December 29, 2019

NASDAQ: TSLA

TESLA INC
BUY HOLD SELL

HOLD
RATING SINCE 10/30/2019
A+ A A- B+ B B- C+ C C- D+ D D- E+ E E- F
Annual Dividend Rate Annual Dividend Yield Beta Market Capitalization 52-Week Range Price as of 12/26/2019
NA NA 0.60 $77.7 Billion $176.99-$433.48 $430.94

Sector: Manufacturing Industry Group: Motor Vehicle Manufacturing

Weekly Price: (US$) SMA (50) SMA (100) 1 Year 2 Years
TSLA BUSINESS DESCRIPTION
Tesla, Inc. designs, develops, manufactures, and 425
sells electric vehicles, and energy generation and 400
storage systems in the United States, China, 375
Netherlands, Norway, and internationally. The
350
company operates in two segments, Automotive,
and Energy Generation and Storage. 325
300
STOCK PERFORMANCE (%) 275
3 Mo. 1 Yr. 3 Yr (Ann)
250
Price Change 77.66 32.15 26.41
225
GROWTH (%) 200
Last Qtr 12 Mo. 3 Yr CAGR 175
Revenues -7.65 39.35 60.29 Rating History
Net Income -53.89 53.81 NA HOLD HOLD SELL HOLD
EPS -55.43 54.55 NA
Volume in Millions
100
RETURN ON EQUITY (%)
TSLA Subsector Avg S&P 500 50
Q3 2019 -13.69 5.48 15.63
Q3 2018 -39.72 -1.86 14.82 0
2018 2019
Q3 2017 -29.86 -2.77 13.41 COMPUSTAT for Price and Volume, TheStreet Ratings, Inc. for Rating History

P/E COMPARISON RECOMMENDATION

We rate TESLA INC (TSLA) a HOLD. The primary factors that have impacted our rating are mixed - some
indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a
positive or negative performance for this stock relative to most other stocks. The company's strengths can
be seen in multiple areas, such as its solid stock price performance and notable return on equity. However,
as a counter to these strengths, we also find weaknesses including unimpressive growth in net income,
generally higher debt management risk and poor profit margins.

HIGHLIGHTS
n/m 13.78 23.95 TSLA's share price has surged by 32.15% over the past year, reflecting the market's general trend, despite
their weak earnings growth during the last quarter. Regarding the stock's future course, our hold rating
TSLA Subsector Avg S&P 500
indicates that we do not recommend additional investment in this stock despite its gains in the past year.

EPS ANALYSIS¹ ($) TESLA INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to
its performance from the same quarter a year ago. This company has reported somewhat volatile earnings
recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TESLA INC
continued to lose money by earning -$5.88 versus -$11.79 in the prior year. This year, the market expects an
Q3 -3.70
Q4 -4.01

Q1 -4.19
Q2 -4.22
Q3 1.75
Q4 0.78

Q1 -4.10

Q3 0.78

improvement in earnings (-$0.61 versus -$5.88).

TSLA, with its decline in revenue, underperformed when compared the subsector average of 15.0%. Since the
Q1 -2.04
Q2 -2.04

Q2 -2.31

same quarter one year prior, revenues slightly dropped by 7.6%. Weakness in the company's revenue seems
to have hurt the bottom line, decreasing earnings per share.

2017 2018 2019 The debt-to-equity ratio is very high at 2.42 and currently higher than the subsector average, implying
NA = not available NM = not meaningful
increased risk associated with the management of debt levels within the company. To add to this, TSLA has a
quick ratio of 0.66, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
1 Compustat fiscal year convention is used for all fundamental
data items.
The company, on the basis of change in net income from the same quarter one year ago, has significantly
underperformed when compared to that of the S&P 500 and the Transportation Equipment Manufacturing
subsector. The net income has significantly decreased by 53.9% when compared to the same quarter one
year ago, falling from $311.52 million to $143.65 million.

