Tesla's Valuation is affected significantly by changes in its market share which I expect to erode in the future. This evaluation marked a leap of around 78 percent compared to the previous year. Cash burn is an issue for software companies Okta Inc. and Atlassian Corp., which have been added to the list of "zombie" stocks compiled by equity research firm New Constructs. The company will continue to grow sales and earnings as it expands globally and domestically. Compare TSLA With Other Stocks Here's an overview of some common arguments for and against Tesla's high valuation. "We recommend investors not weight Tesla shares in their portfolio in equal proportion to the S & P because Tesla shares are in our view and by virtually every conventional metric not only overvalued, but dramatically so," J.P. Morgan analyst Ryan Brinkman said in an investor note Wednesday. Cost of Equity That includes ramping up production in China the world's largest EV market and building new vehicle assembly plants in Texas and Germany. Tesla sells more electric vehicles than any other manufacturer. In 2021, the company was profitable and though its cash balance decreased, it earned over $2.6 billion of operating income in Q4 2021 alone. "There's a lot of momentum there. Source: ACF Equity Research Forecast. Current and historical debt to equity ratio values for Tesla (TSLA) over the last 10 years. Another positive signal for Tesla is the company's recent profitability. Quantalytics is not a registered investment adviser, brokerage firm, or investment company. For example, GM has announced plans to invest $27 billion in EVs and autonomous vehicles by 2025. Its technology is leaps and bounds ahead of other EV makers, including big OEMs like GM, Toyota and Volkswagen and upstarts like Nio. As a rule, Tesla . Tesla shares dipped below $100 in Q1 2020 before topping $1,200 per share around 18 months later. As it releases new products, like the completed version of its Full Self-Driving software, its own form of auto insurance, the Tesla Cybertruck and next-generation Roadster, it will sell more services and cars to existing customers, while winning over new ones. Tesla's latest twelve months book value / market cap is 0.1x. By way of comparison, Cox Automotive forecasts that total car sales in the U.S. alone should reach at least 14.3 million in 2020, down from 17 million or more in each of the past five years. We have provided a few examples below that you can copy and paste to your site: Your image export is now complete. Tesla made the decision in an effort to "make stock ownership more accessible to employees and investors". The Automotive segment includes the design, development, manufacture and sale of electric vehicles. Those automakers include Volkswagen, Toyota, Nissan, Hyundai, GM, Ford, Honda, Fiat Chrysler and Peugeot. All Rights Reserved. The company's average rating score is 2.40, and is based on 19 buy ratings, 11 hold ratings, and 5 sell ratings. Even much larger manufacturers like Chevrolet simply cannot compete with Tesla when it comes to sales figures for electric vehicles. The Q-Factor Score can be broken down into 4 core groups: Quality Value, Momentum, Growth, and Technicals. However, since 1800, Ford (F) is the only auto manufacturer in the United States that has gone bankrupt. If you use our chart images on your site or blog, we ask that you provide attribution via a "dofollow" link back to this page. That compares to Toyota , which Tesla surpassed in market value in July, with a current multiple of 12.5 and a five-year average of 8.1. As of today, Tesla's market capitalization (E) is $549575.236 Mil. Regarding long-term liabilities, Tesla was holding over $5 billion of long-term debt and lease obligations at the end of 2021. Analysts Think It Might BeTwitter Backlash Now 'Overdone', Tesla Drops To New 52-Week Low As CEO Checks Blue Checkmarks. Toyota, 2020's leader, is now the runner-up, followed by. Sign up for free newsletters and get more CNBC delivered to your inbox. Consequently, any such data, information, or opinions do not in any way represent a personal recommendation to any individual investor or any entities, whatever the type. In recent history, it was as low as . Please check your download folder. Between 2020 and 2021, the company incurred 7% more debt. Tesla's market value has surged over $500bn after a fresh wave of buying ahead of the electric carmaker's debut on the blue-chip S&P 500 stock index next month. Its market capitalization (stock price times shares outstanding) of $629 billion ranks it sixth among companies on the U.S. stock market. As of 2022, the company has several models on the market including the Model S, Model 3, Model X, and the Model Y. Tesla has also expanded its product line and offers solar panels and solar roof installation. It also provides vehicle service centers, supercharger station, and self-driving capability. It develops energy storage products for use in homes, commercial facilities and utility sites. As expected, most of the company's assets are tied into long-term, illiquid assets. Tesla is the most valuable automaker by far. Tesla informed investors in October that it plans to ramp up spending to $2.5 billion in 2021 and 2022, especially on new factories and expansion, including battery cell manufacturing. As of September, Tesla