Tesla, Inc.

Dominant, cash-rich EV and energy franchise with a powerful brand, but returns are modest and earnings are contracting amid margin pressure.

Strengths

• $44B cash (100th pct), $6.2B FCF (90th pct), gross margin 81.8th pct and net margin 80th pct with very low leverage (D/E 0.10)
• Scaled, differentiated franchise with strong OCF margin (92nd pct) and optionality in AI/autonomy/energy storage

Risks

• ROE only 4.6% (64th pct) and ROA 2.75%; net income fell $3.3B and revenue declined $2.9B
• Tariff/supply-chain exposure and heavy dependence on unproven Robotaxi/Optimus ramps
• Cyclical auto demand and execution risk on next-gen platform

Notable findings

• Chronic dilutionShare count +41%/yr over 4y (dilution, book value/share -31%)
• Strong balance sheetStrong balance sheet — $44.1B cash & investments
• Revenue declineRevenue -10.1% YoY
• China exposuretrade policy alterations in 2025, including heightened import tariffs and subsequent retaliatory measures, have impacted our supply chain costs, and may impact the availability of certain technologies
• Insider sellingInsider selling — 63 open-market sale(s) by 3 insider(s) (cluster of 3 insiders, ~$60M, last 6mo) Form 4 ↗