...Financial Statement Analysis for Tesla Motors Introduction There are a lot of automobile companies in the world and some of them have special technologies of their own. The technology industry is not as competitive as other industries. It requires highly technological innovations to operate efficiently. As long as companies keep coming up with new creative design ideas, the industry will keep producing products and making profit, but it is not easy for any company, even Tesla Motors. Tesla Motors successfully used battery technology on their automobiles, which leads the company in the electric automaker field. In the automotive industry, some auto companies use specialized technology of their own. Tesla Motors is one of these companies, which has successfully used its battery technology on automobiles, and has helped the company become very successful. Company Overview Tesla Motors, Inc. is an American company that designs and sells electric cars and electric vehicle power train components. It is a public company whose stocks trades on the NASDAQ stock exchange under the symbol TSLA. Tesla Motors first gained world’s attention according to its production of the Tesla Roadster, the first fully electric sports car. The company's second vehicle is the Model S, which is a fully electric luxury sedan. Tesla Motors also sells electric power train components, including lithium-ion battery packs. Its CEO, Elon Musk, has said that he envisions Tesla as an independent...
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...Tesla Motors 3500 Deer Creek Palo Alto, CA 94304 650-681-5000 650-681-5101 I. I. Background and Introduction The focus of this analysis is on Tesla Motors and the electric vehicles they design, develop, and manufacture. Tesla Motors was incorporated in 2003 and using technology developed at the headquarters in California the company introduced the Tesla Roadster in 2008 (Tesla Motors, 2010b). On June 28, 2010 the company filed an initial public offering that was accepted by the SEC. They have also become business partners with Toyota Motor Corporation to develop an electronic version of the Toyota RAV4 to be sold in 2012 (Tesla Motors, 2010b). The importance of this analysis is two-fold. First, if a company can successfully develop a fully electric vehicle that is affordable and has mass market appeal it would mark a realistic solution to the diminishing worldwide oil supplies. Second, the technology that would be developed could be used as a springboard for the entire automotive industry. As with any business that is being hinged on new technology, there are significant risks and issues that could potentially be detrimental to the company. Being a new company, there is a very limited operating history for potential investors to go by (Tesla Motors, 2010b). Therefore, future earnings cannot be predicted based on past earnings. The company is losing money and in the SEC filing for the last quarter they state that they expect to keep losing money for...
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...Corporate Finance SS 2014 Case Study : “Tesla Motors” by Univ. Prof. Dr. D. Hess Universität zu Köln Maite Barreneche Matrikelnummer : Mónica Cabello Mera Matrikelnummer : 5760380 Irene García Cutillas Matrikelnummer : 5758718 Fernanda Sottil De Aguinaga Matrikelnummer : 5760828 TABLE OF CONTENTS 1. Tesla´s business model 3 2. Percentage of sales method 4 3. Valuation 5 i. Growth rate determination for the terminal value period 6 ii. Payout determination for the terminal value period 6 iii. Market risk premium and risk free rate determination 6 iv. Equity beta determination 6 v. Required rate of return determination 7 vi. Flow to Equity 8 vii. Company valuation 8 4. Robustness check 8 5. Reflection 1. Tesla’s business model Tesla Motors Inc. is a company that focuses on designing, developing and manufacturing fully electric cars and advanced electric vehicle powertrain components. The enterprise also provides development services for the powertrain systems and components it produces by selling them afterwards to other automotive manufacturers. Among the products Tesla offers the market are the sedan Model S, the Tesla Roadster sports car, the Model X minivan and other stationary energy storage products the company has developed. Because of environmental consciousness, the impact of rising oil and gasoline prices, the new government...
