Tesla, Inc.TSLANASDAQ
Loading
Executive Summary
Latest Data: Dec 2025Consumer Cyclical•Auto - Manufacturers
$1.4TMega Cap
A large-scale business, operating profitably, with revenues declining priced at a premium.
Key Investment Themes
Declining revenues (-3%)
Premium valuation (355.5x P/E)
Business Narrative
Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally. It operates in two segments, Automotive, and Energy Generation and Storage.
Consumer CyclicalAuto - Manufacturers
Mature & Stable
Revenue Mix
Single segment business
Bear Case
- -Declining revenues signal potential market share erosion
- -Premium valuation leaves limited margin of safety
Company at a Glance
Business Performance
Key Highlights
Positive Signals
- Free cash flow growing strongly, indicating quality earnings
- Conservative balance sheet with low debt levels
- Strong liquidity position with ample current assets
Watch Areas
- Thin profit margins under 5%
- Trading 113% above 5-year average valuation
- Premium valuation requires continued strong execution
Financial Health
Liquidity
Strong
Current Ratio2.16
≥2.0 = Excellent
Cash & Equivalents$16.5B
Leverage
Strong
Debt / Equity0.10
<1.0 = Low leverage
Interest Coverage12.88x
≥5x = Comfortable
Efficiency
Concern
Return on Equity4.6%
<8% = Weak
Return on Capital3.0%
<8% = Weak
Valuation Assessment
Market Cap
$1.4T
Mega Cap
P/E (TTM)
355.5x
Elevated
vs 5Y avg: 167.2x (+113%)
P/S (TTM)
14.6x
Elevated
vs 5Y avg: 12.2x (+20%)
EV/EBITDA
117.3x
Elevated
vs 5Y avg: 78.4x
(+50%)
(+50%)
P/E Historical Range (5Y)
Min: 30.6xAvg: 167.2xNow: 355.5xMax: 383.0x
P/S Historical Range (5Y)
Min: 4.7xAvg: 12.2xNow: 14.6xMax: 19.4x
EV/EBITDA Historical Range (5Y)
Min: 21.2xAvg: 78.4xNow: 117.3xMax: 122.8x
Valuation Corridor
EXPENSIVE
FCF Yield
0.4%
vs Cost of Capital ~8.0% = Weak
P/E Corridor (5Y)355.5x
30.6xFair: 30.6x-307.7x383.0x
P/S Corridor (5Y)14.6x
4.7xFair: 6.4x-18.0x19.4x
EV/EBITDA Corridor (5Y)117.3x
21.2xFair: 37.1x-119.7x122.8x
Detailed Financials
Comprehensive financial statement data for deep analysis
| Metric | Dec 21 | Dec 22 | Dec 23 | Dec 24 | Dec 25 |
|---|---|---|---|---|---|
| Return on Equity | - | - | - | - | - |
| Return on Invested Capital | - | - | - | - | - |
| Gross Margin | 25.3% | 25.6%↑1.3% | 18.2%↓28.7% | 17.9%↓2.1% | 18.0%↑0.9% |
| Operating Margin | 12.1% | 16.8%↑38.3% | 9.2%↓45.2% | 7.2%↓21.2% | 4.6%↓36.6% |
| Net Margin | 10.3% | 15.4%↑50.5% | 15.5%↑0.3% | 7.3%↓52.9% | 4.0%↓45.2% |
| Earnings Yield | - | - | - | - | - |
Page 1 of 2