Enterprise Value Tesla Industry Comparison and Analysis

Tesla's enterprise value is a staggering $850 billion, dwarfing its closest competitors in the electric vehicle industry. This is largely due to its dominant market share and innovative products.

The company's EV sales have been steadily increasing, with a 50% growth rate in 2020 alone. This growth has enabled Tesla to maintain its position as the leading EV manufacturer in the world.

Other industry players, such as Volkswagen and General Motors, have significant EV sales but still trail behind Tesla in terms of market share. Tesla's strong brand recognition and loyal customer base contribute to its industry-leading position.

Volkswagen's enterprise value, for example, is around $150 billion, while General Motors' is around $70 billion. These numbers highlight the significant gap between Tesla and its competitors in the EV industry.

Tesla's Enterprise Value has seen significant fluctuations over the years, with a mean historical Enterprise Value of $316.84 billion over the last ten years.

The current Enterprise Value of $1.25 trillion is a whopping 39.50% change from the historical average. This drastic change is a testament to the company's growth and market dynamics.

In the March 2022 quarter, Tesla's Enterprise Value reached an all-time high of $1.10 trillion. Conversely, the lowest Enterprise Value was recorded in the March 2015 quarter at $24.84 billion.

Here's a breakdown of Tesla's Enterprise Value by year:

In this section, we'll take a closer look at how Tesla's Enterprise Value compares to its peers in the automotive industry.

Tesla's Enterprise Value is significantly greater than Rivian Automotive, Inc.'s, at $15.95B compared to $15.09B.

The Enterprise Value of General Motors Company is $161.32B, which is much higher than Tesla's $86.61B.

In fact, Tesla's Enterprise Value is greater than that of most of its peers, including XPeng Inc. ($86.61B), Li Auto Inc. ($114.93B), NIO Inc. ($73.86B), and Ford Motor Company ($173.63B).

Here's a comparison of Tesla's Enterprise Value to that of its peers:

Tesla's Enterprise Value is also greater than that of Fisker Inc. ($912.88M) and Mullen Automotive, Inc. ($21.03M), which are two of the smaller players in the industry.

Tesla's enterprise value is a significant metric to consider when evaluating the company's financial health.

The current enterprise value of Tesla is greater than its 3-year historical average, which stands at approximately 730.18B.

The average Enterprise Value of a company can be a useful metric for investors and analysts.

Tesla, Inc. has a current Enterprise Value that is greater than its 3-year, 5-year, and 10-year historical averages.

The Enterprise Value of a company can fluctuate over time, reflecting changes in its market value and financial performance.

Tesla, Inc. (TSLA) has a current Enterprise Value that is greater than its 3-year historical average.

A high Enterprise Value can indicate that a company is overvalued, while a low Enterprise Value can suggest that it is undervalued.

The Enterprise Value of Tesla, Inc. (TL0.DE) is 730.18B, which is greater than its 3-year historical average.

When analyzing financial reports, it's essential to understand the different segments of a company's operations. Tesla Inc. operates in 2 segments: Automotive and Energy generation and storage.

Let's take a closer look at what this means. The Automotive segment is where Tesla generates most of its revenue. In contrast, the Energy generation and storage segment focuses on producing clean energy solutions.

Tesla's financial reports provide valuable insights into the performance of these segments. For instance, the company's Segment Profit Margin varies between the two segments. Unfortunately, the report doesn't provide a specific figure for this metric.

To get a better understanding of each segment's performance, let's examine some key metrics. Tesla's revenues are reported separately for each segment. The Automotive segment generates significantly more revenue than the Energy generation and storage segment.

Here's a breakdown of the key metrics for each segment:

Understanding these metrics can help investors and analysts make informed decisions about the company's performance and future prospects.

EBITDA is a crucial financial metric that helps investors and analysts understand a company's profitability. It's calculated by adding back interest, taxes, depreciation, and amortization to net earnings.

To calculate EBITDA, analysts start with net earnings and then add back these four key components. This gives a clear picture of a company's cash flow to all providers of capital.

EBITDA is often used to evaluate a company's ability to generate cash and pay off debts. It's a pre-interest number, so it's not influenced by a company's interest payments or tax obligations.

Here's a breakdown of what EBITDA includes:

By understanding EBITDA, investors can make more informed decisions about a company's financial health and potential for growth.

Free Cash Flow to the Firm (FCFF) is a crucial metric that measures the cash flow available to the suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.

This metric is essential for investors and analysts to evaluate a company's financial health and performance. It helps them understand the company's ability to generate cash and return value to its shareholders.

FCFF takes into account the cash flow from operations, less capital expenditures, and plus depreciation. This means that FCFF is a more accurate representation of a company's cash flow than other metrics like EBITDA.

Here's a breakdown of what FCFF includes:

By examining FCFF, investors can gain a better understanding of a company's financial position and make more informed investment decisions.

The EV/EBIT ratio is a crucial metric for evaluating a company's valuation. It compares the enterprise value of a company to its earnings before interest and taxes (EBIT). In the case of Tesla Inc., the EV/EBIT ratio is 150.7.

This ratio is considered one of the most frequently used multiples for comparisons among companies. The EV/EBIT multiple relies on operating income as the core driver of valuation. For Tesla Inc., the average EV/EBIT ratio is 24.4.

Here's a comparison of EV/EBIT ratios for some of Tesla's competitors:

The EV/EBIT ratio can be influenced by a company's growth rate. For example, BYD Co Ltd has a growth rate of 31%, which results in an EV/EBIT ratio of 0.6. In contrast, Mercedes Benz Group AG has a growth rate of 3%, which results in an EV/EBIT ratio of 2.