Financial Analysis and Valuation on Tesla, Inc.

Research Article
Open access

Financial Analysis and Valuation on Tesla, Inc.

Zhiyuan Cao 1*
  • 1 Sun Yat-sen University    
  • *corresponding author caozhy8@mail2.sysu.edu.cn
Published on 10 November 2023 | https://doi.org/10.54254/2754-1169/42/20232111
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

Tesla, the frontrunner in the new energy industry for the past decade, operates primarily in clean energy sectors such as electric vehicles and solar energy storage batteries. However, as the new energy market expands, Tesla faces increased competition and industry challenges. This paper analyzes Tesla's current competitive position by examining three key aspects: im-portant accounting policies, financial indicator analysis, and future profitability forecasts, focusing on the company's financial performance in 2022. The findings reveal that Tesla's competitive advantage lies primarily in its significant market share in the global new energy vehicle market. To sustain its exceptional financial performance, Tesla should promptly in-troduce new products to meet growing demand. This study emphasizes the need for Tesla to refine accounting policies to ensure transparency and compliance. Additionally, a careful analysis of financial indicators will enable the company to identify areas for improvement and make informed strategic decisions. Looking ahead, the paper underscores the im-portance of Tesla's future profitability, urging the company to capitalize on market trends and diversify its product offerings. In conclusion, this paper provides a comprehensive eval-uation of Tesla's competitive ability in the new energy industry. To maintain its leadership position, Tesla must adapt to the evolving market dynamics by refining accounting practices, monitoring financial indicators, and introducing new products to meet consumer demand.

Keywords:

accounting analysis, performance evaluation, financial valuation

Cao,Z. (2023). Financial Analysis and Valuation on Tesla, Inc.. Advances in Economics, Management and Political Sciences,42,217-224.
Export citation

References

[1]. Chen, Y., Perez, Y.: Business Model Design: Lessons Learned from Tesla Motors. In: da Costa, P., Attias, D. Towards a Sustainable Economy . Sustainability and Innovation. Springer, Cham (2018).

[2]. Ding, J., & He, Y.: Tesla Pricing Strategy Analysis: Take Model 3 as an Example. In 2022 7th International Conference on Social Sciences and Economic Development, Atlantis Press, 1010-1014 (2022).

[3]. Tesla Inc. 2022 Annual Report (for the fiscal year ended December 31, 2022). https://www.sec.gov/Archives/edgar/data/1318605/000095017023001409/tsla-20221231.htm, last accessed 2023/6/20.

[4]. Tesla Inc. 2021 Annual Report (for the fiscal year ended December 31, 2021). https://www.sec.gov/Archives/edgar/data/1318605/000095017022000796/tsla-20211231.htm, last accessed 2023/6/20.

[5]. Xianjun Li, Wei Liu, Bowen Zhang, Donghui Meng.: New entrants versus establishers in China and US electric vehicle marketplace: a comparative analysis. Asia Pacific Business Review 25 (1), 19-39 (2019).

[6]. Tesla Inc. 2020 Annual Report (for the fiscal year ended December 31, 2020). https://www.sec.gov/Archives/edgar/data/1318605/000156459021004599/tsla-10k_20201231.htm, last accessed 2023/6/20.

[7]. Volkswagen AG 2022 Annual Report. https://www.volkswagen-newsroom.com/en/publications/corporate/annual-report-2022-1682, last accessed 2023/6/20.

[8]. General Motors Company 2022 Annual Report. https://stocklight.com/stocks/us/manufacturing/nyse-gm/general-motors/annual-reports/nyse-gm-2022-10K-22581477, last accessed 2023/6/20.

[9]. Li 2022 Annual Report. https://liauto.gcs-web.com/financial-information/financial-reports/, last accessed 2023/6/20.

[10]. NIO 2022 annual report. https://ir.nio.com/financials/annual-reports/, last accessed 2023/6/20.

[11]. Five trends transforming the automotive industry. PwC (2023).

