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Tesla Inc TSLA

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Morningstar’s Analysis

Valuation
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Maintaining $680 FVE as Tesla Shares Slide on Potential Plan for CEO Elon Musk to Sell More Shares

Seth Goldstein, CFA Senior Equity Analyst

Analyst Note

| Seth Goldstein, CFA |

On Nov. 15, Tesla shares fell over 4% at the time of writing. In our view, the market reacted to CEO Elon Musk's tweets over the weekend where he suggested he may sell more Tesla shares, following his sale of nearly $7 billion in Tesla stock the previous week. Consistent with our view of last week's share sale, we do not view management's potential decision to sell stock as a reason to change our forecast for Tesla. With our outlook for the company unchanged, we maintain our $680 per share fair value estimate. Our narrow moat rating is also unchanged.

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Company Profile

Business Description

Founded in 2003 and based in Palo Alto, California, Tesla is a vertically integrated sustainable energy company that also aims to transition the world to electric mobility by making electric vehicles. The company sells solar panels and solar roofs for energy generation plus batteries for stationary storage for residential and commercial properties including utilities. Tesla has multiple vehicles in its fleet, which include luxury and midsize sedans and crossover SUVs. The company also plans to begin selling more affordable sedans and small SUVs, a light truck, a semi truck, and a sports car. Global deliveries in 2020 were roughly 500,000 units.

Contact
3500 Deer Creek Road
Palo Alto, CA, 94304
T +1 650 681-5000
Sector Consumer Cyclical
Industry Auto Manufacturers
Most Recent Earnings Sep 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type Cyclical
Employees 70,757

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