was among the worst-rated companies when it comes to financial stress and commercial credit scores, according to Dun & Bradstreet. Tesla was carrying over $23 billion of debt, while it has raised roughly $6 billion of equity. View and export this data back to 2010. By December 2017, shares had climbed to around $340. The Energy Generation and Storage segment includes the design, manufacture, installation, sale, and lease of stationary energy storage products and solar energy systems, and sale of electricity generated by its solar energy systems to customers. Q.ai is the trade name of Quantalytics Holdings, LLC. The stock is hitting new 52-week lows and the Chief Executive Officer is spending time these days at Twitter making sure that blue check marks go to the right people. Tesla Inc is currently regarded as top stock in market capitalization category among related companies. ", Tesla. The intrinsic value of one TSLA stock under the Base Case scenario is 124.18 USD . Wall Street has ignored or failed to hold Musk accountable for persistent quality and reliability problems that have led to reputational damage to Tesla, and recalls in China and the U.S. in 2020. Leveraging Big Data multi-factor models, the Q-Factor Score is assigned to each stock ranging from Top Buy to Top Short. Such data, information, or opinions are not an offer to sell or to buy, or a solicitation to buy or sell any securities. Recently Tesla Motors delivered its first electric semi-trucks to Pepsico/Frito Lay. As of December 2021, Tesla's total debt and total equity are almost equal. Last. Tesla Inc. 1 Tesla Road Austin, Texas 78725 Phone 1 512 516-8177 Industry Automobiles Sector Automotive Fiscal Year-end 12/2022 Revenue $53.82B Net Income $5.52B 2021 Sales Growth N/A Employees. Any forward looking estimates presented by Quantalytics may prove to be incorrect and not be realized. The drop below $995.75 put the company's market value below $1 trillion, a milestone it breached late last month after news of its largest-ever order, from car rental firm Hertz, helped fuel a sharp rally. Tesla, Inc. (TSLA) NasdaqGS - NasdaqGS Real Time Price. Tesla did what the Big Three could not: produce a quality electric vehicle that is in huge demand. The regular price of the company is $194.86. These stocks are the best SHORTS for investors. So did announcements about Tesla's plans to manufacture its own proprietary battery cells, and to roll out new features for their Autopilot and Full Self Driving partially automated driving systems. Here are the specs, performance details, and what the future of clean commercial transit might look like. The company has created a cult-like fanbase for its vehicles through grassroots marketing, events and aggressive use of social media that will continue to keep them buying into Tesla and believing in Musk. In 2016, Tesla's total assets were recorded to be of $22.66 billion. Apple has total assets of $317.3 billion, including more than $191.8 billion in cash and marketable securities. Equity, & Inclusion . The data, information and opinions presented have been obtained or derived from sources believed by Quantalytics to be reliable. Tesla has several times promised that its fully autonomous system is close to completion, even though Musk said his Autopilot team was rewriting aspects of it this year. Looking back at the last five years, Tesla's book value / market cap peaked in . Popular Screeners Screens. Tesla is riding high in Europe, helped by the Shanghai-made Model Y SUV, but it faces increasing competition from China now and later from locals like BMW and VW, while the logistics of importing some of its vehicles from the Middle Kingdom are coming under pressure. Tesla, which has managed to garner the reputation of a gold standard over the years, is now a far bigger entity that what it started off since its IPO in 2010, with its market cap crossing $1 trillion for the first time in October 2021.? "Now in a clear position of strength and out of the red ink with major factory build outs on the horizon (Austin and Berlin), Musk and his red cape are raising enough capital to get the balance sheet and capital structure to further firm up its growing cash position and slowly get out of its debt situation, which throws the lingering bear thesis for Tesla out the window for now," he wrote. 6.626 He teaches accounting, helping promote financial education and awareness. Located in San Jose-Sunnyvale-Santa Clara, CA Metropolitan Area. Tesla's market cap has increased by more than $500 billion in 2020, and is now worth as much as the combined market cap of the nine largest car companies globally. Tesla is also a low-float stock, which can contribute to upside volatility. Tesla market share could be erode by cheaper rival EVs Elon Musk's Model 3 compact sedan starts at roughly $47,000, making it the company's least expensive vehicle. That means it isn't paying vendors, or isn't paying them on time, most of the time. Those automakers include Volkswagen , Toyota , Nissan , Hyundai , GM , Ford , Honda , Fiat Chrysler and Peugeot . Since the stock split in 2000, Tesla shares have still been on a tear. Today, the story is different. Pepsi's new Tesla Semis are about to prove them wrong. Also of note is that after a significant stock price appreciation, the market value of Tesla's equity is