This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet nor any other party guarantees its accuracy or Report Date: December 29, 2019 PAGE 1
makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet, Inc. Copyright(c) 2006-2019. All rights reserved.
 December 29, 2019
NASDAQ: TSLA

TESLA INC
Sector: Manufacturing Motor Vehicle Manufacturing
Annual Dividend Rate Annual Dividend Yield Beta Market Capitalization 52-Week Range Price as of 12/26/2019
NA NA 0.60 $77.7 Billion $176.99-$433.48 $430.94

PEER GROUP ANALYSIS SUBSECTOR ANALYSIS

REVENUE GROWTH AND EBITDA MARGIN*
TESLA INC falls within the Manufacturing sector and the Motor Vehicle Manufacturing industry group of the
North American Industry Classification System or NAICS. More precisely, a significant portion of company
40%

TSLA
activities involve Automobile Manufacturing.
FA
VO

TheStreet Quant Ratings is currently tracking 1923 companies in the Manufacturing sector that total around
RA
BL

$18,166 billion in market capitalization as well as $9,559 billion in annual sales.

E

The Transportation Equipment Manufacturing subsector accounts for 16.5% of those revenues.

Industries in the Transportation Equipment Manufacturing subsector produce equipment for transporting
THO TM
Revenue Growth (TTM)

people and goods. Transportation equipment is a type of machinery. Establishments in this subsector utilize
WGO production processes similar to those of other machinery manufacturing establishments including bending,
RACE
HMC FGM
forming, welding, machining, and assembling metal or plastic parts into components and finished products.
UN
FA

HOG However, the assembly of components and subassemblies and their further assembly into finished vehicles
VO
-20%

FCAU tends to be a more common production process in this subsector than in the Machinery Manufacturing
RA
B

subsector. There are industry groups for the manufacture of equipment for each mode of transport such as
LE

SOLO
-4000% 500% road, rail, air and water. Parts for motor vehicles have their own industry group because of they require less
EBITDA Margin (TTM) assembly than complete vehicles.
Companies with higher EBITDA margins and
revenue growth rates are outperforming companies PEER GROUP: Transportation Equipment Manufacturing
with lower EBITDA margins and revenue growth Recent Market Price/ Net Sales Net Income
rates. Companies for this scatter plot have a market Ticker Company Name Price ($) Cap ($M) Earnings TTM ($M) TTM ($M)
capitalization between $77.6 Million and $230.9
TSLA TESLA INC 430.94 77,675 NM 24,419.87 -827.33
Billion. Companies with NA or NM values do not
appear. SOLO ELECTRAMECCANICA VEHS CORP 2.10 78 NM 0.60 -24.81
*EBITDA – Earnings Before Interest, Taxes, Depreciation and HOG HARLEY-DAVIDSON INC 37.84 5,838 14.67 5,435.38 410.63
Amortization. GM GENERAL MOTORS CO 36.48 52,122 5.94 144,810.00 8,970.00
REVENUE GROWTH AND EARNINGS YIELD HMC HONDA MOTOR CO LTD 28.76 52,097 10.31 145,548.15 4,910.09
THO THOR INDUSTRIES INC 74.19 4,095 24.09 8,267.57 170.39
40%

TSLA F FORD MOTOR CO 9.45 36,799 23.05 157,978.00 1,603.00

RACE FERRARI NV 168.07 31,183 40.30 4,019.86 783.25
FA
VO

FCAU FIAT CHRYSLER AUTOMOBILES NV 14.84 23,262 9.22 118,013.61 6,979.89

RA
BL

TM TOYOTA MOTOR CORP 141.53 230,906 11.43 284,886.00 17,840.00

E

WGO WINNEBAGO INDUSTRIES 52.80 1,778 16.15 2,080.48 103.71

The peer group comparison is based on Major Transportation Equipment Manufacturing companies of comparable size.

THO
Revenue Growth (TTM)

TM
WGO
RACE F GM HMC
UN
FA

HOG
FCAU
VO
-20%

RA
B
LE

SOLO
-40% 20%
Earnings Yield (TTM)
Companies that exhibit both a high earnings yield
and high revenue growth are generally more
attractive than companies with low revenue growth
and low earnings yield. Companies for this scatter
plot have revenue growth rates between -19% and
39.3%. Companies with NA or NM values do not
appear.

