Is Tesla Stock a Good Investment?

Tesla Investment Advice

  TSLA
To provide specific investment advice or recommendations on Tesla Inc stock, we recommend investors consider the following general factors when evaluating Tesla Inc. This will help you to make an informed decision on whether to include Tesla in one of your diversified portfolios:
  • Examine Tesla's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
  • Research Tesla's leadership team and their track record. Good management can help Tesla navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
  • Consider the overall health of the Automobile Manufacturers space and any emerging trends that could impact Tesla's business and its evolving consumer preferences.
  • Compare Tesla's performance and market position to its competitors. Analyze how Tesla is positioned in terms of product offerings, innovation, and market share.
  • Check if Tesla pays a dividend and its dividend yield and payout ratio.
  • Review what financial analysts are saying about Tesla's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Tesla Inc stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Tesla Inc is a good investment.
 
Sell
 
Buy
Cautious Hold
Macroaxis provides recommendation on Tesla Inc to complement and cross-verify current analyst consensus on Tesla Inc. Our trade recommendation engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Tesla Inc is not overpriced, please validate all Tesla fundamentals, including its book value per share, market capitalization, and the relationship between the cash per share and price to earnings to growth . Given that Tesla Inc has a price to earning of 56.02 X, we advise you to double-check Tesla Inc market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your current risk tolerance and investing horizon.

Market Performance

Very WeakDetails

Volatility

Very steadyDetails

Hype Condition

StaleDetails

Current Valuation

OvervaluedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Moves indifferently to market movesDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

BuyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

UnavailableDetails

Examine Tesla Stock

Researching Tesla's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 13.0% of the company outstanding shares are owned by corporate insiders. The company had not issued any dividends in recent years. Tesla Inc had 3:1 split on the 25th of August 2022.
To determine if Tesla is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Tesla's research are outlined below:
Tesla Inc generated a negative expected return over the last 90 days
Tesla Inc has high historical volatility and very poor performance
Tesla Inc is unlikely to experience financial distress in the next 2 years
About 13.0% of the company outstanding shares are owned by corporate insiders
Latest headline from aol.com: Elon Musk leaps into action as a Trump surrogate but its unclear how hell land From the Politics Desk

Tesla Quarterly Accounts Payable

13.06 Billion

Tesla uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Tesla Inc. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Tesla's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
17th of April 2024
Upcoming Quarterly Report
View
17th of July 2024
Next Financial Report
View
31st of March 2024
Next Fiscal Quarter End
View
22nd of January 2025
Next Fiscal Year End
View
31st of December 2023
Last Quarter Report
View
31st of December 2023
Last Financial Announcement
View
Earnings surprises can significantly impact Tesla's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Tesla's investors have experienced.
Reported
Fiscal Date
Estimated EPS
Reported EPS
Surprise
2016-05-04
2016-03-31-0.05-0.040.0120 
2014-02-19
2013-12-310.010.020.01100 
2012-02-15
2011-12-31-0.04-0.05-0.0125 
2011-08-03
2011-06-30-0.03-0.04-0.0133 
2010-11-09
2010-09-30-0.03-0.020.0133 
2013-08-07
2013-06-30-0.010.010.02200 
2020-01-29
2019-12-310.110.140.0327 
2017-08-02
2017-06-30-0.12-0.090.0325 

Know Tesla's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Tesla is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Tesla Inc backward and forwards among themselves. Tesla's institutional investor refers to the entity that pools money to purchase Tesla's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Legal & General Group Plc2024-06-30
22.2 M
Ubs Asset Mgmt Americas Inc2024-06-30
21.4 M
Bank Of America Corp2024-06-30
20.5 M
Goldman Sachs Group Inc2024-06-30
20.1 M
Bank Of New York Mellon Corp2024-06-30
17.7 M
Loomis, Sayles & Company Lp2024-06-30
16.3 M
Charles Schwab Investment Management Inc2024-06-30
16.2 M
Bamco Inc2024-06-30
15.5 M
Baillie Gifford & Co Limited.2024-06-30
14.3 M
Vanguard Group Inc2024-06-30
237.6 M
Blackrock Inc2024-06-30
190.1 M
Note, although Tesla's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Tesla's market capitalization trends

The company currently falls under 'Mega-Cap' category with a current market capitalization of 762.78 B.

