Tesla Inc (TSLA, Financial), a leader in the electric vehicle industry, has seen a significant stock price increase of 45.12% over the past three months, bringing its market capitalization to a robust $827.18 billion. Despite a slight dip of 1.31% in the past week, the company's current stock price stands at $259.37. According to GuruFocus, Tesla is currently modestly undervalued with a GF Value of $294.31, a notable shift from its valuation three months ago when it was considered a possible value trap.
Overview of Tesla Inc
Tesla Inc, operating within the Vehicles & Parts industry, is not just an automaker but a pioneer in battery electric vehicles and autonomous driving technology. The company boasts a diverse range of products including luxury and midsize sedans, crossover SUVs, and even a semi-truck. In 2023, Tesla achieved global deliveries of over 1.8 million vehicles. Additionally, Tesla is involved in energy solutions, offering batteries for stationary storage and solar products for residential and commercial use. A key asset in Tesla's infrastructure is its extensive fast-charging network.
Assessing Tesla's Profitability
Tesla's Profitability Rank is currently at 5/10. The company's Operating Margin stands at 7.81%, which is superior to 68.11% of 1,289 companies in the same sector. Its Return on Equity (ROE) is an impressive 24.34%, ranking better than 92.27% of its peers. Furthermore, Tesla's Return on Assets (ROA) and Return on Invested Capital (ROIC) are 13.97% and 19.99% respectively, both significantly higher than the industry averages. These figures highlight Tesla's efficient management and strong profitability metrics despite being profitable in only four of the past ten years.
Growth Trajectory of Tesla
Tesla's Growth Rank is a perfect 10/10. The company has demonstrated remarkable growth with a 42.00% 3-Year Revenue Growth Rate per Share, outperforming 93.69% of 1,236 companies. Its 5-Year Revenue Growth Rate per Share is also strong at 30.30%. Looking ahead, Tesla's Total Revenue Growth Rate is estimated at 12.60% for the next 3 to 5 years. Additionally, Tesla's 3-Year EPS without NRI Growth Rate stands at an extraordinary 144.90%, indicating robust earnings growth.
Significant Shareholders
Among Tesla's top shareholders, Baillie Gifford (Trades, Portfolio) holds 17,835,922 shares, representing 0.56% of the company, followed closely by Ron Baron (Trades, Portfolio) with 17,217,795 shares, and PRIMECAP Management (Trades, Portfolio) holding 9,039,080 shares. These major investors reflect confidence in Tesla's market strategy and future growth potential.
Competitive Landscape
When compared to its competitors, Tesla's market cap significantly surpasses that of Stellantis NV (STLA, Financial) at $59.54 billion, Ford Motor Co (F, Financial) at $57.35 billion, and General Motors Co (GM, Financial) at $56.84 billion. This substantial difference underscores Tesla's dominant position in the electric vehicle market and its broader industry influence.
Conclusion
Tesla Inc's current market position and financial health are robust, with significant growth potential on the horizon. The company's strategic innovations and expansion in both vehicle production and energy solutions contribute to its strong competitive edge. Despite recent market fluctuations, Tesla's fundamentals and growth trajectory suggest a promising future, making it an attractive option for investors, especially at its current modest undervaluation.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