This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet nor any other party guarantees its accuracy or Report Date: December 29, 2019 PAGE 2
makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet, Inc. Copyright(c) 2006-2019. All rights reserved.
 December 29, 2019
NASDAQ: TSLA

TESLA INC
Sector: Manufacturing Motor Vehicle Manufacturing
Annual Dividend Rate Annual Dividend Yield Beta Market Capitalization 52-Week Range Price as of 12/26/2019
NA NA 0.60 $77.7 Billion $176.99-$433.48 $430.94

COMPANY DESCRIPTION STOCK-AT-A-GLANCE

Tesla, Inc. designs, develops, manufactures, and sells Below is a summary of the major fundamental and technical factors we consider when determining our
electric vehicles, and energy generation and storage overall recommendation of TSLA shares. It is provided in order to give you a deeper understanding of our
systems in the United States, China, Netherlands, rating methodology as well as to paint a more complete picture of a stock's strengths and weaknesses. It is
Norway, and internationally. The company operates in important to note, however, that these factors only tell part of the story. To gain an even more comprehensive
two segments, Automotive, and Energy Generation and understanding of our stance on the stock, these factors must be assessed in combination with the stock’s
Storage. The Automotive segment offers sedans and valuation. Please refer to our Valuation section on page 5 for further information.
sport utility vehicles. It also provides electric vehicle
powertrain components and systems to other FACTOR SCORE
manufacturers; and services for electric vehicles through
its company-owned service centers, Service Plus Growth out of 5 stars 2.5
locations, and Tesla mobile technicians. This segment Measures the growth of both the company's income statement and weak strong
sells its products through a network of company-owned cash flow. On this factor, TSLA has a growth score better than 40% of
stores and galleries. The Energy Generation and Storage the stocks we rate.
segment offers energy storage products, such as
rechargeable lithium-ion battery systems for use in
homes, commercial facilities, and utility grids; designs,
Total Return out of 5 stars 4.5
manufactures, installs, maintains, leases, and sells solar Measures the historical price movement of the stock. The stock weak strong
energy systems to residential and commercial customers; performance of this company has beaten 80% of the companies we
and sell renewable energy to residential and commercial cover.
customers. The company was formerly known as Tesla
Motors, Inc. and changed its name to Tesla, Inc. in Efficiency out of 5 stars 1.5
February 2017. Tesla, Inc. was founded in 2003 and is Measures the strength and historic growth of a company's return on weak strong
headquartered in Palo Alto, California. invested capital. The company has generated more income per dollar of
capital than 20% of the companies we review.
TESLA INC
3500 Deer Creek Road
Palo Alto, CA 94304
Price volatility out of 5 stars 3.5
USA Measures the volatility of the company's stock price historically. The weak strong
Phone: 650-681-5000 stock is less volatile than 60% of the stocks we monitor.
http://www.tesla.com
Solvency out of 5 stars 2.5
Measures the solvency of the company based on several ratios. The weak strong
company is more solvent than 40% of the companies we analyze.

Income out of 5 stars 0.5

Measures dividend yield and payouts to shareholders. This company weak strong
pays no dividends.

THESTREET QUANT RATINGS RESEARCH METHODOLOGY

TheStreet Quant Ratings' stock model projects a stock's total return potential over a 12-month period
including both price appreciation and dividends. Our Buy, Hold or Sell ratings designate how we expect these
stocks to perform against a general benchmark of the equities market and interest rates. While our model is
quantitative, it utilizes both subjective and objective elements. For instance, subjective elements include
expected equities market returns, future interest rates, implied industry outlook and forecasted company
earnings. Objective elements include volatility of past operating revenues, financial strength, and company
cash flows.

Our model gauges the relationship between risk and reward in several ways, including: the pricing drawdown
as compared to potential profit volatility, i.e.how much one is willing to risk in order to earn profits; the level of
acceptable volatility for highly performing stocks; the current valuation as compared to projected earnings
growth; and the financial strength of the underlying company as compared to its stock's valuation as
compared to projected earnings growth; and the financial strength of the underlying company as compared
to its stock's performance. These and many more derived observations are then combined, ranked, weighted,
and scenario-tested to create a more complete analysis. The result is a systematic and disciplined method of
selecting stocks.

