One-glance verdict
Overvalued
$32.10 our estimate vs market $386.47
Wall Street consensus: $401.40 (1,150.6% higher than our fair-value estimate)
1104% above our estimate, beyond the bull case
Fundamentals snapshot
Tesla, Inc.
TSLA · NMS · Consumer Cyclical · Auto Manufacturers
Current price
$386.47
52-week range
$297.38 - $498.83
Market cap
$1.53T
Balance sheet
Healthy
14.35x Strong cushion
Net cash $27.44B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 9.2% last year.
- Reward Returns 4.7% on equity, ahead of 66% of its peers.
- Risk Stock trades 102.7% above its 5-year average P/E.
- Risk Operating margin compressed from 17.0% to 1.4% over 3 years.
What this company does
Tesla, Inc.
Tesla makes most of its money selling electric cars, but also sells solar panels and large batteries for energy storage. Because the company is growing so fast, investors pay close attention to how many cars it can produce and its profit margins (how much money it keeps from each sale after costs are paid). Success in these areas is important for funding its future projects, like self-driving technology and new vehicles.
How the company got here
Founded in 2003 by engineers who wanted to prove that electric cars could be better than gasoline-powered cars, Tesla started with a high-performance sports car, the Roadster, in 2008. After its initial public offering (IPO, the first time a company sells its shares to the public) in 2010, the company focused on making its technology more affordable and accessible. Key moments include the launch of the Model S sedan in 2012, which was a critical success, and the mass-market Model 3 in 2017, which dramatically increased its production and sales. Over the years, the company expanded from just cars into clean energy, acquiring a solar panel company in 2016 and changing its name from Tesla Motors to Tesla, Inc. to reflect its broader mission.
What it actually does
Tesla is known for its electric vehicles, which include sedans, sport utility vehicles (SUVs), and even a semi-truck. Beyond cars, the company is also a significant player in sustainable energy, offering solar panels and solar roof tiles that can power a home. It also sells battery systems like the Powerwall for homes and the Megapack for large-scale utility projects, which store energy for later use. To support its electric vehicles, Tesla has built a global network of "Superchargers," which are fast-charging stations for drivers on the go.
Automotive
This is Tesla's largest and most well-known business, making up the vast majority of its revenue (the total amount of money generated from sales). This segment designs, manufactures, and sells a range of electric vehicles, from the more affordable Model 3 and Model Y to the high-end Model S and Model X, and the newer Cybertruck and Semi. The company makes money not just from selling the cars themselves, but also from leasing them, selling software upgrades like Full Self-Driving, and offering services like repairs and insurance. Tesla also earns money by selling regulatory credits (government incentives for producing zero-emission vehicles) to other carmakers that need to meet environmental standards.
Energy Generation and Storage
This is a smaller but rapidly growing part of Tesla's business. It focuses on creating a complete energy ecosystem for homeowners, businesses, and utility companies. This segment sells and installs solar energy systems, including traditional solar panels and the Solar Roof, which has solar cells integrated directly into the roof tiles. It also sells battery products that store solar energy, such as the Powerwall for homes and the much larger Megapack for power grid stabilization. This part of the company is becoming increasingly profitable, with its growth sometimes outpacing the automotive business.
