TSLA
Tesla cash burn to test investor faith in AI bets
Article Summary
HOLD- Tesla Inc. (NASDAQ: TSLA) is expected to report its first quarterly cash burn in over two years on Wednesday as its spending on AI and robotics soars intensifying investor scrutiny over when those bets will pay off.
- The electric-vehicle maker has pivoted its focus from manufacturing cars to building so-called physical AI businesses such as self-driving taxis and humanoid robots, but investors are growing increasingly uneasy as capex more than doubles and free cash flow turns negative.
- Tesla delivered a record number of vehicles for the April-to-June period, far exceeding market estimates, as higher oil prices helped drive sales of EVs, especially in Europe.
- Analysts expect Tesla to deliver 1.7 million vehicles in 2026, up 3.9% from last year, breaking a two-year skid of declining annual deliveries.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 2.3% | 25% | 20.0 ptsMinimal (2.3%) - Very weak |
| EPS Growth Next 5Y ? | 25.6% | 25% | 80.0 ptsVery Good (25.6%) - Good outlook |
| Target Price Upside ? | 6.5% | 20% | 35.0 ptsBelow Screener (6.5%) - Target: $407.48 vs Current: $382.79 |
| Gross Margin % ? | 19.1% | 15% | 20.0 ptsThin (19.1%) - Low-margin business |
| Drawdown from 52-Wk High ? | -23.3% | 15% | 40.0 ptsMild Pullback (-23.3%) - Light entry opportunity |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About TSLA
- Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally.
- The company operates in two segments, Automotive; and Energy Generation and Storage.
- The company offers electric vehicles, as well as sells automotive regulatory credits; and non-warranty maintenance services and collision, automotive insurance services, as well as part sales and retail merchandise sale.
- It also provides sedans and sport utility vehicles through direct and used vehicle sales, a network of Tesla Superchargers, and in-app upgrades; purchase financing and leasing services; services for electric vehicles through its company-owned service locations and Tesla mobile service technicians; and vehicle limited warranties and extended service plans.
- In addition, the company engages in the design, manufacture, installation, sale, and leasing of solar energy generation and energy storage products, and related services to residential, commercial, and industrial customers and utilities through its website, stores, and galleries, as well as through a network of channel partners.
- Further, it provides services and repairs to its energy product customers, including under warranty and extended service plans; and various financing options to its residential customers; lithium-ion battery energy storage products, such as Powerwall and Megapack; energy generation products, including solar panels and solar roof; self-driving development and artificial intelligence software, vehicle control and infotainment software, and battery and powertrain.
- The company was formerly known as Tesla Motors, Inc. and changed its name to Tesla, Inc. in February 2017.
- Tesla, Inc. was incorporated in 2003 and is headquartered in Austin, Texas.