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1. Company Snapshot

1.a. Company Description

Tesla, Inc.designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally.It operates in two segments, Automotive, and Energy Generation and Storage.


The Automotive segment offers electric vehicles, as well as sells automotive regulatory credits; and non-warranty after-sales vehicle, used vehicles, retail merchandise, and vehicle insurance services.This segment also provides sedans and sport utility vehicles through direct and used vehicle sales, a network of Tesla Superchargers, and in-app upgrades; purchase financing and leasing services; services for electric vehicles through its company-owned service locations and Tesla mobile service technicians; and vehicle limited warranties and extended service plans.The Energy Generation and Storage segment engages in the design, manufacture, installation, sale, and leasing of solar energy generation and energy storage products, and related services to residential, commercial, and industrial customers and utilities through its website, stores, and galleries, as well as through a network of channel partners; and provision of service and repairs to its energy product customers, including under warranty, as well as various financing options to its solar customers.


The company was formerly known as Tesla Motors, Inc.and changed its name to Tesla, Inc.in February 2017.


Tesla, Inc.was incorporated in 2003 and is headquartered in Austin, Texas.

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1.b. Last Insights on TSLA

Tesla's recent performance has been impacted by a cautious delivery outlook and supply chain concerns. The company's fourth-quarter delivery numbers, which came in slightly below Wall Street expectations, have also weighed on investor sentiment. Additionally, regulatory scrutiny and competition from global rivals have contributed to a reassessment of growth expectations. Execution risks around robotaxi deployment have also added to investor unease. Furthermore, a decline in vehicle sales, including a second consecutive annual drop, has raised concerns about the company's future prospects.

1.c. Company Highlights

2. Tesla's Q4 2025 Earnings: A Strong Finish with Autonomous Focus

Tesla reported a strong Q4 2025, with record deliveries in smaller countries and a bigger backlog than in recent years. The company's automotive margins improved, ending the quarter with over 20.1% total gross margin, despite lower fixed cost absorption and the impact of tariffs. Earnings per share (EPS) came in at $0.5, beating analyst estimates of $0.4512. Revenue growth is expected to continue, with analysts estimating a 17.9% increase next year. Tesla's financial performance was highlighted by Vaibhav Taneja, who noted that the company is "continuing to invest in its factories while making trade-offs on where to spend time or money."

Publication Date: Feb -02

📋 Highlights
  • Autonomy Expansion:: Tesla aims to deploy fully autonomous vehicles in 25%-50% of the U.S. by year-end, with CyberCab projected to scale production 5-10x, shifting from vehicle sales to transportation-as-a-service.
  • Optimus Production:: Fremont factory targets 1 million Optimus units/year by 2026, with Gen-3 robots set for release in 2026 and initial factory integration for basic tasks.
  • Capital Expenditure Surge:: Tesla plans over $20B in 2026 CapEx for six factories, AI infrastructure, and robotaxi fleets, leveraging $44B in cash reserves and potential debt financing.
  • AI Efficiency & Bottlenecks:: Optimized AI5 chip development is critical for scalability, with Tesla addressing memory supply constraints and supplier limitations post-2026.
  • Margin Resilience:: Q4 2025 gross margin hit 20.1%, despite cost pressures, driven by record deliveries in smaller markets and a growing order backlog exceeding recent years.

Autonomy and Robotics Drive Growth

Tesla is investing heavily in autonomy, with a goal of having fully autonomous vehicles in a quarter to half of the US by the end of the year. The company is also working on Optimus robots, with a million unit per year production target. Elon Musk predicted an exciting future with universal high income, driven by advancements in AI and robotics. Tesla's focus on autonomy and robotics is expected to drive growth, with the potential for millions of vehicles per year and a shift from selling vehicles to providing transportation as a service.

Valuation and Future Prospects

Tesla's valuation metrics indicate a high level of investor confidence, with a P/E Ratio of 366.54 and a P/S Ratio of 15.1. The company's EV/EBITDA ratio is 120.99, indicating a high valuation relative to its earnings before interest, taxes, depreciation, and amortization. However, Tesla's ROE is 4.83%, and ROIC is 2.95%, indicating a relatively low return on equity and invested capital. As Tesla continues to invest in autonomy and robotics, its future prospects appear bright, but investors should be cautious about the high valuation.

Investment Phase and Funding

Tesla is expecting a huge CapEx year, with investments exceeding $20 billion. The company will be paying for six factories, including the Optimus factory, AI compute infrastructure, and expanding its fleet of robotaxi and Optimus. Tesla currently has over $44 billion in cash and investments, and will use internal resources initially, with possible bank funding for the robotaxi fleet. Vaibhav Taneja mentioned that Tesla will explore more debt or other means for funding its infrastructure plays, such as the solar fab and semiconductor chip fab.

3. NewsRoom

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How Tesla Beat The Market

14:18

Source: 247wallst.com

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Tesla EV Sales Crater, Stock Drops. There's a Silver Lining.

