A Deep Dive Analysis into TSLA's Current Valuation
Tesla is a vertically integrated battery electric vehicle automaker and developer of autonomous driving software. The company has multiple vehicles in its fleet, which include luxury and midsize sedans, crossover SUVs, a light truck, and a semi truck. Tesla also plans to begin selling more affordable vehicles, a sports car, and offer a robotaxi service. Global deliveries in 2024 were a little below 1.8 million vehicles. The company sells batteries for stationary storage for residential and commercial properties including utilities and solar panels and solar roofs for energy generation. Tesla also owns a fast-charging network.
TSLA's stock price is driven by both fundamental growth factors and compelling market narratives that shape investor sentiment.
Tesla is navigating an increasingly competitive EV market through aggressive price cuts and new model introductions, balancing market share against profitability as traditional automakers and new entrants expand their EV offerings.
Tesla is evolving its manufacturing approach with next-generation platforms and factories, focusing on cost reduction and production efficiency to enable more affordable vehicles while maintaining margins.
Tesla is leveraging its massive real-world data advantage and custom AI hardware to advance Full Self-Driving capabilities, with potential for significant software-based revenue streams and robotaxi services.
$325.31
As of 6/13/2025
$993.9B
Enterprise Value
$100.7B
Based on Q3 2024
At TSLA's current market cap of $993.9B, the market is pricing in extremely aggressive growth assumptions. Let's examine if these expectations are realistic using a discounted cash flow (DCF) analysis to determine fundamental value.
Growth Reality Check: The current valuation implies 30% annual growth, which is 3.7x higher than TSLA's current growth rate of 8.0%.
$418.3B
Based on your growth and margin assumptions