What management is betting on now
Tesla's leadership is focused on expanding beyond being just a car company into a leader in artificial intelligence (AI) and robotics. A major priority is advancing its Full Self-Driving software with the goal of creating autonomous vehicles, or "robotaxis." The company is also investing heavily in developing a humanoid robot, called Optimus, which it believes could become more significant than its car business. In the near term, key goals include launching more affordable electric vehicle models and scaling up the production of the Cybertruck and energy storage products like the Megapack.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$2.03B
FY2025 Q1
$664.00M
FY2025 Q2
$146.00M
FY2025 Q3
$3.99B
FY2025 Q4
$1.42B
FY2026 Q1
$1.44B
FY2026 Q2
$-1.09B
FY2026 Q3
$1.53B
Revenue
$28.05B
Net income
$787.00M
Diluted EPS
0.22
Operating cash flow
$6.26B
Free cash flow
$1.53B
Fetching…
Sources
Revenue
$28.24B
Net income
$1.11B
Diluted EPS
0.32
Operating cash flow
$4.70B
Free cash flow
$-1.09B
Fetching…
Sources
Revenue
$22.39B
Net income
$477.00M
Diluted EPS
0.13
Operating cash flow
$3.94B
Free cash flow
$1.44B
Fetching…
Sources
Revenue
$24.90B
Net income
$840.00M
Diluted EPS
0.24
Operating cash flow
$3.81B
Free cash flow
$1.42B
Fetching…
Sources
Revenue
$28.09B
Net income
$1.37B
Diluted EPS
0.39
Operating cash flow
$6.24B
Free cash flow
$3.99B
Fetching…
Sources
Revenue
$22.50B
Net income
$1.17B
Diluted EPS
0.33
Operating cash flow
$2.54B
Free cash flow
$146.00M
Fetching…
Sources
Revenue
$19.34B
Net income
$409.00M
Diluted EPS
0.12
Operating cash flow
$2.16B
Free cash flow
$664.00M
Fetching…
Sources
Revenue
$25.71B
Net income
$2.32B
Diluted EPS
0.66
Operating cash flow
$4.81B
Free cash flow
$2.03B
Fetching…
Sources
Is it cheap or expensive?
Fair value $32.10 vs current price $386.47
Wall Street consensus is the average analyst price target: $401.40 (1,150.6% higher than our fair-value estimate).
Our most-likely fair value is $32.10 a share — about 91.7% below today's price of $386.47, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $27.4B - more cash than debt. Interest coverage 14.3x.
Net debt
$-27.44B
Interest coverage
14.35x
Tesla, Inc.'s profit covers its interest bill about 14.3 times over. which is stronger than every peer shown here and 4 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
TSLA
BASELINE
Tesla, Inc.
Total debt $16.08B Interest coverage 14.35x This is the baseline the peer rows are being compared against.
Total debt $5.35B Interest coverage -13.08x -100% vs TSLA This peer has almost no interest-payment cushion compared with TSLA.
Total debt $3.66B Interest coverage -36.82x -100% vs TSLA This peer has almost no interest-payment cushion compared with TSLA.
Total debt $128.74B Interest coverage 4.00x -72% vs TSLA Carries about 3.6x less debt cushion than TSLA.
Total debt $163.30B Interest coverage -6.88x -100% vs TSLA This peer has almost no interest-payment cushion compared with TSLA.
Total debt $58.37B Interest coverage -15.06x -100% vs TSLA This peer has almost no interest-payment cushion compared with TSLA.
What you should know
The case for and against TSLA
3 Rewards
2 Risks
Rewards
-
Revenue grew 9.2% last year.
-
Returns 4.7% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 7/10 years.
Risks
-
Stock trades 102.7% above its 5-year average P/E.
-
Operating margin compressed from 17.0% to 1.4% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
357.84x
Forward P/E
177.65x
P/B
17.65x
P/S
14.73x
EV/EBITDA
139.43x
PEG ratio
3.94x
Profitability
How much profit each dollar creates
Gross margin
18.9%
Operating margin
1.4%
Net margin
3.7%
ROE
4.7%
ROA
1.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.18x
Current ratio
1.94x
Quick ratio
1.35x
Total debt
$16.08B
Total cash
$43.52B
Growth
How the business has been compounding
Revenue TTM
$103.57B
Revenue 5Y CAGR
15.2%
EPS TTM
1.08
EPS 5Y CAGR
-33.2%
Cash flow
How much cash the business throws off
Operating CF TTM
$18.71B
Free CF TTM
$6.22B
FCF margin
6.0%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
—