Tesla (TSLA)— Why Bullish on Tesla Stock
Earnings Highlights, Bull vs Bear
Stock Analysis
📖 Business Description
Founded in 2003 and based in Palo Alto, California, Tesla is a vertically integrated sustainable energy company aiming to transition the world to electric mobility by making electric vehicles. Tesla competes in the EV, Energy, AI, Semiconductor, Insurance, and Robot markets. Tesla’s products include electric vehicles and charging stations, solar panels and power storage, Dojo chip, full-self driving software, Dojo system, Tesla insurance, and Optimus Humanoid Robot.
Earnings Highlights — 7/19/23
🏦 Revenue: $24.9B, +47% y/y
💸 Net Income: $2.7B, or 10.8% of total revenue
🔸 Volumn Outlook: 50% CAGR with around 1.8M production in 2023
🔸 Operating Margin: 9.6%
🔸 Supercharger Stations: 5265, +33% y/y
🔸 Storage Deployed (MWh): 3653, +222% y/y
🔸 Solar Deployed (MW): 66, -38% y/y
Bullish Opinions
🔸 Growth: Revenue +47% y/y. Expect to exceed 50% annual production growth for at least several years. Giga Berlin and Texas is ramping up quickly.
🔸 Profitability: Tesla has a $2.7B net income with nearly no debt in the latest earnings.
🔸 Future Markets: Tesla’s current and future products could disrupt multiple industries, just as Tesla disrupted the automotive industry. Dojo will likely disrupt the chip and artificial intelligence industries. Morgan Stanley predicts Dojo will add $500 billion to Tesla’s market value. FSD and Robotaxi could disrupt the transportation industry by replacing companies like Uber or DoorDash. Real-time Tesla insurance could disrupt the insurance industry. Finally, the Optimus Prime humanoid robot will hit the robotics industry.
🔸 Network Effects: More Tesla owners will allow Tesla to collect more driving data and develop better artificial intelligence and autonomous driving features. More automakers are also joining Tesla’s Supercharger network this year.
🔸 Cost Advantages: Tesla will deliver more than 1.3 million electric vehicles in 2022. Thanks to its manufacturing scale, Tesla has a cost advantage in production. The self-developed Dojo chip will further reduce Tesla’s artificial intelligence training costs.
🔸 CEO: Elon Musk is probably the most visionary person alive.
🔸 Talent: Tesla has always been one of the most wanted workspaces for engineering students.
Bearish Opinions
🔸 Competition: More automakers, especially Chinese companies, are competing in the EV market.
🔸 Macro: High inflation and high-interest environment are challenging for EV industry. Tesla had to continue to cut its prices and stimulate the demand.
🔸 CEO: Elon Musk could be distracted by his other companies.
Conclusion: Bullsih
Tesla is one of the most unique companies that people can invest in. It is the fastest-growing trillion-dollar company. It has products across multiple trillion-dollar industries. It is led by one of the greatest visionaries of our time.
