GURUFOCUS.COM » STOCK LIST » USA » NAS » Tesla Inc (NAS:TSLA) » Definitions » Financial Strength
Switch to:

Tesla Financial Strength

: 8 (As of Jun. 2022)
View and export this data going back to 2010. Start your Free Trial

Tesla has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Tesla Inc shows strong financial strength.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Tesla's Interest Coverage for the quarter that ended in Jun. 2022 was 59.23. Tesla's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.10. As of today, Tesla's Altman Z-Score is 20.07.


Competitive Comparison

For the Auto Manufacturers subindustry, Tesla's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Tesla Financial Strength Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, Tesla's Financial Strength distribution charts can be found below:

* The bar in red indicates where Tesla's Financial Strength falls into.



Tesla Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Tesla's Interest Expense for the months ended in Jun. 2022 was $-44 Mil. Its Operating Income for the months ended in Jun. 2022 was $2,606 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $4,720 Mil.

Tesla's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*2606/-44
=59.23

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Tesla's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1945 + 4720) / 67736
=0.10

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Tesla has a Z-score of 20.07, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 20.07 is strong.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Tesla  (NAS:TSLA) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Tesla has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.


Tesla Financial Strength Related Terms

Thank you for viewing the detailed overview of Tesla's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Tesla Business Description

Tesla logo
Address
13101 Tesla Road, Austin, TX, USA, 78725
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 2021 were a little over 936,000 units.
Executives
Denholm Robyn M director 4150 NETWORK CIRCLE SANTA CLARA CA 95054
Taneja Vaibhav officer: Chief Accounting Officer 3500 DEER CREEK ROAD PALO ALTO CA 94304
Elon Musk director, 10 percent owner, officer: CEO C/O TESLA MOTORS, INC. 3500 DEER CREEK ROAD PALO ALTO CA 94304
Ehrenpreis Ira Matthew director 100 SHORELINE HWY SUITE 282, BLDG. B MILL VALLEY CA 94941
Baglino Andrew D officer: SVP Powertrain and Energy Eng. 3500 DEER CREEK ROAD FREMONT CA 94538
Mizuno Hiromichi director 1-2-33-A504, KOMAZAWA SETAGAYA TOKYO M0 154-0012
Ellison Lawrence Joseph director C/O DELPHI ASSET MGMT CORPORATION 5525 KIETZKE LANE, SUITE 200 RENO NV 89511
Kirkhorn Zachary officer: Chief Financial Officer 3500 DEER CREEK ROAD PALO ALTO CA 94304
Wilson-thompson Kathleen director PO BOX 3599 BATTLE CREEK MI 49016-3599
Morton David H Jr officer: Chief Accounting Officer SEAGATE TECHNOLOGY 920 DISC DRIVE SCOTTS VALLEY CA 95066
Field John Douglas officer: Senior VP, Engineering ONE AMERICAN ROAD DEARBORN MI 48126
Mcneill Jon officer: President, WW Sales/Service 45500 FREMONT BLVD FREMONT CA 94538
Murdoch James R director C/O LUPA SYSTEMS 363 LAFAYETTE STREET NEW YORK NY 10022
Rice Linda Johnson director
Branderiz Eric officer: VP, Chief Accounting Officer 915 DEGUIGNE DRIVE PO BOX 3453 SUNNYVALE CA 94088-3453

Tesla Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)