Tesla Inc (TSLA, Financial), a leader in the electric vehicle industry, has experienced a significant fluctuation in its stock price recently. Over the past week, Tesla's stock has declined by 3.64%, yet it has surged by an impressive 62.67% over the last three months. Currently, Tesla's market capitalization stands at $795.13 billion, with a stock price of $249.32. According to GuruFocus, the GF Value of Tesla is $294.92, suggesting that the stock is modestly undervalued. This is a shift from three months ago when the GF Value was higher at $386.34, indicating a possible value trap at that time.
Overview of Tesla Inc
Tesla Inc, operating in 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, a light truck, and a semi-truck. Tesla's global vehicle deliveries in 2023 exceeded 1.8 million units. Additionally, Tesla is involved in the energy sector, offering battery storage solutions and solar energy products. It also maintains a proprietary fast-charging network, enhancing its ecosystem's attractiveness.
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 68.19% of 1,289 companies in the same sector. Its Return on Equity (ROE) is an impressive 24.34%, better than 92.19% of its peers. Similarly, Tesla's Return on Assets (ROA) and Return on Invested Capital (ROIC) are 13.97% and 19.99% respectively, both significantly higher than the majority of its competitors. Despite these strong figures, Tesla has been profitable for only four out of the past ten years.
Growth Trajectory of Tesla
Tesla's Growth Rank is a perfect 10/10. The company has demonstrated robust growth metrics: its 3-Year Revenue Growth Rate per Share is 42.00%, and its 5-Year Rate is 30.30%, both outperforming a vast majority of their industry counterparts. Looking ahead, Tesla's estimated Total Revenue Growth Rate for the next 3 to 5 years is 12.57%. Additionally, its 3-Year EPS without NRI Growth Rate stands at an extraordinary 144.90%. However, the estimated future EPS Growth Rate is more modest at 12.38%.
Major Stakeholders in Tesla
Significant shareholders of Tesla include Baillie Gifford (Trades, Portfolio), holding 17,835,922 shares (0.56% of Tesla), Ron Baron (Trades, Portfolio) with 17,217,795 shares (0.54%), and PRIMECAP Management (Trades, Portfolio), which owns 9,039,080 shares (0.28%). These stakeholders indicate strong institutional confidence in Tesla's business model and future prospects.
Competitive Landscape
When compared to its competitors, Tesla stands out significantly in terms of market capitalization. Stellantis NV (STLA, Financial) has a market cap of $60.17 billion, Ford Motor Co (F, Financial) is valued at $55.47 billion, and General Motors Co (GM, Financial) at $55.54 billion. This stark difference underscores Tesla's dominant position and innovative edge in the electric vehicle market.
Conclusion
In conclusion, Tesla Inc's recent stock performance reflects a dynamic and rapidly evolving company that continues to lead in innovation and market expansion. Despite some fluctuations, the company's strong profitability metrics, exceptional growth rates, and strategic market positioning suggest a positive outlook for the future. Investors should consider these factors carefully while assessing Tesla's potential for sustained growth and market leadership in the electric vehicle industry.
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.
