Tesla $TSLA Breakdown & Analysis

A THREAD

Summary:

Sector: Consumer Discretionary
Sub-Industry: Automobile Manufacturers

Market Cap: $783.12B

Div. Rate: $0

Institutional Ownership: 47%

Beta: 1.97

$TSLA Operates in the Automotive/EV Industry

It manufactures and sells high-performance fully electric vehicles and components

It manufactures and sells renewable energy products such as solar, storage, and grid services

$TSLA Revenue Streams:

Automotive Sales (81%)
Automotive Leasing (4%)
Services & Other (9%)
Energy Generation & Storage (6%)

$TSLA Growth Strategies:

1. Production of new EV models
2. Entering the Chinese market
3. Reducing the battery costs
4. Reducing debt
5. Building new factories - Germany/Texas 2021

$TSLA Highlights:

Sells more vehicles than BMW 3-series, Audi A4, Mercedes C-Class, Lexus IS, and Jaguar XE combined

First-ever company to sell 100% government-compliant EV's

The only EV company to manufacture its own battery and have its own charging stations

$TSLA Financials:

3Q20 Net Profits: $874M (up from $342M)

3Q20 Revenue: $8.7B (Up 39%)

3Q20 Adjusted Gross Margin: 23.7% (Up from 20.8%)

Deliveries: Up 44%

Energy Generation and Storage Rev.: $558M (Up from $314M) +78%

Increased cash & equiv. to $14.53B - Up from $6.27B

$TSLA Financials (Continued):

$TSLA also managed to decrease total debt to $12.19B from $13.42B in 2019 - showing the ability to increase cash-flow and decrease debt

$TSLA has been shattering PT's and earnings estimates of all analysts

$TSLA SWOT Analysis:

Strengths:

- Image/Popularity: $TSLA has a literal CULT

- Ability to reduce debts while increasing cash-flow

- Total cost of ownership: Petrol is far more expensive than electricity

- Gigafactories - ownership of its own batteries

Continued

- Only EV company to own its $TSLA exclusive charging stations

- First mover advantage: decades away from any other EV or Non-EV manufacturer that wants to enter the EV market

- The number of Supercharger networks - unmatched EV infrastructure world-wide

$TSLA Weaknesses:

- Market uncertainty: extremely high expectations that could tarnish the market price with unexpected/unpleasant-surprises

- Uncertainty related to 100% EV adoption worldwide

$TSLA Opportunities:

- New Gigafactories in Berlin & Texas - reduction of battery costs by 56% in 2021

- Robotaxi

- Dominating the Chinese market

- Production of Cybertruck and Semi - 2021

- Increased unit production due to new factories

- Overall increase in EV popularity

$TSLA Threats:

- High expectations: any unpleasant surprise can destroy their share price

- Elon Musk: His removal or ban from SEC can also destroy their stock, $TSLA is directly associated with Musk. $TSLA will struggle if Musk were to be taken out of the equation

Overall, there aren't many serious threats facing $TSLA

IMO, finalizing Gigafactories, reducing battery costs, and further popularizing the $TSLA brand will greatly benefit the company.

$TSLA has very strong financials and is able to consistently generate revenues and sales.

$TSLA also has a huge opportunity to take over the Chinese markets with the new model production.

It's cost-effective ways also allows $TSLA to provide cheaper, yet high-quality EV's to markets worldwide.

Also, $TSLA isn't just an automotive company

Continued

$TSLA also is a big player in solar energy.

$TSLA is revolutionizing the energy world and bringing disruption all around.

The sky is the limit for this company and I believe 2020 was only a beginning.

$TSLA is simply great.

Be excited for what's to come and enjoy the ride