Is Tesla (TSLA) stock a good value right now?
Zacks' proprietary data indicates that Tesla, Inc. is currently rated as a Zacks Rank 1 and we are expecting an above average return from the TSLA shares relative to the market in the next few months.
Why is Tesla stock down 32% year to date?
Tesla stock is down 32% year to date, which can probably be attributed to a high valuation as much as anything else, as the stock entered the year trading at over 200 times trailing earnings. Investors have turned on expensive growth stocks this year because of higher interest rates.
Do you think Tesla is overvalued?
Whether you think it's over valued depends on what kind of growth you expect to see in Tesla's vehicle sales, its technological advances, and sales and development of the company's non-vehicle products. I tried to game out the likelihood of different growth scenarios and gave up; there are just too many variables in this fast-moving industry.
Is Tesla's growth valued too high?
However, Tesla's growth potential probably earns it a higher valuation than a legacy car company. That said, a lot of growth seems to be priced into the stock, which has had a tendency not to move in tandem with the company's fundamentals.
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Why is Tesla stock so low?
The company's most productive plant in Shanghai was shut and is now operating at reduced capacity because of Covid-19 lockdowns in China. Reuters reported Monday that adding more employees to increase production is being pushed out a few days. The delay might be why Tesla stock is down in early trading Monday.
Why Tesla is not a good investment?
Notable risks include Tesla cars being too expensive with tax breaks and that the construction of its Gigafactory (battery factory) taking longer than expected. More broadly speaking, Tesla faces a competitive environment from both legacy automakers and other EV manufacturers.
Why Tesla got kicked out of s& p 500?
Tesla CEO Elon Musk tweeted that S&P Global Ratings "has lost their integrity" and described environmental, social, and governance investing as a "scam." Tesla TSLA –6.80% no longer qualifies for inclusion in the S&P 500 ESG Index.
Is Tesla in financial trouble?
According to its annual financial filing, Tesla and its subsidiaries employed 99,290 people around the world as of the end of 2021. Tesla shares have dropped by more than 25% this year amid a broader sell-off in tech.
What are weaknesses of Tesla?
Tesla's WeaknessesManufacturing Complications. ... Unable to meet demand might affect brand value. ... Lack of High Volume Production. ... Shortage of Batteries. ... Elon Musk as Tesla's Sole Representative. ... Financial Uncertainty. ... Employee Safety Concerns. ... Leadership Wrangles.More items...
Is Tesla a stable stock?
The stock also has a Relative Strength Rating of 87 out of 99. The rating means that Tesla stock has outperformed 87% of all stocks in the IBD database over the past 12 months.
Why is Tesla not ESG?
In its 2021 Impact Report, Tesla said that “current ESG evaluation methodologies” are “fundamentally flawed” because it lacks focus on the company's “real-world impact” on society and the environment.
Is Tesla part of spy?
Tesla (TSLA) falls off the S&P 500 ESG index as Elon Musk trashes the system. Tesla has been removed from the S&P 500 ESG index after CEO Elon Musk trashed the system that is supposed to measure the sustainability of a company or investment. S&P Global announced this week that it has removed Tesla from its ESG index.
Are Teslas sustainable?
As more regions adopt sustainable energy solutions, emissions related to electric vehicle charging will decrease even further. All Tesla vehicles produce significantly less CO2 than any gasoline-powered competitor – and if an electric vehicle is powered by solar energy, essentially no CO2 is produced at all.
Will Tesla rise again?
Tesla earnings are expected to grow about 30% between 2022 and 2023. That is down from about 75% growth expected for 2022 from 2021. And rising interest rates can have a depressing impact on stock valuations. Interest rates, and inflation, can alter expected returns.
Is Tesla a financially healthy company?
After strong financial numbers in 2021, Tesla is in a much better financial position than it was just a few years prior. In 2021, Tesla was profitable, beat EPS targets each quarter, and has a much healthier debt-to-equity ratio.
What is Tesla cash position?
Tesla annual cash flow from operating activities for 2021 was $11.497B, a 93.45% increase from 2020. Tesla annual cash flow from operating activities for 2020 was $5.943B, a 147.11% increase from 2019. Tesla annual cash flow from operating activities for 2019 was $2.405B, a 14.63% increase from 2018.
Ridiculously Loyal Consumers
Tesla's customer engagement and loyalty numbers are truly off the charts.Consider a recent survey by Consumer Reports that ranked Tesla first among...
Complete Control Over The Consumer Experience
Most people I know hate the car-buying process. Being forced to haggle with a car salesman is a huge turnoff for many consumers (including me), yet...
Access to SpaceX Engineers
SpaceX is another remarkable company headed up by CEO Elon Musk. The rocket maker knows a thing or two about engineering, manufacturing, and materi...
An Energized and Talented Workforce
Tesla is located in the heart of Silicon Valley, which means it competes heavily for engineering talent with famously generous employers like Alpha...
Optionality and Market Opportunities Galore
Optionality is a company's ability to create new products or services. It is hard for me to think of a company with more optionality than Tesla.Eve...
Talented Leadership Who's All in
No discussion about Tesla is complete without mention of its talented executive team. That discussion starts with CEO Elon Musk, who personally min...
How much is Tesla worth?
As of last year, Interbrand estimated that the name "Tesla" is already worth $4 billion.
Why is Tesla important?
One reason is that the company outscores all of those other employers in one of the most important and underrated employee metrics: meaningfulness. According to PayScale, 89% of Tesla's employees feel their work is making the world a better place.
