Tesla - Fundamental Analysis

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Tesla, Inc. designs, develops,
manufactures, leases, & sells electric
vehicles, & energy generation & storage
systems in the US, China,
& internationally. The company operates in 2
segments, Automotive, Energy Generation
& Storage.
The Automotive segment offers electric
vehicles, as well as sells automotive regulatory
credits. The Energy Generation & Storage
segment engages in the design, manufacture,
installation, sale, & leasing of solar energy
generation & energy storage products , &
related service store residential, commercial, &
industrial customers & utilities through its
website, stores, & galleries, as well as through
a network of channel partners.
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Company Introduction
Tesla’s mission is to accelerate the world’s transition to
sustainable energy.
Tesla has undertaken a massive expansion of its
manufacturing capabilities. Musk wants to eventually
build 20 million electric vehicles a year over the
next decade. That's more than double the current
production of other auto-making giants. So it's now on a
mission to rapidly expand its manufacturing capabilities.
When the Austin and Berlin factories come online, they'll
likely ramp up production slowly over time, along with
ongoing Shanghai capacity increases.
When Tesla starts pumping out cars in Germany, it will
go head-to-head in electric vehicles with three
established German names: Volkswagen Group
(VWAGY), BMW (BMWYY) and the Mercedes-Benz
division of Daimler AG (DDAIF). Other serious
competitors include General Motors (GM) and Ford
Motor (F), in addition to its China rivals. These include
Nio (NIO) Xpeng (XPEV) and Li Auto (LI).
While there are many competitors in the EV space,
Tesla continues to dominate market share while
battling through the chip shortage and now is seeing
China demand step up big time after facing headwinds
earlier in 2021. We expect TSLA shares to start off
strongly, but ultimately 2022 results are most
dependent on the pace of capacity expansion,
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 Tesla annual/ quarterly revenue history & growth
rate from 2009 to 2021
Revenue can be defined as the amount of money a company
receives from its customers in exchange for the sales of good & services.
Revenue is the top line item on an income statement from which all costs
& expenses are subtracted to arrive at net income .

• Tesla revenue for the quarter ending September 30, 2021 was
$13.757B, 56.85% increase year over year.

• Tesla revenue for the 12 month sending September 30, 2021 was
$46.848B, 66.27% increase year over year.

• Tesla annual revenue for 2020 was $31.536B, 28.31% increase from
2019.

• Tesla annual revenue for 2019 was $24.578B,14.52% increase from

2018.

• Tesla annual revenue for 2018 was $21.461B, 82.51% increase from
2017.

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 Tesla Inc achieved increase in profitability, due to increase in
demand and cost control. Operating Margin grew in III.
Quarter 2021 to 14.57 % from 10.97 % in II. Quarter.

Tesla Inc net profit margin of 12.06 % is currently ranking no.

2 in Auto & Truck Manufacturers industry, ranking no. 33 in
Consumer Discretionary sector and number 1479 in S&P
500.

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 Competitive
Rivalry:
The automobile industry
worldwide is a mature trillion-
dollar oligopoly. Toyota being
the largest manufacturer with
8.5% of the total market share,
followed by Volkswagen 7.8%,
and Ford 5.1%. (Statista, 2021),
those figures represented in
dollars are the following: $275
Billion, $222,9 Billion, $127
Billion. It is a highly
competitive industry due to
the large
competitorsand brands
controllingmarket share.
Every year car manufacturers
design new cars or redesign
existing ones to create the
opportunity to acquire a new
customer.
Power
of
suppli
As Tesla is practically a new car
ers:
manufacturer company with
17.7% market share in the Global
EV market in 2020 (Walhman,
Anton, 2021), that represented
That means that
$31.53 Billion.
their production is limited being
dependent upon its supplier, and
even more as that market share
fell from 17.7% to 13.9% in 2021.
Currently EV manufactures depend
on the efficiency of the battery
and the range, therefore those
suppliers developed, or it will
develop the technology is going to
havethe negotiation power.
 PESTEL Analysis : Political
Governmental incentives for electric automobiles (opportunity)

New global trade agreements (opportunity)

Political stability in the majority of major markets

(opportunity)

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 PESTEL Analysis : Economic
Decreasing battery costs (opportunity)

Decreasing renewable energy costs (opportunity)

Economic stability issues (threat)

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 PESTEL Analysis : Social
Increasingly popularity of low-carbon lifestyles (opportunity)

Increasing preference for renewable energy (opportunity)

Improving wealth distribution in developing markets

(opportunity)

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 PESTEL Analysis : Technology

High rate of technological change (opportunity & threat)

Increasing automation in business (opportunity)

Increasing popularity of online mobile systems (opportunity)

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 PESTEL Analysis : Legal

Expanding international patent protection (opportunity)

Energy consumption regulations (opportunity)

Dealership sales regulation in the United States

(opportunity & threat)

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 LOW

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