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 AnalystHold
Overall Rating3.7/10
Generated at:2026-06-11 17:41:08
Analysis based on 5 financial reports: 2026-03-31, 2025-12-31, 2025-09-30, 2025-06-30, and 2025-03-31. Stock price data as of 2026-06-11. Data sources include company financial statements and market price information. Analysis covers both quarterly and trailing twelve-month (TTM) metrics.
Overview

Tesla, Inc. is a leading global designer, manufacturer, and seller of electric vehicles and energy systems. Its financial health shows solid short-term liquidity but a highly leveraged balance sheet from an equity perspective. Profitability metrics indicate a potential recovery in Q1 2026 after a challenging 2025, but valuation remains exceptionally high by all conventional measures, creating a dichotomy between fundamentals and market price.

Valuation
1/10
Profitability
4/10
Financial health
6/10
Operation Advice
  • Hold existing positions.
  • For new investors, avoid buying at current valuation levels due to exceptionally high risk.
  • Monitor upcoming quarters for sustained confirmation of the Q1 2026 margin and profit improvement.
  • Consider entry only at a significantly lower price point or upon clear, sustained evidence of profitability growth that can justify the valuation.

Valuation

P/E TTM
371.09
P/E LYR
412.00
P/B MRQ
17.04
P/S TTM
--
AI Analysis
  • Tesla's valuation metrics are exceptionally high, indicating the stock is priced for extraordinary future growth. The current price of $399.15 is fundamentally overvalued by all conventional measures (P/E > 370, P/B of 17.04, P/S of 15.32). The price is driven by market sentiment towards long-term potential rather than current financials.
  • Tesla's valuation metrics are exceptionally high, indicating the stock is priced for extraordinary future growth.
  • The forward P/E is 412.00 and the TTM P/E is 371.09, which are astronomically high levels implying investors are paying over 400 times current or projected earnings.
  • The P/B ratio of 17.04 confirms the market assigns a premium for brand, technology, and market position far beyond its tangible asset base.
  • The TTM P/S ratio of 15.32 is also very high, indicating significant sales growth is already priced in.
  • Based purely on fundamental metrics (P/E, P/B, ROE), the current stock price is significantly overvalued.
  • The earnings yield (1/PE) is approximately 0.24%, which is negligible.
  • A 'reasonable' price range based on a more normalized P/E ratio for a high-growth auto/tech company would be drastically lower than current levels.
  • Tesla has historically traded on future potential rather than current earnings.
  • A fundamental target price is not meaningfully calculable using standard models; the price is entirely driven by market sentiment towards its long-term disruptive potential.
  • The stock is fundamentally overvalued by all conventional measures.
Valuation trend

Profitability

ROE TTM
4.91%
Net margin
2.19%
Gross margin
21.08%
Total revenue
22.39B
AI Analysis
  • Tesla's profitability shows signs of recovery in Q1 2026 with improved gross margins and net income growth, but annual TTM figures reflect significant challenges with low returns on equity and assets. The recent quarter suggests a potential inflection point after a clear downturn in 2025.
  • Tesla's profitability metrics show signs of recovery in the most recent quarter, but annual figures reflect significant challenges over the past year.
  • Recent Quarter (Q1 2026): The company showed improved performance with revenue growth of 15.78% year-over-year (YoY) to $22.39B.
  • Gross profit surged 49.70% YoY to $4.72B, driving the gross margin up to 21.08% from 16.31% in Q1 2025.
  • Net income also grew by 16.63% YoY to $477M in Q1 2026.
  • Trailing Twelve Months (TTM): Despite the positive Q1, annual profitability remains under pressure.
  • The TTM Return on Equity (ROE) is 4.91% and Return on Assets (ROA) is 2.93%.
  • These are relatively low returns for a company with such a high valuation, indicating that current earnings do not justify the market price based on traditional metrics.
  • The net margin for the full year 2025 was 4.07%.
  • Historical Trend: The financial data for 2025 shows a clear downturn, with annual revenue declining -2.93% and net income plummeting -46.50%.
  • The recent Q1 2026 results suggest a potential inflection point, but it is only one data point in a longer-term trend of compressed margins and profits.
Profitability
2025Q12025Q22025Q32025Q42026Q1
ROE TTM--2.10%3.86%4.89%4.91%
Earnings
2025Q12025Q22025Q32025Q42026Q1
Total revenue19.34B41.83B69.93B94.83B22.39B

Financial health

Debt/Asset
41.00%
Current ratio
2.04
Quick ratio
1.62
Cash ratio
1.62
AI Analysis
  • Tesla's financial health shows a solid short-term liquidity position with good current and quick ratios, but a highly leveraged balance sheet from an equity valuation perspective due to an extremely high Price-to-Book ratio.
  • Tesla's financial health, as of the latest Q1 2026 report, shows a solid short-term liquidity position but a highly leveraged balance sheet from an equity valuation perspective.
  • Liquidity: The current ratio of 2.04 and the quick ratio of 1.62 indicate the company has sufficient liquid assets to cover its short-term obligations, which is a positive sign for operational stability.
  • Leverage & Capital Structure: The debt-to-asset ratio is 41.00%, which is a moderate level of financial leverage.
  • However, the extremely high Price-to-Book (PB) ratio of 17.04 suggests the market is valuing the company's equity at a massive premium over its accounting book value.
  • This indicates investor confidence in intangible assets and future growth far exceeding the value of its tangible net assets.
Leverage
2025Q12025Q22025Q32025Q42026Q1
Debt/Asset39.72%39.28%39.64%39.87%41.00%
Liquidity
2025Q12025Q22025Q32025Q42026Q1
Current ratio2.002.042.072.162.04