TESLA MOTORS INC.TSLA(NASDAQ)CLOSING PRICE:$188.34BETA: 0.9547
BUSINESS MODEL ANALYSIS
COMPANY OUTLOOK
• Tesla has ramped up the production of MODEL X and MODEL 3.
• MODEL X is aimed mid-tier income range consumers in order to expnd the customer base with base price $35,000.• MODEL 3 is slotted to ship in late 2017.• Launched Autopilot during 4th Quarter of 2015 and Powerwall will
be introduced • The stock faces pressure because of decline in fuel prices
BACKGROUND
• Tesla Motors was founded in 2003 by Elon Musk in San Carlos, CA.• Market Capital: $24.66 billion• Common Stock: 127,225,000 shares• Leading developer of electric-vehicle technology• IPO was held on June 29, 2010. 13.30 million shares were offered
for $17.00 each.• Lead managers at IPO : Deutsche Bank, Goldman Sachs, Morgan
Stanley, J.P. Morgan
CAPITAL STRUCTURE AS OF 9/30/15
• Total Debt: $2633.2 million• Due 5 years: $1589.3 million• Long Term Debt: $2605.2 million• Long Term Interest: $27 million
EXPANSION
• Gigafactory 1 in Nevada operates at 14% capacity and the company has set sights on deploying full capacity.• Gigafactory 2 is likely to be developed in Europe and Asia as
company aims to expand the manufacturing capability regionally.• Japan and Germany are the foremost runner for construction
prospects.
TESLA VS COMPETITORS
GAS PRICES EFFECT
KEY FINANCIALS
OVER ALL COMPANY OUTLOOK
SALES
EARNINGS PER SHARE
FAMA-FRENCH ANALYSIS
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1Fama French Analysis
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SWOT ANALYSIS
SUMMARY
• Company’s Financial Strength B+.• Stock Price Stability: 10• Price Growth Persistence: 100• Earnings Predictability: Volatile but share price is expected to
grow. • US Institutional Decisions based on 2015.• Buy : 277 , Sell: 187
PROPOSITION
• 20-25 shares at current price
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