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|date=November 11, 2014
|date=November 11, 2014
|access-date=October 3, 2018 |website=Business Insider}}</ref><ref>{{cite web |title=Tesla Energy Generation And Storage Business: Q4 2020 Results |url=https://insideevs.com/news/482496/tesla-energy-generation-storage-q4-2020-results/ | date=January 27, 2021}}</ref><ref>{{cite web |title=Elon Musk |url=https://www.forbes.com/profile/elon-musk/ |website=[[Forbes]]}}</ref><ref>{{cite web | url=https://www.sec.gov/Archives/edgar/data/1318605/000156459021044307/tsla-pre14a_20210813.htm | title=Schedule 14A Information  | publisher=[[U.S. Securities and Exchange Commission]]}}</ref><ref name="10K_2022">{{cite web |title=Annual report Form 10-K 2022 Tesla Inc. |url=https://www.sec.gov/ix?doc=/Archives/edgar/data/1318605/000095017023001409/tsla-20221231.htm |date=January 31, 2023 |publisher=[[U.S. Securities and Exchange Commission]]}}</ref>
|access-date=October 3, 2018 |website=Business Insider}}</ref><ref>{{cite web |title=Tesla Energy Generation And Storage Business: Q4 2020 Results |url=https://insideevs.com/news/482496/tesla-energy-generation-storage-q4-2020-results/ | date=January 27, 2021}}</ref><ref>{{cite web |title=Elon Musk |url=https://www.forbes.com/profile/elon-musk/ |website=[[Forbes]]}}</ref><ref>{{cite web | url=https://www.sec.gov/Archives/edgar/data/1318605/000156459021044307/tsla-pre14a_20210813.htm | title=Schedule 14A Information  | publisher=[[U.S. Securities and Exchange Commission]]}}</ref><ref name="10K_2022">{{cite web |title=Annual report Form 10-K 2022 Tesla Inc. |url=https://www.sec.gov/ix?doc=/Archives/edgar/data/1318605/000095017023001409/tsla-20221231.htm |date=January 31, 2023 |publisher=[[U.S. Securities and Exchange Commission]]}}</ref>
}}Energy production and consumption are responsible for 76% of annual human-caused greenhouse gas emissions<ref name=":1" /><ref name=":2" />, and Tesla is on a mission to accelerate the world's transition to sustainable energy.<ref name=":3">https://www.tesla.com/about</ref>
}}Tesla is on a mission to accelerate the world's transition to sustainable energy.<ref name=":3">https://www.tesla.com/about</ref>


The company sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Tesla emphasises performance, attractive styling and the safety of its users in the design and manufacture of its products and is continuing to develop full self-driving technology for improved safety. The company also strives to lower the cost of ownership for its customers through continuous efforts to reduce manufacturing costs and by offering financial and other services tailored to its products.<ref name=":4">https://www.sec.gov/Archives/edgar/data/1318605/000156459021004599/tsla-10k_20201231.htm</ref>
The company sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Tesla emphasises performance, attractive styling and the safety of its users in the design and manufacture of its products and is continuing to develop full self-driving technology for improved safety. The company also strives to lower the cost of ownership for its customers through continuous efforts to reduce manufacturing costs and by offering financial and other services tailored to its products.<ref name=":4">https://www.sec.gov/Archives/edgar/data/1318605/000156459021004599/tsla-10k_20201231.htm</ref>
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Assuming that Tesla increases its share of the automotive market to 10% (from 2%) and other assumptions, the expected return of an investment in the company over the next five years is negative 24%, which equates to an annual return of negative 4%. In other words, an £100,000 investment in the company is expected to return £76,000 in five years time.
Assuming that Tesla increases its share of the automotive market to 10% (from 2%) and other assumptions, the expected return of an investment in the company over the next five years is negative 24%, which equates to an annual return of negative 4%. In other words, an £100,000 investment in the company is expected to return £76,000 in five years time.


The degree of risk associated with an investment in Tesla is 'high', with the shares having a beta that is 112% above the market (2.12 vs. 1). Furthermore, Tesla's shares exhibit a 'high' level of liquidity, as evidenced by its bid-ask margin of 0.0297%.
The degree of risk associated with an investment in Tesla is 'high', with the shares having a beta that is 112% above the market (2.12 vs. 1).
 
Accordingly, based on the assumptions provided on the Stockhub platform,  an investment in the company is considered to be a 'suitable' one for you if, among other criteria, your required:
* Return level is negative 4% per year or less in absolute terms;
* Risk level is 112% or more above the market risk level;
* Time horizon is five years or longer;
* Bid-ask margin is 0.0297% or more; and/or
* Objective is to help accelerate the world's transition to sustainable energy.
 
'''Fun fact:''' Tesla, Inc. was named after inventor Nikola Tesla and was founded in 2003 by Martin Eberhard and Marc Tarpenning, not Elon Musk, who joined later as an investor and chairman.


==Operations==
==Operations==
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The idea of the company came about when the now founding team of the company realised that the current way that humankind is meeting its energy needs is unsustainable and bad for the planet.<ref name=":9">https://www.tesla.com/en_GB/blog/secret-tesla-motors-master-plan-just-between-you-and-me</ref>  
The idea of the company came about when the now founding team of the company realised that the current way that humankind is meeting its energy needs is unsustainable and bad for the planet.<ref name=":9">https://www.tesla.com/en_GB/blog/secret-tesla-motors-master-plan-just-between-you-and-me</ref>  


Currently, an estimated 85% of the world's energy needs are met by burning fossil fuels<ref>https://wedocs.unep.org/bitstream/handle/20.500.11822/30797/EGR2019.pdf?sequence=1&isAllowed=y</ref>, and energy production and consumption are responsible for 76% of annual human-caused greenhouse gas emissions.<ref name=":1">https://www.climatewatchdata.org/ghg-emissions?breakBy=sector&chartType=percentage&end_year=2018&sectors=total-including-lucf&start_year=1990</ref><ref name=":2">https://www.wri.org/insights/4-charts-explain-greenhouse-gas-emissions-countries-and-sectors</ref>
Currently, an estimated 85% of the world's energy needs are met by burning fossil fuels<ref>https://wedocs.unep.org/bitstream/handle/20.500.11822/30797/EGR2019.pdf?sequence=1&isAllowed=y</ref>, and energy production and consumption are responsible for 76% of annual human-caused greenhouse gas emissions.<ref>https://www.climatewatchdata.org/ghg-emissions?breakBy=sector&chartType=percentage&end_year=2018&sectors=total-including-lucf&start_year=1990</ref><ref>https://www.wri.org/insights/4-charts-explain-greenhouse-gas-emissions-countries-and-sectors</ref>


