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

Strong Buy

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	Solid	Details
Volatility	Very steady	Details
Hype Condition	Under hyped	Details
Current Valuation	Overvalued	Details
Odds Of Distress	Very Small	Details
Economic Sensitivity	Actively responds to the market	Details
Investor Sentiment	Impartial	Details
Analyst Consensus	Buy	Details
Financial Strenth (F Score)	Healthy	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Unlikely Manipulator	Details

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 appears to be risky and price may revert if volatility continues
	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 gurufocus.com: Tesla Hits Record High Broadcom Surges on AI Revenue Growth

Tesla Quarterly Accounts Payable

14.65 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	-0.04	0.01	20
2014-02-19	2013-12-31	0.01	0.02	0.01	100
2012-02-15	2011-12-31	-0.04	-0.05	-0.01	25
2011-08-03	2011-06-30	-0.03	-0.04	-0.01	33
2010-11-09	2010-09-30	-0.03	-0.02	0.01	33
2013-08-07	2013-06-30	-0.01	0.01	0.02	200
2020-01-29	2019-12-31	0.11	0.14	0.03	27
2017-08-02	2017-06-30	-0.12	-0.09	0.03	25

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
Northern Trust Corp	2024-09-30	23.5 M
Legal & General Group Plc	2024-09-30	21.6 M
Bank Of America Corp	2024-09-30	21.2 M
Bank Of New York Mellon Corp	2024-09-30	17.2 M
Charles Schwab Investment Management Inc	2024-09-30	16.5 M
Loomis, Sayles & Company Lp	2024-09-30	16.1 M
Bamco Inc	2024-09-30	14.9 M
Barclays Plc	2024-09-30	14.5 M
Goldman Sachs Group Inc	2024-09-30	13.1 M
Vanguard Group Inc	2024-09-30	239.6 M
Blackrock Inc	2024-06-30	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 1.49 T.

Market Cap

48.78 Billion

Tesla's profitablity analysis

	Last Reported	Projected 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 0.11 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.11.

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 0.0476 % which means that it generated a profit of $0.0476 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.2039 %, meaning that it created $0.2039 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 Intangible Assets are forecasted to decline to about 315.8 M.

	Last Reported	Projected for Next Year
Book Value Per Share	20.04	21.04
Tangible Book Value Per Share	19.85	20.84
Enterprise Value Over EBITDA	52.84	55.48
Price Book Value Ratio	12.59	9.66
Enterprise Value Multiple	52.84	55.48
Price Fair Value	12.59	9.66
Enterprise Value	54.3 B	57.1 B

The decision-making processes within Tesla are key to its success in a competitive market. By evaluating these processes, we assess the stock's potential for future gains.

Beta

2.295

Basic technical analysis of Tesla Stock

As of the 17th of December 2024, Tesla has the Risk Adjusted Performance of 0.1909, coefficient of variation of 395.84, and Semi Deviation of 2.31. 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.

		Kathleen WilsonThompson over a year ago Sale by Kathleen WilsonThompson of 500 shares of Tesla
		Zhu Xiaotong over a year ago Exercise or conversion by Zhu Xiaotong of 2633 shares of Tesla subject to Rule 16b-3

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.

	TEVA 5125 09 MAY 29 Corp Bond US88167AAQ40	View
	TEVA 475 09 MAY 27 Corp Bond US88167AAP66	View
	US88167AAN19 Corp Bond US88167AAN19	View
	TEVA 8125 15 SEP 31 Corp Bond US88167AAR23	View
	TEXACO CAP INC Corp Bond US881685BB68	View
	US881685AX97 Corp Bond US881685AX97	View
	Morgan Stanley 3591 Corp Bond US61744YAK47	View
	Morgan Stanley 3971 Corp Bond US61744YAL20	View

View All Tesla Corporate Bonds

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.

	Risk Adjusted Performance	0.1909
	Market Risk Adjusted Performance	0.6197
	Mean Deviation	3.23
	Semi Deviation	2.31
	Downside Deviation	2.9
	Coefficient Of Variation	395.84
	Standard Deviation	4.6
	Variance	21.17
	Information Ratio	0.2341
	Jensen Alpha	1.01
	Total Risk Alpha	0.6724
	Sortino Ratio	0.3716
	Treynor Ratio	0.6097
	Maximum Drawdown	28.06
	Value At Risk	(3.96)
	Potential Upside	8.19
	Downside Variance	8.4
	Semi Variance	5.35
	Expected Short fall	(4.16)
	Skewness	1.71
	Kurtosis	6.2

	Risk Adjusted Performance	0.1909
	Market Risk Adjusted Performance	0.6197
	Mean Deviation	3.23
	Semi Deviation	2.31
	Downside Deviation	2.9
	Coefficient Of Variation	395.84
	Standard Deviation	4.6
	Variance	21.17
	Information Ratio	0.2341
	Jensen Alpha	1.01
	Total Risk Alpha	0.6724
	Sortino Ratio	0.3716
	Treynor Ratio	0.6097
	Maximum Drawdown	28.06
	Value At Risk	(3.96)
	Potential Upside	8.19
	Downside Variance	8.4
	Semi Variance	5.35
	Expected Short fall	(4.16)
	Skewness	1.71
	Kurtosis	6.2

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.

	Accumulation Distribution	7.1 M
	Daily Balance Of Power	0.636
	Rate Of Daily Change	1.04
	Day Median Price	470.75
	Day Typical Price	473.79
	Price Action Indicator	17.53
	Period Momentum Indicator	16.84

Tesla Corporate Filings

F4	13th of December 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	View Verify
10Q	24th of October 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations	View Verify
8K	23rd of October 2024 Report filed with the SEC to announce major events that shareholders should know about	View Verify
	13th of June 2024 Other Reports	View Verify

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 Walker	Vice America	Profile
Brian Scelfo	Senior Development	Profile
Martin Viecha	Director Relations	Profile
Lars Moravy	Vice Engineering	Profile
Vaibhav Taneja	Chief Accounting Officer	Profile
Franz Holzhausen	Chief Designer	Profile

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: