Financial Analysis and Valuation of Tesla Inc.

Research Article
Open access

Financial Analysis and Valuation of Tesla Inc.

Ziyi Ren 1 , Xu Weng 2 , Yusong Xu 3 , Zhili Xu 4*
  • 1 Hainan University    
  • 2 Hebei University of Technology    
  • 3 Hubei University of Economics    
  • 4 Chongqing Technology and Business University    
  • *corresponding author 2021435372@email.ctbu.edu.cn
Published on 10 November 2023 | https://doi.org/10.54254/2754-1169/42/20232081
AEMPS Vol.42
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-83558-105-6
ISBN (Online): 978-1-83558-106-3

Abstract

As the head of the new energy vehicle industry, whether Tesla's market value is overvalued compared to the industry average, and whether the new energy vehicle market outlook is optimistic has been a hot topic. This paper firstly compares and analyzes the business performance and several financial statement indicators of Tesla and other companies involved in the production of new energy vehicles, points out the huge difference between Tesla's valuation and its performance, and secondly analyzes the reasons for the difference in Tesla's valuation through the industrial structure and strategy of Tesla, and points out that Tesla's market value hides the capital market's special premium for technological innovation industry, high threshold industry, and environmental protection energy development. Tesla's market capitalization has a special premium for technological innovation, high-threshold industries, and environmental energy development. Finally, this paper judges the considerable development potential of the new energy vehicle industry in the new era of environmental awareness and points out that it should analyze the industry with future expectations as the main indicator and view the valuation from a long-term investment perspective.

Keywords:

new energy vehicle industry, valuation, financial ratios

Ren,Z.;Weng,X.;Xu,Y.;Xu,Z. (2023). Financial Analysis and Valuation of Tesla Inc.. Advances in Economics, Management and Political Sciences,42,69-76.
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References

[1]. Du, Y., & Li, M.: The Impact of Financial Subsidies and R&D Investment on Enterprise Value: An Empirical Analysis Based on Enterprises in the New Energy Automobile Industry Chain. Journal of Xinyang Normal University (Philosophy and Social Science Edition), 43(03), 48-53 (2023).

[2]. Huang, S.: Value for money or value for money: A rational analysis of Tesla's stock market value. Accounting Monthly, 899(07), 3-7 (2021).

[3]. Harwit, E.: Tesla Goes to China. East-West Center (2022).

[4]. Korosec, K.: Tesla blows past Toyota to become the most valuable automaker in the world. https://techcrunch.com/2020/07/01/tesla-blows-past-toyota-to-become-most-valuable-automaker-in-the-world/, last accessed 2023/06/23.

[5]. Kelly, J.: Tesla's Leaked Employee Handbook Is As Unconventional As Founder Elon Musk. https://www.forbes.com/sites/jackkelly/2020/02/14/teslas-leaked-employee-handbook-is-as-unconventional-as-founder-elon-musk/, last accessed 2023/06/23.

[6]. Richter, F.: Why Tesla's Cybertruck Makes Sense. https://www.statista.com/chart/20229/why-tesla-cybertruck-makes-sense/, last accessed 2023/06/23.

[7]. Liang, S. (2023). New energy vehicle industry investment analysis report - taking Tesla as an example. Northern Economy and Trade, 460(03), 131-133 (2023).

[8]. Zeng, H.: Analysis of equilibrium and shock factors in stock market value pricing. Fudan University (2009).

[9]. Ambrose, H., & O’Dea, J.: Electric Vehicle Batteries: Addressing Questions about Critical Materials and Recycling. Union of Concerned Scientists (2021).

[10]. Song, K. H.: Stock market reaction to supply chain disruptions from the 2022 Shanghai lockdown. Journal of Economic Studies (2023).

Cite this article

Ren,Z.;Weng,X.;Xu,Y.;Xu,Z. (2023). Financial Analysis and Valuation of Tesla Inc.. Advances in Economics, Management and Political Sciences,42,69-76.

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About volume

Volume title: Proceedings of the 7th International Conference on Economic Management and Green Development

ISBN：978-1-83558-105-6(Print) / 978-1-83558-106-3(Online)
Editor：Canh Thien Dang
Conference website: https://www.icemgd.org/
Conference date: 6 August 2023
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.42
ISSN：2754-1169(Print) / 2754-1177(Online)

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References

[1]. Du, Y., & Li, M.: The Impact of Financial Subsidies and R&D Investment on Enterprise Value: An Empirical Analysis Based on Enterprises in the New Energy Automobile Industry Chain. Journal of Xinyang Normal University (Philosophy and Social Science Edition), 43(03), 48-53 (2023).

[2]. Huang, S.: Value for money or value for money: A rational analysis of Tesla's stock market value. Accounting Monthly, 899(07), 3-7 (2021).

[3]. Harwit, E.: Tesla Goes to China. East-West Center (2022).

[4]. Korosec, K.: Tesla blows past Toyota to become the most valuable automaker in the world. https://techcrunch.com/2020/07/01/tesla-blows-past-toyota-to-become-most-valuable-automaker-in-the-world/, last accessed 2023/06/23.

[5]. Kelly, J.: Tesla's Leaked Employee Handbook Is As Unconventional As Founder Elon Musk. https://www.forbes.com/sites/jackkelly/2020/02/14/teslas-leaked-employee-handbook-is-as-unconventional-as-founder-elon-musk/, last accessed 2023/06/23.

[6]. Richter, F.: Why Tesla's Cybertruck Makes Sense. https://www.statista.com/chart/20229/why-tesla-cybertruck-makes-sense/, last accessed 2023/06/23.

[7]. Liang, S. (2023). New energy vehicle industry investment analysis report - taking Tesla as an example. Northern Economy and Trade, 460(03), 131-133 (2023).

[8]. Zeng, H.: Analysis of equilibrium and shock factors in stock market value pricing. Fudan University (2009).

[9]. Ambrose, H., & O’Dea, J.: Electric Vehicle Batteries: Addressing Questions about Critical Materials and Recycling. Union of Concerned Scientists (2021).

[10]. Song, K. H.: Stock market reaction to supply chain disruptions from the 2022 Shanghai lockdown. Journal of Economic Studies (2023).

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