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TS

Tesla, Inc.

TSLA

Consumer Cyclical · Auto - Manufacturers · NASDAQ

$309.22

P/E 324.9×

CEO

Elon R. Musk

Sector

Consumer Cyclical

Industry

Auto - Manufacturers

Tesla, Inc. operates globally, specializing in the creation, production, and distribution of electric vehicles, alongside comprehensive energy generation and storage solutions. Its market reach extends across the United States, China, and various other international regions. The company's operations are primarily divided into two main segments: its Automotive business and its Energy Generation and Storage division. Within its Automotive division, Tesla not only provides a range of electric cars but also generates revenue from selling automotive regulatory credits. This segment further encompasses a variety of post-sale services, including non-warranty vehicle support, sales of pre-owned vehicles, various retail products, and car insurance offerings. Customers can acquire Tesla's sedans and sport utility vehicles through direct sales, purchases of used vehicles, or via in-app upgrades often facilitated by the extensive Tesla Supercharger network. The company supports these acquisitions with financing and leasing options. Furthermore, it ensures vehicle upkeep through its proprietary service centers and a fleet of mobile technicians, complemented by both standard and extended vehicle warranty programs. The Energy Generation and Storage segment focuses on the development, manufacturing, setup, sale, and rental of solar power systems and energy storage products, along with associated services. This caters to a diverse clientele, spanning residential users, commercial enterprises, industrial entities, and public utilities. Distribution channels include Tesla's online platform, physical stores, galleries, and a network of collaborative partners. The company also offers servicing and repairs for its energy products, including warranty support, and provides multiple financing avenues for those investing in its solar solutions. Founded in 2003, the corporation was initially named Tesla Motors, Inc., before officially rebranding to Tesla, Inc. in February 2017. Its corporate headquarters are situated in Austin, Texas.

Investor model analysis

Investor Valuation

Intrinsic Value (DCF)

Warren Buffett's valuation model · select an investor above to switch

Does not meet Buffett's criteria. Consider other investment opportunities.

Intrinsic Value (DCF)

$14.60

Buy Below

$10.95

Strong Buy Below

$7.30

Margin of Safety

-95.3%

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Market expectations

What the market is pricing in

The yearly growth rate today's price already assumes — and what that means for a buyer

35.9%/yr

Implied FCF growth

High expectations, high risk

The market expects near-perfect execution

What this means for you

The price assumes almost everything goes right — little cushion if Tesla, Inc. stumbles.

This is the yearly growth today's price already assumes if it holds for 10 years, then levels off to a steady 3% — the standard long-term DCF horizon.

Market is pricing in

35.9%/yr

Tesla, Inc.'s 5-yr track record

-6.3%/yr

Today's price assumes Tesla, Inc. grows FCF 35.9%/yr. Over the last 5 years it shrank 6.3%/yr — so the market's bar sits above its own track record.

FCF is noisier than earnings year-to-year, so treat a single year with caution — the 5-year track record is the anchor.

Scenario analysis

Bear, base & bull

Three growth assumptions, three fair values — and where today's price lands

Checklist highlights

Buffett model checklist

Top criteria from the Buffett analysis — select an investor below for all models

Return on Equity

ROE measures how efficiently the company uses shareholder equity. Buffett looks for consistent ROE above 15%, indicating a durable competitive advantage.

ROE Consistency

Consistent high ROE over many years suggests a durable moat. Buffett demands durability — at most one weak year is acceptable.

ROE Quality (Low Leverage)

Buffett prefers high ROE generated by business quality, not financial leverage.

Debt Levels

Buffett prefers companies that could pay off all debt within 3-4 years of free cash flow. Uses 3-year average FCF to smooth one-off fluctuations.

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Sell signals & exit criteria

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Company financials

5-Year Financials

Income statement highlights — annual, USD

Metric20252024202320222021
Revenue$94.8B
$97.7B
$96.8B
$81.5B
$53.8B
Rev. Growth+3.0%-0.9%-15.8%-33.9%
Net Income$3.8B$7.1B$15.0B$12.6B$5.5B
Net Margin4.0%7.3%15.5%15.4%10.3%
EPS (Diluted)$1.18$2.23$4.73$4.02$1.87
Free Cash Flow████████████████████

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Educational Use Only · Not Financial Advice

Analysis, scores, valuations, and buy zones are derived from publicly documented investor frameworks (Buffett, Lynch, Benjamin Graham, Phil Town) for learning purposes only. They are not recommendations from licensed financial advisors. Past performance does not guarantee future results. Prices may be delayed up to 15 minutes. Always conduct your own research before making any investment decisions.