Don't Miss These Facts About Tesla

Tesla logged a -6.5% change during today's afternoon session, and is now trading at a price of $189.46 per share.

Over the last year, Tesla logged a 4.6% change, with its stock price reaching a high of $299.29 and a low of $152.37. Over the same period, the stock underperformed the S&P 500 index by -22.3%. AThe company's 50-day average price was $212.57. Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally. Based in Austin, TX, the Large-Cap Consumer Discretionary company has 140,473 full time employees. Tesla has not offered a dividend during the last year.

Wider Gross Margins Than the Industry Average of 14.7%:

2018 2019 2020 2021 2022 2023
Revenue (M) $21,461 $24,578 $31,536 $53,823 $81,462 $95,924
Gross Margins 19% 17% 21% 25% 26% 20%
Net Margins -5% -4% 2% 10% 15% 11%
Net Income (M) -$976 -$862 $721 $5,519 $12,556 $10,756
Net Interest Expense (M) $663 $685 $748 $371 $191 $128
Depreciation & Amort. (M) $1,110 $1,370 $1,570 $1,910 $2,420 $3,106
Diluted Shares (M) 2,559 2,661 3,249 3,386 3,475 3,493
Earnings Per Share -$0.38 -$0.32 $0.22 $1.63 $3.61 $3.08
EPS Growth n/a 15.79% 168.75% 640.91% 121.47% -14.68%
Avg. Price $21.15 $18.24 $96.67 $260.0 $290.09 $188.535
P/E Ratio -54.23 -55.27 358.04 135.42 71.63 55.45
CAPEX (M) $2,101 $1,327 $3,157 $6,482 $7,158 $8,450
EV / EBITDA 85.22 40.58 71.21 87.33 55.06 42.24
Total Debt (M) $11,626 $11,801 $10,220 $5,342 $2,045 $3,704
Net Debt / EBITDA 11.0 4.25 -2.57 -1.45 -0.88 -0.88
Current Ratio 0.83 1.13 1.88 1.38 1.53 1.69

Tesla benefits from rapidly growing revenues and increasing reinvestment in the business, exceptional EPS growth, and wider gross margins than its peer group. The company's financial statements show a decent current ratio of 1.69 and healthy leverage levels.

Trades Below Its Graham Number but Has an Elevated P/E Ratio:

Tesla has a trailing twelve month P/E ratio of 49.4, compared to an average of 22.96 for the Consumer Discretionary sector. Based on its EPS guidance of $4.18, the company has a forward P/E ratio of 50.9. According to the 42.6% compound average growth rate of Tesla's historical and projected earnings per share, the company's PEG ratio is 1.16. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 19.7%. On this basis, the company's PEG ratio is 2.5. This suggests that these shares are overvalued. Furthermore, Tesla is likely overvalued compared to the book value of its equity, since its P/B ratio of 9.63 is higher than the sector average of 4.24. The company's shares are currently trading -82.8% below their Graham number.

Tesla Has an Average Rating of Hold:

The 39 analysts following Tesla have set target prices ranging from $24.33 to $345.0 per share, for an average of $206.22 with a hold rating. The company is trading -8.1% away from its average target price, indicating that there is an analyst consensus of some upside potential.

Tesla has an average amount of shares sold short because 3.2% of the company's shares are sold short. Institutions own 45.7% of the company's shares, and the insider ownership rate stands at 13.0%, suggesting a large amount of insider shareholders. The largest shareholder is Vanguard Group Inc, whose 7% stake in the company is worth $43,539,298,850.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.