Section 1: Company Overview and Fundamentals

1.1 Company Overview:

Tesla, Inc. (NASDAQ: TSLA) designs, develops, manufactures, sells and leases fully electric vehicles and energy generation and storage systems, and offer services related to its products. The Company's automotive segment includes the design, development, manufacturing, sales, and leasing of electric vehicles as well as sales of automotive regulatory credits. Additionally, the automotive segment is also comprised of services and other, which includes non-warranty after-sales vehicle services, sales of used vehicles, retail merchandise, sales by its acquired subsidiaries to third party customers, and vehicle insurance.

Kalkine’s Diversified Opportunities Report covers the Company Overview, Key positives & negatives, Investment summary, Key investment metrics, Top 10 shareholding, Business updates and insights into company recent financial results, Key Risks & Outlook, Price performance and technical summary, Target Price, and Recommendation on the stock.

Stock Performance:

• The stock has corrected by 33.10% in the last six months, while on the other hand has given a return of 32.29% in past nine months.
• The stock is leaning towards the lower end of its 52-week range of USD 299.29 and 52-week low price of USD 152.37, with the current price near an important support zone of USD 150.00-USD 170.00, with expectations of a support from these levels.
• The price is currently below both its short-term (50-day) SMA and long-term (200-day) SMA, with the current RSI of 43.05.

1.2 The Key Positives, Negatives, and Investment summary

1.3 Top 10 shareholders:

The top 10 shareholders together form ~34.00% of the total shareholding, signifying concentrated shareholding. Musk (Elon Reeve), and The Vanguard Group, Inc. are the biggest shareholders, holding the maximum stake in the company at ~12.91% and ~7.18%, respectively.

1.4 Key Metrics:

In comparison to industry standards, TSLA demonstrates superior financial performance across various key metrics. TSLA's gross margin stands notably higher at 18.2%, surpassing the industry median of 16.9%. Similarly, TSLA exhibits robust profitability with its EBITDA margin at 14.0%, exceeding the industry median of 7.9%. Furthermore, TSLA's operating margin of 9.2% outshines the industry median of 4.6%, showcasing the company's adeptness in managing operational costs effectively. TSLA's pretax margin is particularly impressive at 10.3%, a substantial leap from the industry median of 2.3%, highlighting the company's ability to generate higher profits before accounting for taxes. Additionally, TSLA's net margin of 15.5% significantly surpasses the industry median of 2.5%, underscoring the company's exceptional efficiency in translating revenue into net income.

In terms of return on equity (ROE), TSLA stands head and shoulders above industry peers, with a remarkable ROE of 27.9% compared to the industry median of 9.0%. This metric reflects TSLA's ability to generate substantial returns for shareholders relative to its equity base, indicating efficient utilization of shareholder funds and strong operational performance. TSLA's exceptional ROE underscores its position as a leader in the industry, exemplifying the company's capacity to deliver value and sustain long-term growth for investors. Overall, these financial metrics paint a compelling picture of TSLA's robust financial health and superior performance compared to industry benchmarks.

Section 2: Business Updates and Corporate Business Highlights

2.1 Recent Updates:

The below picture gives an overview of the recent updates:

2.2 Insights of FY23:

Section 3: Key Risks & Outlook

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

Stock Performance:

• The stock has corrected by 33.10% in the last six months, while on the other hand has given a return of 32.29% in past nine months.
• The stock is leaning towards the lower end of its 52-week range of USD 299.29 and 52-week low price of USD 152.37, with the current price near an important support zone of USD 150.00-USD 170.00, with expectations of a support from these levels.
• The price is currently below both its short-term (50-day) SMA and long-term (200-day) SMA, with the current RSI of 43.05.

4.2 Fundamental Valuation

Valuation Methodology: Price/Earnings Multiple Based Relative Valuation

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is March 20, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

 Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

 Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.

Disclosure: Kalkine Canada Advisory Services Inc. (Kalkine) Director Kunal Sawhney owns shares of Tesla Inc. since March 15, 2024. Kalkine Equities LLC has covered Tesla Inc. in its report as general advice only. This information is provided for general informational purposes and should not be considered as personalized investment advice. Investors should conduct their own research and seek professional advice before making any investment decisions.