Tesla (TSLA) AI Stock Analysis

• Market Cap: $949.32B
• Dividend Yield: N/A
• Average Volume (3M): 110.78M
• Price to Earnings (P/E): 162.3
• Beta (1Y): 1.92
• Revenue Growth: 1.03%
• EPS Growth: -53.71%
• Country: US
• Employees: 125,665
• Sector: Consumer Cyclical
• Sector Strength: 68
• Industry: Auto - Manufacturers
• EPS (TTM): 0.27
• Shares Outstanding: 3,216,517,000
• 10 Day Avg. Volume: 116,124,812
• 30 Day Avg. Volume: 110,780,296
• PEG Ratio: -13.29
• Price to Book (P/B): 12.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 135.18
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $285.91
• Price Target Upside: -3.13% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 36

• Rating: 71 Outperform
• Price Target: $315.00 ▲(6.73%Upside)

Tesla's overall score reflects its strong financial performance and promising developments in autonomy and energy storage, offset by technical bearish signals and high valuation concerns. The company's strategic focus on innovation suggests long-term growth potential, though short-term challenges remain.

Positive Factors

CEO Influence

The recent 50% rally in Tesla's stock was driven by hopes that Elon Musk would refocus time and attention on Tesla.

Growth Opportunities

Tesla's capabilities in key areas like physical AI, robotics, energy storage, and infrastructure offer growth and margin opportunities that exceed those of the traditional EV business.

Leadership in Technology

Tesla still holds many valuable cards that are largely apolitical, such as AI leadership, autonomy, manufacturing, and renewable power.

Negative Factors

Delivery Challenges

Deliveries from China production are down 17% and EU deliveries are tracking approximately 40% lower, posing downside risk to deliveries.

Market Competition

BYD announced sweeping price cuts across its model range from 10% to nearly 30%, highlighting a 'race to the bottom' in global EV prices.

Political Risks

The disagreement between Elon Musk and President Trump could potentially alienate multiple sides of the political spectrum, affecting Tesla demand.

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 makes money primarily through the sale of its electric vehicles, which constitute the majority of its revenue. The company also generates income from energy generation and storage products, including solar panels and battery systems like the Powerwall, Powerpack, and Megapack. Additionally, Tesla offers services and other revenue streams, such as vehicle servicing, sales of regulatory credits to other automakers, and through its Supercharger network. The company's strategic partnerships, advances in autonomous driving technology, and expansion into global markets also play significant roles in contributing to its earnings.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
95.72B	97.69B	96.77B	81.46B	53.82B	31.54B
	Gross Profit
16.91B	17.45B	17.66B	20.85B	13.61B	6.63B
	EBIT
6.30B	7.08B	8.89B	13.66B	6.52B	1.99B
	EBITDA
13.96B	14.71B	14.80B	17.66B	9.63B	4.22B
	Net Income Common Stockholders
6.41B	7.13B	15.00B	12.58B	5.52B	721.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
37.00B	36.56B	29.09B	22.18B	17.71B	19.38B
	Total Assets
125.11B	122.07B	106.62B	82.34B	62.13B	52.15B
	Total Debt
7.53B	13.62B	9.57B	5.75B	8.87B	13.28B
	Net Debt
-8.82B	-2.52B	-6.83B	-10.51B	-8.70B	-6.11B
	Total Liabilities
49.69B	48.39B	43.01B	36.44B	30.55B	28.47B
	Stockholders Equity
74.65B	72.91B	62.63B	44.70B	30.19B	22.23B
Cash Flow		Free Cash Flow
6.78B	3.58B	4.36B	7.55B	3.48B	2.70B
	Operating Cash Flow
16.84B	14.92B	13.26B	14.72B	11.50B	5.94B
	Investing Cash Flow
-15.35B	-18.79B	-15.58B	-11.97B	-7.87B	-3.13B
	Financing Cash Flow
3.33B	3.85B	2.59B	-3.53B	-5.20B	9.97B

Tesla Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 295.14
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSLA, the sentiment is Negative. The current price of 295.14 is below the 20-day moving average (MA) of 335.78, above the 50-day MA of 291.92, and below the 200-day MA of 305.07, indicating a neutral trend. The MACD of 6.46 indicates Positive momentum. The RSI at 41.72 is Neutral, neither overbought nor oversold. The STOCH value of 15.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSLA.

Tesla Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LI	81 Outperform	$29.74B	27.73	12.22%	―	10.28%	-29.75%
F	77 Outperform	$40.16B	8.09	11.47%	7.42%	3.03%	28.54%
TM	75 Outperform	$238.78B	7.82	13.36%	3.13%	-0.59%	7.56%
GM	75 Outperform	$45.43B	6.81	8.88%	1.01%	7.76%	-14.17%
HMC	74 Outperform	$46.08B	8.18	6.54%	4.20%	4.37%	6.93%
TSLA	71 Outperform	$949.32B	162.31	9.16%	―	1.03%	-53.71%
Sector *	62 Neutral	$6.83B	11.28	2.95%	3.88%	2.70%	-24.56%

Tesla Corporate Events

Tesla Updates Bylaws Following Texas Law Changes

On May 15, 2025, Tesla‘s Board of Directors adopted amendments to the company’s Bylaws in response to changes in Texas law. These amendments include a jury trial waiver for internal entity claims, an ownership threshold for shareholders to initiate derivative proceedings, and clarifications to the exclusive forum provision. These changes are intended to align with Texas law and became effective immediately, potentially impacting shareholder rights and corporate governance.

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.