Tesla (TSLA) AI Stock Analysis

• Market Cap: $1.13T
• Dividend Yield: N/A
• Average Volume (3M): 85.84M
• Price to Earnings (P/E): 203.7
• Beta (1Y): 1.85
• Revenue Growth: -2.73%
• EPS Growth: -51.64%
• Country: US
• Employees: 125,665
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Auto - Manufacturers
• EPS (TTM): 0.40
• Shares Outstanding: 3,225,449,000
• 10 Day Avg. Volume: 74,467,460
• 30 Day Avg. Volume: 85,842,816
• PEG Ratio: -3.44
• Price to Book (P/B): 17.80
• Price to Sales (P/S): 13.28
• P/FCF Ratio: 362.34
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 11.80
• Enterprise Value/Gross Profit: 67.53
• Enterprise Value/Ebitda: 79.44
• 1Y Price Target: $305.37
• Price Target Upside: -12.65% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 36

• Rating: 76 Outperform
• Price Target: $384.00 ▲(9.84% Upside)

Tesla's overall stock score reflects strong financial performance and positive earnings call sentiment, offset by high valuation concerns. The company's strategic focus on autonomy and energy solutions positions it well for future growth, despite near-term regulatory and cost challenges.

Positive Factors

Market Share

Tesla could win market share by leveraging its lower cost structure, with the autonomous tech stack being one-tenth the cost of Waymo.

Technology

The expanded FSD model has positive implications for the potential of Tesla's fleet eventually becoming Robotaxis.

Negative Factors

Profitability

Tesla's overall profitability is lower and its Return on Invested Capital lags significantly behind its peers.

Strategic Shift

Tesla is disbanding its Dojo supercomputer team, with its leader, Peter Bannon, departing the company, which could indicate a shift in strategic priorities.

Valuation

The stock trades at a forward P/E of 186x, suggesting investor expectations are unrealistically high given the company's earnings outlook.

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's financial performance is solid, demonstrated by strong profitability metrics and a robust balance sheet. Despite a slight decline in annual revenue growth, Tesla maintains high margins, low leverage, and significant liquidity, positioning it well for future growth.

Income Statement

Tesla's income statement demonstrates robust profitability and revenue growth over the years. The TTM (Trailing-Twelve-Months) gross profit margin is healthy at 17.48%, and the net profit margin stands at 6.58%, reflecting efficient cost management. However, the revenue growth rate from the previous annual period is slightly negative, indicating a temporary slowdown. The EBIT and EBITDA margins are strong at 6.06% and 12.55%, respectively, contributing to overall profitability.

Balance Sheet

Tesla's balance sheet is robust, with a low debt-to-equity ratio of 0.09, indicating minimal leverage. The return on equity (ROE) is impressive at 7.89%, showcasing effective shareholder value generation. The equity ratio of 60.14% reflects a strong equity base relative to total assets, ensuring financial stability. The company maintains substantial cash reserves, enhancing its liquidity position.

Cash Flow

The cash flow statement highlights Tesla's strong operating cash flow to net income ratio of 2.58, indicating excellent cash generation capability. Although the free cash flow growth rate is positive, the free cash flow to net income ratio is 0.92, suggesting room for improvement in translating profits into free cash flow. The company effectively manages capital expenditures, balancing growth and liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	92.72B	97.69B	96.77B	81.46B	53.82B	31.54B
Gross Profit	16.21B	17.45B	17.66B	20.85B	13.61B	6.63B
EBITDA	13.78B	14.71B	14.80B	17.66B	9.63B	4.22B
Net Income	6.10B	7.13B	15.00B	12.58B	5.52B	721.00M
Balance Sheet
Total Assets	128.57B	122.07B	106.62B	82.34B	62.13B	52.15B
Cash, Cash Equivalents and Short-Term Investments	36.78B	36.56B	29.09B	22.18B	17.71B	19.38B
Total Debt	13.13B	13.62B	9.57B	5.75B	8.87B	13.28B
Total Liabilities	50.49B	48.39B	43.01B	36.44B	30.55B	28.47B
Stockholders Equity	77.31B	72.91B	62.63B	44.70B	30.19B	22.23B
Cash Flow
Free Cash Flow	5.59B	3.58B	4.36B	7.55B	3.48B	2.70B
Operating Cash Flow	15.77B	14.92B	13.26B	14.72B	11.50B	5.94B
Investing Cash Flow	-15.07B	-18.79B	-15.58B	-11.97B	-7.87B	-3.13B
Financing Cash Flow	563.00M	3.85B	2.59B	-3.53B	-5.20B	9.97B

Tesla Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 349.60
• 50DMA: Positive
• 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 349.6 is above the 20-day moving average (MA) of 329.12, above the 50-day MA of 322.97, and above the 200-day MA of 329.73, indicating a bullish trend. The MACD of 6.61 indicates Negative momentum. The RSI at 61.53 is Neutral, neither overbought nor oversold. The STOCH value of 92.27 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	77 Outperform	$256.13B	9.15	12.05%	2.74%	4.14%	-12.12%
HMC	77 Outperform	$54.44B	12.03	5.17%	4.09%	1.68%	-39.28%
TSLA	76 Outperform	$1.13T	203.65	8.43%	―	-2.73%	-51.64%
LI	68 Neutral	$23.84B	23.35	12.22%	―	10.28%	-29.75%
Sector *	61 Neutral	$17.75B	12.56	-5.49%	3.02%	1.43%	-14.12%
NIO	57 Neutral	$13.21B	―	-240.42%	―	23.39%	3.93%
LCID	43 Neutral	$6.48B	―	-54.39%	―	39.01%	7.11%

Tesla Corporate Events

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.

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.