History
With bold and innovative designs, Tesla Motors wants to build the best electric car ever seen and in turn show the world that gasoline and internal combustion engines are a thing of the past, and thus start a revolution in the transportation industry. Tesla was founded in 2003 by a group of engineers who wanted to demonstrate that electric driving is possible without compromise and that electric vehicles can be better, faster, and more fun to drive than gasoline-powered cars. In April 2004 Elon Musk decided to invest $ 6.3 million in Tesla Motors. He was not the only investor, but he contributed 98% of the financing. Other investors were Martin Eberhard and small venture capital firms. In 2008, Musk became CEO of the company.Elon Musk is a co-founder of Tesla Motors and also a founder or co-founder of other companies (Zip2, PayPal, Space X, SolarCity, Hyperloop, and Neuralink).
«On June 29, 2010 Tesla Motors began its operations on the Stock Market, specifically in the NASDAQ index, under the acronym TSLA, with a price per share of US $ 17. Currently this value has been multiplied by almost 20 ″.
FINANCIAL ANALYSIS
Today, one Tesla share costs approximately $ 299.68, and there are a total of 172,721,487 outstanding. Which gives us a market capitalization of $ 51,761.18 million dollars. The share price is in a range of $ 387.31 dollars (which is the maximum price that has been registered this last year) and $ 244.60 (the minimum price registered this last year).
A beta of.36 was calculated, indicating that Hay is positive and less volatile than the market. Tesla belongs to the NASDAQ group, which means there will be a 36% increase in the company from what the National Association of Securities Dealers Automated Quotation raises. Because it is a new company, dividends cannot be calculated yet.
| Beta | .36 |
| Market Cap (millions) | $ 51,761.18 |
| Dividend (Yield) | N / A |
The relationship between the market price of a company's shares and its earnings per share (Price-to-earnings ratio) is -51.14, unlike Toyota (another automobile company that is incurring in the sale of electric cars and has most of the won market) that have a TTM of 7.48. Tesla's EPS (earnings per share) is -5.86 compared to a Toyota 11.15.
Musk's company return is 47%, while Toyota's is 36%. We can see that it also has a higher ROE (return on capital) than Toyota, 2.83% and.94% respectively.
| TESLA | TOYOTA | |
| P / E (TTM-Trailing Twelve Months) | -51.14 | 7.48 |
| EPS (TTM) | -5.86 | 11.55 |
| ROI | 47% | 36% |
The growth rate of sales (in millions of dollars) and earnings per share was calculated. Sales growth of 5.791% is expected for June 2019, that is, earnings of $ 18,584.5 million; by the end of the year it will be 5.19% (19,549 million dollars).
| Growth Rate (%) | 10.57% | 3.749% | 23,217% | -1,528% | 5,791% | 5,474% | 5.19% | |
| Dec-17 | Mar-18 | Jun-18 | Sep-18 | Dec-18 | Mar-19 | Jun-19 | Sep-19 | Dec-19 |
| $ 12,972 | $ 11,966 | $ 13,231 | $ 13,727 | $ 16,914 | $ 16,655.5 | $ 17,620 | $ 18,584.5 | $ 19,549 |
Tesla Sales 2017 - 2020
The quick ratio is an indicator that helps us avoid unnecessary risks in our investments, it shows us the solvency of the company in the short term; Tesla has an MRQ value of.52, for its part, Toyota has.88, we can conclude that both companies have liquidity problems since they have an internal value of 1. Tesla's assets are.83 times greater than their current liabilities Meanwhile, Toyota's assets are 1.02 larger than its current liabilities. The debt ratio indicates the debt / equity ratio, in other words, what percentage of financing comes from creditors and investors; Tesla shows a percentage of 301.11% and Toyota of 69.08%, Toyota has a greater liquidity of total debt / total capital.The interest coverage index shows the ability of the company to pay its interest payment with its available earnings, the Japanese company can do it 13.74 times and Tesla only 2.44 times. This is a huge difference.
