Quick Answer: Why Is Tesla Losing So Much Money?

What is a fair price for Tesla stock?

TSLA Price/Volume StatsCurrent price$388.0452-week highPrev.

close$410.8352-week lowDay low$379.11VolumeDay high$407.59Avg.

volume50-day MA$422.38Dividend yield1 more row.

How much in debt is Tesla?

Tesla has about $13 billion in debt on the books and about $6.9 billion net of cash on hand. Net debt is less than 2 times estimated 2020 earnings before interest, taxes, depreciation and amortization, or Ebitda. That is lower than at the average company in the S&P 500, although car makers are tougher to analyze.

How much money does Tesla lose per year?

Tesla generated $24.6 billion in revenue in 2019, buoyed by a fourth quarter revenue figure of just shy of $7.4 billion. Tesla still didn’t turn an annual profit — in fact, it lost $862 million in 2019. But that was better than the $1 billion loss the company posted in 2018.

Is Tesla overvalued?

Tesla’s PS of 14.7 is nearly double the big tech average of 7.7. Tesla’s P/FCF of 145.7 is about three times the big tech average of 48.7. … The average of those valuation premiums suggests Tesla may be overvalued by about 168% and implies a price target of around $141.

What will Tesla be worth in 10 years?

This means the stock could be worth ~$10.000 in 10 years time ($2000 after the recent 5:1 stock split).

Has Tesla made a profit 2020?

Tesla turned a surprise profit in the first quarter of 2020 of $16 million, despite factory shutdowns in China and the US, the company announced on Wednesday. It said it may still hit its goal of delivering 500,000 vehicles worldwide this year even in the face of the pandemic.

Who owns most of Tesla?

Top 10 Owners of Tesla IncStockholderStakeShares ownedCapital Research & Management Co….5.73%53,390,465The Vanguard Group, Inc.4.55%42,370,340Baillie Gifford & Co.4.25%39,630,758BlackRock Fund Advisors2.92%27,198,2656 more rows

Will Tesla be around in 5 years?

According to Wall Street’s biggest Tesla bull, money manager Catherine Wood, the Tesla stock price in five years could reach $7,000.

Is Tesla profitable in q2 2020?

Despite the closure of our main factory in Fremont for nearly half the quarter, we posted our fourth sequential GAAP profit in Q2 2020, while generating positive free cash flow of $418M. Our profit improved sequentially due to fundamental operational improvements.

Is Tesla still losing money?

Tesla is still losing money selling cars despite having the best selling EV of 2018—its Model 3. The company lost $408 million in the second quarter of 2019. … The idea is that Tesla will eventually sell enough of its lower margin Model 3 cars to offset a steady decline in the company’s Model X and S.

What is Tesla’s biggest problem?

Tesla’s biggest problem is its customer service, according to a new Bernstein survey. The annual survey of Tesla owners saw a higher percentage of respondents than last year say they “love” their Teslas. The results suggest a wide addressable market for Tesla outside the luxury segment.

Why is Tesla’s stock so high?

The quarterly profit recently reported definitely helped. In fact, the biggest reason behind the stock run is earnings. Tesla numbers have come in much better than expected for several quarters. And Wall Street’s estimated 2021 earnings have gone from less than $12 to almost $15 a share over the past few months.