Researching into a better way to meet the energy needs, the team concluded that the best way to do so is to move to a solar electric economy, from a mine-and-burn hydrocarbon economy.<ref name=":9" />
Researching into a better way to meet the energy needs, the team concluded that the best way to do so is to move to a solar electric economy, from a mine-and-burn hydrocarbon economy.<ref name=":9" />
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[[File:Elon Musk Royal Society (crop2).jpg|200px]]
[[File:Elon Musk Royal Society (crop2).jpg|200px]]


The Chief Executive Officer of Tesla is {{#property:P169|from=Q478214}} and he has served the position since October 2008 and as a member of the Board since April 2004. Elon has also served as Chief Executive Officer, Chief Technology Officer and Chairman of Space Exploration Technologies Corporation, an advanced rocket and spacecraft manufacturing and services company (“SpaceX ”), since May 2002, and served as Chairman of the Board of SolarCity Corporation, a solar installation company, from July 2006 until its acquisition by Tesla in November 2016. Elon is also a founder of The Boring Company, an infrastructure company, and of Neuralink Corp., a company focused on developing brain-machine interfaces. Prior to SpaceX, Elon co-founded PayPal, an electronic payment system, which was acquired by eBay in October 2002, and Zip2 Corporation, a provider of Internet enterprise software and services, which was acquired by Compaq in March 1999. Elon has also served on the board of directors of Endeavor Group Holdings, Inc. since April 2021. Elon holds a B.A. in physics from the University of Pennsylvania and a B.S. in business from the Wharton School of the University of Pennsylvania.
Elon Musk is the Chief Executive Officer of Tesla and has served the position since October 2008 and as a member of the Board since April 2004. Elon has also served as Chief Executive Officer, Chief Technology Officer and Chairman of Space Exploration Technologies Corporation, an advanced rocket and spacecraft manufacturing and services company (“SpaceX ”), since May 2002, and served as Chairman of the Board of SolarCity Corporation, a solar installation company, from July 2006 until its acquisition by Tesla in November 2016. Elon is also a founder of The Boring Company, an infrastructure company, and of Neuralink Corp., a company focused on developing brain-machine interfaces. Prior to SpaceX, Elon co-founded PayPal, an electronic payment system, which was acquired by eBay in October 2002, and Zip2 Corporation, a provider of Internet enterprise software and services, which was acquired by Compaq in March 1999. Elon has also served on the board of directors of Endeavor Group Holdings, Inc. since April 2021. Elon holds a B.A. in physics from the University of Pennsylvania and a B.S. in business from the Wharton School of the University of Pennsylvania.


====Chief Financial Officer====
====Chief Financial Officer====
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==== All periods ====
==== All periods ====
{| class="wikitable"
{| class="wikitable"
|+Financials<ref>Source: Stockhub Limited</ref><ref group="Note" name="Note04" /><ref>Source: Stockhub Limited</ref><ref name="Note04" group="Note" />
|+Historic financials<ref>Source: Stockhub Limited</ref><ref group="Note" name="Note04" />
|-
|-
!Year  
!Year  
Line 616: Line 607:
!'''16'''
!'''16'''
!'''17'''
!'''17'''
!18
!18
!19
!20
!21
!22
!23
!24
!25
!26
!27
!28
!29
!30
!31
!32
!33
!34
!35
!36
!37
!38
!39
!40
!41
!42
!43
!44
!45
!46
!47
!48
!49
!50
!51
!52
!53
!54
!55
!56
!57
!58
!59
|-
|-
|'''Year end date'''||'''31/12/2005'''||'''31/12/2006<ref name=":12">{{cite web|url=https://www.mercurynews.com/2014/07/14/2006-san-carlos-start-up-tesla-seeks-sexier-electric-car/|title=2006: San Carlos start-up Tesla seeks sexier electric car|date=July 14, 2014}}</ref><ref name="SEC">{{cite web | url=https://www.sec.gov/edgar/browse/?CIK=1318605 | title=Tesla, Inc. TSLA on Nasdaq | publisher=[[U.S. Securities and Exchange Commission]]}}</ref>'''||'''31/12/2007'''||'''31/12/2008'''||'''31/12/2009'''
|'''Year end date'''||'''31/12/2005'''||'''31/12/2006<ref name=":12">{{cite web|url=https://www.mercurynews.com/2014/07/14/2006-san-carlos-start-up-tesla-seeks-sexier-electric-car/|title=2006: San Carlos start-up Tesla seeks sexier electric car|date=July 14, 2014}}</ref><ref name="SEC">{{cite web | url=https://www.sec.gov/edgar/browse/?CIK=1318605 | title=Tesla, Inc. TSLA on Nasdaq | publisher=[[U.S. Securities and Exchange Commission]]}}</ref>'''||'''31/12/2007'''||'''31/12/2008'''||'''31/12/2009'''
|'''31/12/2010<ref name="SEC" />'''
|'''31/12/2010<ref name="SEC" />'''
|'''31/12/2011<ref name="SEC" />'''
|'''31/12/2011<ref name="SEC" />'''
|'''31/12/2012<ref name="SEC" />'''
|'''31/12/2012<ref name="SEC" />'''
|'''31/12/2013<ref name="SEC" />'''
|'''31/12/2013<ref name="SEC" />'''
|'''31/12/2014<ref name="SEC" />'''
|'''31/12/2014<ref name="SEC" />'''
|'''31/12/2015<ref name="SEC" />'''
|'''31/12/2015<ref name="SEC" />'''
|'''31/12/2016<ref name="SEC" />'''
|'''31/12/2016<ref name="SEC" />'''
|'''31/12/2017<ref name="SEC" />'''
|'''31/12/2017<ref name="SEC" />'''
|'''31/12/2018<ref name="SEC" />'''
|'''31/12/2018<ref name="SEC" />'''
|'''31/12/2019<ref name="SEC" />'''
|'''31/12/2019<ref name="SEC" />'''
|'''31/12/2020<ref name="SEC" />'''
|'''31/12/2020<ref name="SEC" />'''
|'''31/12/2021<ref name="SEC" />'''
|'''31/12/2021<ref name="SEC" />'''
|'''31/12/2022'''
|-
|'''31/12/2022'''
| colspan="18" |<div style="text-align: center;">'''Income statement'''</div>
|'''31/12/2023'''
|-
|'''31/12/2024'''
|Revenues ($'million)|| 0||0||0.073||15||112
|'''31/12/2025'''
|117
|'''31/12/2026'''
|204
|'''31/12/2027'''
|413
|'''31/12/2028'''
|2,013
|'''31/12/2029'''
|3,198
|'''31/12/2030'''
|4,046
|'''31/12/2031'''
|7,000
|'''31/12/2032'''
|11,759
|'''31/12/2033'''
|21,461
|'''31/12/2034'''
|24,578
|'''31/12/2035'''
|31,536
|'''31/12/2036'''
|53,823
|'''31/12/2037'''
|-
|'''31/12/2038'''
|Net profits ($'million)||style="color: red;" |-12||style="color: red;" |-30||style="color: red;" |-78||style="color: red;" |-83|| style="color: red;" |−56
|'''31/12/2039'''
|style="color: red;" |−154
|'''31/12/2040'''
|style="color: red;" |−254
|'''31/12/2041'''
|style="color: red;" |−396
|'''31/12/2042'''
|style="color: red;" |−74
|'''31/12/2043'''
|style="color: red;" |−294
|'''31/12/2044'''
|style="color: red;" |−889
|'''31/12/2045'''
|style="color: red;" |−675
|'''31/12/2046'''
|style="color: red;" |−1,962
|'''31/12/2047'''
|style="color: red;" |−976
|'''31/12/2048'''
|style="color: red;" |−862
|'''31/12/2049'''
|721
|'''31/12/2050'''
|5,519
|'''31/12/2051'''
|-
|'''31/12/2052'''
| colspan="18" |<div style="text-align: center;">'''Balance sheet'''</div>
|'''31/12/2053'''
|-
|'''31/12/2054'''
|Total assets<br />($'million)
|'''31/12/2055'''
|8
|'''31/12/2056'''
|44
|'''31/12/2057'''
|34
|'''31/12/2058'''
|52
|'''31/12/2059'''
|130
|'''31/12/2060'''
|386
|'''31/12/2061'''
|713
|'''31/12/2062'''
|1,114
|'''31/12/2063'''
|2,417
|5,831
|8,068
|22,664
|28,655
|29,740
|34,309
|52,148
|62,131
|-
| colspan="18" |<div style="text-align: center;">'''Other'''</div>
|-
|Employees
|NA
|70
|268
|252
|514
|899
|1,417
|2,914
|5,859
|10,161
|13,058
|17,782
|37,543
|48,817
|48,016
|70,757
|99,290
|}
 
