Skip to Content

Tesla Inc TSLA

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Tesla's First Quarter Is an All-Time Company Record

Analyst Note

| David Whiston, CFA, CPA, CFE |

Tesla announced record quarterly results on April 26 with adjusted diluted EPS of $0.93 (Refinitiv consensus was $0.79) about four times larger year over year versus first-quarter 2020 and up 16.3% sequentially from fourth-quarter 2020. We are increasing our fair value estimate to $354 from the time value of money adjustment in our model. Revenue increased 74% year over year but fell 3.3% sequentially as combined Model S and Model X deliveries fell by 83% as the company transitions those vehicles to new generation models coming in second and third quarter, respectively. Total deliveries still were a record though thanks to 13.1% sequential growth in combined Model 3 and Model Y sales. We remain comfortable modeling total 2021 deliveries of 800,000 units as demand continues to be strong, the S and X should drive incremental growth later this year, and management talked about combating the semiconductor shortage by quickly finding new microcontrollers and developing new firmware for chips made by new suppliers. The call had no discussion of the shortage so it’s unclear if this mediation effort will last, but we sensed no apprehension from management on the call.

Read Full Analysis

Company Profile

Business Description

Founded in 2003 and based in Palo Alto, California, Tesla is a vertically integrated sustainable energy company that also aims to transition the world to electric mobility by making electric vehicles. It sells solar panels and solar roofs for energy generation plus batteries for stationary storage for residential and commercial properties including utilities. It also makes solar roofs and plans to enter the HVAC market. The Tesla Roadster debuted in 2008, Model S in 2012, Model X in 2015, Model 3 in 2017, and Model Y in 2020. Global deliveries in 2020 were 499,647 units. Tesla went public in 2010 and employs about 71,000 people.

Contact
3500 Deer Creek Road
Palo Alto, CA, 94304
T +1 650 681-5000
Sector Consumer Cyclical
Industry Auto Manufacturers
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type Cyclical
Employees 70,757

Related

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.