Discretionary
Tesla creates, develops, produces, markets, and leases high-performance all-electric cars as well as energy generating and storage devices. They also provide services associated with their product line. Typically, they sell their goods directly to consumers. To hasten the adoption of their products, they are expanding their customer-facing infrastructure worldwide through a network of body shops, car service centers, mobile services, supercharger stations, and destination chargers.
When designing and producing their products, they place a strong emphasis on functionality, stylish design, and the security of both workers and customers. They are also working to advance fully autonomous driving technology for even greater safety.
Along with consistently working to cut production costs, they also aim to lower the cost of ownership for their clients by providing financial and other services in addition to their product offerings
They work in the energy generation and storage and the automobile industries, which are the two reportable segments.
The automotive division include the design, development, production, leasing, and sales of fully electric vehicles with high performance, as well as the selling of automobile regulatory credits. The automotive division also comprises services and other, which includes retail item sales, used car sales, non-warranty after-sale vehicle services and parts, paid Supercharging, and vehicle insurance revenue.
The energy generation and storage segment encompasses solar energy generating and storage product design, manufacture, installation, sales, leasing, and related services, as well as solar energy system incentives. Accelerating the global switch to renewable energy is their goal. In addition to solar energy generation systems and energy storage solutions, they design, develop, produce, lease, and sell high-performance fully electric automobiles. In addition, they provide financial, operational, maintenance, and installation services for their goods. They are also becoming more and more focused on goods and services that utilize automation, robotics, and artificial intelligence.
FINANCIAL INFORMATION
| INR MILLIONS | FY23 | FY22 |
| Total Assets | 106618 | 82338 |
| EBIT | 9996 | 13719 |
| Profit after tax | 14997 | 12587 |
| Total Revenue | 96773 | 81462 |
Source: Company financial Report
For the entire year that concluded on December 31, 2023, Tesla, Inc. released its earnings figures. The company’s stated revenues for the entire year were USD 14,354 million, up from USD 10,000 million in the previous year. Revenue decreased to USD 81,462 million from USD 96,773 million in the previous year. A year ago, net income was USD 12,556 million; this year, it was USD 14,997 million. In comparison to USD 3.62 a year earlier, diluted earnings per share from continuing operations was USD 4.3.
| Price to Book Value | 8.31 |
| Dividend Yield (%) | N/A |
| Return on Assets (ROA) | 15.88 |
| Return on capital (%) | 25.93 |
| Earning Per Share | $12.02 |
Source: Company financial Report
SHAREHOLDING PATTERN
Source: Company financial Report
| Majority shareholders | Other DIIs |
| Pledged Promoters Holdings | None |
| Mutual Fund | Held in 12 Schemes (0.14%) |
| FIIs | None |
| Promoters with Highest Holdings | None |
| Highest Public /Private Shareholder | Vanguard Group Inc |
| Individual Investors holdings | 22.30 |
Source: Company financial Report
SHAREHOLDING COMPARE (% Holding)
| Majority shareholders | 5% | 0% | 5% |
| FIIs | 2% | 0% | 2% |
| Mutual Fund | 4.50% | 0.40% | 4.10% |
| Insurance Companies | 7.6% | 4.6% | 3% |
| Non institutional Investors | 25% | 3.70% | 21.30% |
| Others | 0% | 0% | 0% |
| Other DIIs | 59.26% | 59.58% | 1.68% |
Source: Company financial Report
COMPARE VALUATIONS WITH PEERS
| Company | PE | EV/EBIDTA | ROE (%) |
| Tesla | 57.85 | 62.24 | 27.95 |
| Ford Motor | 11.21 | 29.25 | 10.11 |
| General Motors | 4.68 | 15.39 | 15.18 |
| Harley-Davidson | 7.38 | 12.01 | 22.94 |
Source: Company financial Report
They delivered 1,313,851 consumer vehicles and manufactured 1,369,611 in 2022, amid persistent supply chain and logistical issues as well as facility shutdowns. At the moment, their main priorities are raising vehicle production, capacity, and delivery capabilities; developing and improving battery technologies; enhancing our FSD capabilities; raising the vehicles’ affordability and efficiency; launching new products; and developing their global infrastructure.