=== Forward ===
 
====What are the financial forecasts?====
{| class="wikitable"
|+Forward financials<ref>Source: Stockhub Limited</ref><ref group="Note" name="Note04" />
|-
|-
|
!Year
|'''Historic'''
!18 !!19!!20!!21!!22
|'''Historic'''
!23
|'''Historic'''
!24
|'''Historic'''
!25
|'''Historic'''
!26
|'''Historic'''
!27
|'''Historic'''
!28
|'''Historic'''
!29
|'''Historic'''
!30
|'''Historic'''
!31
|'''Historic'''
!32
|'''Historic'''
!33
|'''Historic'''
!34
|'''Historic'''
!35
|'''Historic'''
!36
|'''Historic'''
!37
|'''Historic'''
!38
|'''Historic'''
!39
|'''Forecast'''
!40
|'''Forecast'''
!41
|'''Forecast'''
!42
|'''Forecast'''
!43
|'''Forecast'''
!44
|'''Forecast'''
!45
|'''Forecast'''
!46
|'''Forecast'''
!47
|'''Forecast'''
!48
|'''Forecast'''
!49
|'''Forecast'''
!50
|'''Forecast'''
!51
|'''Forecast'''
!52
|'''Forecast'''
!53
|'''Forecast'''
!54
|'''Forecast'''
!55
|'''Forecast'''
!56
|'''Forecast'''
!57
|'''Forecast'''
!58
|'''Forecast'''
!59
|'''Forecast'''
|'''Forecast'''
|'''Forecast'''
|'''Forecast'''
|'''Forecast'''
|'''Forecast'''
|'''Forecast'''
|'''Forecast'''
|'''Forecast'''
|'''Forecast'''
|'''Forecast'''
|'''Forecast'''
|'''Forecast'''
|'''Forecast'''
|'''Forecast'''
|'''Forecast'''
|'''Forecast'''
|'''Forecast'''
|'''Forecast'''
|'''Forecast'''
|'''Forecast'''
|
|-
| colspan="61" |<div style="text-align: center;">'''Income statement'''</div>
|-
|Revenues ($'million)|| 0||0||0.073||15||112
|117
|204
|413
|2,013
|3,198
|4,046
|7,000
|11,759
|21,461
|24,578
|31,536
|53,823
|81,462
|$78,935
|$112,257
|$154,816
|$207,049
|$268,527
|$337,721
|$411,894
|$487,157
|$558,739
|$621,448
|$670,282
|$701,078
|$711,102
|$699,445
|$667,163
|$617,116
|$553,551
|$481,510
|$406,171
|$332,253
|$263,564
|$202,749
|$151,247
|$109,414
|$76,757
|$52,217
|$34,448
|$22,038
|$13,673
|$8,226
|$4,799
|$2,715
|$1,490
|$793
|$409
|$205
|$99
|$47
|$21
|$9
|$4
|$2
|-
|-
|Gross profits ($'million)
|'''Year end date'''||'''31/12/2022'''||'''31/12/2023'''||'''31/12/2024'''||'''31/12/2025'''||'''31/12/2026'''
|
|'''31/12/2027'''
|
|'''31/12/2028'''
|
|'''31/12/2029'''
|
|'''31/12/2030'''
|
|'''31/12/2031'''
|
|'''31/12/2032'''
|
|'''31/12/2033'''
|
|'''31/12/2034'''
|
|'''31/12/2035'''
|
|'''31/12/2036'''
|
|'''31/12/2037'''
|
|'''31/12/2038'''
|
|'''31/12/2039'''
|
|'''31/12/2040'''
|
|'''31/12/2041'''
|
|'''31/12/2042'''
|
|'''31/12/2043'''
|
|'''31/12/2044'''
|$23,680
|'''31/12/2045'''
|$33,677
|'''31/12/2046'''
|$46,445
|'''31/12/2047'''
|$62,115
|'''31/12/2048'''
|$80,558
|'''31/12/2049'''
|$101,316
|'''31/12/2050'''
|$185,352
|'''31/12/2051'''
|$219,221
|'''31/12/2052'''
|$251,432
|'''31/12/2053'''
|$279,652
|'''31/12/2054'''
|$301,627
|'''31/12/2055'''
|$315,485
|'''31/12/2056'''
|$319,996
|'''31/12/2057'''
|$314,750
|'''31/12/2058'''
|$300,223
|'''31/12/2059'''
|$277,702
|'''31/12/2060'''
|$249,098
|'''31/12/2061'''
|$216,679
|'''31/12/2062'''
|$182,777
|'''31/12/2063'''
|$149,514
|-
|$118,604
| colspan="43" |<div style="text-align: center;">'''Income statement'''</div>
|$91,237
|$68,061
|$49,236
|$34,541
|$23,498
|$15,502
|$9,917
|$6,153
|$3,702
|$2,160
|$1,222
|$670
|$357
|$184
|$92
|$45
|$21
|$10
|$4
|$2
|$1
|-
|-
|Operating profits ($'million)
|Revenues ($'million)|| $78,935||$112,257||$154,816||$207,049||$268,527
|
|$337,721
|
|$411,894
|
|$487,157
|
|$558,739
|
|$621,448
|
|$670,282
|
|$701,078
|
|$711,102
|
|$699,445
|
|$667,163
|
|$617,116
|
|$553,551
|
|$481,510
|
|$406,171
|
|$332,253