[12]. Liu, S. (2021). Competition and Valuation: A case study of Tesla Motors. IOP Conference Series: Earth and Environmental Science, 692(2), 022103.

[13]. Yahoo Finance. https://consent.yahoo.com/v2/collectConsent?sessionId=3_cc-session_6b6f28a0-8663-4625-b324-91c7e40f9dd5, last accessed 2023/6/20.

[14]. Tesla, Inc. (TSLA) Earnings Report Date. Nasdaq. https://www.nasdaq.com/market-activity/stocks/tsla/earnings, last accessed 2023/6/20.

Cite this article

Cao,Z. (2023). Financial Analysis and Valuation on Tesla, Inc.. Advances in Economics, Management and Political Sciences,42,217-224.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

Disclaimer/Publisher's Note

The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of EWA Publishing and/or the editor(s). EWA Publishing and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.

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)

© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license. Authors who publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See Open access policy for details).

References

[1]. Chen, Y., Perez, Y.: Business Model Design: Lessons Learned from Tesla Motors. In: da Costa, P., Attias, D. Towards a Sustainable Economy . Sustainability and Innovation. Springer, Cham (2018).

[2]. Ding, J., & He, Y.: Tesla Pricing Strategy Analysis: Take Model 3 as an Example. In 2022 7th International Conference on Social Sciences and Economic Development, Atlantis Press, 1010-1014 (2022).

[3]. Tesla Inc. 2022 Annual Report (for the fiscal year ended December 31, 2022). https://www.sec.gov/Archives/edgar/data/1318605/000095017023001409/tsla-20221231.htm, last accessed 2023/6/20.

[4]. Tesla Inc. 2021 Annual Report (for the fiscal year ended December 31, 2021). https://www.sec.gov/Archives/edgar/data/1318605/000095017022000796/tsla-20211231.htm, last accessed 2023/6/20.

[5]. Xianjun Li, Wei Liu, Bowen Zhang, Donghui Meng.: New entrants versus establishers in China and US electric vehicle marketplace: a comparative analysis. Asia Pacific Business Review 25 (1), 19-39 (2019).

[6]. Tesla Inc. 2020 Annual Report (for the fiscal year ended December 31, 2020). https://www.sec.gov/Archives/edgar/data/1318605/000156459021004599/tsla-10k_20201231.htm, last accessed 2023/6/20.

[7]. Volkswagen AG 2022 Annual Report. https://www.volkswagen-newsroom.com/en/publications/corporate/annual-report-2022-1682, last accessed 2023/6/20.

[8]. General Motors Company 2022 Annual Report. https://stocklight.com/stocks/us/manufacturing/nyse-gm/general-motors/annual-reports/nyse-gm-2022-10K-22581477, last accessed 2023/6/20.

[9]. Li 2022 Annual Report. https://liauto.gcs-web.com/financial-information/financial-reports/, last accessed 2023/6/20.

[10]. NIO 2022 annual report. https://ir.nio.com/financials/annual-reports/, last accessed 2023/6/20.

[11]. Five trends transforming the automotive industry. PwC (2023).

[12]. Liu, S. (2021). Competition and Valuation: A case study of Tesla Motors. IOP Conference Series: Earth and Environmental Science, 692(2), 022103.

[13]. Yahoo Finance. https://consent.yahoo.com/v2/collectConsent?sessionId=3_cc-session_6b6f28a0-8663-4625-b324-91c7e40f9dd5, last accessed 2023/6/20.

[14]. Tesla, Inc. (TSLA) Earnings Report Date. Nasdaq. https://www.nasdaq.com/market-activity/stocks/tsla/earnings, last accessed 2023/6/20.

For authors
Guide for authors Policies for authors Aims and scope Subscription Open access policy
For editors
Policies for editors Editorial board
For reviewers
Policies for reviewers Privacy policy

Cookies are used by this site.
Copyright © 2024 EWA Publishing, its licensors, and contributors. All rights reserved, including text and data mining, AI training, and similar technologies.