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, Tesla's stock price has decreased by 7.85%, settling at $213.31. However, looking at a broader timeline, the stock has surged by 16.41% over the past three months. According to the current GF Value, which stands at $256.34, Tesla is considered modestly undervalued. This valuation marks a shift from three months ago when it was viewed as a possible value trap, suggesting investors should think twice before investing.
Overview of Tesla Inc
Tesla Inc, more than just an automaker, is a pioneer in electric vehicles and renewable energy solutions. The company's product line includes electric cars, battery energy storage from home to grid scale, solar panels, and solar roof tiles, as well as other related products and services. In 2023, Tesla achieved a significant milestone by delivering over 1.8 million vehicles globally. This achievement underscores Tesla's robust presence and expanding influence in the global automotive and energy sectors.
Assessing Tesla's Profitability
Tesla's Profitability Rank currently stands at 5/10, reflecting its mid-range capability to sustain profitable operations compared to its peers. The company's operating margin is 7.58%, which is higher than 65.21% of its industry counterparts. Tesla also shows strong returns on equity (ROE) and assets (ROA) at 20.78% and 12.07% respectively, outperforming a significant majority of its competitors. Additionally, its Return on Invested Capital (ROIC) is 18.67%, indicating efficient capital use. Despite these strong indicators, Tesla has been profitable in only four out of the last ten years, highlighting some inconsistency in its financial performance.
Exploring Tesla's Growth Metrics
Tesla's Growth Rank is a perfect 10/10, signaling exceptional growth metrics. The company has demonstrated a remarkable 42.00% three-year revenue growth rate per share, surpassing 93.54% of its industry peers. Over five years, this rate stands at 30.30%. Looking ahead, Tesla's revenue is expected to grow by 12.12% over the next three to five years. Furthermore, its three-year EPS growth rate without NRI is an impressive 144.90%, indicating robust earnings growth well above industry norms.
Major Stakeholders 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) with 14,293,286 shares, and PRIMECAP Management (Trades, Portfolio) holds 8,823,200 shares. These major stakeholders underscore the confidence and significant investment interest in Tesla's business model and future prospects.
Competitive Landscape
In comparison to its competitors, Tesla stands out with a market capitalization of $681.46 billion, significantly higher than Stellantis NV (STLA, Financial) at $48.96 billion, Ford Motor Co (F, Financial) at $43.97 billion, and General Motors Co (GM, Financial) at $55.54 billion. This substantial market cap not only highlights Tesla's industry dominance but also its broader impact on the automotive and energy sectors.
Conclusion
Tesla Inc's current market position is robust, characterized by strong profitability metrics and exceptional growth prospects. The recent 16.41% increase in stock price over the past quarter, despite a short-term dip, reflects underlying investor confidence and market valuation adjustments. With its innovative product line and strategic market expansions, Tesla continues to set benchmarks in the automotive and renewable energy industries. As the company advances, it remains a significant player for investors seeking growth and sustainability in their portfolios.
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.