|
|$263,564
|
|$202,749
|
|$151,247
|$11,840
|$109,414
|$16,839
|$76,757
|$23,222
|$52,217
|$31,057
|$34,448
|$40,279
|$22,038
|$50,658
|$13,673
|$123,568
|$8,226
|$146,147
|$4,799
|$167,622
|$2,715
|$186,434
|$1,490
|$201,085
|$793
|$210,323
|$409
|$213,331
|$205
|$209,834
|$99
|$200,149
|$47
|$185,135
|$21
|$166,065
|$9
|$144,453
|$4
|$121,851
|$2
|$99,676
|-
|$79,069
|Gross profits ($'million)||$23,680||$33,677||$46,445||$62,115||$80,558
|$60,825
|$101,316
|$45,374
|$185,352
|$32,824
|$219,221
|$23,027
|$251,432
|$15,665
|$279,652
|$10,335
|$301,627
|$6,612
|$315,485
|$4,102
|$319,996
|$2,468
|$314,750
|$1,440
|$300,223
|$815
|$277,702
|$447
|$249,098
|$238
|$216,679
|$123
|$182,777
|$61
|$149,514
|$30
|$118,604
|$14
|$91,237
|$6
|$68,061
|$3
|$49,236
|$1
|$34,541
|$1
|$23,498
|$15,502
|$9,917
|$6,153
|$3,702
|$2,160
|$1,222
|$670
|$357
|$184
|$92
|$45
|$21
|$10
|$4
|$2
|$1
|-
|-
|Net profits ($'million)|| style="color: red;" |-12|| style="color: red;" |-30|| style="color: red;" |-78|| style="color: red;" |-83|| style="color: red;" |−56
|Operating profits ($'million)||$11,840||$16,839||$23,222||$31,057||$40,279
| style="color: red;" |−154
|$50,658
| style="color: red;" |−254
|$123,568
| style="color: red;" |−396
|$146,147
| style="color: red;" |−74
|$167,622
| style="color: red;" |−294
|$186,434
| style="color: red;" |−889
|$201,085
| style="color: red;" |−675
|$210,323
| style="color: red;" |−1,962
|$213,331
| style="color: red;" |−976
|$209,834
| style="color: red;" |−862
|$200,149
|721
|$185,135
|5,519
|$166,065
|12,556
|$144,453
|$9,354
|$121,851
|$13,302
|$99,676
|$18,346
|$79,069
|$24,535
|$60,825
|$31,820
|$45,374
|$40,020
|$32,824
|$97,619
|$23,027
|$115,456
|$15,665
|$132,421
|$10,335
|$147,283
|$6,612
|$158,857
|$4,102
|$166,156
|$2,468
|$168,531
|$1,440
|$165,769
|$815
|$158,118
|$447
|$146,256
|$238
|$131,192
|$123
|$114,118
|$61
|$96,263
|$30
|$78,744
|$14
|$62,465
|$6
|$48,052
|$3
|$35,846
|$1
|$25,931
|$18,191
|$12,376
|$8,164
|$5,223
|$3,240
|$1,949
|$1,137
|$643
|$353
|$188
|$97
|$48
|$24
|$11
|$5
|$2
|$1
|$1
|$0
|-
|-
| colspan="61" |<div style="text-align: center;">'''Balance sheet'''</div>
|Net profits ($'million)||$9,354||$13,302||$18,346||$24,535|| $31,820
|-
|$40,020
|Total assets<br />($'million)
|$97,619
|8
|$115,456
|44
|$132,421
|34
|$147,283
|52
|$158,857
|130
|$166,156
|386
|$168,531
|713
|$165,769
|1,114
|$158,118
|2,417
|$146,256
|5,831
|$131,192
|8,068
|$114,118
|22,664
|$96,263
|28,655
|$78,744
|29,740
|$62,465
|34,309
|$48,052
|52,148
|$35,846
|62,131
|$25,931
|82,338
|$18,191
|
|$12,376
|
|$8,164
|
|$5,223
|
|$3,240
|
|$1,949
|
|$1,137
|
|$643
|
|$353
|
|$188
|
|$97
|
|$48
|
|$24
|
|$11
|
|$5
|
|$2
|
|$1
|
|$0
|
|}
|
 
|
==== What are the assumptions used to estimate the financial forecasts?====
|
 
|
{| class="wikitable"
|
|+Key inputs
|
!Description
|
!Value
|
!Commentary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|-
| colspan="61" |<div style="text-align: center;">'''Other'''</div>
| colspan="3" | <div style="text-align: center;">'''Revenue'''</div>
|-
|-
|Employees
|What's the estimated current size of the total addressable market?
|NA
|$2,975,000,000
|70
|Here, the total addressable market (TAM) is defined as the global automotive market, and based on a number of assumptions<ref group="Note" name="Note01" />, it is estimated that the size of the market as of today (30th May 2022), in terms of revenue, is $2.975 trillion.
|268
 
