Tesla Inc (TSLA, Financial), a leader in the electric vehicle industry, has seen a significant uptick in its stock price, reflecting a robust 22% increase over the past three months. As of the latest data, Tesla's market capitalization stands at a staggering $703.59 billion, with the current stock price at $220.24. This recent performance marks a notable recovery from a previous period where the stock was considered a possible value trap. Currently, Tesla's stock is deemed modestly undervalued with a GF Value of $257.16, suggesting potential room for growth.
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 2023, Tesla achieved global deliveries of over 1.8 million vehicles. Additionally, Tesla is involved in energy solutions, offering batteries for stationary storage and solar products for residential and commercial use. The company also maintains a proprietary fast-charging network, enhancing its ecosystem's value.
Assessing Tesla's Profitability
Tesla's financial health is reflected in its Profitability Rank of 5/10. The company's Operating Margin stands at 7.58%, which is superior to 65.56% of its peers in the industry. Furthermore, Tesla showcases strong returns with an ROE of 20.78% and an ROA of 12.07%, indicating efficient management of equity and assets respectively. The ROIC of 18.67% also highlights Tesla's effective use of invested capital. Despite these strong indicators, Tesla has been profitable for only four out of the past ten years, which is a point of concern when compared to industry standards.
Exploring Tesla's Growth Metrics
Tesla's growth trajectory is impressive, with a Growth Rank of 10/10. The company has demonstrated a remarkable 3-Year Revenue Growth Rate per Share of 42.00%, outperforming 93.44% of its competitors. Over a five-year period, this growth rate stands at 30.30%. Looking ahead, Tesla's Total Revenue Growth Rate is estimated at 12.15% for the next three to five years. Additionally, the 3-Year EPS without NRI Growth Rate of 144.90% further underscores Tesla's rapid expansion and profitability improvements.
Significant Shareholders
Among Tesla's major investors, Ron Baron (Trades, Portfolio) leads with 15,516,436 shares, representing 0.49% of the company. Following closely are Baillie Gifford (Trades, Portfolio) and PRIMECAP Management (Trades, Portfolio), holding 0.45% and 0.28% of shares respectively. These stakeholders underscore the confidence in Tesla's long-term value proposition and strategic direction.
Competitive Landscape
In comparison to its competitors, Tesla maintains a significant lead in market capitalization. Stellantis NV (STLA, Financial) has a market cap of $43.75 billion, Ford Motor Co (F, Financial) is valued at $40.81 billion, and General Motors Co (GM, Financial) stands at $51.08 billion. This stark difference highlights Tesla's dominant position in the electric vehicle market and its broader influence across the automotive industry.
Conclusion
Tesla Inc's current market position is robust, characterized by significant stock price gains, strong profitability metrics, and exceptional growth rates. The company's strategic innovations and expansion into new markets and technologies continue to drive its success. With its stock currently assessed as modestly undervalued, Tesla presents a compelling case for potential investors looking for growth and innovation in the evolving automotive sector.
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.