about $60 billion, the book value of equity is about $5 billion and the total debt is about $10 billion. Tesla stock price was about $50 a share in 2013, $220 in 2014 and recently traded around $355. Quantalytics does not make any representations as to their accuracy or completeness. The market capitalization, commonly called market cap, is the total market value of a publicly traded company's outstanding shares and is commonly used to measure how much a company is worth. Tesla Inc's stock extended its recent selloff on Monday, pushing the electric-car maker's market value below $1 trillion as investors reacted to CEO Elon Musk's recent share sales of a combined $6 . EPS and Revenue estimates are for the next 12 months. With an expected Total Addressable Market of $ 2.700bn in 2030, Tesla's revenue will be around $ 350bn. Goldman analyst Mark Delaney said in an investor note last week that if Tesla sustains a mid to high 20% range share of the EV market, then it could reach 15 million units by 2040. The company's goal is to accelerate the transition to sustainable energy. Tesla share holder equity for 2019 was $7.467B, a 29.7% increase from 2018. It also provides vehicle service centers . According to data compiled by FactSet, company insiders owned just over 20% of Tesla shares with Musk individually owning about 18% of the company as of the end of September. P/E Ratio - Price-to-Earnings Ratio Formula, Meaning, and Examples, What Are Unit Sales? Q.ai, LLC is a wholly owned subsidiary of Quantalytics Holdings, LLC (Quantalytics). They've got to become a software company, they've got to become every type of company out there to actually discount into their valuation," he said Wednesday during CNBC's "Squawk Box." The price-to-earnings (P/E) ratio is the ratio for valuing a company that measures its current share price relative to its per-share earnings. 2 stunning Tesla charts make the stock's bull case look like a long shot. The debt/equity ratio can be defined as a measure of a company's financial leverage calculated by dividing its long-term debt by stockholders' equity. As of Dec. 31, 2021, Tesla reported total liabilities of $30.5 billion. MVA is a measure of the value a company has created in excess of the resources already committed to the enterprise. That gives the electric car-maker the distinction of being the most . The plan to cut production comes after delivered more than 100,000 from its Shanghai plant for the first time in November. Use Forbes logos and quotes in your marketing. His strategy, defining Tesla today, is based on R&D and ensuring its technological superiority. The bull case: Tesla is justified in spending on an aggressive domestic and global expansion to increase the company's operations. The firm's three-pronged business model approach of direct sales, servicing, and charging its EVs sets it apart from other carmakers. Enterprise Value is the theoretical takeover price. The Intrinsic Value is calculated as the average of the two valuation methods: DCF Value. Consumer Reports only recommends one of the four models Tesla makes today, and JD Power, in June 2020,gave Teslavehicles the lowest ranking of 32 major brands it evaluated in its annual quality study. One advantage of being the only major player in the market is that sales are strong. This October, amid a spate of good news, investors bid the shares of electric-vehicle pioneer Tesla up into the . Get the latest Tesla Inc (TSLA) real-time quote, historical performance, charts, and other financial information to help you make more informed trading and investment decisions. Vanguard State Street Invesco Charles Schwab. The company operates through the following segments: Automotive and Energy Generation and Storage. On Dec 10th, 2022 the market cap of Tesla was reported to be: What is the market capitalization of a company. Backlinks from other websites are the lifeblood of our site and a primary source of new traffic. Over the past two years, Tesla's market value has skyrocketed. It's one reason why the company has tapped into capital markets three times this year, including the stock sale announced Tuesday. With roughly $30 billion of total liabilities and $30 billion of equity, the company's debt-to-equity ratio stood at 1.01 at the end of the year. Tesla as a brand is much more than an auto manufacturer It is a vision for the next generation. Compared to the current market price of 179.05 USD , Tesla Inc is Overvalued by 31%. At the end of 2020, Tesla's retained earnings was -$5.4 billion. That's no small feat for a high-priced if high tech brand. Musk eventually became chair of the company before taking on the role of the chief executive officer (CEO). Three years ago, when Tesla was worth $50 billion, the company's board promised Musk a huge grant of stock if he could, among other things, bolster the company's market value beyond $650. Tesla's rapid and successful expansion in China, and the announcement that Tesla will be included in the S & P 500 on Dec. 21 helped sustain Tesla's growth narrative. Tesla is worth more than three times as much as Toyota (TM), the second most valuable automaker, which has a market cap of about $280 billion, and boasts sales and profits that dwarf those of. EPS Diluted . Although Mr. Musk purchased the social media company in his individual capacity, he