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...Yd461@stern.nyu.edu 347-3073175 Analyst Report for Tesla Motors, Inc The following report will explain all the summary statistics for Tesla Motors as well as all assumptions used in the equity valuation. This report serves to offer a broad overview of the general performance of the company and an analysis of its true value. It can be divided into the following sections, profitability statistics, liquidity statistics, solvency statistics, DCF valuation, relative valuation, and technical analysis. Probability Statistics: Tesla Motors does not currently have very promising profitability statistics as the company is still young and is preparing for massive production of electric vehicles. However, as seen in the model, the condition can be hugely improved in the future even in the down side case. Currently, the company faces two challenges to improve its profitability performance, increasing revenue and reducing cost of production. The company’s net revenue have grown at a very high rate in 2012 and 2013 due to the introduction of Model S. It is reasonable to expect continuous rapid growth in the next five years as well. The company will keep growing with a decreasing growth rate as the company become mature. This will eventually bring the net revenue form the current 2 billion to a sounder 8.5 billion. This projection is reasonable because market for electric cars will become very big in the next ten years and Tesla with its advanced technology and design will have a...
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...Linda-M. Cozzani Foster Glenn Fabrizio Sebastiani Financial Statement Analysis Prof. S. Bozzolan LBS Groupwork, 2016 Tesla Motors, Inc._Cascioli, Cozzani, Glenn, Sebastiani 2 Table of Contents I. Executive Summary………………………………………………………………………......………………………3 II. Company Description………………………………………………………………………………………………..3 A. History……………………………………………………………………………………………………………………………..3 B. Mission…………………………………………………………………………………………………………………………….4 C. Products…………………………………………………………………………………………………………………………..4 III. Industry and Strategic Analysis………………………………………………………………………………..5 A. The Company’s Porter’s Five Forces Analysis……………………………………………………………………5 IV. Financial Analysis…………………………………………………………………………………………………….6 A. Tesla’s General Financial Strategy…………………………………………………………………………………….6 V. Works Cited and Consulted…………………………………………………………….………………………10 VI. Annexes A. ANNEXE 3. Cash Flow Tesla Motors, Inc…………………………………………………………………………..11 B. ANNEXE 2. Reformulated Income Statement Tesla Motors, Inc. ………………………………………..13 C. ANNEXE 1. Reformulated Balance Sheet Tesla Motors, Inc. ……………………………………………...14 Tesla Motors, Inc._Cascioli, Cozzani, Glenn, Sebastiani 3 I. Executive Summary The American electric vehicle company Tesla Motors, Inc. (TSLA) embodies an innovative manufacturer of premium electric...
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...resolved. Organizations must learn that their trademark is an international recognized concept but in some overseas market there can be problems with the mark of a Corporation. The best way to overcome these matters can be through franchises with existing domestic Corporations. Telsa Motors, Inc. is an American multinational Company that manufactures designs and sells electric vehicles, components of power train and battery products. Telsa is a publicly traded Company that sells its stock on the NASDAQ stock exchange market under the symbol TSLA. Marc Tarpenning and Martin Eberhard started Tesla Motors way back in 2003 (Hettich and Stewens 3). Business has been average for Telsa Motors, Inc and it is only on 2013 when Telsa Motors posted their first profits since the year 2003. An analysis of Telsa Motors reveals that they have ventured into the Chinese market where it is expected that they face several challenges and influences from the business environment. Telsa Motors trades its shares on the NASDAQ stock exchange...
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...Presents: Tesla Motors, Inc.: TSLA Analysts: Rutvig Bhatt (rutvig@gmail.com) Yanchen Liu (yanchen.liu12@stjohns.edu) Gaoting Liu (liugaoting@gmail.com) Kevin Shanker (kevin.shanker05@stjohns.edu) Share Data: Fundamentals: Price 5/7/14: $201.35 GAAP EPS (FY Dec’13): -0.62 Market Cap: $24.80B E[EPS2015]: 1.83 52 Week Range: $63.69 – $265.00 Beta: 1.10 1 Contents 1. Executive Summary……………………………………………………3 2. Company Overview……………………………………………………3 3. Industry Analysis………………………………………………………8 3.1 Industry Overview…………………………………………………9 3.2 Analysis of Competitive Forces – Porter’s 5 Forces………………9 4. Fundamental Analysis………………………………………………..11 5. EPS Forecast………………………………………………………….24 6. Relative Valuation Model…………………………………………….29 7. Absolute Valuation…………………………………………………...32 8. Risk Factors…………………………………………………………..35 9. Conclusion and Recommendation……………………………………38 Reference………………………………………………………………..39 2 1. Executive Summary BUY recommendation based on our relative valuation model, EPS forecast, and absolute valuation model (for 7% or higher constant growth rate) : The average price estimate is $294.98，compared to the current stock price of $189 as of 5/13/14 . It shows that Tesla is undervalued. According to our result of absolute valuation model, Tesla can be priced between $92.88 and $304.87, depending upon the constant growth rate of free cash flows after 2022. A growth rate of around 7.5% makes the stock fairly valued...
