Strong Liquidity Ratios
Healthy Return on Equity
Solid Net Profit Margin
Low Debt Levels
Strong Interest Coverage
🚗 Record Production and Market Leadership
📈 Cost Efficiency and Inventory Management
🔋 Strong Energy Business Growth
🚀 Autonomous Driving Innovations
🤖 Potential of Optimus Robotics
🌍 Global Expansion Opportunities
High Valuation Ratios
Low Operating Profit Margin
⚠️ Regulatory Challenges
Overall, Tesla demonstrates a strong business model with significant competitive advantages and a solid market position. The company's future prospects appear promising, driven by innovations in autonomous driving and robotics, although regulatory challenges may pose risks to rapid growth.
Analysis Date: January 29, 2025
Last Updated: March 12, 2025
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$85.44
Current Market Price: $239.69
IV/P Ratio: 0.36x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
-181.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for TSLA
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (107.89)
P/B ratio ≤ 1.5 (10.55)
Current ratio ≥ 2.0 (2.02x)
Long-term debt < Net current assets (0.19x)
Margin of safety (-181.0%)
TSLA does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Tesla's return on equity (ROE) of 10.36% reflects a reasonable ability to generate profit from shareholders' equity, indicating efficiency in utilizing capital.
The net profit margin of 7.26% indicates that Tesla retains a good portion of its revenue as profit, demonstrating effective cost management.
Tesla's operating profit margin of 7.24% suggests that its operational efficiency could be improved, as a lower margin could indicate higher costs relative to revenue.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
10.42%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-16)
Return on Assets (ROA)
Measures how efficiently a company uses its assets to generate profits
1.90%
Higher values indicate better asset utilization
TTM (as of 2025-04-16)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
17.86%
Higher values indicate better efficiency in production
TTM (as of 2025-04-16)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
7.26%
Higher values indicate better overall profitability
TTM (as of 2025-04-16)
With a debt-to-equity ratio of 0.11 and a debt-to-assets ratio of 0.07, Tesla demonstrates a strong balance sheet, suggesting it is not overly reliant on debt financing.
Tesla's interest coverage ratio of 20.22 indicates that it has a strong ability to meet interest obligations, suggesting financial stability.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.11x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
2.02x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
Tesla achieved record production and deliveries, reaching an annualized rate of nearly 2 million vehicles, with the Model Y recognized as the best-selling vehicle globally in 2024. This demonstrates strong market leadership and brand acceptance.
Tesla successfully reduced its finished goods inventory to the lowest levels in two years while lowering the overall cost per car to below $35,000, showcasing effective cost management.
Energy storage deployments reached an all-time high in Q4, indicating robust growth in Tesla's energy segment and highlighting the potential for future energy solutions like grid storage.
Tesla plans to launch unsupervised Full Self Driving (FSD) in Austin by June 2025, with expectations to expand to other regions. This innovation positions Tesla as a leader in the autonomous vehicle market.
Elon Musk predicts that the Optimus humanoid robot could generate north of $10 trillion in revenue, reflecting substantial growth potential in robotics and automation.
Tesla is focused on increasing battery production to meet global demand and expanding its operations in regions like China, which could significantly boost its market presence.
Regulatory hurdles, particularly in Europe and China, may slow the rollout of FSD features and impact Tesla’s ability to capitalize on its innovations quickly.