Tesla Inc (TSLA, Financial), a leader in the electric vehicle industry, has seen a notable increase in its stock price, with a 5.02% gain over the past week and a 13.42% surge over the last three months. Currently, Tesla's market capitalization stands at $675.86 billion, with a stock price of $211.56. According to GuruFocus, the GF Value of Tesla is $255.79, suggesting that the stock is modestly undervalued. This is a shift from three months ago when the GF Value was higher at $298.54, 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. In 2023, Tesla achieved global deliveries of over 1.8 million vehicles. Additionally, Tesla is involved in the energy sector, offering battery storage solutions and solar energy products. 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 7.58%, which is better than 65.55% of 1,309 companies in the same sector. Tesla also shows strong returns with an ROE of 20.78% and an ROA of 12.07%, outperforming 88.2% and 91.49% of its peers, respectively. The ROIC of 18.67% further highlights Tesla's efficient capital utilization. However, Tesla has been profitable for only four out of the past ten years, which is lower than many of its peers.
Exploring Tesla's Growth Metrics
Tesla's Growth Rank is impressive at 10/10. The company has demonstrated robust growth with a 3-Year Revenue Growth Rate per Share of 42.00% and a 5-Year Rate of 30.30%, ranking better than 93.63% and 95.62% of companies, respectively. The 3-Year EPS without NRI Growth Rate of 144.90% is particularly notable, surpassing 95.8% of its industry peers. Looking ahead, Tesla's Total Revenue Growth Rate is estimated at 12.22% for the next 3 to 5 years.
Significant Shareholders and Competitive Landscape
Among Tesla's top shareholders, Ron Baron (Trades, Portfolio) holds 15,516,436 shares, representing 0.49% of the company, followed by Baillie Gifford (Trades, Portfolio) with 14,293,286 shares, and PRIMECAP Management (Trades, Portfolio) holding 8,823,200 shares. In the competitive arena, Tesla's market cap significantly surpasses that of Stellantis NV (STLA, Financial) at $46.19 billion, Ford Motor Co (F, Financial) at $41.4 billion, and General Motors Co (GM, Financial) at $50.44 billion, underscoring Tesla's dominant market position.
Conclusion
In summary, Tesla Inc's recent stock performance reflects its strong market position and growth potential. Despite some concerns over profitability consistency, Tesla's impressive growth metrics and strategic investments in technology and infrastructure position it well for future success. The company's current valuation suggests it is modestly undervalued, presenting a potentially attractive opportunity for investors. With its innovative approach and expanding product line, Tesla continues to set benchmarks 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.
