To The Moon

Earnings Calendar (20Oct25)

EARNINGS

We are monitoring the upcoming earnings reports for a portfolio of key companies, including Coca-Cola, Netflix, IBM, Intuitive Surgical, Tesla, Procter & Gamble (P&G), General Motors (GM), and Raytheon.

Who is Tesla?

Tesla’s business centres on accelerating the world’s transition to sustainable energy.

The company’s primary business is its Automotive Segment, which generates most of its revenue by designing, manufacturing, and selling electric vehicles (EVs) like the Model 3 and Model Y. Key aspects include a direct-to-consumer sales model, the proprietary Supercharger network, and the development of Full Self-Driving (FSD) software as a future recurring revenue stream.

The secondary, but growing, segment is Energy Generation and Storage. This includes the Powerwall home batteries and large-scale Megapacks, as well as Solar Panels and the Solar Roof. Investors view Tesla as a vertically integrated technology and energy company, not just a car manufacturer.

Tesla Stock Performance and Analyst Consensus

Tesla’s (TSLA) stock has demonstrated significant year-over-year growth, appreciating by over 99% in the past twelve months.

Despite this strong price performance, both technical analysis indicators and analyst sentiment currently maintain a “Neutral” recommendation for the stock. The average analyst price target is set at $366.77, which implies a potential downside exceeding 16.5% from the current valuation.

Revenue and Profitability Growth (2015-2024)

• Revenue and Gross Profit: Annual revenue demonstrated robust growth, escalating from $4.04 billion in 2015 to $97.89 billion in 2024. Gross profit followed a similar trajectory, expanding from $924 million to $17.45 billion over the same period.

• Operating Performance: A significant financial turnaround occurred, with the operating result moving from a $717 million loss in 2015 to a substantial operating profit of $7.76 billion by 2024.

• Earnings Per Share (EPS): The company achieved sustained profitability, moving from a negative EPS of -$0.46 in 2015 to a positive $2.04 in 2024. Notably, the highest single-year EPS was recorded in 2023 at $4.30.

Financial Metrics and Valuation

• Price-to-Earnings (P/E) Ratio: The business exhibits a high P/E ratio, currently standing at 239.3. This metric is cited as potentially misleading for comparative analysis, given the company’s vertically integrated and multi-faceted business model, which spans beyond a single sector.

• Leverage and Liquidity: The debt-to-equity ratio of 1.2 suggests a potentially elevated level of financial leverage that warrants scrutiny.

• Cash Flow Efficiency: The ten-year median free cash flow margin is noted at 3.8%, indicating a moderate level of cash generation efficiency relative to sales.

The consensus forecasts for the forthcoming earnings report are an Earnings Per Share (EPS) of $0.537 and a Revenue of $28.22 billion.

Beyond these immediate financial metrics, the focus shifts to the broader macroeconomic environment and its resulting impact on the business outlook. It is prudent to view the underlying business fundamentals with caution due to several significant external factors:

1. Macroeconomic Headwinds: Persistent global macroeconomic uncertainty, including potential interest rate volatility and inflation, continues to impact consumer demand for big-ticket items, such as vehicles.

2. Trade Tensions and Geopolitics: The recent escalation in global trade tensions, particularly concerning key international markets and supply chains, presents a material risk to the forward outlook. Increased tariffs or retaliatory measures could impact production costs, margins, and market access.

A thorough analysis of the earnings call and financial commentary will be necessary to assess how management plans to navigate these macro and geopolitical challenges, which are critical drivers of the company’s future performance.

I recommend monitoring Tesla’s performance and adding the stock to our shortlist.

@TigerStars

$Tesla Motors(TSLA)$

$Coca-Cola(KO)$

$IBM(IBM)$