One-glance verdict
Overvalued
$39.49 our estimate vs market $322.08
Wall Street consensus: $397.87 (907.6% higher than our fair-value estimate)
716% above our estimate, beyond the bull case
Fundamentals snapshot
Tesla, Inc.
TSLA · NMS · Consumer Cyclical · Auto Manufacturers
Current price
$322.08
52-week range
$297.38 - $498.83
Market cap
$1.27T
Balance sheet
Healthy
14.35x Strong cushion
Net cash $27.44B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 9.3% last year.
- Reward Returns 4.7% on equity, ahead of 83% of its peers.
- Risk Stock trades 67.4% above its 5-year average P/E.
- Risk Operating margin compressed from 17.0% to 1.4% over 3 years.
What this company does
Tesla, Inc.
Tesla is known for its popular electric cars, but it also sells solar panels and large batteries for storing energy. The company makes the vast majority of its money selling vehicles, so its success is often measured by its automotive margins (the profit it makes on each car after accounting for manufacturing costs). This is important because as more companies start selling electric cars, Tesla's ability to produce its vehicles profitably will be key to staying competitive.
How the company got here
Tesla was founded in 2003 by engineers Martin Eberhard and Marc Tarpenning with the goal of building high-performance electric cars. Elon Musk joined as the primary investor in 2004 and later became CEO in 2008, guiding the company through early financial struggles. The company's first car was the high-end Roadster, and it went public in 2010, the first American car company to do so since Ford in 1956. Key turning points include the launch of the more affordable Model S and Model 3, which brought electric vehicles to the mainstream, and the expansion into solar energy with the acquisition of SolarCity in 2016. In 2017, the company changed its name from Tesla Motors to Tesla, Inc. to reflect its broader focus on sustainable energy.
What it actually does
Tesla is most known for its electric cars, which don't use gasoline and are powered by rechargeable batteries. Beyond cars, the company is heavily involved in sustainable energy, offering solar panels and solar roofs to generate electricity from the sun. It also sells battery packs like the Powerwall for homes and the Megapack for large-scale utility projects, which store energy for later use. Additionally, Tesla is developing advanced driver-assistance systems, often referred to as Autopilot and Full Self-Driving, and is even working on a humanoid robot called Optimus.
Automotive
This is Tesla's largest and most well-known business, making up the vast majority of its revenue. It designs, manufactures, and sells a range of electric vehicles, including the Model S sedan, Model 3 sedan, Model X SUV, Model Y crossover, and the recently launched Cybertruck. Customers buy these cars directly from Tesla online or at their showrooms, rather than through traditional car dealerships. This segment also includes revenue from software upgrades, like its Full Self-Driving (Supervised) feature, and access to its global network of Superchargers for fast charging.
Energy Generation and Storage
This is a smaller but rapidly growing part of Tesla's business. This segment provides products and services that help people and businesses create and store their own clean energy. For homeowners, Tesla sells and installs solar panels, the Solar Roof (which has solar cells built into the roof tiles), and the Powerwall, a home battery that stores solar energy for use at night or during a power outage. For larger businesses and utility companies, it offers the Megapack, a massive battery system designed to store energy for the power grid. This part of the company makes money by selling and installing this hardware.
Services and Other
This segment includes a variety of smaller revenue sources that support the main automotive and energy businesses. It includes non-warranty maintenance and repairs for its vehicles, which can be done at service centers or by mobile technicians who come to the customer. It also covers the sale of merchandise, vehicle insurance, and fees for using Tesla's Supercharger network. This part of the business is smaller than the automotive and energy segments but provides essential services to Tesla owners.