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...cost-volume-profit analysis. Identifying objectives including concepts related to CVP is crucial to the absorption of information. The paper provides a summary of Tesla Motors, the company outlined. Explaining the relationship between cost-volume-profit analysis is discussed as well as how the company is using this tool to maximize production and profit. Summary Tesla Motors, Inc. is a company based in Silicon Valley. Telsa designs, manufactures, and sells electronic cars. Telsa is a publically traded company that trades in NASDAQ stock exchange. Telsa became well known after producing the Telsa Roadster, the first fully equipped eclectic sports car. In addition, Telsa also sells power train components like lithium-ion batteries to other auto makers. According to Morris (2012), “CEO Elon Musk announced that the company has stopped burning cash and reached the break-even point, a major milestone for any start-up.”(Morris, 2012). Tesla has been producing 200 cars per week and according to the article, Tesla expected to increase that quantity to 400 cars per week by December 2012. Although Tesla has reached its break-even point, their concern at this point is to fulfill the more than 5,000 advanced orders as they understand the importance in making sure the customers get what they ordered and meeting profit goals. Weekly Objectives Relevance Two essential accounting concepts can be applied in understanding Tesla’s economic position: 1) cost – volume - profit (CVP) analysis and 2) the...
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...STRATEGY / SECTION: D300 Tesla Motors Inc. Case Synopsis Date: March 17, 2014 [Edited] Yafeng(Elsie) Liu Yingying Kang Hao Wu Chan Chen Edith Hon Firm history Background Tesla Motors, Inc. is an American company that was founded in 2003 by a group of brilliant and innovative Silicon Valley engineers. These engineers proved that electric vehicles could be awesome substitute of the gasoline powered cars. Tesla not only designs, produces and markets electric cars, but it also provides advance electric vehicle powertrain components to other automakers including Daimler and Toyota. (Tesla Motors) Tesla headquarters is located in Palo Alto, California, and it has wholly-owned subsidiaries in North America, Europe and Asia. At present, Tesla has more than 2000 employees. It has 31 stores and service locations spread worldwide, and more stores are expected to be opened in the future. In 2012, Tesla opened its first store in Toronto as the first step to enter the Canadian market (Tesla Motors). Tesla aims to offer high-performance and electrically powered vehicle at a price affordable to the average consumer. In 2008, Tesla first gained widespread attention by producing the Tesla Roadster, a solely electric operated sports car. Tesla then expanded its technological advantage to the luxury sedan market. Model S, a zero emission and sustainable luxury sedan, was then introduced as their second vehicle to the electric vehicle in 2012. The third model named Tesla model X is scheduled...
