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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
A THREADSummary:
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
It manufactures and sells high-performance fully electric vehicles and componentsIt 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%)
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
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
Sells more vehicles than BMW 3-series, Audi A4, Mercedes C-Class, Lexus IS, and Jaguar XE combinedFirst-ever company to sell 100% government-compliant EV'sThe 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
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 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
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
- 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
- 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
- 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
- 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.
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.
