One-glance verdict
Overvalued
$32.16 our estimate vs market $373.82
Wall Street consensus: $395.57 (1,129.8% higher than our fair-value estimate)
1062% above our estimate, beyond the bull case
Fundamentals snapshot
Tesla, Inc.
TSLA · NMS · Consumer Cyclical · Auto Manufacturers
Current price
$373.82
52-week range
$297.38 - $498.83
Market cap
$1.48T
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 99.8% 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 primarily makes and sells popular electric cars, which is where most of its revenue comes from. The company also sells solar panels and large batteries, aiming to build a complete clean energy ecosystem (a group of products designed to work together, like how an iPhone, watch, and computer all connect). Because Tesla is a leader in the growing electric vehicle market, its performance is often seen as a sign of the industry's future health and potential.
How the company got here
Tesla was founded in 2003 by a group of engineers who wanted to prove that electric cars could be better than gasoline-powered cars. After some early leadership changes, Elon Musk, an early investor, became the CEO in 2008 and has led the company's growth. Key moments include the launch of the Roadster sports car in 2008, the successful Model S in 2012, and the more affordable Model 3 in 2017, which helped bring electric vehicles to a wider audience. The company has since expanded into energy products and has grown to become one of the world's most valuable automakers.
What it actually does
Tesla is most known for its electric cars, which you might see driving around your neighborhood. Beyond cars, the company also sells solar panels and special batteries that can store energy for your home or even for the entire electric grid. They also have their own network of charging stations, called Superchargers, for their cars. Think of them as a clean energy company that makes products for both transportation and power.
Automotive
This is Tesla's largest and most well-known business, making up the vast majority of its revenue (the total money it brings in from sales). This segment designs, builds, and sells electric vehicles, including sedans like the Model S and Model 3, and SUVs like the Model X and Model Y. They sell cars directly to customers online and through their own stores, rather than through traditional dealerships. This part of the business also includes services like vehicle maintenance, insurance, and selling software upgrades like Full Self-Driving capabilities.
Energy Generation and Storage
This is a smaller but rapidly growing part of Tesla's business. It focuses on creating products that help people and utility companies use clean energy. For homeowners, they sell solar panels and the Powerwall, a battery that stores solar energy for use at night or during a power outage. For larger businesses and power companies, they sell a much bigger battery called the Megapack, which helps make the electricity grid more stable and reliable.
What management is betting on now
Tesla's leadership is focused on making its cars more affordable and producing them more efficiently to reach more customers. They are also investing heavily in artificial intelligence and robotics, with the goal of developing fully autonomous (self-driving) cars and even humanoid robots. Another major priority is expanding the energy storage business, building more large-scale battery factories to support the world's shift to renewable energy.
Price history
How the share price has moved
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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 $32.16 vs current price $373.82
Wall Street consensus is the average analyst price target: $395.57 (1,129.8% higher than our fair-value estimate).
Our most-likely fair value is $32.16 a share — about 91.4% below today's price of $373.82, 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 $3.66B Interest coverage -36.82x -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.
Total debt $163.30B Interest coverage -6.88x -100% vs TSLA This peer has almost no interest-payment cushion compared with TSLA.
Total debt $58.80B Interest coverage -15.06x -100% vs TSLA This peer has almost no interest-payment cushion compared with 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 99.8% 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)
352.66x
Forward P/E
172.82x
P/B
17.00x
P/S
14.25x
EV/EBITDA
127.55x
PEG ratio
4.24x
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
1.06
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
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