| TESLA | TOYOTA | |
| QUICK RATIO | .52 | .88 |
| CURRENT RATIO | .83 | 1.02 |
| LT DEBT TO EQUITY | 301.11% | 69.08% |
| INTEREST COVERAGE | 2.44 | 13.74 |
For every dollar generated from Tesla sales, it will have to pay 18.8 cents to cover basic operating costs, and Toyota will only have to pay 18.69% of its sales. In turn, Tesla shows a better operating rental rate than Toyota, 18.8% and 12.83% respectively. The net profit margin indicates profit that a company retains after eliminating operating expenses, Tesla has a negative indicator of -4.5% and Toyota positive of 8.5%.
| TESLA | TOYOTA | |
| GROSS MARGIN | 18.8% | 18.69% |
| EBITD MARGIN | 18.8% | 12.83% |
| NET PROFIT MARGIN | -4.5% | 19.25% |
CONCLUSION
I can conclude that it is advisable to invest in Tesla, since knowing its history, objectives and financial information, it is a company that is seeking (and is achieving) to make a change in the market, is progressing along with the famous Industry 4.0, and its CEO (Elon Musk) is growing all his companies at the same time; In addition to being an innovative company, Tesla Motors is also a company that focuses on having public opinion on its side, even doing flashy things like sending the Musk Tesla Roadster (the latest model manufactured by Tesla) to outer space in a cabin of his other space company (SpaceX). The data that was collected indicates that Tesla's financial situation is not the best it has had, but it is encouraging since compared to the other companies in NASDAQ it has good data, they have a beta of.36, which is positive. It has an inventory turnover of 12.28 days, this due to the fact that the company is not enough to create enough cars that it needs. Even at the time of presenting the Model S, it reported that it would only have the capacity to manufacture 20,000 units per month (initially), which caused most of the cars to be removed. For June of this year, earnings of $ 18,584.5 million are expected and the earnings will increase over the years (see growth rate chart). Although there is a greater risk when investing in a company like Tesla compared to Toyota.Even at the time of presenting the Model S, it reported that it would only have the capacity to manufacture 20,000 units per month (initially), which caused most of the cars to be removed. For June of this year, earnings of $ 18,584.5 million are expected and the earnings will increase over the years (see growth rate chart). Although there is a greater risk when investing in a company like Tesla compared to Toyota.Even at the time of presenting the Model S, it reported that it would only have the capacity to manufacture 20,000 units per month (initially), which caused most of the cars to be removed. For June of this year, earnings of $ 18,584.5 million are expected and the earnings will increase over the years (see growth rate chart). Although there is a greater risk when investing in a company like Tesla compared to Toyota.
Bibliography
- Joël Phillips. (2018). What Makes Tesla Innovative - and What Does This Teach Us ?. ParkIT 2018 Website: https://park-it-solutions.com/makes-tesla-innovative/Investing.com. (April 10, 2019). Tesla Inc (TSLA). Retrieved on April 10, 2019, from Investing: https://www.investing.com/equities/tesla-motorsJOSÉ LUIS ALARCÓN VELA. (2018). Tesla Roadster: A Hot Wheels out of this world. 2019, from El Financiero Website: https://elfinanciero.com.mx/autos/tesla-roadster-un-hot-wheels-fuera-de-este-mundoForbes Staff. (2018). Surprise: everyone was wrong about Tesla. 2019, from Forbes México Website: https://www.forbes.com.mx/sorpresa-todos-estaban-equivocados-respecto-a-tesla/Redacción gestión. (2018). Elon Musk: Biography of the South African engineer, physicist and businessman, one of the richest men on the planet. 2019,de Gestión Website: https://gestion.pe/mundo/internacional/elon-musk-biografia-historia-paypal-spacex-millonario-fortuna-edad-pais-telsa-motors-solar-city-bio-perfil-nnda -nnda-243104