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...How Tesla Motors can manage the extreme competition from large and premium manufactures Daniil Chaika (119102547) Workshop Tutor: John Davison SIM336 - Strategic Management ------------------------------------------------- Contents 1.0 Introduction ……………………………………………………………………………….3 2.0 Company Background………………………………………………………………….….3 3.0 PESTEL Analysis……………………………………………………………...…………..3 4.1. Political……………………………………………………………………………..3-4 4.2. Economic……………………………………………………………………………...4 4.3. Social………………………………………………………………………………….4 4.4. Technological…………………………………………………………………………4 4.5. Environmental………………………………………………………………………...5 4.6. Legal…………………………………………………………………………………..5 4.0 Porter’s 5 Forces Analysis…………………………………………………………………5 5.7. The Threat from New Entrants……………………………………………………..5-6 5.8. The bargaining power of Buyers……………………………………………………...6 5.9. Threat of Substitution…………………………………………………………………6 5.10. The bargaining power of Suppliers…………………………………………………..6 5.11. The Intensity of Rivalry in the Industry……………………………………………6-7 5.0 Value Chain Analysis (VCA)……………………………………………………………...7 6.12. Primary Activities…………………………………………………………………..7-8 6.13. Support Activities…………………………………………………………………..8-9 6.0 SWOT Analysis……………………………………………………………………………9 7.14. Strengths…………………………………………………………………………..9-10 7.15. Weaknesses………………………………………………………………………10-11 7.16. Opportunities………………………………………………………………………...
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...How Tesla Motors can manage the extreme competition from large and premium manufactures Daniil Chaika (119102547) Workshop Tutor: John Davison SIM336 - Strategic Management ------------------------------------------------- Contents 1.0 Introduction ……………………………………………………………………………….3 2.0 Company Background………………………………………………………………….….3 3.0 PESTEL Analysis……………………………………………………………...…………..3 4.1. Political……………………………………………………………………………..3-4 4.2. Economic……………………………………………………………………………...4 4.3. Social………………………………………………………………………………….4 4.4. Technological…………………………………………………………………………4 4.5. Environmental………………………………………………………………………...5 4.6. Legal…………………………………………………………………………………..5 4.0 Porter’s 5 Forces Analysis…………………………………………………………………5 5.7. The Threat from New Entrants……………………………………………………..5-6 5.8. The bargaining power of Buyers……………………………………………………...6 5.9. Threat of Substitution…………………………………………………………………6 5.10. The bargaining power of Suppliers…………………………………………………..6 5.11. The Intensity of Rivalry in the Industry……………………………………………6-7 5.0 Value Chain Analysis (VCA)……………………………………………………………...7 6.12. Primary Activities…………………………………………………………………..7-8 6.13. Support Activities…………………………………………………………………..8-9 6.0 SWOT Analysis……………………………………………………………………………9 7.14. Strengths…………………………………………………………………………..9-10 7.15. Weaknesses………………………………………………………………………10-11 7.16. Opportunities………………………………………………………………………...
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...Globally: Change: Tesla plans to open car dealerships in 25 countries within the next 2 years. Opportunity: Expand Customer Base. Threat: Will Tesla be affordable in 3rd world countries where income is low? Can Tesla preserve its culture when recruiting employees in other countries? Considering the companies’ current financial problems, continued global expansion may not be such a good idea. Demographic: Change: Tesla is now attracting middle-class consumers by becoming more affordable Opportunity: Capture low to middle end of electric car market, while continuing to sustain the high end Threat: Losing high end of the market to competitors, like Mercedes and BMW Political: Change/Opportunity: Congress established CAFE(Corporate Average Fuel Economy) after oil embargoes of 1970’s In 1990 CARB(California Air Resource Board) passed the ZEV(zero emission vehicles) mandate * This allowed for tax credits on all ZEV cars, and set a man. requirement of 10% by 2003 * Most importantly the ZEV mandate was credited with increased R&D of the electric car prototype US Govt. currently offers economic incentives to sellers and buyers of electric vehicles Threat: Tesla, Solar City and Space X are all heavily subsidized by US Govt. * During financial crisis Tesla received $465m in low-interest federal loans * The big question is “Can Tesla succeed without govt. assistance?” Economic: Change: Domestic and global economies...
