Tesla Stock Report

(TSLA) 02/18/2020

Market: U.S. Price as of 02/12/2020: $767.29

GICS Sector: Consumer Discretionary Portfolio weight: 5%
GICS Industry: Automobile Portfolio Manager: Andrew Corpuz
Stock Rating: Buy Contact Information: acorpuz@scu.edu

I. Company Description:

Tesla is an automotive company based in the U.S., who specializes in fully electric vehicles. Founded in
San Carlos, CA, their mission is to accelerate the process of the world’s transition into sustainable energy.
Tesla makes a wide variety of electrical cars, ranging from luxury sedans, SUVs, sports cars, and their
latest product which is a fully electric truck. One of the more popular features of their vehicles are their
ability to drive autonomously. The company is led by Elon Musk who is a public icon and avid supporter of
a clean and sustainable world.

II. Industry Analysis:

Strengths Weaknesses
 Constant innovation and advancement  Different and evolving government
 Cheap labor in certain parts of the world regulations
 High demand for automobiles  High employee turnover
 Consumers have lots of bargaining power
Opportunities Threats
 Consistently expanding market  Coronavirus can slow sales
 Growing demand for environmentally  Volatile fuel prices
friendly cars  Rising competition
 Changing lifestyle and customer groups

II. Industry Analysis (cont’d):

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Price History – TSLA (Sep. – Feb. 2020) Fundamental Information

52-Week Price Range: $176.99 –

$968.99
Annual Return: 148.98 (%)
Annual Volatility: 3.61 (%)
Beta: .01 (Benchmark: SPX)
EPS 2019: ($4.10)
EPS 2020, Q1 (Est.): ($0.54)
EPS Growth Rate: 113.17%
Dividend Yield: N/A
P/E (TTM): ($162.61) (2019)
P/Book (MRQ): 21.88
P/Sales (TTM): 5.90
MRQ: Most recent quarter;
TTM: Trailing 12 months
Sources: Mergent Database

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III. Reasons for the stock rating: Buy
A. Return Factors:

 World is turning more to electric cars as demand for clean energy increases
 New factories in China and Germany will expand markets
 Over a quarter million preorders placed for the new Cyber Truck

B. Risk Factors:

 Coronavirus threatens the growth of the Chinese market

 Constraints on production due to limited factories currently
 Hard time producing a profit due to consistent growth of the company

C. (Optional) Other consideration:

 Elon Musk is a generally liked public figure and regarded as a good CEO. However, his multiple
companies can pull his attention in different directions and therefore cannot solely focus on Tesla.

IV. References:

 https://www.theverge.com/2020/1/29/21113987/tesla-q4-2019-earnings-results-profit-
revenue-model-3
 https://finance.yahoo.com/quote/tsla/key-statistics/
 https://www.businessinsider.com/tesla-plan-to-build-factory-in-germany-makes-no-sense-
2019-11
 https://stockcharts.com/
 https://www.spendedge.com/blogs/swot-analysis-automobile-industry