Tesla Inc (TSLA, Financial), a prominent player in the Vehicles & Parts industry, has experienced a notable fluctuation in its stock price recently. Over the past week, the stock has seen a decline of 8.11%. However, looking at a broader timeline, Tesla's stock has surged by 30.61% over the past three months. Currently, the stock is considered modestly undervalued with a GF Value of $269.19, despite being labeled as a possible value trap three months ago when the GF Value was at $386.34.
Overview of Tesla Inc
Tesla Inc, more than just an automaker, is a pioneer in electric vehicles and autonomous driving technology. The company boasts a diverse lineup including luxury sedans, SUVs, trucks, and energy solutions. In 2023, Tesla achieved global deliveries of over 1.8 million vehicles. Additionally, Tesla is involved in energy generation and storage solutions, further diversifying its business model. The company's commitment to innovation and sustainability continues to attract significant consumer and investor interest.
Assessing Tesla's Profitability
Tesla holds a mid-range Profitability Rank of 5/10. Its Operating Margin stands at 7.58%, which is better than 66.1% of its peers in the industry. The company's Return on Equity (ROE) is impressive at 20.78%, outperforming 88.56% of competitors. Similarly, its Return on Assets (ROA) and Return on Invested Capital (ROIC) are 12.07% and 18.67% respectively, placing Tesla well above the industry average. These figures highlight Tesla's ability to generate profits relative to its equity, assets, and invested capital, underscoring its financial health and operational efficiency.
Exploring Tesla's Growth Metrics
Tesla's Growth Rank is an impressive 10/10. The company has demonstrated robust growth with a 3-Year Revenue Growth Rate per Share of 42.00%, ranking better than 93.69% of its industry peers. Over a 5-year period, this rate stands at 30.30%. Looking ahead, Tesla's revenue is expected to grow by 12.43% over the next 3 to 5 years. Additionally, the 3-Year EPS growth rate is a remarkable 144.90%, indicating significant earnings growth and operational efficiency.
Significant Shareholders
Among Tesla's top shareholders, Ron Baron (Trades, Portfolio) leads with 17,217,795 shares, representing 0.54% of the company's stock. Following closely are Baillie Gifford (Trades, Portfolio) and PRIMECAP Management (Trades, Portfolio), holding 0.45% and 0.28% of shares respectively. These major investors reflect confidence in Tesla's long-term value and strategic direction.
Competitive Landscape
In comparison to its competitors, Tesla stands out in the Vehicles & Parts industry. Stellantis NV (STLA, Financial) and General Motors Co (GM, Financial) have market caps of $49.23 billion and $49.29 billion respectively, while Ford Motor Co (F, Financial) is valued at $43.23 billion. Despite the larger scale of Tesla's operations and market cap of $727.64 billion, these companies are significant players in the automotive sector, each with their own strengths and market strategies.
Conclusion
Despite recent price volatility, Tesla Inc remains a formidable force in the electric vehicle sector. The company's strong growth metrics and solid profitability indicators, combined with strategic innovations and a broad product portfolio, continue to solidify its market position. As the industry evolves, Tesla's proactive approach and robust financial health will likely sustain its competitive edge, making it a compelling consideration for investors.
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.
