Tesla Inc (TSLA, Financial), a prominent name in the Vehicles & Parts industry, has recently experienced a notable fluctuation in its stock price. Over the past week, the stock has decreased by 1.63%, settling at $216.98. However, looking at a broader timeline, Tesla's stock has surged by 16.96% over the past three months. According to GuruFocus's valuation metrics, Tesla is currently modestly undervalued with a GF Value of $256.16. This is a shift from three months ago when it was considered a possible value trap, suggesting that investors should think twice before investing.
Overview of Tesla Inc
Tesla Inc stands out in the electric vehicle sector with its integrated approach, encompassing the manufacture of electric vehicles, batteries, and solar products. In 2023, Tesla achieved a milestone with global deliveries exceeding 1.8 million vehicles. The company's product line includes luxury and midsize sedans, crossover SUVs, a light truck, and a semi-truck, alongside more affordable vehicles and a sports car in the pipeline. Tesla also offers energy solutions like stationary batteries and solar panels, and it operates a vast fast-charging network.
Assessing Tesla's Profitability
Tesla's Profitability Rank currently stands at 5/10, indicating average profitability within its industry. The company's Operating Margin is 7.58%, which is higher than 64.31% of its peers. Tesla also shows strong returns with a Return on Equity (ROE) of 20.78% and a Return on Assets (ROA) of 12.07%, both metrics outperforming a large majority of competitors. Additionally, its Return on Invested Capital (ROIC) stands at an impressive 18.67%. Despite these strong figures, Tesla has been consistently profitable for only four out of the past ten years.
Exploring Tesla's Growth Metrics
Tesla's Growth Rank is a perfect 10/10, reflecting its exceptional growth prospects. The company has demonstrated a robust 3-Year Revenue Growth Rate per Share of 42.00%, surpassing 93.54% of its industry peers. Over a five-year period, this rate stands at 30.30%. Looking ahead, Tesla's estimated future revenue growth rate for the next three to five years is 12.22%. Furthermore, its 3-Year EPS Growth Rate has been an outstanding 144.90%, significantly outperforming 95.8% of similar companies.
Significant Shareholders in Tesla
Among Tesla's top shareholders, Ron Baron (Trades, Portfolio) leads with 15,516,436 shares, representing 0.49% of the company. Following closely is Baillie Gifford (Trades, Portfolio), holding 14,293,286 shares or 0.45% of Tesla. PRIMECAP Management (Trades, Portfolio) also holds a significant stake with 8,823,200 shares, accounting for 0.28% of the company. These major investors underscore the confidence in Tesla's market strategy and future growth potential.
Competitive Landscape
When compared to its competitors, Tesla's market capitalization of $693.16 billion significantly outpaces that of Stellantis NV (STLA, Financial) with $48.93 billion, Ford Motor Co (F, Financial) at $43.55 billion, and General Motors Co (GM, Financial) which stands at $53.06 billion. This stark difference highlights Tesla's dominant position in the electric vehicle market and its broader industry influence.
Conclusion
Despite a recent dip in its stock price, Tesla has shown a strong quarterly performance with a significant increase. The company continues to lead in the electric vehicle industry, supported by robust growth and profitability metrics. With substantial backing from major investors and a competitive edge over its rivals, Tesla's strategic position appears solid as it drives forward in a dynamic market.
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.
