Insights

• Tesla's revenue growth is increasing but is decelerating.
• Tesla's profitability is strong, but is decreasing.
• Tesla's liquidity position is strong, but is decreasing.
• Tesla's solvency is strong, but is decreasing.
• Tesla's cash flow from operations is decreasing.
• Tesla's free cash flow is decreasing.
• Tesla's growth is decelerating.
• Tesla's financial flexibility is decreasing.
• Tesla's financial health is strong, but is deteriorating.
• Tesla's financial performance is being impacted by macroeconomic factors like inflation and interest rates.
• Tesla's ability to successfully ramp production and deliveries of new products is a key risk factor.
• Tesla's reliance on suppliers, including single-source suppliers, and potential supply chain disruptions is a key risk factor.
• Tesla's exposure to fluctuations in foreign currency exchange rates is a key risk factor.
• Potential legal and regulatory changes impacting electric vehicles and self-driving technology are a key risk factor.
• Cybersecurity risks and data breaches are a key risk factor.
• Tesla's future outlook is uncertain, but the company is well-positioned to capitalize on the transition to sustainable transportation and energy.

Analysis

• Revenue - Tesla's revenue growth is increasing but is decelerating. - Tesla's revenue growth is likely driven by new product launches, market expansion, and pricing strategies. - Tesla's revenue growth is significantly above the industry average.
  • Profitability
    • Tesla's profitability is strong, with a high return on assets, return on equity, and EBITDA margin.
    • Tesla's profitability is decreasing, as evidenced by the declining return on assets, return on equity, and EBITDA margin.
    • Tesla's profitability is significantly above the industry average.
  • Liquidity
    • Tesla's liquidity position is strong, with a high current ratio and quick ratio.
    • Tesla's liquidity position is decreasing, as evidenced by the declining current ratio and quick ratio.
    • Tesla's liquidity position is below the industry average.
  • Solvency
    • Tesla's solvency is strong, with a low debt-to-equity ratio and a high debt coverage ratio.
    • Tesla's solvency is decreasing, as evidenced by the increasing debt-to-equity ratio and the declining debt coverage ratio.
    • Tesla's solvency is significantly below the industry average.
  • Operational Efficiency
    • Tesla's asset utilization efficiency is improving, as evidenced by the increasing return on assets and return on equity.
    • Tesla's asset utilization efficiency is decreasing, as evidenced by the declining return on assets and return on equity.
  • Cash Flow Analysis
    • Tesla's cash flow from operations is decreasing.
    • Tesla's capital expenditures are increasing.
    • Tesla's free cash flow is decreasing.
    • Tesla's cash flow from operations is significantly above the industry average.
    • Tesla's capital expenditures are significantly above the industry average.
    • Tesla's free cash flow is significantly below the industry average.
  • Risk Factors
    • Tesla's profitability is decreasing.
    • Tesla's liquidity position is decreasing.
    • Tesla's solvency is decreasing.
    • Tesla's cash flow from operations is decreasing.
    • Tesla's free cash flow is decreasing.
    • Tesla's growth is decelerating.
    • Tesla's financial flexibility is decreasing.
    • Tesla's ability to successfully ramp production and deliveries of new products.
    • Reliance on suppliers, including single-source suppliers, and potential supply chain disruptions.
    • Exposure to fluctuations in foreign currency exchange rates.
    • Potential legal and regulatory changes impacting electric vehicles and self-driving technology.
    • Cybersecurity risks and data breaches.
    • Macroeconomic conditions, including inflation, interest rates, and customer demand.
  • Future Outlook
    • Tesla's revenue growth is expected to continue, but at a slower pace than in the past.
    • Tesla's profitability is expected to decrease.
    • Tesla's liquidity position is expected to remain strong.
    • Tesla's solvency is expected to remain strong.
    • Tesla's cash flow from operations is expected to decrease.
    • Tesla's free cash flow is expected to decrease.
    • Tesla's growth is expected to decelerate.
    • Tesla's financial flexibility is expected to decrease.