Market Cap

984.68 Billion

Tesla's profitablity analysis

Last ReportedProjected for Next Year
Return On Tangible Assets 0.14  0.15 
Return On Capital Employed 0.11  0.11 
Return On Assets 0.14  0.15 
Return On Equity 0.24  0.25 
The company has Profit Margin (PM) of 0.13 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of 0.09 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.09.
Determining Tesla's profitability involves analyzing its financial statements and using various financial metrics to determine if Tesla is a good buy. For example, gross profit margin measures Tesla's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Tesla's profitability and make more informed investment decisions.

Tesla's Earnings Breakdown by Geography

Please note, the presentation of Tesla's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Tesla's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Tesla's management manipulating its earnings.

Evaluate Tesla's management efficiency

Tesla Inc has return on total asset (ROA) of 0.0442 % which means that it generated a profit of $0.0442 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.2086 %, meaning that it created $0.2086 on every $100 dollars invested by stockholders. Tesla's management efficiency ratios could be used to measure how well Tesla manages its routine affairs as well as how well it operates its assets and liabilities. At present, Tesla's Return On Tangible Assets are projected to increase slightly based on the last few years of reporting. The current year's Return On Assets is expected to grow to 0.15, whereas Return On Capital Employed is forecasted to decline to 0.11. At present, Tesla's Total Assets are projected to increase significantly based on the last few years of reporting. The current year's Non Current Assets Total is expected to grow to about 59.9 B, whereas Intangibles To Total Assets are forecasted to decline to 0.
Last ReportedProjected for Next Year
Book Value Per Share 20.04  21.04 
Tangible Book Value Per Share 19.90  20.90 
Enterprise Value Over EBITDA 52.55  55.18 
Price Book Value Ratio 12.59  9.61 
Enterprise Value Multiple 52.55  55.18 
Price Fair Value 12.59  9.61 
Enterprise Value928.1 B974.5 B
The analysis of Tesla's management efficiency is an essential part of evaluating and assessing the financial and operational performance of the entity. It is also vital to analyze Tesla's future growth prospects and the overall market conditions to determine the value and potential of its stock. The analysis involves studying a range of financial metrics such as revenue, earnings, profit margins, cash flow, debt, market share, and external factors such as economic trends, industry outlook, competition, and government regulations. The goal of Tesla Stock analysis is to determine whether it is undervalued, fairly valued, or overvalued and to make informed investment decisions.
Beta
2.297

Basic technical analysis of Tesla Stock

As of the 11th of October 2024, Tesla has the Coefficient Of Variation of (5,157), risk adjusted performance of (0.01), and Variance of 14.68. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Tesla Inc, as well as the relationship between them.

Tesla's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Tesla insiders, such as employees or executives, is commonly permitted as long as it does not rely on Tesla's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Tesla insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

Tesla's Outstanding Corporate Bonds

Tesla issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Tesla Inc uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Tesla bonds can be classified according to their maturity, which is the date when Tesla Inc has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

Understand Tesla's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Tesla's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

Consider Tesla's intraday indicators

Tesla intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Tesla stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

Tesla Corporate Filings

8K
2nd of October 2024
Report filed with the SEC to announce major events that shareholders should know about
ViewVerify
F4
25th of September 2024
The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities
ViewVerify
10Q
24th of July 2024
Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations
ViewVerify
13th of June 2024
Other Reports
ViewVerify
Tesla time-series forecasting models is one of many Tesla's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Tesla's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Tesla Stock media impact

Far too much social signal, news, headlines, and media speculation about Tesla that are available to investors today. That information is available publicly through Tesla media outlets and privately through word of mouth or via Tesla internal channels. However, regardless of the origin, that massive amount of Tesla data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Tesla news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Tesla relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Tesla's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Tesla alpha.

Tesla Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Tesla can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Tesla Inc Historical Investor Sentiment

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 and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Tesla news discussions. The higher the estimate score, the more favorable the investor's outlook on Tesla.

Tesla Corporate Management

John WalkerVice AmericaProfile
Brian ScelfoSenior DevelopmentProfile
Martin ViechaDirector RelationsProfile
Lars MoravyVice EngineeringProfile
Vaibhav TanejaChief Accounting OfficerProfile
Franz HolzhausenChief DesignerProfile
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:
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Tesla Inc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of economic analysis.
You can also try the Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Is Automobile Manufacturers space 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
(0.46)
Earnings Share
3.57
Revenue Per Share
29.932
Quarterly Revenue Growth
0.023
Return On Assets
0.0442
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.
In summary, please note that there is a difference between Tesla's value and its price, as these two are different measures arrived at by various 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.