Advances in Economics, Management and Political Sciences

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Proceedings of the 7th International Conference on Economic Management and Green Development

Series Vol. 42 , 10 November 2023


Open Access | Article

Financial Analysis and Valuation of Tesla Inc.

Ziyi Ren 1 , Xu Weng 2 , Yusong Xu 3 , Zhili Xu * 4
1 Hainan University
2 Hebei University of Technology
3 Hubei University of Economics
4 Chongqing Technology and Business University

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 42, 69-76
Published 10 November 2023. © 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Ziyi Ren, Xu Weng, Yusong Xu, Zhili Xu. Financial Analysis and Valuation of Tesla Inc.. AEMPS (2023) Vol. 42: 69-76. DOI: 10.54254/2754-1169/42/20232081.

Abstract

As the head of the new energy vehicle industry, whether Tesla's market value is overvalued compared to the industry average, and whether the new energy vehicle market outlook is optimistic has been a hot topic. This paper firstly compares and analyzes the business performance and several financial statement indicators of Tesla and other companies involved in the production of new energy vehicles, points out the huge difference between Tesla's valuation and its performance, and secondly analyzes the reasons for the difference in Tesla's valuation through the industrial structure and strategy of Tesla, and points out that Tesla's market value hides the capital market's special premium for technological innovation industry, high threshold industry, and environmental protection energy development. Tesla's market capitalization has a special premium for technological innovation, high-threshold industries, and environmental energy development. Finally, this paper judges the considerable development potential of the new energy vehicle industry in the new era of environmental awareness and points out that it should analyze the industry with future expectations as the main indicator and view the valuation from a long-term investment perspective.

Keywords

new energy vehicle industry, valuation, financial ratios

References

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4. Korosec, K.: Tesla blows past Toyota to become the most valuable automaker in the world. https://techcrunch.com/2020/07/01/tesla-blows-past-toyota-to-become-most-valuable-automaker-in-the-world/, last accessed 2023/06/23.

5. Kelly, J.: Tesla's Leaked Employee Handbook Is As Unconventional As Founder Elon Musk. https://www.forbes.com/sites/jackkelly/2020/02/14/teslas-leaked-employee-handbook-is-as-unconventional-as-founder-elon-musk/, last accessed 2023/06/23.

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Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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Volume Title
Proceedings of the 7th International Conference on Economic Management and Green Development
ISBN (Print)
978-1-83558-105-6
ISBN (Online)
978-1-83558-106-3
Published Date
10 November 2023
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/42/20232081
Copyright
© 2023 The Author(s)
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated