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Is Tesla, Inc. (TSLA) Undervalued? Valuation & Fair Price

At $367.81, 3 of the 4 frameworks would pass on Tesla, Inc. today — Warren Buffett, Benjamin Graham, and Phil Town (Rule #1) rate it Avoid and Peter Lynch rates it Hold. Each model calculates its own fair value and margin of safety; create a free account to see the exact buy price behind every verdict.

TS

Tesla, Inc.

TSLA

Consumer Cyclical · Auto - Manufacturers · NASDAQ

$367.81

P/E 277.6×

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.

The Value RailOvervalued· -94% downside
0 of 2 fair values are above today's price of $368.
$19
$26
← Lower priceHigher price →
BuffettGraham

Investor scorecard

How the four investors rate Tesla, Inc.

3 of 4 frameworks urge caution

Warren Buffett
39%Avoid
Benjamin Graham
43%Avoid
Peter Lynch
60%Hold
Phil Town (Rule #1)
18%Avoid

Investor model analysis

At $367.81, 3 of 4 frameworks say Avoid

Business Quality41/100

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)

Intrinsic Value (DCF): locked — create a free account to view

Buy Below

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Strong Buy Below

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Margin of Safety

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Insider & congress activity

Are insiders buying TSLA?

Over recent SEC Form 4 filings, TSLA insiders bought $299.0M and sold $113.0M of stock across 71 open-market trades. Insiders sell for many reasons, but they buy for one.

Bought $299.0MSold $113.0M
Recent open-market insider trades for TSLA
InsiderActionSharesValueDate
Taneja VaibhavChief Financial OfficerSell2,606$938KSep 8, 2026
Taneja VaibhavChief Financial OfficerSell2,606$1.0MJun 8, 2026
Taneja VaibhavChief Financial OfficerSell3,000$1.4MMay 13, 2026
Wilson-Thompson KathleendirectorSell840$310KApr 30, 2026
Wilson-Thompson KathleendirectorSell1,520$562KApr 30, 2026

Members of Congress have also reported 50 trades in TSLA. See the full insider & congress timeline.

Source: SEC Form 4 filings. Open-market buys & sells only. Not investment advice.

See the interactive insider chart & every trade

Market expectations

What the market is pricing in

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

/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.

The exact growth bar for Tesla, Inc. — and how it compares to history — is locked.

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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

Know when to exit — sell triggers tracked across all 4 models

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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-2.9%+0.9%+18.8%+51.4%
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 FlowLocked — upgrade to viewLocked — upgrade to viewLocked — upgrade to viewLocked — upgrade to viewLocked — upgrade to view

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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.