12:03

Source: barrons.com

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Avalon Trust Co Acquires 2,202 Shares of Tesla, Inc. $TSLA

09:05

Source: defenseworld.net

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Uber's CEO Just Delivered Disappointing News for Tesla Stock Investors

Feb -22

Source: fool.com

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No, Tesla Isn't Moving Away From the EV Market; in Fact, it's Accelerating Hard Toward it

Feb -22

Source: fool.com

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Tesla still has to pay $243 million over fatal Autopilot crash, judge rules

Feb -22

Source: fastcompany.com

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Tesla, Inc. $TSLA Shares Purchased by Alliance Wealth Advisors LLC UT

Feb -22

Source: defenseworld.net

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2 Overvalued Tech Stocks Boomers Are Still Buying

Feb -22

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (15.40%)

6. Segments

Automotive

Expected Growth: 15.4%

Increasing adoption of electric vehicles driven by government regulations, declining battery costs, and growing consumer demand for sustainable energy solutions, supported by Tesla's continuous innovation and expansion in the automotive segment.

Energy Generation and Storage

Expected Growth: 15.4%

Tesla's energy generation and storage segment is driven by increasing adoption of renewable energy sources and energy storage systems. Growing demand for sustainable energy solutions, declining solar panel costs, and government incentives will fuel segment growth.

7. Detailed Products

Electric Vehicles (EVs)

Tesla's electric vehicles are designed to provide sustainable energy solutions for transportation. They offer a range of models, including the Model S, Model 3, Model X, Model Y, and the upcoming Cybertruck.

Solar Panels and Solar Roof

Tesla's solar energy products allow homeowners and businesses to generate their own renewable energy. The solar panels and solar roof tiles are designed to integrate with Tesla's energy storage products.

Powerwall

The Powerwall is a home energy storage system that allows users to store excess energy generated by their solar panels or the grid for use during power outages or at night.

Tesla Energy Storage (Megapack)

The Megapack is a large-scale energy storage system designed for commercial and industrial applications. It can be used to store excess energy generated by renewable sources or to provide grid stability.

Autopilot and Full Self-Driving Capability (FSD)

Tesla's Autopilot and FSD are advanced driver-assistance systems (ADAS) designed to enable semi-autonomous and fully autonomous driving capabilities.

Tesla Charging Network (Supercharger and Destination Charging)

Tesla's charging network provides fast and convenient charging solutions for Tesla owners on the go.

8. Tesla, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Tesla's electric vehicles (EVs) have a unique value proposition, and the company's charging network provides a convenience that gasoline-powered vehicles cannot match. While there are substitute products, such as gasoline-powered vehicles, hybrids, and other EV manufacturers, Tesla's brand loyalty and technological advancements make substitutes less attractive to customers.

Bargaining Power Of Customers

Tesla's customers are generally loyal and enthusiastic about the brand. However, the company faces competition from other EV manufacturers, and customers have some bargaining power due to the availability of alternative products. Additionally, Tesla's direct-to-consumer sales model and online platform provide customers with more control over their purchasing experience.

Bargaining Power Of Suppliers

Tesla has a diversified supply chain and has made efforts to reduce its dependence on specific suppliers. The company also has significant negotiating power due to its large order volumes and long-term contracts. Furthermore, Tesla has been investing in vertical integration, such as acquiring SolarCity and developing its own battery production.

Threat Of New Entrants

The EV market is growing rapidly, and new entrants are emerging. However, Tesla has a significant first-mover advantage, a strong brand, and a well-established distribution network. New entrants would need to invest heavily in technology, marketing, and distribution to compete effectively with Tesla.

Intensity Of Rivalry

The EV market is highly competitive, with established automakers and new entrants vying for market share. Tesla faces intense competition from companies like General Motors, Volkswagen, and NIO, which have significant resources and capabilities. The competition is expected to intensify as more companies enter the market and governments implement stricter emissions regulations.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 15.74%
Debt Cost 4.39%
Equity Weight 84.26%
Equity Cost 15.40%
WACC 13.67%
Leverage 18.68%

11. Quality Control: Tesla, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Ford

A-Score: 6.6/10

Value: 7.5

Growth: 4.7

Quality: 2.5

Yield: 10.0

Momentum: 8.0

Volatility: 6.7

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General Motors

A-Score: 5.0/10

Value: 5.2

Growth: 6.3

Quality: 2.6

Yield: 1.0

Momentum: 8.5

Volatility: 6.3

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Las Vegas Sands

A-Score: 4.9/10

Value: 2.2

Growth: 5.1

Quality: 5.2

Yield: 3.0

Momentum: 8.0

Volatility: 6.0

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Royal Caribbean Cruises

A-Score: 4.8/10

Value: 2.5

Growth: 6.8

Quality: 6.3

Yield: 1.0

Momentum: 7.0

Volatility: 5.3

1-Year Total Return ->

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Nike

A-Score: 4.2/10

Value: 2.0

Growth: 3.9

Quality: 5.9

Yield: 4.0

Momentum: 3.5

Volatility: 5.7

1-Year Total Return ->

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Tesla

A-Score: 4.0/10

Value: 0.0

Growth: 8.7

Quality: 5.1

Yield: 0.0

Momentum: 7.5

Volatility: 2.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

394.67$

Current Price

394.67$

Potential

-0.00%

Expected Cash-Flows