|252
 
|514
If the TAM is defined as the global energy market, then research suggests that the estimated size of the market is $6.777 trillion.<ref name=":16">https://www.ucl.ac.uk/bartlett/sustainable/sites/bartlett/files/an_exploration_of_energy_cost_ranges_limits_and_adjustment_process.pdf</ref>
|899
|-
|1,417
|What is the estimated company lifespan?
|2,914
|60 years
|5,859
|Tesla employs around 110,000, making the company a large organisation (more than 10,000 employees), and research shows that the average lifespan of a large corporation is around 50 years.<ref>Stadler, Enduring Success, 3–5.</ref>
|10,161
|-
|13,058
|What's the estimated annual growth rate of the total addressable market over the lifecycle of the company?
|17,782
|3%
|37,543
|Research shows that the growth rate of the global automotive market (i.e. the total addressable market) is similar to the growth rate of global gross domestic product<ref>http://www.robertpicard.net/files/econgrowthandadvertising.pdf</ref>, which has averaged (medium) around 3% per year in the last 20 years (2001 to 2022)<ref>https://www.macrotrends.net/countries/WLD/world/gdp-growth-rate</ref>.
|48,817
|-
|48,016
|What's the estimated company peak market share?
|70,757
|10%
|99,290
|The Stockhub users estimate that especially given the leadership of the company, the peak market share of Tesla is around 10%, and, therefore, suggests using the share amount here. As of 31st December 2021, Tesla's current share of the market is estimated at around 1.8%.
|127,855
|-
|
|Which distribution function do you want to use to estimate company revenue?
|
|Gaussian
|
|Research suggests that the revenue pattern of companies is similar to the pattern produced by the Gaussian distribution function  (i.e. the revenue distribution is bell shaped)<ref>http://escml.umd.edu/Papers/ObsCPMT.pdf</ref>, so the Stockhub users suggest using that function here.
|
|-
|
|What's the estimated standard deviation of company revenue?
|
| 6 years
|
|Another way of asking this question is this way: within how many years either side of the mean does 68% of revenue occur? Based on Tesla's current revenue amount (i.e. $54 billion) and Tesla's estimated lifespan (i.e. 60 years) and Tesla's estimated current stage of its lifecycle (i.e. growth stage), the Stockhub users suggest using 6 years (i.e. 68% of all sales happen within 6 years either side of the mean year), so that's what's used here.
|
|-
|
| colspan="3" |'''<div style="text-align: center;">Growth stages</div>'''
|
|-
|
|How many main stages of growth is the company expected to go through?
|
| 4 stages
|
|Research suggests that a company typically goes through four distinct stages of cash flow growth.<ref>Levie J, Lichtenstein BB (2010) A terminal assessment of stages theory: Introducing a dynamic approach to entrepreneurship. Entrepreneurship: Theory & Practice 34(2): 317–350. <nowiki>https://doi.org/10.1111/j.1540-6520.2010.00377.x</nowiki></ref> Research also shows that incorporating those stages into the discounted cash flow model improves the quality of the model and, ultimately, the quality of the value estimation.<ref>Stef Hinfelaar et al.:, 2019.</ref>
|
 
|
In addition, research shows that a key way to determine the stage which a company is in is by examining the cash flow patterns of the company.<ref>Dickinson, 2010.</ref> A summary of the economic links to cash flow patterns can be found in the appendix of this report. The Stockhub users estimate that with Tesla's operating cash flows positive (+), investing cash flows negative (-) and its financing cash flows positive (+), the company is in the second stage of growth (i.e. the 'growth' stage), and, therefore, it has a total of three main stages of growth. Note, to account for one-off events, the three-year average (median) amount was used to calculate the cash flows.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|}


=== What are the assumptions used to estimate the financial forecasts? ===
On 7th February 2022, Tesla said it currently expects: to continue to generate net positive operating cash flow as it has done in the last four fiscal years; its capital expenditures to be between $5.00 to $7.00 billion in 2022 and each of the next two fiscal years; and its ability to be self-funding to continue as long as macroeconomic factors support current trends in its sales. Accordingly, based on forward looking statements, it appears that the company is in stage two of the business lifecycle  (i.e. the 'growth' stage), and, therefore, it has a total of three main stages of growth remaining.
 
|-
{| class="wikitable"
|What proportion of the company lifecycle is represented by growth stage 1?
|+Key inputs
|30%
!Description
|Research suggests 30%.<ref name=":6">http://escml.umd.edu/Papers/ObsCPMT.pdf</ref>
!Value
!Commentary
|-
|-
| colspan="3" | <div style="text-align: center;">'''Revenue'''</div>
|What proportion of the company lifecycle is represented by growth stage 2?
|10%
|Research suggests 10%.<ref name=":6" />
|-
|-
|What's the estimated current size of the total addressable market?
| What proportion of the company lifecycle is represented by growth stage 3?
|$2,975,000,000
|20%
|Here, the total addressable market (TAM) is defined as the global automotive market, and based on a number of assumptions<ref group="Note" name="Note01" />, it is estimated that the size of the market as of today (30th May 2022), in terms of revenue, is $2.975 trillion.
| Research suggests 20%.<ref name=":6" />
 