offloaded Tesla shares to fund the purchase and free up liquidity to manage the loss-making social media company, which has a massive debt load. All values as of most recently reported quarter unless otherwise noted. As long as Tesla has innovative ideas, it will have both legions of fans, and access to capital. Tesla's market capitalization has increased by more than $500 billion in 2020, and the company is now worth about as much as that of the nine largest car companies globally, despite selling a small fraction of the volume of cars that they do. Though the company's net cash on hand has decreased, the company generated $2.61 billion of operating income during the fourth quarter of 2021. I think if you're a senior leader at Tesla, you're praying and hoping that either Elon changes focus or gets off this Twitter thing.. Tesla owns a market value of 60 billion dollars when it has failed repeatedly to meet its production objectives and is spending billions of dollars each year. ESG Efforts Ramp Up, Tesla Semis Hit The Road And Reaping Billions From Clean Energy Bonds, ChatGPT Is A Huge Fan Of Elon Musk, Donald Trump And AI, But Not Google, Amazon And Apple, Tesla Shares Are Facing Multiple Headwinds, As CEO Musks Attention Is Elsewhere, Q.ai - Powering a Personal Wealth Movement, Elon Musk Starts And Ends Thursday As World's Second Richest Person, Teslas New Semi-Truck Will Be Great, If You Get Your Electricity Wisely, Model Y Boosts Teslas European Sales As China, Logistics Challenges Loom, Tesla Stock Slumps After Company Reportedly Cuts Model Y Production From Shanghai Plant, Tesla Semi Rolls Out: Truck Delivers First Full Load On A 500-Mile Trip, A Clean Energy Funds Challenges, How Twitter Antics Hurt Teslas Brand And 30 Under 30 Innovators, Pepsis Tesla Semi Trucks Will Change Cargo Haulage Forever, Elon Musks Twitter Antics Are Tarnishing Tesla Just As Its EV Rivals Are Catching Up, Electric RVs Are The Way Of The Future Says This Tesla Alumn Turned EV Founder, Is Tesla Stock Crash Over? Although its been the darling for many investors over the past decade, Teslas (TSLA) current balance sheet and capital structure have been a cause for concern for analysts and investors. 2022 Forbes Media LLC. That same year, Tesla also built charging stations in both the U.S. and Europe, allowing Tesla owners to charge their vehicles for free. At the end of Q1 2022, the price of Tesla's stock was $1,077.60. The bull case: Tesla has disrupted the traditional automotive industry by proving pure battery electric vehicles can be more than compliance cars, pushing competitors such as GM to move faster into the segment. In 2022, Tesla's brand value was estimated at nearly 76 billion U.S. dollars. But electric pickups, which Tesla plans to build in Texas (alongside its Model Y crossover SUV) remain an untapped growth market for the company. Tesla debt/equity for the three months ending September 30, 2022 was. To calculate this market value, multiply the current market price of a company's stock by the total number of shares outstanding. The market share that competitors command is much lower than our ACF estimates of Tesla's market share 16.9% YE20E vs. 15% YE19A. We have provided a few examples below that you can copy and paste to your site: Your data export is now complete. These stocks are the best BUYS for investors. You can also use our Market Value of Equity Calculator Factors affecting Market Value of Equity The market value of equity is extremely volatile as it is affected by the market price of a share. Financial statements are written records that convey the business activities and the financial performance of a company. In 2012, the company moved from the Roadster to the Model S sedan. The company also specializes in lithium-ion battery energy storage, domestic photovoltaic panels, and sells Tesla Powerpack and Tesla Powerwall batteries. While these stocks score as UNATTRACTIVE, we believe the best shorts are our TOP SHORTS which are F-rated stocks. See the latest Tesla Inc stock price (NASDAQ:TSLA), related news, valuation, dividends and more to help you make your investing decisions. Date Value; December 06, 2022 . These include white papers, government data, original reporting, and interviews with industry experts. The bull case: Tesla accounts for roughly roughly3out ofevery 4 EVssold in the U.S., giving Tesla a first-mover advantage over legacy automakers such as GM entering the growing EV market. He said such services are $164 out of his $540 target on shares of Tesla. Overall, Tesla expects to sell at least 500,000 electric vehicles this year worldwide, making up less than 1% of total vehicle sales. Shares of Tesla have plunged nearly 30% since Musk's acquisition of Twitter closed. Despite the meteoric growth for Tesla's stock this year, many on Wall Street believe there is even further upside for Tesla heading into 2021. Tesla's operated at median book value / market cap of 0.1x from fiscal years ending December 2017 to 2021. Plus, the 36-month beta value for HQY is at 0.80. All Rights Reserved. Tesla, which is touted as the clean energy revolutionary automaker, is much more than just a car manufacturer. Most recently, Tesla's operations have turned positive, allowing the company to flip its retained earnings positive. 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