This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet nor any other party guarantees its accuracy or Report Date: December 29, 2019 PAGE 3
makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet, Inc. Copyright(c) 2006-2019. All rights reserved.
 December 29, 2019
NASDAQ: TSLA

TESLA INC
Sector: Manufacturing Motor Vehicle Manufacturing
Annual Dividend Rate Annual Dividend Yield Beta Market Capitalization 52-Week Range Price as of 12/26/2019
NA NA 0.60 $77.7 Billion $176.99-$433.48 $430.94

Consensus EPS Estimates² ($) FINANCIAL ANALYSIS

IBES consensus estimates are provided by Thomson Financial TESLA INC's gross profit margin for the third quarter of its fiscal year 2019 has decreased when compared to
the same period a year ago. Sales and net income have dropped, underperforming the average competitor
within its subsector. TESLA INC has weak liquidity. Currently, the Quick Ratio is 0.66 which shows a lack of
ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 33.95% from the same quarter
last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial
1.38 -0.61 E 5.00 E
difficulties could develop in the future.

Q4 FY19 2019(E) 2020(E) STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the
next 12-months. To learn more visit www.TheStreetRatings.com.

INCOME STATEMENT
Q3 FY19 Q3 FY18
Net Sales ($mil) 6,302.86 6,824.41
EBITDA ($mil) 792.32 945.77
EBIT ($mil) 261.47 442.94
Net Income ($mil) 143.65 311.52

BALANCE SHEET
Q3 FY19 Q3 FY18
Cash & Equiv. ($mil) 5,571.00 3,126.13
Total Assets ($mil) 32,795.00 29,262.71
Total Debt ($mil) 14,636.00 11,833.13
Equity ($mil) 6,040.00 4,508.84

PROFITABILITY
Q3 FY19 Q3 FY18
Gross Profit Margin 27.32% 29.69%
EBITDA Margin 12.57% 13.85%
Operating Margin 4.15% 6.49%
Sales Turnover 0.74 0.60
Return on Assets -2.52% -6.12%
Return on Equity -13.69% -39.72%

DEBT
Q3 FY19 Q3 FY18
Current Ratio 1.08 0.81
Debt/Capital 0.71 0.72
Interest Expense 191.97 187.22
Interest Coverage 1.36 2.37

SHARE DATA
Q3 FY19 Q3 FY18
Shares outstanding (mil) 180 172
Div / share 0.00 0.00
EPS 0.78 1.75
Book value / share 33.56 26.28
Institutional Own % NA NA
Avg Daily Volume 9,215,460 7,329,212
2 Sum of quarterly figures may not match annual estimates due to
use of median consensus estimates.

This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet nor any other party guarantees its accuracy or Report Date: December 29, 2019 PAGE 4
makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet, Inc. Copyright(c) 2006-2019. All rights reserved.
 December 29, 2019
NASDAQ: TSLA

TESLA INC
Sector: Manufacturing Motor Vehicle Manufacturing
Annual Dividend Rate Annual Dividend Yield Beta Market Capitalization 52-Week Range Price as of 12/26/2019
NA NA 0.60 $77.7 Billion $176.99-$433.48 $430.94

RATINGS HISTORY VALUATION

Our rating for TESLA INC was recently upgraded HOLD. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount
from Sell to Hold on 10/30/2019. As of 12/26/2019, valuation, only displaying that the company has negative earnings per share. For additional comparison, its
the stock was trading at a price of $430.94 which is price-to-book ratio of 12.84 indicates a significant premium versus the S&P 500 average of 3.58 and a
.6% below its 52-week high of $433.48 and 143.5% significant premium versus the subsector average of 3.82. The price-to-sales ratio is well above both the S&P
above its 52-week low of $176.99. 500 average and the subsector average, indicating a premium. Upon assessment of these and other key
valuation criteria, TESLA INC seems to be trading at a premium to investment alternatives.
2 Year Chart
$500
HOLD: $317.29

HOLD: $351.40

SELL: $238.69

HOLD: $315.01

Price/Earnings 1 2 3 4 5 Price/CashFlow 1 2 3 4 5
$400 premium discount premium discount
TSLA NM Peers 13.78 TSLA 34.29 Peers 9.87
$300 • Neutral. The absence of a valid P/E ratio happens • Premium. The P/CF ratio, a stock’s price divided by
when a stock can not be valued on the basis of a the company's cash flow from operations, is useful
$200 negative stream of earnings. for comparing companies with different capital
• TSLA's P/E is negative making this valuation requirements or financing structures.
2018 measure meaningless. • TSLA is trading at a significant premium to its
peers.