They installed 348 megawatt solar energy installations and 6.5 gigawatts of energy storage devices in 2022. Their current priorities are to increase market share for both new and retrofit solar energy systems, improve their capacity to install solar roofs efficiently, and ramp up production of energy storage devices.
After a $27.64 billion gain from the previous year, they recorded total revenues of $81.46 billion in 2022.
To facilitate more product deployments and deliveries as well as additional revenue growth, they keep ramping up production, adding new manufacturing capacity, and growing their business.
With a favorable change of $7.04 billion from the previous year, their net income attributable to common stockholders in 2022 was $12.56 billion. Increasing production and operational efficiencies is how they want to increase their profitability going forward.
They had investments and cash and cash equivalents of $22.19 billion by the end of 2022, up $4.48 billion from the previous year. They saw an increase of $3.23 billion in the cash flows from operational activities in 2022 and 2021, totaling $14.72 billion and $11.50 billion, respectively. In 2022, capital expenditures came to $7.16 billion, up from $6.48 billion in 2021. Due to their company’s steady expansion, it can now mostly support itself, and in the near future, they plan to invest in more capital-intensive initiatives.
PRICE ACTION
| Parameters | Range |
| Volume Traded | 4.7M |
| Current Price | $173.88 |
| Earnings Per Share(EPS) | $12.02 |
| Previous Value | $163.57 |
| Open Price | $170.02 |
| Today low/high | $165.90/$174.72 |
| 52 week low/high | $152.37/$299.29 |
Source:New York Stock Exchange
The global automotive market is already very competitive, and this trend is predicted to continue. For instance, in the very competitive entry-level premium car and compact SUV segments, automakers both current and prospective will challenge Tesla’s Model 3 and Model Y. A considerable and increasing number of well-known and up-and-coming automakers, along with other businesses, have entered, or are rumored to be planning to enter, the markets for self-driving technology, other vehicle applications and software platforms, and electric and other alternative fuel vehicles, such as hybrid, plug-in hybrid, and fully electric vehicles.
Sometimes, rival companies have stated that they plan to create only electric vehicles in the future, or that they currently serve or will soon serve major markets like China and Europe. When it comes to product creation, development, production, distribution, promotion, sale, and service, many of their rivals have access to far more or more well-established resources than they do. As a result of increased rivalry, their business, financial situation, and operating results may suffer from decreased vehicle unit sales, price reductions, revenue shortages, customer attrition, and market share loss.
Their goal is to hasten the global switch to renewable energy sources. They create, design, develop, produce, lease, and market energy storage solutions, solar energy generation systems, and high-performance all-electric cars. In addition, they provide financial, operational, installation, maintenance, and other services associated with their products. They are also becoming more and more focused on robotics, automation, and artificial intelligence-based goods and services.
They delivered 1,313,851 consumer vehicles and manufactured 1,369,611 in 2022, amid persistent supply chain and logistical issues as well as facility shutdowns. At the moment, their main priorities are raising vehicle production, capacity, and delivery capabilities; developing and improving battery technologies.
Source: New York Stock Exchange
The technical indicator analysis suggests a gloomy picture for TSLA during the next few days. The volume indicators, volatility measurements, momentum oscillators, trend indicators, and volatility measures all suggest that the downward trend will continue. Although the stock is now oversold, no obvious reversal is yet visible. Before deciding to take any long positions, investors should proceed with caution and think about waiting for additional encouraging signals.
Moving Averages (MA): A negative trend has been continuously indicated by the 5-day moving average, which has been below the longer-term moving averages SMA and EMA. There appears to be a bearish momentum as the MACD line has been declining and is continuously below the signal line.
RSI: Oversold conditions are indicated by the RSI’s recent decline and present reading below 30.
But It is clear from a thorough examination of Tesla’s financial statements that the business is well-positioned for future expansion and value generation. The upward trends in cash flow, profitability, and revenue demonstrate Tesla’s capacity to provide investors with long-term profits. It is therefore advised to think about investing in Tesla in order to benefit from its potential for long-term growth and value appreciation.