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...Tesla Company Marketing Program Group: Name: Institutional Affiliation: Table of Content Contents EXECUTIVE SUMMARY 2 TESLA COMPANY OVERVIEW 3 TESLA COMPANY STRATEGIC FOCUS AND PLAN 11 SITUATIONAL ANALYSIS OF TESLA COMPANY 12 SWOT Analysis Of Tesla Company (Strengths, Weaknesses, Opportunites and Threats) 12 TESLA COMPANY MARKETING PLAN 21 FINANCIAL ANALYSIS OF TESLA COMPANY 22 TESLA FIRM FINANCIAL PROJECTIONS AND FIVE FORCES ANALYSIS 24 PRODUCT 30 PRICING STRATEGIES AND APPROCAHES 30 PROMOTION STRATEGIES 31 PLACE AND DISTRIBUTION STRATEGIES 33 ORGANIZATION 34 IMPLEMENATION PLAN 34 EVALUATION 36 RECOMMENDATIONS AND CONCLUSION 37 APPENDIX 44 Tesla Company Marketing Program EXECUTIVE SUMMARY This paper will mainly focus on the analysis and investigation of Tesla’s firm overall marketing strategy and program. According to a number of research based studies and reports, it is clear and evident that Tesla Motors firm is an American company that mainly designs, manufactures, and sells electric cars and electric vehicle powertrain components in various regions globally. Tesla Motors is a public company that trades on the NASDAQ stock exchange under the symbol TSLA. Furthermore, Tesla’s stock has risen substantially in recent times according to a number of research based studies and reports. It is clear and evident that in 2014 TSLA stock climbed to about seventy percent. Tesla Motors, Inc. was founded in Silicon Valley, California...
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...April 18, 2013 Consumer Goods Tesla Motors, Inc. Ticker: TSLA Recommendation: Buy Current Price: $43.75 Implied Price: $50.88 Investment Thesis Tesla offers a competitive product that takes advantage of the current global “green” trend in an industry of heavy concern Tesla is expanding in the United States and overseas while simultaneously offering new products that are already in high demand Management has a proven history of success and is passionate about making Tesla a respected brand in the automobile industry Tesla is beginning to become profitable and expand margins while growing at the same time Tesla’s strategic partnerships with Daimler AG and Toyota position the firm for future success Key Statistics 52 Week Price Range 25.52-46.68 50-Day Moving Average 38.29 200-Day Moving Average 34.35 Beta Market Capitalization 3-Year Revenue CAGR 1.49 5,010.16M 52.40% Trading Statistics Diluted Shares Outstanding 107.35M Three-Year Stock Chart Average Volume (3-Month) 2,212,250 9.96X Margins and Ratios Gross Margin (LTM) Cash Ratio (LTM) Current Ratio (LTM) Debt to Enterprise Value 7.28% 14,000,000 $30.00 12,000,000 10,000,000 8,000,000 $15.00 6,000,000 4,000,000 $5.00 EV/Revenue (LTM) $35.00 $10.00 38.46% 16,000,000 $20.00 Insider Ownership 18,000,000 $25.00 69.60% 20,000,000 $45.00 $40.00 Institutional...
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...subject to copyright under the Act. Any further reproduction or communication of this material by you may be the subject of copyright protection under the Act. Do not remove this notice. For more information please contact copyright@cqu.edu.au CASE 6 Tesla Motors and the U.S. Auto Industry (Case B) Michael Janovec Georgia Institute ofTechnology Frank T. Rothaermel Georgia Institute ofTechnology LON MUSK, CEO of Tesla Motors, sped past the security guard in his brand new Tesla Roadster without waving . Despite his reputation as a brash leader, Mr. Musk normally took the time t0 exchange pleasam tries in the morning . Today, however, Mr. Musk's mind was traveling a mile a minute. The company had just filed its first annual 10-K with the U.S. Securities and Exchange Commission (SEC), and Musk had an important meeting with Tesla's board of directors at the end of the week to discuss the company's future. As Mr. Musk walked into his office, a photo caught his eye. It was a picture of him ringing the opening bell at the NASDAQ on June 29, 2010, the day that Tesla went public. As he looked at the picture, he thought about how that day had changed his life and the life of his fledgling company. Tesla had gained a much-needed capital injection, but along with the financial boost also came increased scrutiny from the board of directors. Now instead of answering only to himself, Musk faced questions from the board about how he planned to reverse a troubling decline...
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