Benzinga·2025-12-19 15:00Company Overview - Tesla is a vertically integrated battery electric vehicle automaker and developer of artificial intelligence software, including autonomous driving and humanoid robots [2] - The company offers a diverse fleet of vehicles, including luxury and midsize sedans, crossover SUVs, a light truck, and a semi truck, with plans to introduce a sports car and a robotaxi service [2] - Global deliveries in 2024 are projected to be just below 1.8 million vehicles [2] - Tesla also sells batteries for stationary storage and solar energy products, and owns a fast-charging network and an auto insurance business [2] Financial Metrics - Tesla's Price to Earnings (P/E) ratio is 333.36, significantly exceeding the industry average by 17.68 times, indicating a premium valuation [5] - The Price to Book (P/B) ratio stands at 20.10, which is 6.81 times higher than the industry average, suggesting potential overvaluation based on book value [5] - The Price to Sales (P/S) ratio is 17.81, which is 12.12 times the industry average, indicating possible overvaluation based on sales performance [5] - Return on Equity (ROE) is 1.75%, which is 2.73% above the industry average, reflecting efficient use of equity to generate profits [5] - EBITDA is reported at $3.66 billion, which is 0.02 times below the industry average, potentially indicating lower profitability [5] - Gross profit is $5.05 billion, also 0.02 times below the industry average, suggesting lower revenue after accounting for production costs [5] - Revenue growth is at 11.57%, surpassing the industry average of 0.35%, indicating robust sales expansion [5] Debt to Equity Ratio - Tesla has a debt-to-equity (D/E) ratio of 0.17, indicating a stronger financial position compared to its top four peers, as it relies less on debt financing [8] - This lower D/E ratio reflects a more favorable balance between debt and equity, which can be viewed positively by investors [8] Key Takeaways - The high P/E, P/B, and P/S ratios suggest that Tesla is relatively overvalued compared to its peers in the Automobiles industry [9] - The high ROE and revenue growth indicate strong profitability and potential for future growth [9] - However, low EBITDA and gross profit figures may raise concerns about Tesla's operational efficiency and cost management compared to industry competitors [9]