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Tesla Financial Performance Forecast and Analysis
- 1 School of Finance & Investment, Guangdong University of Finance, Guangzhou, 510521, China
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Abstract
This paper will give an analysis of Tesla Inc through preparing and presenting its financial performance for the year 2024 to 2028 through the guise of discussing the business’s innovation strategy and environment. Using data from Inside EVs, Tesla was found to dominate the current market share for EVs in the United States with an approximate market share of 55% while now beginning to feel the heat from new entrants as well as more traditional automakers. The sensitivity analysis takes into account important assumptions with regard to growth in revenues, employees’ remuneration, COGS, and capital outlay. The key variables like market growth within new areas, progress in the area of autonomous vehicles, and change in incentive policies contribute a great deal to the financial performance of Tesla. However, due to higher costs of raw materials and changing regulations affecting the profit margin within the next five years, those projections are expected to be revised upward due to high car sales and subscription software services, which are expected to have a revenue growth rate of about 30% as of the financial year ending in 2028. The research also identifies opportunities and threats such as economic instability, supply chain risks, and increasing competition. In the long run, it will be the capacity of Tesla to overcome these challenges and seize opportunities for the constant development of the automotive industry.
Keywords
Tesla, Financial Analysis, Valuation
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Cite this article
Bai,X. (2025). Tesla Financial Performance Forecast and Analysis. Advances in Economics, Management and Political Sciences,145,165-171.
Data availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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Volume title: Proceedings of ICFTBA 2024 Workshop: Human Capital Management in a Post-Covid World: Emerging Trends and Workplace Strategies
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