It’s time to breakdown one of the most popular stocks in the market. Here is the breakdown of $TSLA, otherwise known as Tesla.
Current Price: $826.16
52/Wk High: $884.49
52/Wk Low: $70.10
Market Cap: $783.1 Billion
Read below for the breakdown!
Tesla ($TSLA) is the largest electric vehicle company in the game, boasting an expansive lineup of electric cars and a growing manufacturing footprint.
Tesla stock has been one of the hottest stocks within the past year, soaring over 704% throughout the past year alone, leading many to wonder if Tesla is still a buy.
In recent news Tesla essentially hit their 2020 delivery goals, proving the auto industry’s biggest players and experts wrong once again.
Taking a look at Tesla’s numbers the company delivered 499,550 vehicles in 2020, just off of its goal of 500,000. Not only that, but Q4 deliveries totaled 180,570 vehicles, beating the previous quarterly record.
According to Tesla, the Model 3 and Model Y were their most popular vehicles, totaling 161,650 deliveries between the two in Q4 alone.
Either way you look at it, Tesla impressed at year-end, hitting numbers no one thought possible. All the while, the company released new technology as well, creating an even brighter future.
In September Tesla released plans to develop tabless batteries that will improve the range and power of their vehicles. On top of the performance improvements, the new battery technology will lower vehicle costs.
In fact, Tesla CEO Elon Musk noted during the battery day conference that a $25000 car is in sight given the reduced manufacturing and battery costs.
Shifting into the numbers, Tesla delivered a Q3 beat with an EPS of $0.76, much better than the EPS consensus estimate of $0.58. On a year over year basis EPS improved 105.41%.
Furthermore, Tesla delivered Q3 revenues of $8.771 billion, representing a 39% gain year over year. On top of that, the company reported a Q3 gross profit of $2.063 billion, representing a 73% increase year over year.
Gross margin improved as well, with gross margin on a GAAP basis totaling 23.5%, representing a 462 basis point increase on a year over year basis.
Operating expenses increased as well, totaling $1.254 billion (up 35% YoY). On a final earnings note, Tesla reported an Adjusted EBITDA of $1.807 billion, representing a 67% increase on a year over year basis.
Below is Tesla’s Q3 Financial Summary.
Shifting into the balance sheet, the numbers are solid.
Total Debt: $13.733 Billion
Total Liabilities: $29.660 Billion
Total Assets: $45.691 Billion
Cash & Short Term Inv: $14.531 Billion
While the numbers are improving, the valuation has gone through the roof.
Price to Earnings: 1,682.99x
Price to Sales: 28.58x
Price to Book: 50.23x
Price to Cash Flow: 210.65x
Management has done a solid job as well.
Return on Equity: 4.76%
Return on Assets: 1.78%
Return on Invested Capital: 2.68%
Given the numbers, the analysts are neutral with the mean price target sitting at $544.42/share, representing a -34.10% loss.
It is also important to note that the high price target is $950.00/share, representing a 14.99% gain, while the low price target is $40.00/share, representing a -95.16% downside.
The big money is less involved as well, with just 38.84% of Tesla being owned by institutions. Top holders include Capital World Investors, The Vanguard Group, and Baillie Gifford & Company.
On a technical basis, Tesla has been bullish. According to the six-month charts, the MACD continues to move to the upside with minimal momentum within a range of 68.09 down to 62.43.
The six-month charts are also indicating an RSI of 66.28 and CCI of 88.49, both of which are on the high end.
In short, Tesla is a solid long-term pick despite the high valuation. Given the rise of the EV market, a new administration that will support clean energy companies, and an auto industry that is shifting into the electric future, it is hard to argue Tesla will not continue to see outsized growth in the future.
EAT - SLEEP - PROFIT
Disclaimer: This is not direct financial advice, simply an opinion based on independent research.