Tesla, Inc.(TSLA) - Stock detail

Tesla, Inc.

US
TSLA
Tesla, Inc.(Listing date: 06/29/2010)

Tesla was incorporated in the State of Delaware on July 1, 2003, and converted to a Texas corporation on June 13, 2024. The company is primarily engaged in the design, development, production, and sale of high-performance electric vehicles and advanced electric vehicle power system components, and also provides third parties with research, development, and contract manufacturing services for electric vehicle powertrains. Tesla electric vehicles meet the highest standards in the automotive industry in terms of quality, safety, and performance, and offer services such as the most cutting-edge over-the-air upgrades and comprehensive charging solutions; they also reduce global transportation's reliance on non-renewable energy and truly achieve zero emissions. The company also manufactures and sells energy storage products for home, industrial, and utility use.

AI Value AnalystSell
Overall Rating2.7/10
Generated at:2026-03-04 16:37:14
Analysis based on 5 financial reports from 2024-12-31 to 2025-12-31, including quarterly reports from 2025-03-31, 2025-06-30, 2025-09-30, and annual reports for 2024-12-31 and 2025-12-31. Data completeness: Comprehensive financial data available for analysis periods.
Overview

Tesla demonstrates moderate financial health with strong liquidity and conservative leverage, but faces significant challenges with declining revenue (-2.93% YoY), contracting margins, and deteriorating profitability. The stock appears significantly overvalued with extreme multiples disconnected from fundamentals.

Valuation
1/10
Profitability
2/10
Financial health
5/10
Operation Advice
  • Sell Tesla stock with a 12-month target price of $320-350 (17-21% downside), implement stop loss at $425-435 (5-7% upside risk), and consider reducing exposure or hedging strategies given unfavorable risk/reward ratio of 1:3.5.

Valuation

P/E TTM
388.13
P/E LYR
412.00
P/B MRQ
17.93
P/S TTM
--
AI Analysis
  • Tesla appears significantly overvalued with extreme multiples including dynamic PE of 412.00, TTM PE of 388.13, PB ratio of 17.93, and PS ratio of 16.07, trading at a 25-35% premium to fair value despite deteriorating fundamentals.
  • Dynamic PE of 412.00 and TTM PE of 388.13 are extremely elevated compared to industry averages
  • PB ratio of 17.93 indicates substantial premium to book value
  • PS ratio of 16.07 reflects high growth expectations that current fundamentals don't support
  • Current price of $405.94 represents significant overvaluation relative to deteriorating fundamentals
  • Historical analysis shows average maximum favorable excursion of 4.51% and average maximum adverse excursion of -6.98%
  • High failure rate (66.67%) on sell-side trades suggests continued downside risk
  • Conservative fair value estimated at $300-320 based on normalized PE of 80-85x
  • Moderate fair value estimated at $320-350 incorporating growth premium
  • Trading at 25-35% premium to fair value
Valuation trend

Profitability

ROE TTM
4.89%
Net margin
4.07%
Gross margin
18.03%
Total revenue
94.83B
AI Analysis
  • Tesla shows significant deterioration in profitability with revenue declining 2.93% YoY to $94.83B, net income decreasing 46.50% to $3.79B, margin compression, and declining return metrics indicating deteriorating capital efficiency.
  • Total revenue declined to $94.83B in 2025 from $97.69B in 2024, representing a -2.93% year-over-year decrease
  • Gross margin contracted to 18.03% from 17.86% in 2024
  • Net margin declined sharply to 4.07% from 7.32% in 2024
  • Net income decreased by -46.50% YoY to $3.79B, reflecting pricing pressures and increased competition
  • ROE declined to 4.89% from 10.46%
  • ROA fell to 2.92% from 6.20%, indicating deteriorating capital efficiency
  • Sequential quarterly analysis reveals an accelerating negative trend
  • Q1 2025 showing particularly weak performance with net income down -70.58% YoY
  • Some improvement was seen in subsequent quarters but overall trend remains negative
Profitability
2024Q42025Q12025Q22025Q32025Q4
ROE TTM--0.55%2.10%3.86%4.89%
Earnings
2024Q42025Q12025Q22025Q32025Q4
Total revenue97.69B19.34B41.83B69.93B94.83B

Financial health

Debt/Asset
39.87%
Current ratio
2.16
Quick ratio
1.77
Cash ratio
1.77
AI Analysis
  • Tesla demonstrates moderate financial health with strong liquidity (current ratio 2.16, quick ratio 1.77) and conservative leverage (debt-to-equity 39.87%), but faces challenges with declining revenue and contracting margins.
  • Strong liquidity with current ratio of 2.16 and quick ratio of 1.77, indicating sufficient short-term asset coverage
  • Conservative capital structure with debt-to-equity ratio of 39.87%, providing financial flexibility
  • Company maintains adequate working capital management despite recent profitability challenges
  • Declining revenue trend (-2.93% YoY in 2025) raises concerns about near-term financial stability
  • Contracting margins raise concerns about financial stability
  • Ability to maintain liquidity position while experiencing revenue contraction suggests disciplined working capital management
Leverage
2024Q42025Q12025Q22025Q32025Q4
Debt/Asset39.64%39.72%39.28%39.64%39.87%
Liquidity
2024Q42025Q12025Q22025Q32025Q4
Current ratio2.022.002.042.072.16