 
If the TAM is defined as the global energy market, then research suggests that the estimated size of the market is $6.777 trillion.<ref name=":16">https://www.ucl.ac.uk/bartlett/sustainable/sites/bartlett/files/an_exploration_of_energy_cost_ranges_limits_and_adjustment_process.pdf</ref>
|-
|-
|What is the estimated company lifespan?
|What proportion of the company lifecycle is represented by growth stage 4?
|60 years
|40%
|Tesla employs around 110,000, making the company a large organisation (more than 10,000 employees), and research shows that the average lifespan of a large corporation is around 50 years.<ref>Stadler, Enduring Success, 3–5.</ref>
|Research suggests 40%.<ref name=":6" />
|-
|-
|What's the estimated annual growth rate of the total addressable market over the lifecycle of the company?
| colspan="3" |'''<div style="text-align: center;">Growth stage 2</div>'''
|3%
|Research shows that the growth rate of the global automotive market (i.e. the total addressable market) is similar to the growth rate of global gross domestic product<ref>http://www.robertpicard.net/files/econgrowthandadvertising.pdf</ref>, which has averaged (medium) around 3% per year in the last 20 years (2001 to 2022)<ref>https://www.macrotrends.net/countries/WLD/world/gdp-growth-rate</ref>.
|-
|-
|What's the estimated company peak market share?
|Cost of goods sold as a proportion of revenue (%)
|10%
|79%
|The Stockhub users estimate that especially given the leadership of the company, the peak market share of Tesla is around 10%, and, therefore, suggests using the share amount here. As of 31st December 2021, Tesla's current share of the market is estimated at around 1.8%.
|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7">http://people.stern.nyu.edu/adamodar/pdfiles/papers/younggrowth.pdf</ref>, and the margin for its peers is 79%. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.  
|-
|-
|Which distribution function do you want to use to estimate company revenue?
|Operating expenses as a proportion of revenue (%)
|Gaussian
|15%
|Research suggests that the revenue pattern of companies is similar to the pattern produced by the Gaussian distribution function  (i.e. the revenue distribution is bell shaped)<ref>http://escml.umd.edu/Papers/ObsCPMT.pdf</ref>, so the Stockhub users suggest using that function here.
|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />, and the margin for its peers is 15%. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|-
|What's the estimated standard deviation of company revenue?
|Tax rate (%)
| 6 years
|11%
|Another way of asking this question is this way: within how many years either side of the mean does 68% of revenue occur? Based on Tesla's current revenue amount (i.e. $54 billion) and Tesla's estimated lifespan (i.e. 60 years) and Tesla's estimated current stage of its lifecycle (i.e. growth stage), the Stockhub users suggest using 6 years (i.e. 68% of all sales happen within 6 years either side of the mean year), so that's what's used here.
|Research suggests that it's best to use a similar rate as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />, and the rate for its peers is 11%.
|-
|-
| colspan="3" |'''<div style="text-align: center;">Growth stages</div>'''
|Depreciation and amortisation as a proportion of revenue (%)
|7%
|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />, and the margin for its peers is 7%. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|-
|How many main stages of growth is the company expected to go through?
|Fixed capital as a proportion of revenue (%)
| 4 stages
|10%
|Research suggests that a company typically goes through four distinct stages of cash flow growth.<ref>Levie J, Lichtenstein BB (2010) A terminal assessment of stages theory: Introducing a dynamic approach to entrepreneurship. Entrepreneurship: Theory & Practice 34(2): 317–350. <nowiki>https://doi.org/10.1111/j.1540-6520.2010.00377.x</nowiki></ref> Research also shows that incorporating those stages into the discounted cash flow model improves the quality of the model and, ultimately, the quality of the value estimation.<ref>Stef Hinfelaar et al.:, 2019.</ref>
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />, and the amount for its peers is 10%. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
 
In addition, research shows that a key way to determine the stage which a company is in is by examining the cash flow patterns of the company.<ref>Dickinson, 2010.</ref> A summary of the economic links to cash flow patterns can be found in the appendix of this report. The Stockhub users estimate that with Tesla's operating cash flows positive (+), investing cash flows negative (-) and its financing cash flows positive (+), the company is in the second stage of growth (i.e. the 'growth' stage), and, therefore, it has a total of three main stages of growth. Note, to account for one-off events, the three-year average (median) amount was used to calculate the cash flows.
 
On 7th February 2022, Tesla said it currently expects: to continue to generate net positive operating cash flow as it has done in the last four fiscal years; its capital expenditures to be between $5.00 to $7.00 billion in 2022 and each of the next two fiscal years; and its ability to be self-funding to continue as long as macroeconomic factors support current trends in its sales. Accordingly, based on forward looking statements, it appears that the company is in stage two of the business lifecycle  (i.e. the 'growth' stage), and, therefore, it has a total of three main stages of growth remaining.
|-
|-
|What proportion of the company lifecycle is represented by growth stage 1?
|Working capital as a proportion of revenue (%)
|30%  
|15%  
|Research suggests 30%.<ref name=":6">http://escml.umd.edu/Papers/ObsCPMT.pdf</ref>
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />, and the amount for its peers is 15%.
|-
|-
|What proportion of the company lifecycle is represented by growth stage 2?
|Net borrowing ($000)
|10%
|Zero
|Research suggests 10%.<ref name=":6" />
|Stockhub suggests that for simplicity, the net borrowing figure is zero.
|-
|-
| What proportion of the company lifecycle is represented by growth stage 3?
|Interest amount ($000)
|20%
|Zero
| Research suggests 20%.<ref name=":6" />
|Stockhub suggests that for simplicity, the interest amount figure is zero.
|-
|-
|What proportion of the company lifecycle is represented by growth stage 4?
| colspan="3" |'''<div style="text-align: center;">Growth stage 3</div>'''
|40%
|Research suggests 40%.<ref name=":6" />
|-
| colspan="3" |'''<div style="text-align: center;">Growth stage 2</div>'''
|-
|-
|Cost of goods sold as a proportion of revenue (%)  
|Cost of goods sold as a proportion of revenue (%)  
|79%
|62%
|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7">http://people.stern.nyu.edu/adamodar/pdfiles/papers/younggrowth.pdf</ref>, and the margin for its peers is 79%. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.  
|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />, and the margin for its peers is 62%. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.  
|-
|-
|Operating expenses as a proportion of revenue (%)
|Operating expenses as a proportion of revenue (%)
|15%
|13%
|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />, and the margin for its peers is 15%. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />, and the margin for its peers is 13%. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|-
|Tax rate (%)  
|Tax rate (%)  
|11%
|14%
|Research suggests that it's best to use a similar rate as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />, and the rate for its peers is 11%.
|Research suggests that it's best to use a similar rate as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />, and the rate for its peers is 14%. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|-
|Depreciation and amortisation as a proportion of revenue (%)  
|Depreciation and amortisation as a proportion of revenue (%)  
|7%
|4%
|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />, and the margin for its peers is 7%. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />, and the amount for its peers is 4%. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|-
|Fixed capital as a proportion of revenue (%)  
|Fixed capital as a proportion of revenue (%)  
|10%
|3%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />, and the amount for its peers is 10%. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />, and the amount for its peers is 3%. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|-
|Working capital as a proportion of revenue (%)
|Working capital as a proportion of revenue (%)
|15%  
|10%  
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />, and the amount for its peers is 15%.
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />, and the amount for its peers is 10%. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|-
|Net borrowing ($000)
|Net borrowing ($000)
|Zero
|Zero
|Stockhub suggests that for simplicity, the net borrowing figure is zero.
|The Stockhub users suggest that for simplicity, the net borrowing figure is zero.
|-
|-
|Interest amount ($000)
|Interest amount ($000)
|Zero
|Zero
|Stockhub suggests that for simplicity, the interest amount figure is zero.
|The Stockhub users suggest that for simplicity, the interest amount figure is zero.
|-
|-
| colspan="3" |'''<div style="text-align: center;">Growth stage 3</div>'''
| colspan="3" |'''<div style="text-align: center;">Growth stage 4</div>'''
|-
|-
|Cost of goods sold as a proportion of revenue (%)  
|Cost of goods sold as a proportion of revenue (%)  
|62%
|99%
|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />, and the margin for its peers is 62%. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.  
|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />, and the margin for its peers is 99%. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.  
|-
|-
|Operating expenses as a proportion of revenue (%)
|Operating expenses as a proportion of revenue (%)
|13%
|15%
|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />, and the margin for its peers is 13%. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />, and the margin for its peers is 15%. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|-
|Tax rate (%)  
|Tax rate (%)  
|14%
|0%
|Research suggests that it's best to use a similar rate as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />, and the rate for its peers is 14%. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|Research suggests that it's best to use a similar rate as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />, and the rate for its peers is 0%. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|-
|Depreciation and amortisation as a proportion of revenue (%)  
|Depreciation and amortisation as a proportion of revenue (%)  
|4%
|37%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />, and the amount for its peers is 4%. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />, and the amount for its peers is 37%. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|-
|Fixed capital as a proportion of revenue (%)  
|Fixed capital as a proportion of revenue (%)
|3%
| 1%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />, and the amount for its peers is 3%. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />, and the amount for its peers is 1%. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|-
|Working capital as a proportion of revenue (%)
|Working capital as a proportion of revenue (%)
|10%  
| 10%  
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />, and the amount for its peers is 10%. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />, and the amount for its peers is 10%. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|-
Line 1,278: Line 1,103:
|Zero
|Zero
|The Stockhub users suggest that for simplicity, the interest amount figure is zero.
|The Stockhub users suggest that for simplicity, the interest amount figure is zero.
|-
|}
| colspan="3" |'''<div style="text-align: center;">Growth stage 4</div>'''
 
