Šeštadienis, 13 balandžio, 2024
US Stocks

Tesla Inc Shares

The company Tesla, Inc. is engaged in the design, development, production, and sale of fully electric transportation vehicles, energy generation, and storage systems. It also provides vehicle service centers, compressor station services, and develops autonomous driving technology. The company operates through the following segments: automotive and energy generation and storage.

The automotive segment encompasses the design, development, production, and sale of electric transportation vehicles. The energy generation and storage segment involve the design, manufacturing, installation, sale, and leasing of stationary energy storage products and solar energy systems, as well as the sale of electricity generated by solar energy systems to customers.

Factories:

Production LocationVehicle Model(s)Production Status
Fremont FactoryModel S / Model XActive
 Model 3 / Model YActive
Gigafactory ShanghaiModel 3 / Model YActive
Gigafactory Berlin-BrandenburgModel YActive
Gigafactory TexasModel YActive
 CybertruckTooling
Gigafactory NevadaTesla SemiPilot production
TBDTesla RoadsterIn development
TBDRobotaxi & OthersIn development
Šaltisnis: Tesla.com

The company develops energy storage products for use in homes, commercial facilities, and municipal areas. The company was founded on July 1, 2003, by Jeffrey B. Straubel, Elon Reeve Musk, Martin Eberhard, and Marc Tarpenning. Its main headquarters is located in Palo Alto, California.

esla Inc was founded as Tesla Motors Inc. A group of engineers was eager to prove to the world that electrically powered vehicles could be better, safer, and more fun. Today, Tesla is not only an automaker. The company also specializes in renewable clean energy, electric components, and battery manufacturing, aiming to reduce CO2 emissions to zero.

Tesla Inc

In 2008, the first mass-produced, fully electric sports car, the Roadster, was introduced to the market. It was followed by the Model S sedan, which began the Model _ line.

Cars are produced in the United States, in the Fremont factory in California. The subsidiary companies Powerwall, Powerpack, and Solar Roof are engaged in the production and storage solutions for electric energy.

In Nevada, Gigafactory 1 has already been built and produces components for automobiles. Gigafactory 2 in the state of New York produces photovoltaic elements. Gigafactory 3 is being constructed in Shanghai, China. As we know, Tesla Inc CEO Elon Musk is a generator of ideas, so it would not be entirely accurate to describe Tesla solely as an automobile manufacturer.

Distribution of income by sectors:

Tesla Inc
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Tesla Inc Finances

In the company’s finances in 2022, we are already seeing significant changes. The company is already generating such cash flows that it can finance capital investments, which have also grown significantly, and generate Net profit. The pace of sales revenue growth is stable, and over the course of 5 years, it reached an average of 47.27% annually. That is rarely achieved by a company. Of course, this won’t last long.

Positive EPS has been only in the last 3 years. And its average growth rate reaches an impressive 315%. We expect a EPS growth in the future, as the net income reached a staggering 15.4% in 2022. Investors in the market are also anticipating high profits from the company. The PEG ratio, at the time of writing, stands at 2.78.

The Gross profitability is the indicator that gives us insight into Tesla’s performance and allows for profit generation. The Gross income of the automotive manufacturing sector is incredibly high, at around 30%. The consolidated Gross income is slightly lower, but still high for a manufacturing company.

The financial indicators have also improved incredibly. In 2022, the Average return on assets (ROAA) reached a staggering 17.38%. Positive working capital exceeds 14 billion USD. The Quick ratio is 1.53. The company still has and will have debts, but in 2022, long-term debts were even 8 times smaller than the Net profit.

It is known that a well-organized conveyor belt has greatly contributed to achieving excellent performance results. The cash turnover cycle is less than 1, and the inventory turnover does not exceed 7 days.

If the company owners wanted to sell shares and invest today in the US 10Y bonds and achieve the same return as the company provided in 2022, they should sell the shares for $100. This indicates that, in terms of fixed risk-free yield, Tesla shares are overvalued.

The Scoreboard of the analysis for investment evaluation looks very good.

Scoreboard
Analysis Results Scoreboard

Tesla Inc Shares

The company’s shares have been listed on the NASDAQ exchange since July 2010. The ticker is TSLA. As of December 21, 2020, the company’s shares were included in the S&P 500 index.

Since August 31, 2020, Tesla company shares have been traded after a 5:1 split. And on August 25, 2022, another 3:1 stock split was carried out. When they became accessible to the majority, their price started to rise like yeast. From here, we can see high trading indicators.

The standard deviation of the stock price reaches as much as 189%. P/E is 60, and beta is -2. According to the GRAPES method, the calculated price is 116 USD. The price has been reduced due to increased benchmark interest rates.

So, the shares of such a company can already be bought. However, considering its risk, it is advisable to have a small quantity in the portfolio. Increase only when the leverage ratio decreases and if the business results are not deteriorating.

The price calculated using our method can increase by an average of 12% to 40% annually in perspective.

Tesla Inc

Price chart

Tesla’s site for investors

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