Tesla (TSLA) AI Stock Analysis

• Market Cap: $999.63B
• Dividend Yield: N/A
• Average Volume (3M): 110.65M
• Price to Earnings (P/E): 176.9
• Beta (1Y): 1.88
• Revenue Growth: 1.03%
• EPS Growth: -53.71%
• Country: US
• Employees: 125,665
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Auto - Manufacturers
• EPS (TTM): 0.27
• Shares Outstanding: 3,216,517,000
• 10 Day Avg. Volume: 82,673,888
• 30 Day Avg. Volume: 110,648,165
• PEG Ratio: -11.58
• Price to Book (P/B): 13.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 151.53
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 2.65
• Enterprise Value/Gross Profit: 60.58
• Enterprise Value/Ebitda: 18.48
• 1Y Price Target: $298.97
• Price Target Upside: -6.40% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 34

• Rating: 72 Outperform
• Price Target: $351.00 ▲(9.89%Upside)

Tesla's strong financial performance and positive developments in the earnings call are offset by a high valuation and mixed technical indicators. While the company's strategic focus on autonomy and energy solutions presents long-term growth potential, current valuation and market momentum present short-term challenges.

Positive Factors

Market Position

As Tesla continues to bring more attention to the market opportunity and technological development of humanoid robots, many other automotive companies are expected to devote resources to humanoid robot development and deployment.

Negative Factors

Political Influence

Tesla shares are down 7 to 8% on the back of CEO Elon Musk’s announcement that he intends to form a new political party.

Profitability Concerns

The expected price cuts in Q4 to mitigate the end of IRA credits suggest a significant reduction in Q4 margins.

Regulatory Changes

The revocation of CARB's waiver likely ends ZEV credits, which were a significant part of Tesla's 2024 earnings.

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 strong financial performance with healthy profit margins, a robust balance sheet, and strong cash flow. While there is a slight recent decline in revenue growth, the company maintains efficient operations and financial stability.

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
EBITDA	14.71B	14.80B	17.66B	9.63B	4.22B
Net Income	7.13B	15.00B	12.58B	5.52B	721.00M
Balance Sheet
Total Assets	122.07B	106.62B	82.34B	62.13B	52.15B
Cash, Cash Equivalents and Short-Term Investments	36.56B	29.09B	22.18B	17.71B	19.38B
Total Debt	13.62B	9.57B	5.75B	8.87B	13.28B
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: 319.41
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 319.41 is above the 20-day moving average (MA) of 316.97, below the 50-day MA of 322.85, and above the 200-day MA of 317.50, indicating a neutral trend. The MACD of -1.75 indicates Negative momentum. The RSI at 51.61 is Neutral, neither overbought nor oversold. The STOCH value of 81.98 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
F	77 Outperform	$46.01B	9.27	11.47%	5.34%	3.03%	28.54%
LI	74 Outperform	$28.86B	27.85	12.22%	―	10.28%	-29.75%
GM	73 Outperform	$50.68B	7.59	8.88%	1.13%	7.76%	-14.17%
HMC	72 Outperform	$49.60B	8.75	6.54%	3.60%	0.83%	-26.70%
TSLA	72 Outperform	$999.63B	176.90	9.16%	―	1.03%	-53.71%
TM	70 Outperform	$222.69B	7.21	13.36%	3.63%	1.06%	-7.05%
Sector *	63 Neutral	$16.78B	10.88	-7.08%	3.04%	1.73%	-25.15%

Tesla Corporate Events

Tesla Sets Deadlines for Shareholder Proposals and Nominations

Tesla‘s board of directors has scheduled the 2025 annual meeting of shareholders for November 6, 2025. Shareholders wishing to submit proposals for inclusion in the proxy statement must do so by July 31, 2025, while nominations for director elections without inclusion in proxy materials must be submitted between July 9, 2025, and August 8, 2025. These deadlines ensure compliance with SEC rules and Tesla’s bylaws, impacting how shareholders can participate in the meeting.

The most recent analyst rating on (TSLA) stock is a Sell with a $120.00 price target. To see the full list of analyst forecasts on Tesla stock, see the TSLA Stock Forecast page.

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.