Tesla Inc (TSLA, Financial), a leading player in the Vehicles & Parts industry, has seen a significant surge in its stock price over the past three months. The company's market cap stands at a staggering $789.99 billion, with the current stock price at $248.9, marking a 28.50% increase from the past price of $161.83 three months ago. Over the past week alone, the stock price has seen a gain of 6.45%. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates. Currently, the GF Value is $454.77, up from $415.99 three months ago. Despite the increase, the GF Valuation still indicates that the stock is significantly undervalued, similar to the valuation three months ago.
Unpacking Tesla Inc's Business Model
Founded in 2003 and based in Palo Alto, California, Tesla Inc is a vertically integrated sustainable energy company that also aims to transition the world to electric mobility by making electric vehicles. The company sells solar panels and solar roofs for energy generation plus batteries for stationary storage for residential and commercial properties including utilities. Tesla has multiple vehicles in its fleet, which include luxury and midsize sedans and crossover SUVs. The company also plans to begin selling more affordable sedans and small SUVs, a light truck, a semi truck, and a sports car. Global deliveries in 2022 were a little over 1.3 million vehicles. 
Profitability Analysis
Tesla's Profitability Rank stands at 5/10, indicating a moderate level of profitability. The company's operating margin is 13.49%, better than 88.05% of the companies in the industry. This ratio, calculated as Operating Income divided by its Revenue, is a key indicator of the company's pricing strategy and operating efficiency. Furthermore, Tesla's ROE, ROA, and ROIC, which stand at 27.76%, 15.18%, and 24.60% respectively, are all better than the majority of the companies in the industry. These ratios reflect the company's ability to generate profits relative to its equity, assets, and invested capital. Over the past decade, Tesla has had 3 years of profitability, better than 8.69% of the companies in the industry. 
Growth Prospects
Tesla's Growth Rank is 8/10, indicating strong growth potential. The company's 3-Year Revenue Growth Rate per Share is 36.40%, and its 5-Year Revenue Growth Rate per Share is 33.00%, both better than the majority of the companies in the industry. The future total revenue growth rate is estimated to be 24.94%, and the EPS growth rate is projected to be 26.00%, both indicating promising growth prospects for the company. 
Major Stock Holders
The top three holders of Tesla's stock are Baillie Gifford (Trades, Portfolio), Ron Baron (Trades, Portfolio), and PRIMECAP Management (Trades, Portfolio), holding 0.73%, 0.56%, and 0.29% of the shares respectively. Baillie Gifford (Trades, Portfolio) holds the most shares, with 23,188,922 shares, followed by Ron Baron (Trades, Portfolio) with 17,696,813 shares, and PRIMECAP Management (Trades, Portfolio) with 9,204,430 shares.
Competitive Landscape
Tesla's top three competitors within the Vehicles & Parts industry are General Motors Co(GM, Financial), Ford Motor Co(F, Financial), and Stellantis NV(STLA, Financial), with market caps of $45.74 billion, $47.93 billion, and $57.9 billion respectively. Despite the competition, Tesla's market cap of $789.99 billion significantly outpaces its competitors, reflecting its dominant position in the industry.
Conclusion
In conclusion, Tesla Inc's stock has seen a significant surge over the past three months, driven by its strong profitability, promising growth prospects, and dominant position in the industry. Despite the increase in stock price, the GF Valuation indicates that the stock is still significantly undervalued, suggesting potential for further gains. However, investors should also consider the competitive landscape and the company's relative performance against its peers when making investment decisions.
