Tesla Inc (TSLA, Financial), a leader in the electric vehicle industry, has experienced a notable stock price fluctuation over recent months. As of the latest data, Tesla's market capitalization stands at a robust $684 billion, with a current stock price of $214.11. Despite a short-term decline of 2.82% over the past week, the company has seen a significant 19.76% increase in its stock price over the past three months. This performance is particularly interesting when considering the company's valuation metrics. The GF Value, which is currently set at $256.74, suggests that Tesla is modestly undervalued. This is a shift from three months ago when the GF Value was at $292.1, indicating a possible value trap scenario at that time.
Overview of Tesla Inc
Tesla Inc, operating within 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 addition to vehicles, Tesla is heavily involved in energy solutions, offering batteries for stationary storage and solar products for residential and commercial use. The company's global vehicle deliveries in 2023 exceeded 1.8 million units. Tesla also benefits from owning a comprehensive fast-charging network, enhancing its ecosystem's attractiveness to consumers.
Assessing Tesla's Profitability
Tesla's Profitability Rank currently stands at 5/10. The company's Operating Margin of 7.58% is better than 65.67% of its peers in the industry. Other profitability metrics such as Return on Equity (ROE) and Return on Assets (ROA) are 20.78% and 12.07% respectively, positioning Tesla well above the industry average. Additionally, Tesla's Return on Invested Capital (ROIC) is 18.67%, which is superior to 90.66% of competitors. However, it's important to note that Tesla has only been profitable for 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 an impressive 10/10. The company has demonstrated strong growth figures, with a 3-Year Revenue Growth Rate per Share of 42.00%, outperforming 93.52% of global competitors. Over a five-year period, this growth rate stands at 30.30%. Looking ahead, Tesla's estimated Total Revenue Growth Rate for the next three to five years is 12.19%. Furthermore, the 3-Year EPS without NRI Growth Rate is an astounding 144.90%, showcasing Tesla's ability to increase earnings at a rapid pace.
Significant Shareholders and Competitive Landscape
Among Tesla's top shareholders, Ron Baron (Trades, Portfolio) holds approximately 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. These major stakeholders underscore the confidence in Tesla's market strategy and growth potential.
In comparison to its competitors, Tesla's market cap significantly surpasses that of Stellantis NV (STLA, Financial) with $49.06 billion, Ford Motor Co (F, Financial) at $44.48 billion, and General Motors Co (GM, Financial) which stands at $55.95 billion. This indicates Tesla's dominant position in the electric vehicle market and its broader appeal in the automotive industry.
Conclusion
In summary, Tesla Inc's recent stock performance and robust growth metrics highlight its strong market position and potential for future expansion. Despite some volatility and past profitability concerns, the company's innovative approach to vehicle manufacturing and energy solutions continues to attract investors and maintain its competitive edge. As Tesla continues to expand its product line and enhance its technological capabilities, it remains a compelling option for investors looking for growth in the green technology and automotive sectors.
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.