MOST RECENT RATINGS CHANGES

Price/Projected Earnings 1 2 3 4 5 Price to Earnings/Growth 1 2 3 4 5
premium discount premium discount
Date Price Action From To TSLA 86.14 Peers 14.22 TSLA NA Peers 0.66
10/30/19 $315.01 Upgrade Sell Hold • Neutral. The absence of a valid price-to-projected • Neutral. The PEG ratio is the stock’s P/E divided by
4/30/19 $238.69 Downgrade Hold Sell earnings ratio happens when a stock can not be the consensus estimate of long-term earnings
11/8/18 $351.40 Upgrade Sell Hold valued on the basis of a negative expected future growth. Faster growth can justify higher price
10/9/18 $262.80 Downgrade Hold Sell earnings. multiples.
• TSLA's ratio is negative making this valuation • Ratio not available.
12/26/17 $317.29 No Change Hold Hold
measure meaningless.
Price reflects the closing price as of the date listed, if available
Price/Book 1 2 3 4 5 Earnings Growth 1 2 3 4 5
premium discount lower higher
RATINGS DEFINITIONS & TSLA 12.84 Peers 3.82 TSLA 54.55 Peers 22.49
DISTRIBUTION OF THESTREET RATINGS
• Premium. A higher price-to-book ratio makes a • Higher. Elevated earnings growth rates can lead to
(as of 12/26/2019) stock less attractive to investors seeking stocks capital appreciation and justify higher
with lower market values per dollar of equity on the price-to-earnings ratios.
38.78% Buy - We believe that this stock has the balance sheet. • TSLA is expected to have an earnings growth rate
opportunity to appreciate and produce a total return of
• TSLA is trading at a significant premium to its that significantly exceeds its peers.
more than 10% over the next 12 months.
peers.
32.43% Hold - We do not believe this stock offers Price/Sales 1 2 3 4 5 Sales Growth 1 2 3 4 5
conclusive evidence to warrant the purchase or sale of premium discount lower higher
shares at this time and that its likelihood of positive total TSLA 3.18 Peers 1.44 TSLA 39.35 Peers 5.38
return is roughly in balance with the risk of loss. • Premium. In the absence of P/E and P/B multiples, • Higher. A sales growth rate that exceeds the
the price-to-sales ratio can display the value subsector implies that a company is gaining market
28.79% Sell - We believe that this stock is likely to investors are placing on each dollar of sales. share.
decline by more than 10% over the next 12 months, with • TSLA is trading at a significant premium to its • TSLA has a sales growth rate that significantly
the risk involved too great to compensate for any subsector. exceeds its peers.
possible returns.
DISCLAIMER:
TheStreet Quant Ratings The opinions and information contained herein have been obtained or derived from sources believed to be reliable, but
14 Wall Street, 15th Floor TheStreet Quant Ratings cannot guarantee its accuracy and completeness, and that of the opinions based thereon. Data is
New York, NY 10005 provided via the COMPUSTAT® Xpressfeed product from Standard &Poor's, a division of The McGraw-Hill Companies, Inc., as
well as other third-party data providers.
www.thestreet.com
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provided for informational purposes only. You should not rely solely upon the research herein for purposes of transacting
Sales Contact: 866-321-8726 securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the
advice of a qualified securities professional, before you make any investment. None of the information contained in this report
constitutes, or is intended to constitute a recommendation by TheStreet Quant Ratings of any particular security or trading
strategy or a determination by TheStreet Quant Ratings that any security or trading strategy is suitable for any specific person.
To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal
and not tailored to the investment needs of any specific person. Your use of this report is governed by TheStreet, Inc.'s Terms of
Use found at http://www.thestreet.com/static/about/terms-of-use.html.

NAICS is the North American Industry Classification System which provides the Sector, Subsector, and Industry Group
structure used in this report. As many companies are diversified, the companies may also operate in other industry segments
than the one listed.

This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet nor any other party guarantees its accuracy or Report Date: December 29, 2019 PAGE 5
makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet, Inc. Copyright(c) 2006-2019. All rights reserved.