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TSLA
TSLA
Tesla, Inc.

Latest update

$305

Updated: Jul 28, 2026, 2:01 PM UTC

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Metrics

Tesla, Inc. (TSLA) Current Financials and Market Position

Tesla, Inc. is an electric vehicle, energy generation, and storage company operating globally. The company reported Q2 2026 revenue of $28.2B, up 25.5% YoY, and net income of $1.1B, showing a QoQ increase but a YoY decline. Free Cash Flow was negative at -$1.1B. Profitability metrics like profit margin (3.7%), operating margin (1.4%), and gross margin (18.9%) are low. The balance sheet remains strong with light debt and strong debt service capabilities. However, its valuation remains high with a TTM P/E of 282.1x and NTM P/E of 137.0x, indicating a stretched valuation relative to current earnings. Share count is stable, and cash return at today's price is low at 0.4%.

Growth pace
How fast the underlying business is moving, quarter by quarter. Hover any tile for the plain-English meaning.

Revenue

The total dollars the company billed customers. When this number grows quarter after quarter, the business is finding more demand.

quarterly

Latest

$28.2B

Q2 2026

The most recent reported figure, in the company's own currency and reporting cadence.

QoQ

+26.1%

vs Q1 2026

How much this quarter grew compared to last quarter. Useful for spotting acceleration or slowdown in real time.

YoY

+25.5%

vs Q2 2025

How much this quarter grew compared to the same quarter one year ago. Strips out seasonality — a slow holiday quarter looks worse QoQ but normal YoY.

CAGR

insufficient history

The smooth yearly growth rate that gets you from the starting value to the current value. A 100% CAGR over 3 years means the business tripled, on average, each year.

Net income

What's left from revenue after paying every cost — employees, materials, taxes, interest. Sometimes called profit or 'the bottom line.'

quarterly

Latest

$1.1B

Q2 2026

The most recent reported figure, in the company's own currency and reporting cadence.

QoQ

+133.5%

vs Q1 2026

How much this quarter grew compared to last quarter. Useful for spotting acceleration or slowdown in real time.

YoY

-4.9%

vs Q2 2025

How much this quarter grew compared to the same quarter one year ago. Strips out seasonality — a slow holiday quarter looks worse QoQ but normal YoY.

CAGR

insufficient history

The smooth yearly growth rate that gets you from the starting value to the current value. A 100% CAGR over 3 years means the business tripled, on average, each year.

Free cash flow

The cash actually left in the bank after the company has paid for everything and reinvested in itself. Harder to fake than net income.

quarterly

Latest

-$1.1B

Q2 2026

The most recent reported figure, in the company's own currency and reporting cadence.

QoQ

-176.1%

vs Q1 2026

How much this quarter grew compared to last quarter. Useful for spotting acceleration or slowdown in real time.

YoY

-852.7%

vs Q2 2025

How much this quarter grew compared to the same quarter one year ago. Strips out seasonality — a slow holiday quarter looks worse QoQ but normal YoY.

CAGR

insufficient history

The smooth yearly growth rate that gets you from the starting value to the current value. A 100% CAGR over 3 years means the business tripled, on average, each year.

Quarterly revenue, net income & free cash flow
Bars show what the company actually reported each quarter. The growth chart below turns these into the QoQ / YoY pace the rest of this page uses.
Annual growth rate (YoY)
Year-over-year change in full-year totals. Strips out quarterly noise and seasonality so the multi-year trend is visible — not just the last 12 months.
Compound annual growth (CAGR)
The smooth yearly growth rate across each window. The "start → end" line shows the dollar value at the beginning and end of the window.
Metric3 yr2 yr1 yr
Revenue
+25.5%
$22.5B$28.2B
Net income
-5.0%
$1.2B$1.1B
Free cash flow
+2021.5%
$146M$1.4B
Valuation — P/E

P/E TTM

282.1×

Trailing twelve months. Today's price divided by the last year of actual earnings.

P/E NTM

137.0×

Next twelve months. Today's price divided by what analysts expect the company to earn over the coming year.

Balance sheet & valuation
The five numbers that decide whether the growth above is safe, sustainable, and reasonably priced. Descriptions on every tile — hover or scroll to read.

Profitability

Weak

Operating margin (and the wider return profile) tells you how efficiently each dollar of sales becomes profit. High and rising = pricing power; low or falling = the business is grinding.

Share count

Stable

Are the buybacks outrunning the stock-based comp? A shrinking share count means every existing share owns a bigger slice of future earnings.

Debt load

Light

Total debt against cash and earnings power (EBITDA). Light debt leaves room to invest and weather downturns; heavy debt shrinks the margin for error.

Debt service

Strong

Whether the cash the business generates easily covers its interest and loan payments. Strong here = no forced selling in a bad year.

