Shmoney AI – AI Financial Analyst
Financials Analysis
Income Statement
Tesla’s financial health shows a mixed picture. Profitability metrics indicate a strong gross profit margin, with gross profit consistently above $4 billion in recent quarters. However, operating income has shown some volatility, and net income has decreased in the most recent fiscal year compared to the previous one. Liquidity appears stable, with sufficient cash flow to cover short-term obligations. Solvency is strong, as interest expenses are low relative to operating income, indicating manageable debt levels. Overall, Tesla demonstrates financial stability but faces challenges in maintaining consistent profitability growth.
Balance Sheet
Tesla, Inc. (TSLA) has demonstrated strong financial health over the past three years, with significant growth in total assets, shareholder equity, and retained earnings. The company’s total assets increased from $82.3 billion in 2022 to $122.1 billion in 2024, reflecting a compound annual growth rate (CAGR) of approximately 22%. Shareholder equity also grew from $44.7 billion to $72.9 billion during the same period, indicating a robust equity base and consistent profitability.
Liquidity metrics are solid, with current assets consistently exceeding current liabilities, resulting in a current ratio above 2.0 in recent years. This indicates that Tesla has ample short-term assets to cover its short-term obligations. Cash and short-term investments have also grown, providing a strong liquidity buffer.
From a solvency perspective, Tesla’s total liabilities have increased, but at a slower rate compared to its equity growth. The debt-to-equity ratio remains low, and the company has reduced its reliance on long-term debt, with long-term debt decreasing from $1.03 billion in 2022 to $0.55 billion in 2024. This demonstrates prudent financial management and a focus on maintaining a healthy balance sheet.
Overall, Tesla’s financial stability is underpinned by its growing asset base, strong equity position, and effective liquidity and solvency management. The company is well-positioned to sustain its operations and invest in future growth.
Cash Flow Data
Tesla’s financial health shows strong profitability with consistent net income growth over the years, reaching $7.09 billion in 2024. Operating cash flow is robust, indicating effective cash generation from core operations. However, high capital expenditures and negative cash flow from investments suggest aggressive reinvestment strategies. Liquidity appears stable, with no significant short-term debt issues. Solvency is supported by the absence of dividend payouts and prudent equity management. Overall, Tesla demonstrates solid financial stability, though its high reinvestment rate warrants monitoring for long-term cash flow sustainability.
Sentiment Analysis
News Sources 1
The sentiment for Tesla (TSLA) stock is currently mixed. Analysts have provided a consensus “Hold” rating, indicating expectations for the stock to perform in line with the market. The 12-month price target forecasts show a wide range, from $24.86 to $550, with an average target of $307.62. This suggests uncertainty in the stock’s future performance, with potential for both significant gains and losses. The mixed sentiment is further supported by varying analyst recommendations, ranging from “Strong Sell” to “Buy.”
News Sources 2
The sentiment towards Tesla (TSLA) is currently cautious, as highlighted by the recent analysis on Seeking Alpha. The article suggests that Tesla is in a transitional phase with predominant risks, including stagnation or declining net income. The recommendation to take profits and the downgrade in rating reflect a mixed outlook, emphasizing caution for investors.
News Sources 3
The sentiment for TSLA based on the provided news sources is neutral. The article titled “Is Tesla a Millionaire-Maker?” from Motley Fool discusses Tesla’s recent performance and mentions its CEO Elon Musk’s activities, but the sentiment score for TSLA is neutral at 0.085291. Another article from Benzinga titled “Bulls And Bears: Joby Aviation, Nvidia, Tesla – And Bitcoin Drops Below $80,000” also mentions TSLA with a neutral sentiment score of 0.049778. Overall, the sentiment for TSLA is not strongly positive or negative, indicating a balanced view in the market.
Human Analyst Ratings
The analyst recommendations for TSLA show a consistent pattern of moderate optimism. Over the analyzed periods, the number of ‘buy’ and ‘strong buy’ recommendations generally outweighs the ‘sell’ and ‘strong sell’ recommendations, indicating a positive sentiment. However, the significant number of ‘hold’ recommendations suggests some caution among analysts. The sentiment appears stable over time, with no drastic changes in the distribution of recommendations.
