Neutral, neither overbought nor oversold. The STOCH value of 74.53 is Neutral, 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
TSLA	―	$1.44T	302.30	7.03%	―	-1.56%	-59.09%
HMC	―	$42.94B	11.21	5.17%	4.35%	1.68%	-39.28%
TM	―	$267.48B	9.47	12.05%	2.88%	4.14%	-12.12%
LI	―	$22.12B	20.47	11.91%	―	7.49%	-21.06%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
NIO	―	$17.26B	―	-329.46%	―	9.60%	-5.91%
LCID	―	$5.68B	―	-54.39%	―	39.01%	7.12%

Tesla Corporate Events

Tesla Reports Growth in Revenue Amidst Challenges

Tesla, Inc. is a leading electric vehicle and clean energy company based in Austin, Texas, known for its innovative approach in the automotive and energy sectors.

Tesla’s Q3 2025 Earnings Call: Key Insights

Tesla’s recent earnings call showcased a balanced sentiment, highlighting strong performance in deliveries and financial metrics, alongside advancements in AI and energy storage. However, the company faces challenges with FSD adoption, tariff impacts, legal costs, and scaling Optimus production.

Tesla Approves New Indemnification Agreement for Executives

On September 3, 2025, Tesla‘s Board of Directors approved a new Indemnification Agreement for its directors and executive officers, ensuring legal protection and expense coverage under Texas law. This move aims to enhance the company’s governance framework and provide security to its leadership, potentially impacting its operational stability and stakeholder confidence.

The most recent analyst rating on (TSLA) stock is a Buy with a $500.00 price target. To see the full list of analyst forecasts on Tesla stock, see the TSLA Stock Forecast page.

Duquesne Family Office LLC Reduces Tesla Holdings

Viking Global Investors LP Boosts Stake in Tesla

Soros Fund Management LLC Boosts Stake in Tesla

Clough Capital Partners Boosts Stake in Tesla Motors

Coatue Management Boosts Stake in Tesla Motors

Graham Capital Management Reduces Stake in Tesla Motors

Atreides Management, LP Boosts Stake in Tesla Motors

Woodline Partners LP Boosts Stake in Tesla Motors

Gilder Gagnon Howe Reduces Stake in Tesla Motors

Moore Capital Management LP Boosts Stake in Tesla

Manning & Napier Advisors LLC Reduces Tesla Holdings

Gamco Investors Boosts Stake in Tesla Motors

Fisher Asset Management LLC Boosts Stake in Tesla

SCS Capital Management LLC Boosts Stake in Tesla

Bridgewater Associates Reduces Stake in Tesla Motors

PRIMECAP Management Co Reduces Stake in Tesla Motors

Tesla Approves Special Compensation Package for Elon Musk

On August 3, 2025, Tesla‘s Board of Directors approved a special compensation package for CEO Elon Musk, granting him 96 million shares of restricted stock under the 2019 Equity Incentive Plan. This award, recommended by a Special Committee, is part of Tesla’s efforts to retain Musk’s leadership as the company navigates a critical inflection point, transitioning into AI and robotics. The award is structured with a two-year vesting period and a five-year holding requirement, with provisions to prevent ‘double dipping’ if Musk’s 2018 CEO Performance Award is reinstated by the courts. The decision reflects Tesla’s commitment to honoring past agreements and incentivizing Musk to continue driving shareholder value amid ongoing legal challenges and competitive pressures in the AI talent market.

The most recent analyst rating on (TSLA) stock is a Buy with a $380.00 price target. To see the full list of analyst forecasts on Tesla stock, see the TSLA Stock Forecast page.

ARK Investment Management LLC Reduces Stake in Tesla