Tesla's Strong Fundamentals: A Long-Term Investor's Perspective

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Tesla's Strong Fundamentals: A Long-Term Investor's Perspective

Despite concerns about Tesla's stock decline and potential layoffs, long-term investors should focus on the company's strong fundamentals, including consistent revenue and operating income growth, projected revenue growth, and potential for massive growth in the future

Questions to inspire discussion

  • What should long-term investors focus on when considering Tesla's stock?

    Long-term investors should focus on Tesla's strong fundamentals, including consistent revenue and operating income growth, projected revenue growth, and potential for massive growth in the future.

  • What are the important KPIs for understanding Tesla's fundamentals?

    Important KPIs for understanding Tesla's fundamentals include revenue, gross profits, operating income, vehicle deliveries, automotive sales revenue, energy sector growth, and the potential impact of the Shanghai mega pack Factory.

  • What is the potential for Tesla's stock to increase in the future?

    Tesla's stock has the potential to increase significantly in the future due to the growth of their business, particularly with the introduction of the robo taxi and the increase in EPS.

  • How has Tesla's revenue and operating income grown over the past 10 years?

    Tesla's fundamentals show consistent revenue and operating income growth, with a prediction of $110 billion in revenue by 2024, and potential for massive growth in 2026 and onwards.

  • What is the importance of using charts to understand financial statements?

    Using charts to understand financial statements is important for gaining insight into Tesla's financial performance and potential for long-term success.

 

Key Insights

  • 📈 The growth in revenue, gross profits, and operating income at Tesla since 2016 is significant, especially when zooming out to 10 years or more.
  • 📈 Despite potential flatness in 2024 and 2025, Tesla's fundamentals indicate a massive growth in the years to come.
  • 💰 Total assets can pay off their total liabilities twofolds, which is insane for a lean company like Tesla.
  • 💰 Revenue per employee at Tesla is around $756,000, showing the company's efficiency in generating revenue.
  • 📊 Understanding fundamental financial metrics like price to sales, P/E, and debt to equity is crucial for evaluating the health of a company like Tesla.
  • 📈 Vehicle deliveries and automotive sales revenue show exponential growth, indicating potential for continued success in the future.
  • 🚗 Tesla's supercharger network could generate billions in revenue and profits in the long term, making them the gas station for EVs in North America and potentially other parts of the world.
  • 💰 The exponential growth in revenue is expected to continue, reaching over 8 billion in 2024.

#Tesla

XMentions: @Tesla CuriousPejjy 

Clips

  • 00:00 📉 Tesla stock decline causing concern about layoffs and financial stability, but long-term investors should focus on company fundamentals for potential success.
    • Investors are panicking as Tesla's stock continues to decline, leading to concerns about recent layoffs and the company's financial stability.
    • Investing in Tesla stock is a long-term commitment, and it's important to focus on the fundamentals to understand the company's potential for long-term success.
  • 01:56 📈 Understanding Tesla's fundamentals through universal and unique KPIs, insider trading, cash and balance sheet, dividends, and significant growth in revenue, gross profits, and operating income over the past 10 years is important.
    • The speaker discusses the importance of using charts to understand financial statements and offers a sponsorship link for a financial analysis tool.
    • Universal KPIs, insider trading, cash and balance sheet, dividends, and unique KPIs are important for understanding Tesla's fundamentals, with a focus on revenue, gross profits, and operating income showing significant growth over the past 10 years.
  • 03:53 📈 Tesla's fundamentals indicate consistent revenue and operating income growth, with a predicted $110 billion in revenue by 2024 and potential for massive growth in 2026 and onwards, despite flat net income since 20122.
    • Tesla's fundamentals show consistent revenue and operating income growth, with a prediction of $110 billion in revenue by 2024, and potential for massive growth in 2026 and onwards.
    • Net income for Tesla has been flat since 20122, but with tax losses removed, it would be above two billion, showing improvement.
    • Tesla's stock has the potential to increase significantly in the future due to the growth of their business, particularly with the introduction of the robo taxi and the increase in EPS.
  • 06:45 🚗 Tesla's stock has seen growth in revenue and operating income, with periods of flat performance due to heavy investment in innovation and reinvestment back into the company, leading to predicted revenue growth and a minor decrease in operating income, fluctuating yearly operating income growth, and historically exceeding operating expenses.
    • Tesla's stock has seen significant growth in revenue and operating income, with periods of flat performance due to the company's heavy investment in innovation and reinvestment back into the company.
    • Tesla is innovative and constantly reinvesting and innovating, with a predicted revenue growth and a minor decrease in operating income.
    • Tesla's yearly operating income growth has been fluctuating, with negative margins in the past but consistent positive margins in recent years.
    • Tesla's operating expenses have historically exceeded income, but they are expected to continue investing and innovating, leading to increased operating expenses in the future.
    • Insider trading data and the cash and balance sheet are important fundamentals to consider when evaluating Tesla's stock.
  • 11:25 📈 Tesla's strong financial position, growing equity, and projected revenue growth make it a favorable investment, despite potential decreases in earnings per share.
    • Tesla's total assets can pay off their total liabilities twofold, the company has a strong cash and working capital position, and their equity keeps growing every year, which is important for the value of their shares.
    • Tesla's earnings per share were $227 due to tax benefits, but it is expected to decrease in the future, with potential improvement by 2025.
    • Tesla's revenue per share is around $719 quarterly and is projected to reach $27-28 by 2023, with a price to earnings ratio of around 52-53.
    • Tesla's fundamentals show a low price to earnings ratio, high revenue per employee, and a lean debt to equity ratio.
    • The price to sales ratio for Tesla has fluctuated over the years, with some periods being more favorable for investment than others, and there are several fundamental factors to consider such as price to sales, PE ratio, and debt to equity.
  • 16:22 🚗 Tesla's revenue is projected to grow exponentially due to the expansion of superchargers and mega pack factories worldwide, with the potential for autonomy in the near future.
    • Important KPIs for Tesla's fundamentals include vehicle deliveries, automotive sales revenue, energy sector growth, and the potential impact of the Shanghai mega pack Factory.
    • Tesla's revenue is projected to reach $8.3 billion in 2023 and potentially $10-12 billion in 2024, with the Supercharger Network expected to generate billions in revenue and profits by 2030-2035.
    • Tesla's revenue is expected to grow exponentially due to the expansion of superchargers and mega pack factories worldwide.
    • Tesla's supercharger station and connector growth has been significant, with 55,000 supercharger connectors and almost 6,000 supercharger stations by Q4 2023, and the collection of FSD miles is increasing rapidly, with 1 billion miles collected in April and the potential for autonomy in the near future.
  • 20:41 🚗 Tesla's fundamentals are strong and moving in the right direction, with potential for some stagnation before growth, similar to Amazon's trajectory.
    • The company's fundamentals are strong and moving in the right direction, with potential for some stagnation before growth.
    • Tesla is continuing to innovate, make money, and reinvest back into the company, similar to Amazon, and the fundamentals suggest that it will be roaring again in the future.
  • 22:10 📈 Check out the DI t-shirt to support the channel and subscribe for more content.

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    Duration: 0:22:21

    Publication Date: 2024-04-17T19:39:49Z

    WatchUrl: https://www.youtube.com/watch?v=sTa4Q7bpY-c

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