Benchmarks (as of 2024-10-11)

• Performance Comparison:
  • TSLA has underperformed XLY over most of the historical periods analyzed, particularly over the past year and two years. This suggests that TSLA has been more susceptible to market downturns than the broader Consumer Discretionary sector. However, TSLA has outperformed XLY over the past six months, indicating a potential shift in investor sentiment.
• Risk and Return Analysis:
  • TSLA has provided lower annualized returns than XLY over the past three years. This suggests that TSLA has not been as profitable as the broader Consumer Discretionary sector.
  • TSLA has been significantly more volatile than XLY, as evidenced by its higher annualized volatility. This indicates that TSLA's price movements have been more erratic and unpredictable than XLY's.
  • TSLA has experienced significantly larger maximum drawdowns than XLY. This indicates that TSLA is significantly more susceptible to large price declines than XLY.
• Risk-Adjusted Performance:
  • XLY has consistently offered a better risk-adjusted return than TSLA, as indicated by its higher Sharpe ratio. This suggests that XLY has been a more efficient investment than TSLA, providing higher returns for a given level of risk.
  • TSLA's higher beta indicates that it is a riskier investment than XLY. This suggests that TSLA's price is likely to fluctuate more than XLY's during periods of market volatility.
• Overall Assessment:
  • TSLA has underperformed XLY in terms of both absolute and risk-adjusted returns over the past three years. This suggests that TSLA has been a less profitable and riskier investment than the broader Consumer Discretionary sector. However, TSLA's recent outperformance over the past six months and its decreasing volatility in recent quarters may indicate a potential shift in investor sentiment and a more stable future performance. Investors should carefully consider TSLA's high volatility and susceptibility to large drawdowns before making any investment decisions.

Peers Price History(as of 2024-10-11)

• Performance Comparison:
  • TSLA has consistently underperformed both GM and UBER over the past three years, with the exception of the past six months. This underperformance is particularly pronounced in the longer timeframes, such as the one-year, two-year, and three-year periods.
  • TSLA's performance has been inconsistent relative to the peer companies, with periods of outperformance and underperformance.
• Risk and Return Analysis:
  • TSLA has provided lower annualized returns than both GM and UBER over the past three years. This suggests that TSLA's growth potential may be lower than its peers.
  • TSLA has been significantly more volatile than both GM and UBER, as evidenced by its higher annualized volatility. This indicates that TSLA's stock price is more susceptible to fluctuations and market swings.
  • TSLA has experienced larger maximum drawdowns than both GM and UBER. This suggests that TSLA's stock price is more vulnerable to significant declines and carries a higher risk profile.
• Risk-Adjusted Performance:
  • TSLA's Sharpe Ratio has been consistently lower than GM's and UBER's, indicating that TSLA has not offered a better risk-adjusted return. This suggests that TSLA's returns have not adequately compensated for its higher risk.
  • TSLA's beta value has been consistently higher than GM's and UBER's, indicating that it is more sensitive to market movements. This suggests that TSLA's stock price is more likely to fluctuate in line with broader market trends, potentially amplifying both gains and losses.
• Overall Assessment:
  • TSLA has consistently underperformed both GM and UBER over the past three years, with the exception of the past six months. This underperformance is particularly pronounced in the longer timeframes, such as the one-year, two-year, and three-year periods.
  • TSLA's higher volatility and larger drawdowns suggest that it carries a higher risk profile than its peers.
  • TSLA's lower Sharpe Ratio indicates that its returns have not adequately compensated for its higher risk.
  • TSLA's higher beta suggests that it is more sensitive to market movements, potentially amplifying both gains and losses.
  • Overall, TSLA's performance, risk, and valuation metrics suggest that it may be a riskier investment than its peers. Investors should carefully consider these factors before making any investment decisions.

Peers Fundamentals(as of 2024-06-30)

1. Market Position and Size:

   • TSLA's market capitalization is significantly larger than its peers, General Motors (GM) and Uber Technologies (UBER), indicating that the market values TSLA significantly higher than its peers, likely due to its focus on electric vehicles and its perceived growth potential.
   • While TSLA's market cap is significantly larger than its peers, its revenue is less than GM's. However, TSLA's revenue is greater than UBER's. This suggests that TSLA's market cap is not solely driven by its current revenue, but also by investor expectations of future growth and profitability.
   • TSLA's EBITDA is also significantly lower than GM's, but higher than UBER's. This further supports the notion that TSLA's market cap is driven by factors beyond current profitability.
   • Overall, TSLA's market position is characterized by a significantly higher market cap than its peers, despite having lower revenue than GM. This suggests that the market has high expectations for TSLA's future growth and profitability, which are not yet reflected in its current financial performance.

