Tesla

• Revenue Growth: Tesla reported $25.5 billion in revenue for Q2 2024, surpassing expectations by $1 billion. However, this growth represents only a 1.37% YoY increase, indicating a slowdown compared to previous years.

• Net Income: The company posted a net income of $12.39 billion over the past twelve months, with an EPS of $3.56. While profitability remains strong, the EPS growth of 1.06% YoY reflects pressure from rising costs and increased competition.

• Free Cash Flow: Tesla generated $1.7 billion in free cash flow, a significant decline from previous periods, reflecting increased capital expenditures and challenges in maintaining cash flow amidst rising operational costs.

💰 Valuation Analysis

• P/E Ratio: Tesla’s trailing P/E ratio is 72.48x, indicating a high valuation relative to its earnings. The stock's premium valuation is based on high future growth expectations, but it also suggests vulnerability to market fluctuations.

• Price Target: Analysts have set a consensus price target of $202.12, with a potential upside of 2.38%. The range of targets varies widely, from a low of $140 to a high of $310, reflecting mixed sentiment on Tesla's near-term potential.

• Market Cap: Approximately $631 billion, positioning Tesla as a dominant player in the EV market, though it faces increasing competition from both established automakers and new entrants.

📈 Growth Metrics

• 2025 EPS Growth Forecast: Analysts are cautious about Tesla's future earnings, forecasting moderate growth due to rising competition in the EV space and potential pressures on margins.

• Price Target: The consensus price target suggests limited upside, with some analysts predicting further downside if Tesla cannot meet high market expectations or if economic conditions worsen.

🔮 Forecast

Final Summary

• ⚠️ High Risk, Moderate Growth: Tesla offers significant potential but comes with high risk due to its valuation and the competitive landscape.

• 📉 Profitability Concerns: The slowdown in revenue growth and declining free cash flow highlight the challenges Tesla faces in sustaining its growth.

• 🔎 Mixed Analyst Sentiment: Analysts are divided, with some seeing potential upside but others warning of risks, particularly in the face of rising competition and economic headwinds.