Fact based stock research
Tesla (NasdaqGS:TSLA)

US88160R1014

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Tesla stock research in summary

tesla.com

ANALYSIS: With an Obermatt Combined Rank of 29 (worse than 71% compared with investment alternatives), Tesla (Automobile Manufacturers, USA) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Tesla are low in value (priced high) with a consolidated Value Rank of 1 (worse than 99% of alternatives). But they show above-average growth (Growth Rank of 55) and are safely financed (Safety Rank of 79, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 29, is a hold recommendation based on Tesla's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Tesla exhibits low value (Obermatt Value Rank of 1), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 55). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 79) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	1
Growth Rank	55
Safety Rank	79
Combined Rank	29

Country	USA
Industry	Automobile Manufacturers
Index	Electromobility, Low Waste, Sound Pay USA, NASDAQ 100, NASDAQ
Size class	XX-Large

This stock has achievements: Insight 2020-10-30, Top 10 Stock.

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Tesla

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	1	1	1	1
GROWTH
GROWTH	96	93	75	55
SAFETY
SAFETY	58	14	82	79
SENTIMENT
SENTIMENT	n/a	16	14	^new
360° VIEW
360° VIEW	n/a	5	36	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Tesla is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	1	1	1	1
GROWTH
GROWTH	96	93	75	55
SAFETY
SAFETY	58	14	82	79
COMBINED
COMBINED	42	12	66	29

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Tesla the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 1 (worse than 99% compared with alternatives), Tesla shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with all four indicators below average for Tesla. Price-to-Sales is 3 which means that the stock price compared with what market professionals expect for future profits is higher than 97% of comparable companies, indicating a low value concerning Tesla's sales levels. Price-to-Book Capital (also referred to as market-to-book ratio) also has a low Price-to-Book Rank of 3, which means that both reliable company size indicators, sales, and invested capital cannot explain the high stock price of Tesla. In addition, the two profit-related value indicators, Price-to-Profit (also referred to as price-earnings, P/E) with a low rank of 1 and Dividend Yield, which is lower than 99% of comparable companies, also make the stock more expensive compared with investment alternatives. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 1, is a sell recommendation based on Tesla's stock price compared with the company's operational size and dividend yields. How can market participants pay such a high price for Tesla? One reason may be that the company is simply too popular. If enough people want a particular stock, its price can exceed reasonable levels. This is often the case for companies offering new and exciting products and everybody wants a piece of the action. Should you pay a lot for a hot stock such as Tesla? It's risky, and even if the stock price continues to grow because of popular demand, it may return to more typical lower levels later. And that return can be sudden and quick, making it impossible for retail investors to exit on time. Sometimes, high prices are deserved. This is the case when it is justified to believe that the company will dominate a market with high profit margins. It has happened in the past for many technology companies and indeed for commercially successful pharmaceutical discoveries. Sometimes they last, sometimes, they get eaten alive. Tesla may be such a type of stock. That would mean, retail investors should be careful, only considering investing a small part of their wealth in this exciting category and always being ready to lose more than half, if not all of the investment. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	1	2	1	3
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	8	1	5	1
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	1	3	3	3
DIVIDEND YIELD
DIVIDEND YIELD	1	1	1	1
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	1	1	1	1

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Tesla; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 55 (better than 55% compared with alternatives), Tesla shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Tesla. Sales Growth has a rank of 88 which means that currently professionals expect the company to grow more than 88% of its competitors. Stock Returns are also above average with a rank of 89. But Capital Growth has only a rank of 11, which means that currently professionals expect the company to grow its invested capital less than 89% of its competitors. Profit Growth is also low, with a rank of only 18, which means that, currently, professionals expect the company to grow its profits below average. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 55, is a buy recommendation for growth and momentum investors. This is a surprising picture, as the messages from the operating growth indicators of revenues, profits, and invested capital are mixed, while stock returns are above average. It may indicate new intellectual properties, such as brand improvement or a strong market position that shows in revenues but not in the capital. The low profit-growth rate may indicate an early phase where costs are still high, and revenues don't fully cover upfront investments or fixed costs. The positive investor outlook with a 89% peer outperformance is reaffirmed in this case which may be a good sign for an investment into a well-protected high-growth company. This fact needs to be confirmed by researching the company website and press. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	96	94	92	88
PROFIT GROWTH
PROFIT GROWTH	1	87	25	18
CAPITAL GROWTH
CAPITAL GROWTH	n/a	42	32	11
STOCK RETURNS
STOCK RETURNS	73	83	95	89
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	96	93	75	55

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Tesla.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 79 (better than 79% compared with alternatives) for 2024, the company Tesla has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Tesla is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for Tesla. Leverage is at a rank of 92, meaning the company has a below-average debt-to-equity ratio. It has less debt than 92% of its competitors. Liquidity is also good at a rank of 98, meaning the company generates more profit to service its debt than 98% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 4, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 96% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 79 (better than 79% compared with alternatives), Tesla has a financing structure that is significantly safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for Tesla. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with Tesla and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	59	62	92	92
REFINANCING
REFINANCING	55	6	6	4
LIQUIDITY
LIQUIDITY	64	35	100	98
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	58	14	82	79

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Tesla and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	15	11	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	7	42	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	62	8	^new
MARKET PULSE
MARKET PULSE	n/a	62	41	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	16	14	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Tesla.
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