In today’s rapidly changing and fiercely competitive business landscape, it is vital for investors and industry enthusiasts to carefully evaluate companies. This article will perform a comprehensive industry comparison, evaluating Tesla against its key competitors in the Automobiles industry. By analyzing important financial metrics, market position, and growth prospects, we aim to provide valuable insights for investors and shed light on the company’s performance within the industry.
Tesla Background
Tesla is a vertically integrated battery electric vehicle automaker and developer of real-world artificial intelligence software, which includes autonomous driving and humanoid robots. The company has multiple vehicles in its fleet, which include luxury and midsize sedans, crossover SUVs, a light truck, and a semi-truck. Tesla also plans to begin selling a sports car and offer a robotaxi service. Global deliveries in 2025 were nearly 1.64 million vehicles. The company sells batteries for stationary storage for residential and commercial properties, including utilities and solar panels and solar roofs for energy generation. Tesla also owns a fast-charging network and an auto insurance business.
Key Financial Metrics
The following table outlines key financial metrics for Tesla and its competitors:
| Company | P/E | P/B | P/S | ROE | EBITDA (in billions) | Gross Profit (in billions) | Revenue Growth |
|---|---|---|---|---|---|---|---|
| Tesla Inc | 367.79 | 18.15 | 14.78 | 1.04% | $2.91 | $5.01 | -3.14% |
| General Motors Co | 25.47 | 1.23 | 0.44 | -5.22% | $0.42 | -$1.12 | -5.06% |
| Ferrari NV | 31.59 | 13.29 | 7.15 | 10.42% | $0.67 | $0.88 | 7.4% |
| Ford Motor Co | 11.73 | 1.15 | 0.29 | 5.29% | $3.67 | $4.3 | 9.39% |
| Thor Industries Inc | 22.44 | 1.46 | 0.64 | 0.5% | $0.11 | $0.32 | 11.5% |
| Winnebago Industries Inc | 38.30 | 1.12 | 0.48 | 0.45% | $0.03 | $0.09 | 12.32% |
| Workhorse Group Inc | 0.05 | 1.13 | 0.27 | -28.77% | -$0.01 | -$0.01 | -4.97% |
| Average | 21.6 | 3.23 | 1.55 | -2.89% | $0.82 | $0.74 | 5.1% |
Trends and Insights
Through a thorough examination of Tesla, we can discern the following trends:
- The current Price to Earnings ratio for this stock, 367.79, is 17.03x above the industry norm, reflecting a higher valuation relative to the industry.
- With a Price to Book ratio of 18.15, which is 5.62x the industry average, Tesla might be considered overvalued in terms of its book value, as it is trading at a higher multiple compared to its industry peers.
- With a relatively high Price to Sales ratio of 14.78, which is 9.54x the industry average, the stock might be considered overvalued based on sales performance.
- The Return on Equity (ROE) of 1.04% is 3.93% above the industry average, highlighting efficient use of equity to generate profits.
- The company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $2.91 Billion, which is 3.55x above the industry average, indicating stronger profitability and robust cash flow generation.
- The gross profit of $5.01 Billion is 6.77x above that of its industry, highlighting stronger profitability and higher earnings from its core operations.
- With a revenue growth of -3.14%, which is much lower than the industry average of 5.1%, the company is experiencing a notable slowdown in sales expansion.
Debt To Equity Ratio
The debt-to-equity (D/E) ratio indicates the proportion of debt and equity used by a company to finance its assets and operations. When assessing Tesla against its top 4 peers using the Debt-to-Equity ratio, the following comparisons can be made:
- Tesla exhibits a stronger financial position compared to its top 4 peers.
- This indicates that the company has a favorable balance between debt and equity, with a lower debt-to-equity ratio of 0.18, which can be perceived as a positive aspect by investors.
Key Takeaways
For Tesla, the PE, PB, and PS ratios are all high compared to its industry peers, indicating that the stock may be overvalued based on these metrics. On the other hand, Tesla’s high ROE, EBITDA, and gross profit suggest strong profitability and operational efficiency relative to its competitors. However, the low revenue growth rate implies a potential slowdown in the company’s top-line performance compared to industry benchmarks.