|-
==Risks==
|Cost of goods sold as a proportion of revenue (%)
 
|99%
As with any investment, investing in Tesla carries a level of risk. Overall, based on the key risks highlighted below, the degree of risk associated with an investment in Tesla is high.
|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />, and the margin for its peers is 99%. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.  
 
|-
===Risks related to the ability to grow the business===
|Operating expenses as a proportion of revenue (%)
 
|15%
*Tesla may be impacted by macroeconomic conditions resulting from the global COVID-19 pandemic.
|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />, and the margin for its peers is 15%. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
*Tesla may experience delays in launching and ramping the production of its products and features, or Tesla may be unable to control its manufacturing costs.
|-
*Tesla may be unable to grow its global product sales, delivery and installation capabilities and its servicing and vehicle charging networks, or Tesla may be unable to accurately project and effectively manage its growth.
|Tax rate (%)
*Tesla's future growth and success is dependent upon consumers’ demand for electric vehicles and specifically its vehicles in an automotive industry that is generally competitive, cyclical and volatile.
|0%
*Tesla's suppliers may fail to deliver components according to schedules, prices, quality and volumes that are acceptable to us, or Tesla may be unable to manage these components effectively.
|Research suggests that it's best to use a similar rate as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />, and the rate for its peers is 0%. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
*Tesla may be unable to meet its projected construction timelines, costs and production ramps at new factories, or Tesla may experience difficulties in generating and maintaining demand for products manufactured there.
|-
* Tesla will need to maintain and significantly grow its access to battery cells, including through the development and manufacture of its own cells, and control its related costs.
|Depreciation and amortisation as a proportion of revenue (%)
*Tesla faces strong competition for its products and services from a growing list of established and new competitors.
|37%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />, and the amount for its peers is 37%. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Fixed capital as a proportion of revenue (%)
| 1%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />, and the amount for its peers is 1%. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Working capital as a proportion of revenue (%)
| 10%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />, and the amount for its peers is 10%. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Net borrowing ($000)
|Zero
|The Stockhub users suggest that for simplicity, the net borrowing figure is zero.
|-
|Interest amount ($000)
|Zero
|The Stockhub users suggest that for simplicity, the interest amount figure is zero.
|}


==Risks==
===Risks related to the company's operations===


As with any investment, investing in Tesla carries a level of risk.  Overall, based on the Tesla's adjusted beta (i.e. 2.12), the degree of risk associated with an investment in Tesla is 'high'.
*Tesla may experience issues with lithium-ion cells or other components manufactured at Gigafactory Nevada and Gigafactory Shanghai, which may harm the production and profitability of its vehicle and energy storage products.
 
*Tesla faces risks associated with maintaining and expanding its international operations, including unfavourable and uncertain regulatory, political, economic, tax and labour conditions.
Here, to estimate the adjusted beta, we used the iShares MSCI World ETF to represent the market portfolio; and in terms of the time period and frequency of observations, we used five years of monthly data (i.e. 60 observations in total), which is supported by a study and is the most common choice. The beta value in a future period has been found to be on average closer to the mean value of 1.0, and because valuation is forward-looking, it is logical to adjust the raw beta so it more accurately predicts a future beta. In addition, here, we have assumed that for an investment to be considered 'high' risk, it must have a beta value of 1.5 or more. Further information about the beta ratings can be found in the appendix section of this report.
*Tesla's business may suffer if its products or features contain defects, fail to perform as expected or take longer than expected to become fully functional.
 
The key risks can be found below. For us, currently, the biggest risk to the valuation of the company relates to the strong competition for its products and services from a growing list of established and new competitors (i.e. competition risk).
 
===Risks related to the ability to grow the business===
 
*Tesla may be impacted by macroeconomic conditions resulting from the global COVID-19 pandemic.
*Tesla may experience delays in launching and ramping the production of its products and features, or Tesla may be unable to control its manufacturing costs.
*Tesla may be unable to grow its global product sales, delivery and installation capabilities and its servicing and vehicle charging networks, or Tesla may be unable to accurately project and effectively manage its growth.
*Tesla's future growth and success is dependent upon consumers’ demand for electric vehicles and specifically its vehicles in an automotive industry that is generally competitive, cyclical and volatile.
*Tesla's suppliers may fail to deliver components according to schedules, prices, quality and volumes that are acceptable to us, or Tesla may be unable to manage these components effectively.
*Tesla may be unable to meet its projected construction timelines, costs and production ramps at new factories, or Tesla may experience difficulties in generating and maintaining demand for products manufactured there.
* Tesla will need to maintain and significantly grow its access to battery cells, including through the development and manufacture of its own cells, and control its related costs.
*Tesla faces strong competition for its products and services from a growing list of established and new competitors.
 