2. Profitability and Efficiency:

   • TSLA's profitability metrics are mixed compared to its peers and industry averages. While it outperforms in some areas, such as EBITDA margin, it lags behind in others, such as net profit margin.
   • Considering TSLA's size and revenue, its profitability metrics are relatively strong within the industry. This suggests that TSLA is able to generate profits efficiently, even as it scales its operations.
   • TSLA's return on average assets (ROA), return on average total equity (ROE), return on average total capital (ROTC), and return on average invested capital (ROIC) are significantly higher than its peers and industry averages, indicating that TSLA is highly efficient in utilizing its assets, equity, capital, and invested capital to generate returns.

3. Financial Health and Stability:

   • TSLA's liquidity position is relatively strong, while its debt position is relatively low compared to its peers and industry averages. This suggests that TSLA has a strong financial position and is able to manage its liquidity and debt effectively.
   • TSLA's balance sheet structure is significantly different from its peers, with a more conservative approach to debt and a stronger cash position. This suggests that TSLA has a strong financial position and is able to manage its financial resources effectively.

4. Valuation and Market Perception:

   • TSLA's valuation metrics are significantly higher than its peers and industry averages. This suggests that the market has high expectations for TSLA's future growth and profitability, which are not yet reflected in its current financial performance.

5. Cash Flow and Capital Management:

   • TSLA's cash flow generation is mixed compared to its peers, considering their market caps. While it outperforms in some areas, such as free cash flow, it lags behind in others, such as net operating cash flow.
   • TSLA's Total Capital Expenditure is significantly lower than GM's, but higher than UBER's. This indicates that TSLA is investing less in capital expenditures than GM, but more than UBER.

6. Growth and Future Prospects:

   • TSLA's growth trends show a mixed picture compared to the peer group average. TSLA consistently shows higher growth in sales, EBITDA, net income, and basic earnings per share, indicating strong revenue and profit growth. However, TSLA consistently shows lower growth in free cash flow and free cash flow margin, suggesting challenges in converting profits into cash flow.
   • TSLA's year-over-year growth rates exhibit significant fluctuations, particularly in net income, basic earnings per share, and free cash flow. This suggests that TSLA's growth is not always consistent and may be subject to volatility.
   • Comparing TSLA's 3-year and 5-year CAGR figures reveals that TSLA's growth has been more consistent in sales, EBITDA, and total assets, with 3-year CAGRs exceeding 5-year CAGRs. However, TSLA's growth in free cash flow, free cash flow margin, and book value per share has been less consistent, with 3-year CAGRs lower than 5-year CAGRs. This suggests that TSLA's growth in these areas may be slowing down.
   • TSLA's growth trends suggest that it is outperforming its peers in terms of revenue and profit growth, but it faces challenges in converting profits into cash flow. The sustainability of TSLA's growth rates is a concern, as some metrics show signs of deceleration.

7. Potential for Investment:

   • TSLA's investment attractiveness is a complex issue, with both potential advantages and disadvantages. On the one hand, TSLA exhibits strong growth in revenue and profitability, high efficiency in generating returns, and a strong cash position. These factors suggest that TSLA has a solid foundation for future growth and profitability.
   • On the other hand, TSLA faces challenges in converting profits into cash flow, and its valuation is significantly higher than its peers and industry averages. This suggests that the market has high expectations for TSLA's future growth and profitability, which are not yet reflected in its current financial performance. If TSLA fails to meet these expectations, its valuation could decline significantly.
   • Overall, TSLA's investment attractiveness is a matter of balancing its strong growth potential and profitability with its challenges in cash flow generation and its high valuation. Investors should carefully consider these factors before making any investment decisions.

8. Key Risks and Considerations:

   • TSLA's challenges in converting profits into cash flow are a significant risk for investors. If TSLA is unable to improve its cash flow generation, its growth may be unsustainable.
   • TSLA's high valuation is another significant risk. If TSLA fails to meet the market's high expectations for future growth and profitability, its valuation could decline significantly.
   • TSLA's dependence on government subsidies and tax credits is a potential risk. If these subsidies and tax credits are reduced or eliminated, TSLA's profitability could be negatively impacted.

9. Overall Assessment:

   • TSLA is a high-growth company with strong profitability and efficiency. However, it faces challenges in converting profits into cash flow, and its valuation is significantly higher than its peers and industry averages. Investors should carefully consider these factors before making any investment decisions.