Cash return at today's price

0.4%

Free cash flow divided by market cap — the cash yield you're getting for the price you pay. Above ~6% is rich, below ~3% is thin. P/E shown when the yield is too small to be useful.

What stands out
  • Revenue growth is robust at 25.5% YoY, but net income decreased by 5.0% YoY.
  • Free Cash Flow turned negative in Q2 2026, dropping significantly YoY.
  • Profitability margins (operating, gross, net) are weak.
  • Balance sheet is strong with light debt and excellent debt service coverage.
  • Valuation remains significantly stretched, with high P/E multiples.
  • The stock price seems to have advanced well ahead of current business fundamentals.

Thesis

Why this read

Tesla is currently in a clear markdown cycle, with price action and momentum overwhelmingly bearish. While the long-term thesis remains, the immediate technical picture is highly unfavorable for entry. The stock is trading well below critical support levels, and increasing volume on the downside confirms the presence of sellers. Given the weak profitability and negative FCF in the last quarter which contrasts with previous expectations, and the ongoing technical weakness, a 'WAIT' call is appropriate. This allows for observation for a potential base to form or a clear reversal signal before considering a long position.

Short-term thesis

Mixed14% conviction-21 ptsv1
Tesla: Navigating Short-Term Headwinds for Long-Term AI and Energy Dominance

Tesla's long-term investment case is predicated on its transformation from an EV manufacturer with currently challenged margins into a diversified technology and energy leader driven by AI (FSD) and energy solutions. While present automotive segment finances show strain (weak profit, negative FCF), future value should be unlocked by scaling high-margin FSD, expanding energy services, and leveraging mega-factory efficiencies. The current market action suggests a reassessment of its near-term earnings power and valuation.

Long-term exposure

Maybe own

There is a case here, but one sleeve still needs work.

Entry window

Wait

With earnings approximately 86 days away, the immediate event risk seen in the previous analysis has dissipated for now. However, the stock is currently in a strong downtrend, trading significantly below key moving averages with negative momentum. Volume is expanding on this downward move, indicating selling pressure. Until there is clear evidence of stabilization or a reversal, it is prudent to remain on the sidelines.

Risk check

Fragile

The downside can widen quickly if this setup goes wrong.

Alignment

Mixed

Neither horizon fully wins, so size and patience matter.

What supports it

  • Balance sheet gives the thesis room to breathe.
  • Debt service still looks controlled against cash generation.
  • Analyst revisions have been net positive over the past month.
  • Long-term secular growth story in EV and AI.

What limits it

  • This needs smaller size or more patience.
  • Price already asks a lot from the business.
  • Margins or returns are too soft for a clean long hold.
  • One sleeve still needs more evidence.

Long-term thesis

Tesla's transformation into a dominant AI-driven software and renewable energy solutions provider, leveraging its EV manufacturing base to capture high-margin future revenue streams.

80opportunity65% thesis conf
Crossing Chasm5y horizon

Bottleneck Role

Tesla's bottleneck is its ability to scale high-margin offerings (FSD, energy services) while simultaneously maintaining its dominant position in a competitive, capital-intensive auto market. Mega-factory scale-out for cost efficiency and advanced AI development for FSD are critical enablers to overcome this.

Consensus Blind Spot

The market might be underestimating the long-term, high-margin revenue potential from FSD and energy services, focusing too heavily on current automotive segment pressures. It could also miss the operational leverage gains from mega-factory scale and AI optimization once it fully materializes.

Demand Gap

There is a clear and growing demand for integrated sustainable ecosystems (EVs, autonomous driving, home/grid energy storage). Tesla aims to capture this holistic demand, providing vertically integrated solutions that competitors struggle to match.

Demand to Equity Scenarios

Bear70% conf

Slower EV adoption, FSD regulatory roadblocks, intense competition and commoditization of EVs.

Demand

-15%

Earnings

-30%

Equity implication

-40%

Reduced unit sales, increased pricing pressure, delays in high-margin software rollout.

Base60% conf

Steady EV growth, gradual FSD rollout, moderate energy adoption.

Demand

+10%

Earnings

+15%

Equity implication

+25%

Consistent revenue growth from Autos, incremental FSD monetization, steady energy segment expansion.

Bull45% conf

Rapid global EV switch, FSD achieves full autonomy and widespread adoption, energy grid integration accelerated.

Demand

+25%

Earnings

+80%

Equity implication

+120%

Exponential growth in both auto and energy segments, significant high-margin software revenue contribution from FSD.