What management is betting on now
Tesla's leadership is focused on expanding beyond being just a car company into a leader in artificial intelligence and robotics. A major priority is advancing its Full Self-Driving (FSD) capability, with the ultimate goal of creating fully autonomous vehicles. The company is also investing heavily in its humanoid robot, Optimus, which it believes could become a larger business than its car sales by performing repetitive or dangerous tasks in factories and eventually in homes. Another key focus is scaling up the production of its energy storage products, particularly the Megapack, to meet the growing demand for grid-scale batteries.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$2.74B
FY2024 Q4
$2.03B
FY2025 Q1
$664.00M
FY2025 Q2
$146.00M
FY2025 Q3
$3.99B
FY2025 Q4
$1.42B
FY2026 Q1
$1.44B
FY2026 Q2
$-1.09B
Revenue
$28.24B
Net income
$1.11B
Diluted EPS
0.32
Operating cash flow
$4.70B
Free cash flow
$-1.09B
Fetching…
Sources
Revenue
$22.39B
Net income
$477.00M
Diluted EPS
0.13
Operating cash flow
$3.94B
Free cash flow
$1.44B
Fetching…
Sources
Revenue
$24.90B
Net income
$840.00M
Diluted EPS
0.24
Operating cash flow
$3.81B
Free cash flow
$1.42B
Fetching…
Sources
Revenue
$28.09B
Net income
$1.37B
Diluted EPS
0.39
Operating cash flow
$6.24B
Free cash flow
$3.99B
Fetching…
Sources
Revenue
$22.50B
Net income
$1.17B
Diluted EPS
0.33
Operating cash flow
$2.54B
Free cash flow
$146.00M
Fetching…
Sources
Revenue
$19.34B
Net income
$409.00M
Diluted EPS
0.12
Operating cash flow
$2.16B
Free cash flow
$664.00M
Fetching…
Sources
Revenue
$25.71B
Net income
$2.32B
Diluted EPS
0.66
Operating cash flow
$4.81B
Free cash flow
$2.03B
Fetching…
Sources
Revenue
$25.18B
Net income
$2.17B
Diluted EPS
0.62
Operating cash flow
$6.25B
Free cash flow
$2.74B
Fetching…
Sources
Is it cheap or expensive?
Fair value $39.49 vs current price $322.08
Wall Street consensus is the average analyst price target: $397.87 (907.6% higher than our fair-value estimate).
Our most-likely fair value is $39.49 a share — about 87.7% below today's price of $322.08, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $27.4B - more cash than debt. Interest coverage 14.3x.
Net debt
$-27.44B
Interest coverage
14.35x
Tesla, Inc.'s profit covers its interest bill about 14.3 times over. which is stronger than every peer shown here and 4 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
TSLA
BASELINE
Tesla, Inc.
Total debt $16.08B Interest coverage 14.35x This is the baseline the peer rows are being compared against.
Total debt $5.35B Interest coverage -13.08x -100% vs TSLA This peer has almost no interest-payment cushion compared with TSLA.
Total debt $3.17B Interest coverage -36.82x -100% vs TSLA This peer has almost no interest-payment cushion compared with TSLA.
Total debt $3.93B Interest coverage -15.86x -100% vs TSLA This peer has almost no interest-payment cushion compared with TSLA.
Total debt $3.51B Interest coverage -6.99x -100% vs TSLA This peer has almost no interest-payment cushion compared with TSLA.
Total debt $128.77B Interest coverage 4.00x -72% vs TSLA Carries about 3.6x less debt cushion than TSLA.
What you should know
The case for and against TSLA
3 Rewards
2 Risks
Rewards
-
Revenue grew 9.3% last year.
-
Returns 4.7% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 7/10 years.
Risks
-
Stock trades 67.4% above its 5-year average P/E.
-
Operating margin compressed from 17.0% to 1.4% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
295.49x
Forward P/E
145.13x
P/B
14.38x
P/S
12.28x
EV/EBITDA
111.80x
PEG ratio
4.56x
Profitability
How much profit each dollar creates
Gross margin
18.9%
Operating margin
1.4%
Net margin
3.7%
ROE
4.7%
ROA
1.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.18x
Current ratio
1.94x
Quick ratio
1.35x
Total debt
$16.08B
Total cash
$43.52B
Growth
How the business has been compounding
Revenue TTM
$103.62B
Revenue 5Y CAGR
15.2%
EPS TTM
1.09
EPS 5Y CAGR
-33.2%
Cash flow
How much cash the business throws off
Operating CF TTM
$18.68B
Free CF TTM
$6.22B
FCF margin
6.0%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
—