TSLA
Tesla shares fall as Musk touts ambitious -- and costly -- plans
Article Summary
HOLD- Tesla Inc. (NASDAQ: TSLA) shares fell sharply after reporting weaker-than-expected quarterly profits despite higher auto sales, pressured by lower vehicle sales prices, regulatory credits, and warranty-related charges.
- Tesla also reported a more than doubling in capital expenditures to $5.8 billion during the three-month stretch compared with the year-ago period, with Elon Musk describing it as probably the U.S.'s fastest industrial scale up since World War Two Chief Financial Officer Vaibhav Taneja said operating expenses driven by research and development will continue to grow in 2026 and beyond.
- Musk faced questions about plans for scaling robotaxi production and benchmarks for assessing Tesla's progress on achieving perfect or near-perfect reliability, saying ideally you want 99.99999 percent reliable.
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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 ? | 25.3% | 25% | 80.0 ptsVery Good (25.3%) - Good outlook |
| Target Price Upside ? | 6.4% | 20% | 35.0 ptsBelow Screener (6.4%) - Target: $397.76 vs Current: $374.01 |
| Gross Margin % ? | 19.1% | 15% | 20.0 ptsThin (19.1%) - Low-margin business |
| Drawdown from 52-Wk High ? | -25.0% | 15% | 80.0 ptsSolid Dip (-25.0%) - Good entry zone |
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.