Financial Report Of Tesla

By: Christopher Alamia and Antonio Valenti

General Information
● Tesla is a world wide producer of electric vehicles.
● Products:
○ The Model S (Car).
○ Model 3 (Car).
○ Model X (Crossover).
○ Model Y (Crossover), coming soon to the market.
General Information
Tesla's main competitors are:

● Nio - Premium electric vehicles in China.

● BYD Company - A giant corporation in China already with battery powered
vehicles.
● Volkswagen - Major producer of German vehicles.

Tesla's Headquarters: Palo Alto, California

Tesla's Customers
Typical Purchaser:
● Mostly male purchasers
○ Income of about $143,000
○ 20’s to young 40’s
■ Eco friendly
■ Tech savvy
■ Entry level luxury buyers
Trend Analysis
❖ Sales -
➢ Increase Or Decrease: Increase.
➢ Percent Change: +50% over the past year.
➢ Comparison: Exponentially greater than their competitors due to a growth in the price of their
stocks.
Trend Analysis
❖ Operating Expenses -
➢ Increase Or Decrease: Increase then decrease.
➢ Percent Change:
■ (2015 - 2016): +33%
■ (2016 - 2017): +80.1%
■ (2017 - 2018): +60.9%
■ (2018 - 2019): +10.9%
➢ Comparison:
■ Tesla’s percent change is much larger
than competitors.
■ Why:
● Production is high because of
new popularity to they vehicles.
● They need more supplies to
create their products.
Trend Analysis
❖ Net Income -
➢ Increase Or Decrease: Increase then decrease
then increase.
■ Yet it is still negative.
➢ Percent Change:
■ 2016: +24.05%
■ 2017: -190.61%
■ 2018: +50.23%
■ 2019: +11.69
➢ Comparison: Much less than their competitors.
Stock Price
❖ Tesla’s stock price is currently at $767.28
❖ Stick price is currently trending upward.
❖ Value: Stock price is steadily increasing.
➢ Even though Tesla’s financials are not great.
Stock Price - $767.28
PE Ratio
❖ P/E Ratio: -$152.54
➢ Stock Price / Earnings Per Share
➢ ($767.28 / -$5.03)
■ Meaning:
● Stock price is positive.
● Investors are losing money, negative EPS.
Performance And Profitability
● How Profitable - Stock price keeps increasing
○ Even though they have a negative EPS and a negative P/E ratio.
● Earnings Per Share (EPS): -$5.03
○ Compared to previous years:
■ Earnings per share has decreased then drastically increased.
○ Compared to competitors:
■ Tesla’s EPS is relatively below its competitors.
Performance And Profitability
➢ Book Value of Equity per Share Common Stock: $22.83
○ What does it mean if Tesla liquidated its equity:
■ Each shareholder would walk away with $22.83
○ The Price to Book ratio is not sufficient:
■ Money after liquidation is much less than what the stock was bought for.
○ Comparison to competitors:
■ Tesla’s Price to Book ratio is above its competitors.
Evaluation
➢ Would we invest in Tesla - No, we would
not.
○ Why: The stock is very expensive.
■ The stock is actually on the decline after
reaching a peak of $960.00.
➢ Recommendation to classmates - Do not
invest.
○ Why: Tesla has a negative EPS.
■ Would be bad after liquidation.
○ At this moment, gas cars are more popular than
electric cars.
Resources
★ “HOME.” SEC Emblem, 5 Feb. 2017, www.sec.gov/.
★ “The Long Term Perspective on Markets.” Macrotrends, www.macrotrends.net/.
★ “TSLA: Tesla Inc. Annual Income Statement.” MarketWatch, www.marketwatch.com/investing/stock/tsla/financials.
★ “Yahoo Finance - Stock Market Live, Quotes, Business & Finance News.” Yahoo! Finance, Yahoo!, finance.yahoo.com/.
★ “Your Personal Notifications.” Value Investing | Market Insight of Investment Gurus, www.gurufocus.com/.