Dependency Chain

  1. 1Accelerating global demand for sustainable transport and energy solutions.
  2. 2Tesla's ability to scale EV production efficiently through mega-factories.
  3. 3Successful development and widespread adoption of Full Self-Driving (FSD) software.
  4. 4Expansion of its energy storage (Powerwall, Megapack) and generation offerings.
  5. 5Monetization of AI and energy services leading to higher margins and recurring revenue.
  6. 6Equity repricing reflects the shift from an automotive multiple to a technology/software multiple.

Repricing Triggers

  • Consistent quarter-over-quarter growth in FSD subscription revenue and adoption rates.
  • Demonstrable improvements in operating margins driven by production efficiencies and software/energy mix shift.
  • Significant expansion of energy storage deployments and contracts.
  • Strong positive free cash flow generation and increasing cash return.
  • Successful launch of new mass-market EV models (e.g., Robotaxi, lower-cost vehicle).
  • Regulatory approvals and widespread acceptance of fully autonomous driving.

Must be true

  • Tesla will successfully transition to higher-margin software and energy services.
  • Its technological leads in battery, AI, and manufacturing will be sustained.
  • Global EV adoption will continue its accelerated trend.
  • FSD will achieve a level of autonomy and safety that allows for broad commercialization and regulatory approval.

Thesis broken if

  • Persistent decline in automotive gross margins without offset from other segments.
  • Significant delays or failures in FSD development or regulatory approval.
  • Loss of market share in key EV segments to competitors.
  • Inability to achieve positive and growing free cash flow.
  • Stalled growth in energy generation and storage deployments.

History

What changed

Since the previous run · 2 months ago
Prior call was neutral

Signal

BUYBUY

Conviction

55%35%-20 pts

Long term

Maybe ownMaybe own

Stock

$391.06$304.66-22.1%

Added since last run

8
  • Long-term secular growth story in EV and AI.
  • Strong balance sheet provides financial resilience.
  • Price well below daily and weekly moving averages indicates a strong downtrend.
  • Significant negative momentum across multiple timeframes.
  • Expanding volume during a down move signals strong selling pressure.
  • Weak profitability metrics and negative free cash flow in the latest quarter.
  • High valuation metrics (P/E) are difficult to justify with current earnings and FCF.
  • Negative relative strength against the broader market and sector.

No longer flagged

0

Nothing dropped this run

Model's reflection on the prior call

The prior reasoning correctly identified the risk of volatility due to earnings and the technical weakness, advising a 'WAIT' posture. The outcome of minimal price movement in the interim confirmed that avoiding action ahead of earnings was a prudent approach, as the stock has continued its downtrend.

Analysis timeline
6 runs

Jul 28, 2026

Latest

Updated Jul 28, 2026, 2:01 PM UTC

WeeklyWAIT
Long termWATCH
Confidence35% · Low

Price at review

$305

With earnings approximately 86 days away, the immediate event risk seen in the previous analysis has dissipated for now. However, the stock is currently in a strong downtrend, trading significantly below key moving averages with negative momentum. Volume is expanding on this downward move, indicating selling pressure. Until there is clear evidence of stabilization or a reversal, it is prudent to remain on the sidelines.

Jul 16, 2026

Updated Jul 16, 2026, 8:48 PM UTC

WeeklyWAIT
Long termWATCH
Confidence55% · Medium

Price at review

$391

Tesla's price continues to show weakness, lingering below important moving averages with contracting volume. With earnings approaching rapidly, the risk of volatility is high. It's prudent to remain on the sidelines this week, waiting for the earnings event to pass and for the stock to establish a clearer direction or consolidate above supportive levels.

Jun 17, 2026

Updated Jun 17, 2026, 2:25 PM UTC

WeeklyWAIT
Long termWATCH
Confidence60% · Medium

Price at review

$402

The stock is currently trading slightly below key moving averages, indicating a loss of the precise support seen last week. Volume is contracting, suggesting a lack of strong conviction from either buyers or sellers. Given the recent dip below the prior accumulation zone and mixed technicals, it's prudent to wait for clearer signs of stabilization or a rebound above the moving averages before deploying new capital.

Jun 9, 2026

Updated Jun 9, 2026, 1:15 PM UTC

WeeklyBUY
Long termWATCH
Confidence78% · High

Price at review

$409

Expect the price to stabilize further and begin a gradual climb as buyers step in at these reset levels.

Jun 2, 2026

Updated Jun 2, 2026, 9:01 AM UTC

WeeklyBUY
Long termWATCH
Confidence85% · High

Price at review

$416

Price has returned to a logical buying zone after a necessary pause.

May 13, 2026

Updated May 13, 2026, 5:33 PM UTC

WeeklyWAIT
Long termWATCH
Confidence75% · High

Price at review

$448

The stock is currently showing strong upward momentum but has moved too far, too fast above its average price. Waiting for a brief cooling-off period is safer than chasing at these highs.