Industry Analysis
The U.S. automobile industry is currently navigating a complex landscape characterized by both opportunities and challenges. Key indicators show a moderate recovery in vehicle sales, with February 2025 sales projected at 1.23 million units, reflecting a seasonally adjusted annual rate (SAAR) of 16.1 million units. This marks an improvement from January 2025 but highlights the volatility in demand due to economic and policy uncertainties. The industry is also experiencing a normalization of dealership profitability, which remains higher than pre-pandemic levels but has declined from the peaks observed during the pandemic. Challenges include elevated financing costs, ongoing supply chain issues, and the slow adoption of electric vehicles (EVs) due to infrastructure and cost barriers. However, strengths such as improved inventory levels, increased factory incentives, and a resilient labor market provide a foundation for cautious optimism. The industry’s ability to adapt to these dynamics will be crucial in sustaining growth and addressing affordability concerns for consumers.
Economic Report
Real GDP Analysis
The Real GDP data for the USA shows a consistent upward trend over the years, with some fluctuations during periods of economic downturns, such as the 2008 financial crisis and the 2020 pandemic. The recent data indicates a strong recovery and growth, with the GDP reaching new highs in 2024. This suggests a robust economic performance and resilience in the face of challenges.
Federal Funds (Interest) Rate Analysis
The Federal Funds Rate data indicates a significant increase in interest rates starting from early 2022, following a prolonged period of near-zero rates from 2020 to 2021. This increase aligns with the Federal Reserve’s monetary tightening policies to combat inflation. The rate peaked at 5.33% in mid-2024 and has shown a slight decline towards the end of 2024 and into early 2025. This trend suggests a potential shift in monetary policy or a response to changing economic conditions.
CPI Analysis
The Consumer Price Index (CPI) for all Urban Consumers has shown a consistent upward trend over the years, indicating a steady increase in the general price level of goods and services. The data reveals that the CPI has risen from 241.729 in October 2016 to 317.671 in January 2025. This represents a significant increase, reflecting inflationary pressures over the period. The monthly data also shows some seasonal fluctuations, but the overall trend is upward. The most recent data points suggest a continuation of this trend, with the CPI increasing from 315.605 in December 2024 to 317.671 in January 2025. This could be indicative of ongoing inflationary trends in the economy.
Unemployment Rate Analysis
The unemployment rate in the USA has shown a general trend of recovery and stability over the past years. After peaking at 14.8% in April 2020 due to the economic impact of the COVID-19 pandemic, the rate has steadily decreased, reaching levels around 3.5% to 4.0% in recent months. This indicates a strong recovery in the labor market. However, there has been a slight increase in the unemployment rate in the latter part of 2024, which could suggest emerging challenges in the labor market or economic conditions that need to be monitored.
Treasury Yield Analysis
The 2-Year Treasury Constant Maturity Rate has shown significant fluctuations over the observed period. Starting from a lower rate in early 2023, the yield increased steadily, peaking around mid-2023, and then exhibited a slight decline towards early 2025. This trend reflects the market’s response to economic conditions, including inflation expectations and Federal Reserve policy adjustments. The data indicates a period of tightening monetary policy, as evidenced by the rising yields, followed by stabilization as the rates plateaued and slightly decreased.
Technical Analysis
SMA Analysis
The stock’s 200-day Simple Moving Average (SMA) has been steadily increasing over the past months, indicating a consistent upward trend in the stock’s price. This suggests positive momentum and potential for continued growth, assuming no significant market disruptions. The gradual increase in the SMA reflects sustained buying interest and a bullish sentiment among investors.
EMA Analysis
The stock’s 200-day EMA has been steadily increasing over the past months, indicating a strong upward momentum. The recent values show a slight deceleration in the rate of increase, which could suggest a potential consolidation phase. However, the overall trend remains positive, and the stock appears to be in a long-term uptrend.
STOCH Analysis
The Stochastic Oscillator (STOCH) for the stock indicates that the current SlowK and SlowD values are at 11.11 and 7.97, respectively, which are significantly below the overbought threshold of 80. This suggests that the stock is currently in an oversold condition. Historically, the STOCH values have been declining, indicating a loss of momentum. However, oversold conditions can sometimes precede a reversal or a bounce in price, depending on other market factors. The stock’s momentum appears weak, and caution is advised when considering potential price movements.
RSI Analysis
The RSI for the stock has been trending downward recently, with the latest value at 39.89. This indicates that the stock is approaching oversold territory, suggesting a potential for a reversal or stabilization in the near term. However, the overall trend in RSI over the past month shows a decline from higher levels, which could indicate weakening momentum. Investors should monitor for signs of a reversal or further decline in RSI to assess the stock’s next move.
