Tesla (TSLA) AI Stock Analysis

• Market Cap: $1.51T
• Dividend Yield: N/A
• Average Volume (3M): 79.28M
• Price to Earnings (P/E): 293.7
• Beta (1Y): 1.89
• 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: 61,105,499
• 30 Day Avg. Volume: 79,281,686
• 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: 1.02
• Enterprise Value/Revenue: 16.11
• Enterprise Value/Gross Profit: 94.71
• Enterprise Value/Ebitda: 116.58
• 1Y Price Target: $383.54
• Price Target Upside: -12.75% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 34
• EPS Forecast (FY): 1.65
• Revenue Forecast (FY): $95.19B

• Rating: 73 Outperform
• Price Target: $483.00 ▲(9.88% 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. is an American electric vehicle and clean energy company founded in 2003. It operates in the automotive and energy sectors, focusing on the design, manufacture, and sale of electric vehicles (EVs), battery energy storage systems, and solar energy products. Tesla's core products include a range of electric cars such as the Model S, Model 3, Model X, and Model Y, as well as energy solutions like the Powerwall, Powerpack, and solar roof tiles. The company is also involved in developing autonomous driving technology and has a significant presence in the software and technology sectors related to EVs and energy management.

How the Company Makes Money

Tesla generates revenue primarily through the sale of electric vehicles, which accounts for the largest share of its income. The company offers a diverse range of EV models, catering to different market segments, from luxury to more affordable options. In addition to vehicle sales, Tesla earns money through regulatory credits, which it sells to other automakers who need to comply with emissions regulations. Another significant revenue stream comes from energy generation and storage products, including solar panels and battery systems. Tesla's growing service and maintenance segment also contributes to its earnings, as do software updates and features that enhance vehicle functionality. The company has established partnerships with suppliers and technology firms that enhance its production capabilities and market reach, further supporting its revenue growth.

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: 439.58
• 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 439.58 is above the 20-day moving average (MA) of 423.57, above the 50-day MA of 435.20, and above the 200-day MA of 343.10, indicating a bullish trend. The MACD of 3.96 indicates Negative momentum. The RSI at 53.73 is Neutral, neither overbought nor oversold. The STOCH value of 85.57 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	81 Outperform	$255.08B	8.31	12.51%	2.88%	7.30%	12.42%
TSLA	73 Outperform	$1.51T	293.72	7.03%	―	-1.56%	-59.09%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RIVN	57 Neutral	$22.01B	―	-65.28%	―	28.21%	44.43%
LI	55 Neutral	$18.13B	29.80	6.53%	―	-10.00%	-54.75%
NIO	45 Neutral	$10.81B	―	-294.28%	―	13.21%	3.77%
LCID	44 Neutral	$4.35B	―	-61.12%	―	45.86%	22.13%

Tesla Corporate Events

Tesla Shareholders Approve Key Proposals at Annual Meeting

On November 6, 2025, Tesla‘s shareholders approved several proposals at the annual meeting, including the amended and restated 2019 Equity Incentive Plan, which aims to attract and retain employees and consultants through various stock-based awards. The meeting also saw the election of Class III directors and approval of executive compensation and the 2025 CEO Performance Award. However, several shareholder proposals, including those related to sustainability metrics and a child labor audit, were not approved. The approval of the A&R 2019 Equity Incentive Plan is expected to enhance Tesla’s ability to incentivize its workforce, potentially impacting its operational efficiency and market competitiveness.