===Risks related to the company's operations===
 
*Tesla may experience issues with lithium-ion cells or other components manufactured at Gigafactory Nevada and Gigafactory Shanghai, which may harm the production and profitability of its vehicle and energy storage products.
*Tesla faces risks associated with maintaining and expanding its international operations, including unfavourable and uncertain regulatory, political, economic, tax and labour conditions.
*Tesla's business may suffer if its products or features contain defects, fail to perform as expected or take longer than expected to become fully functional.
*Tesla may be required to defend or insure against product liability claims.
*Tesla may be required to defend or insure against product liability claims.
*Tesla will need to maintain public credibility and confidence in its long-term business prospects in order to succeed.
*Tesla will need to maintain public credibility and confidence in its long-term business prospects in order to succeed.
Line 2,673: Line 2,460:
|Agriculture, Forestry and Land Use
|Agriculture, Forestry and Land Use
|}
|}
=== Liquidity ===
Our assessment reveals that Tesla's shares exhibit a high level of liquidity, as evidenced by its bid-ask margin of 0.0297%. To gauge the bid-ask margin, we divided the ask-bid spread by the ask price. Our criterion for classifying an investment as 'highly' liquid is a bid-ask margin of 1% or less. For more details on liquidity ratings, please refer to the appendix section of this report.
Furthermore, the average daily trading volume of Tesla, Inc. shares is 132,160,233 for 30 days and 127,970,670 for 90 days, which, based on the current share price (i.e. $168.29), equates to a share value of $22.24 billion and $21.54 billion.
{| class="wikitable"
|+Tesla bid-ask margin
!Metric
!Amount
|-
|Bid price (USD)
|168.24
|-
|Ask price (USD)
|168.29
|-
|Spread (USD)
|0.05
|-
|Margin (%)
|0.0297
|}
{| class="wikitable"
|+Average Tesla shares trade volume
!Days
!Average shares volume
|-
|30 days
|   132,160,233
|-
|90 days
|  127,970,670
|}
{| class="wikitable"
|+Tesla shares trade volume over the last 90 days
!Date
!Volume
|-
|28/04/2023
|        122,515,800
|-
|01/05/2023
|        109,015,000
|-
|02/05/2023
|        128,259,700
|-
|03/05/2023
|        119,728,000
|-
|04/05/2023
|          95,108,500
|-
|05/05/2023
|        107,440,900
|-
|08/05/2023
|        112,249,400
|-
|09/05/2023
|          88,965,000
|-
|10/05/2023
|        119,840,700
|-
|11/05/2023
|        103,889,900
|-
|12/05/2023
|        157,577,100
|-
|15/05/2023
|        105,592,500
|-
|16/05/2023
|          98,288,800
|-
|17/05/2023
|        125,473,600
|-
|18/05/2023
|        109,520,300
|-
|19/05/2023
|        136,024,200
|-
|22/05/2023
|        132,001,400
|-
|23/05/2023
|        156,952,100
|-
|24/05/2023
|        137,605,100
|-
|25/05/2023
|          96,870,700
|-
|26/05/2023
|        162,061,500
|-
|30/05/2023
|        128,818,700
|-
|31/05/2023
|        150,711,700
|-
|01/06/2023
|        148,029,900
|-
|02/06/2023
|        164,129,000
|-
|05/06/2023
|        151,143,100
|-
|06/06/2023
|        146,911,600
|-
|07/06/2023
|        185,710,800
|-
|08/06/2023
|        164,489,700
|-
|09/06/2023
|        199,882,300
|-
|12/06/2023
|        150,337,900
|-
|13/06/2023
|        162,384,300
|-
|14/06/2023
|        170,575,500
|-
|15/06/2023
|        160,171,200
|-
|16/06/2023
|        167,563,700
|-
|20/06/2023
|        165,611,200
|-
|21/06/2023
|        211,797,100
|-
|22/06/2023
|        166,875,900
|-
|23/06/2023
|        176,584,100
|-
|26/06/2023
|        179,990,600
|-
|27/06/2023
|        164,968,200
|-
|28/06/2023
|        159,770,800
|-
|29/06/2023
|        131,283,400
|-
|30/06/2023
|        112,267,600
|-
|03/07/2023
|        119,685,900
|-
|05/07/2023
|        131,530,900
|-
|06/07/2023
|        120,332,100
|-
|07/07/2023
|        113,602,000
|-
|10/07/2023
|        119,425,400
|-
|11/07/2023
|          91,972,400
|-
|12/07/2023
|          95,672,100
|-
|13/07/2023
|        112,681,500
|-
|14/07/2023
|        119,771,100
|-
|17/07/2023
|        131,569,600
|-
|18/07/2023
|        112,434,700
|-
|19/07/2023
|        142,355,400
|-
|20/07/2023
|        175,158,300
|-
|21/07/2023
|        161,050,100
|-
|24/07/2023
|        136,508,500
|-
|25/07/2023
|        112,757,300
|-
|26/07/2023
|          95,856,200
|-
|27/07/2023
|        103,697,300
|-
|28/07/2023
|        111,446,000
|-
|31/07/2023
|          84,582,200
|-
|01/08/2023
|          83,166,000
|-
|02/08/2023
|        101,752,900
|-
|03/08/2023
|          97,569,100
|-
|04/08/2023
|          99,242,600
|-
|07/08/2023
|        111,097,900
|-
|08/08/2023
|          96,642,200
|-
|09/08/2023
|        101,596,300
|-
|10/08/2023
|        109,498,600
|-
|11/08/2023
|          98,866,600
|-
|14/08/2023
|          98,595,300
|-
|15/08/2023
|          88,197,600
|-
|16/08/2023
|        112,484,500
|-
|17/08/2023
|        120,718,400
|-
|18/08/2023
|        135,813,700
|-
|21/08/2023
|        135,702,700
|-
|22/08/2023
|        130,597,900
|-
|23/08/2023
|        101,077,600
|-
|24/08/2023
|          99,777,400
|-
|25/08/2023
|        106,612,200
|-
|28/08/2023
|        107,673,700
|-
|29/08/2023
|        134,047,600
|-
|30/08/2023
|        121,988,400
|-
|31/08/2023
|        108,861,700
|-
|01/09/2023
|        132,272,500
|-
|05/09/2023
|        129,469,600
|-
|06/09/2023
|        116,959,800
|}


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