How much will Tesla lower the cost of batteries?
Lowering the cost of batteries is an essential step toward making electric cars more affordable. To achieve this goal, Tesla has invested heavily to build out a massive Gigafactory in Sparks, Nevada. When it was announced, Tesla believed that the building's extreme economies of scale would allow it to lower the cost of batteries by about 30% by 2020. More recently, the company updated its estimate to 35%, which, if true, should give it a massive cost advantage over rivals.
Why are Tesla charging sites important?
Second, the charging sites help to grow the awareness of Tesla's name brand and products since they are placed along well-traveled routes around the world.
What is the net promoter score of Tesla?
According to indexnps.com, Tesla comes in first among auto brands with a net promoter score of 96. This number, which represents how often consumers would recommend a brand to others, is excellent in absolute terms and it ranks a full 12 points ahead of its closest competitor. 3.
How much was Tesla's revenue in 2016?
For comparison, the Gross Domestic Product of the entire U.S. in 2015 was $18 trillion. Meanwhile, Tesla's total revenue in 2016 was $7 billion.
Where is Tesla located?
Tesla is located in the heart of Silicon Valley, which means it competes heavily for engineering talent with famously generous employers like Alphabet, Apple, and Facebook. Despite the intense competition, Tesla continues to attract more than its fair share of talent from around the Bay Area.
Who is Tesla's biggest threat?
Tesla's greatest asset is also its biggest threat: Elon Musk. Hesitant investors will cite tweet after tweet of problematic rhetoric from the company's CEO. Perhaps the most infamous example occurred in early August 2018 when Musk tweeted that he was "considering taking Tesla private at $420.".
When did Tesla go public?
Tesla at a Glance. Tesla went public in 2010, offering 13.3 million shares at $17 per share. At the time of this writing, shares are trading for more than $830 per share.
How much is Tesla worth in 2020?
That said, investors can't ignore Tesla's off-the-charts valuation multiples. And though the company reported $31.5 billion in total revenue for 2020, its current market cap is nearly $800 billion. Tesla has grown into the largest car company in the world and now sits comfortably atop the industry.
How much free cash flow will Tesla have in 2020?
Free cash flow hit $2.79 billion in 2020, more than double the $1.08 billion that the company collected in 2019, with a record $1.9 billion in free cash flow during the fourth quarter helping Tesla across the finish line. More vehicles rolling off the assembly line and improving financials is an impressive combination.
Where are Tesla bull cases?
A lot of the bull cases for Tesla are predicated on China, where EV manufacturers Nio ( NIO ), Li Auto ( LI) and XPeng ( XPEV) are eating into the company's market share.
Did Tesla beat revenue expectations?
Following the company's fourth-quarter earnings announcement, shares slipped during after-hours trading on the news that Tesla beat revenue expectations but missed on earnings.
Is Tesla a low emission company?
All of these companies took their cue from Tesla and manufacture their own electric and low-emission automobiles, but Tesla continues to be the dominant name in the U.S. market. While a nearly 700% increase in share price might be enough for most companies, the highlight of 2020 was Tesla's inclusion in the S&P 500 on Dec. 21.
How many start ups are there in Tesla?
On Tesla's Q3 2020 earnings call, Musk expressed his belief that "there's in excess of a dozen start-ups effectively in Tesla," including developers of microchips, battery cells, superchargers, and autonomous driving technology.
Does Tesla have an advantage over its competitors?
This isn't an easy question to answer. Certainly, Tesla has an advantage over many of its competitors in the electric vehicle space in that it's been manufacturing electric cars for a long time and thus has experience with the relevant technology, design challenges, supply chains, etc.
Is Tesla valuation insane?
Tesla bulls don't dispute that, compared to other automakers, Tesla's valuation is insane. However, they argue, Tesla shouldn't be compared to other automakers. For one thing, Tesla's sales are growing by leaps and bounds, and as those sales skyrocket, valuation metrics will come down.
Is Tesla better than Nvidia?
However, by other valuation metrics, Tesla fares much worse against NVIDIA : TSLA PE Ratio data by YCharts. A higher P/E ratio makes sense for Tesla because it has vastly more depreciable assets than NVIDIA, but even going by the EV-to-EBITDA ratio, which strips out depreciation, NVIDIA sports a superior valuation.
The electric car company has plenty of legitimately positive attributes. But if any of these shaky ideas are part of your investment thesis, you might want to rethink adding it to your portfolio
This article was updated on April 5, 2017, and originally published July 18, 2016.
NASDAQ: TSLA
What's past, as they say, is prologue. And the fact that Tesla stock has gone up so much already won't necessarily prevent it from going up even more in the future. Need proof?
The government loves electric cars
Yes, the Obama administration loves electric cars. But what about President Trump?
Promises, promises
Speaking of profits, Tesla promises to become profitable... eventually. Analysts believe it will fulfill that promise -- perhaps as soon as 2019, according to estimates provided by S&P Global Market Intelligence.
Elon Musk
Last but not least, Musk himself is probably the No. 1 reason most investors buy Tesla stock. Sure, the reasoning goes, Ford and GM and other car companies have historically scraped by on single-digit profit margins. And yes, Tesla is a car company, too. But, but... Tesla has Elon! And Elon Musk is magic.
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Tesla (TSLA)
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Tesla Inc. designs, develops, manufactures, and sells electric vehicles and stationary energy storage products. It operates primarily in the United States, China, Norway and internationally. Tesla Inc., formerly known as Tesla Motors Inc., is headquartered in Palo Alto, California.