| TSLA Stock | | | USD 242.64 3.27 1.37% |
This module uses fundamental data of Tesla to approximate the value of its Beneish M Score. Tesla M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out
Tesla Piotroski F Score and
Tesla Altman Z Score analysis.
At present, Tesla's
Total Debt is projected to increase significantly based on the last few years of reporting. The current year's
Debt Non Current is expected to grow to about 1.6
B, whereas
Debt Current is forecasted to decline to about 1.5
B. At present, Tesla's
Long Term Debt to Equity is projected to slightly decrease based on the last few years of reporting. . The current year's
PPandE Turnover is expected to grow to 4.14, whereas
Receivables Turnover is forecasted to decline to 32.94.
At this time, it appears that Tesla Inc is an unlikely manipulator. The earnings manipulation may begin if Tesla's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Tesla executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Tesla's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.34
Beneish M Score - Unlikely Manipulator
| Elasticity of Receivables | 1.0 | Focus |
| Expense Coverage | 0.77 | Focus |
| Gross Margin Strengs | 1.02 | Focus |
| Depreciation Resistance | 1.0 | Focus |
| Net Sales Growth | 1.08 | Focus |
| Financial Leverage Condition | 0.77 | Focus |
Tesla Beneish M-Score Indicator Trends
The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Tesla's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Tesla Inc Beneish M-Score Driver Matrix
One of the toughest challenges investors face today is learning how to quickly synthesize historical
financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Tesla's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Tesla in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Tesla's degree of accounting gimmicks and manipulations.
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About Tesla Beneish M Score
M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled
The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed
financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.
Tesla Earnings Manipulation Drivers
Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Tesla. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
Tesla ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Tesla's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Tesla's managers, analysts, and investors.
About Tesla Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Tesla Inc's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Tesla using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at
the intrinsic value of Tesla Inc based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing
financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our
fundamental analysis page.
Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally. Tesla, Inc. was incorporated in 2003 and is headquartered in Austin, Texas. Tesla operates under Auto Manufacturers classification in the United States and is traded on NASDAQ Exchange. It employs 99290 people.
Tesla Investors Sentiment
The influence of
Tesla's investor sentiment on the probability of its price appreciation or decline could be a good factor in your
decision-making process regarding taking a position in Tesla. The overall
investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to Tesla's public news can be used
to forecast risks associated with an investment in Tesla. The trend in average sentiment can be used to explain how an investor holding Tesla can time the market purely based on public headlines and social activities around Tesla Inc. Please note that most equities that are difficult to arbitrage are affected by
market sentiment the most.
Tesla's
market sentiment shows
the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Tesla's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Tesla's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Tesla.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as
technical analysis,
investor sentiment usually refers to the aggregate attitude towards Tesla in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge
market sentiment could be utilized using contrarian indexes, Tesla's short interest history, or implied volatility extrapolated from Tesla options trading.
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When determining whether Tesla Inc
offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Tesla's
financial statements, including income statements, balance sheets, and cash flow statements, to assess its
financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Tesla Inc Stock.
Outlined below are crucial reports that will aid in making a well-informed decision on Tesla Inc Stock: Complementary Tools for Tesla Stock analysis
When running Tesla's price analysis, check to
measure Tesla's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Tesla is operating at the current time. Most of Tesla's value examination focuses on studying past and present price action to
predict the probability of Tesla's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Tesla's price. Additionally, you may evaluate how the addition of Tesla to your portfolios can decrease your overall portfolio volatility.
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Is Tesla's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost
the valuation of Tesla. If investors know Tesla will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Tesla listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth | Earnings Share | Revenue Per Share | Quarterly Revenue Growth | Return On Assets |
The market value of Tesla Inc is measured differently than its book value, which is the value of Tesla that is recorded on the company's balance sheet. Investors also form their own opinion of Tesla's value that differs from its market value or its book value, called intrinsic value, which is Tesla's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Tesla's market value can be influenced by many factors that don't directly affect Tesla's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Tesla's value and its price as these two are different measures arrived at by different means. Investors typically determine
if Tesla is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Tesla's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.