TSLA Stock Report
Following yesterday’s Q3 Earnings Report, we ran Tesla’s latest results through our DCF Model Projector (a feature of PRO memberships). Here’s what we found:
Revenue
Revenues of 21.5B came very close to our maximum projection for the quarter, marking a 56% increase YoY. We have projected revenues accordingly for the next 7 quarters.
Gross Margin
Gross profit margin came in at 25%, at the low end of our projection. We are working with the assumption this metric will steadily improve in the following quarters, following the trend set in the past.
Operating Expenses
Despite an increase in revenue of over 50%, the company’s Operating Expenses barely budged from last quarter, now making up just 7.73% of sales. We are working with the assumption this metric will maintain its track record.
Valuation
Our assumption is that TSLA’s valuation will decrease, according to the recent trend. The implied midpoint would take valuation to 10.18 EV / Sales.
To be on the safe side, we will choose a slightly lower value of 9.52 EV/Sales.
Conclusion
Our system outputs a price target of $300, using the provided assumptions. Due to the stock’s volatility and Elon Musk’s unpredictable nature, we are assigning a HOLD rating.
You can find a table of all published stock reports and ratings here. You can also request a similar stock report for any ticker, using the same page.
TSLA - Tesla Inc.