Tesla (TSLA, Financial) shares experienced a notable rise of 6.75% recently, achieving a price of $316.945. This surge in Tesla's stock value was influenced by the earnings reports from competitors Rivian Automotive (RIVN) and Lucid Group (LCID), which highlighted contrasting financial outcomes. Tesla's market capitalization has impressively crossed the $1 trillion mark for the first time since 2022, even though the company did not report its own earnings during this period.
Rivian's earnings report revealed a 35% year-over-year decline in sales, amounting to $874 million, which fell short of Wall Street's expectations. The company posted a significant loss of $1.44 per share, higher than the anticipated $0.92 loss. To counteract these losses, Rivian aims to achieve a positive gross profit by Q4 2024 through strategies such as increasing vehicle prices and selling regulatory credits. However, these plans could face challenges due to potential policy changes under a new administration.
Lucid, on the other hand, reported Q3 2024 sales of $200 million, marking a 45% increase year over year, with the delivery of 1,805 electric vehicles. Despite the boost in revenue, Lucid faced a loss of $0.41 per share, which is a 46% increase in losses compared to the previous year. This suggests that Lucid might need to consider price cuts or increase sales of lower-priced models to enhance its financial performance.
Contrasting with its competitors, Tesla (TSLA, Financial) continues to demonstrate strong financial health. The company has sustained positive profits and free cash flow, with a year-to-date sales increase of 0.5% and a net profit of $4.8 billion. Moreover, Tesla has generated $1.5 billion in free cash flow this year, underscoring its robust financial position against Rivian and Lucid.
In terms of stock analysis, Tesla (TSLA, Financial) showcases a Price-to-Earnings (P/E) ratio of 86.83, demonstrating high investor expectations for future growth. The company's strong financial indicators include an Altman Z-Score of 12.98, implying financial stability and low bankruptcy risk. Furthermore, Tesla's GF Value is labeled as "Modestly Overvalued," with a GF Value of 254.5. This can be further explored on its GF Value page.
Tesla's price-to-book (P/B) ratio stands at 14.53, reflecting a significant premium over its book value, which is typical for high-growth companies. Additionally, with a robust market cap of $1,017,412.36 million and a strong free cash flow yield of 0.35%, Tesla remains a formidable player in the electric vehicle industry.