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How Much Is Tesla Worth?

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Tesla is the electric car company that is probably equally well known for its exciting lineup of products and its outspoken CEO, Elon Musk. Yet, the company has proven to be a huge success and is ranked No. 100 on the Fortune 500 list, up from No. 124 last year. Tesla finally turned a profit in 2020, and the company is an undisputed Wall Street darling, with its stock absolutely skyrocketing in 2021.

To see how much Tesla is worth, take a look at this snapshot of the company’s current state, along with a discussion of the company’s history, value and future outlook.

About Tesla
Headquarters Palo Alto, California
Year Founded 2003
Founders Elon Musk, Martin Eberhard, Marc Tarpenning, Ian Wright, JB Straubel
CEO Elon Musk’s Salary $0

 

What Tesla Is Worth
Share Price, 52-Week Range $379.11-$1,094.94
2020 Revenue $31.536B
2020 Profit $690M
GOBankingRates’ Evaluation of Tesla’s Net Worth $33.883B

Tesla’s Market Cap: $1.042T

Market capitalization is simply the number of outstanding stock shares a company has issued times its current market price. Market cap does have its drawbacks as an evaluation method, however. For starters, market cap changes frequently, and it’s closely tied to the company’s current share price. It doesn’t take into account any of the direct financial metrics of the company, such as earnings per share, growth rate or book value.

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Tesla’s share price has seen astronomical growth over the past year, from a 52-week low of $379.11 to its current $1,037.86, which is the result of strong third-quarter 2021 earnings and news that Hertz is purchasing 100,000 Tesla vehicles for its rental car fleet. These events pushed the company’s current capitalization above $1 trillion for the first time and made Tesla one of a handful of companies to have achieved that valuation.

Tesla’s Net Worth: $33.883B

Methods of determining the value of a company are wide and varied, each with its own merits and blind spots. The GOBankingRates company net worth is a more conservative valuation than most, taking into account only full-year profits and revenue from the last three years and the company’s assets and debts.

Tesla’s net worth as of the quarter ending Dec. 31, 2020, was $33.883 billion.

Tesla’s Founders

Tesla has five founders: Elon Musk, JB Straubel, Marc Tarpenning, Ian Wright and Martin Eberhard. Eberhard and Tarpenning were the original founders, but after Eberhard was ousted, the remaining three were named co-founders after a court battle.

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According to Forbes, CEO Elon Musk’s current net worth is a whopping $274.4 billion as of Oct. 27, 2021, making him the world’s wealthiest person.

Key Product Lines Contributing to Revenue

Tesla’s prime product line is electric cars. In fact, Tesla’s Model 3 is now the best-selling electric car of all time — a record that’s probably safe for now considering that’s the model Hertz ordered.

Tesla’s third-quarter 2021 financial results beat analysts’ earnings and revenue expectations. Its $1.62 billion in revenue, up from $331 million in Q3 2020, included $12.06 billion in automotive revenue and $806 million in revenue from its clean energy generation and storage business.

Tesla incurred $51 million in impairment expenses on its Bitcoin investment. That’s quite a turn from Q1, when the company made more on its Bitcoin investment and on regulatory credits than it did selling cars.

For the company’s most recent year-end, Dec. 31, 2020, Tesla reported an annual net income of $690 million.

Current Top Shareholders

The top 10 shareholders of Tesla stock are all asset managers/mutual fund companies. As a group, institutional and mutual fund shareholders own 41.47% of all Tesla shares, with just 6.06% held by individual shareholders. Here’s what the top shareholders list looks like:

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Tesla’s Top 10 Shareholders

  1. The Vanguard Group, 5.62% of shares
  2. Capital Research & Management, 3.77% of shares
  3. BlackRock Fund Advisors, 3.32% of shares
  4. SSgA Funds Management Inc., 3.01% of shares
  5. Baillie Gifford & Co., 1.40% of shares
  6. Geode Capital Management LLC, 1.24% of shares
  7. Jennison Associates LLC, 1.04% of shares
  8. Fidelity Management & Research, 0.85% of shares
  9. Northern Trust Investments Inc., 0.83% of shares
  10. Norges Bank Investment Management, 0.79% of shares

Any of these shareholder percentages can change at any time, even dropping down all the way to 0%. Tesla is currently a popular stock on Wall Street, so these percentages may hold, but if the company’s fortunes turn sour, institutions may bail out at any time.

How Does the Future Look for Tesla?

Tesla, like all auto manufacturers, is working to overcome ongoing supply chain issues and semiconductor shortages resulting from the pandemic. Despite those challenges, Q3 was a record quarter for Tesla in terms of net income, operating profit and gross profit.

In its earnings report, Tesla noted that it has expanded its autopilot and full self-driving program and expanded production of its in-house cell battery packs for testing. In addition, the company increased energy storage deployments by 71% compared to last year and increased solar deployments by 46%. It expects to build its first Model Y vehicles in Berlin and Austin before the end of the year.

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Consider This

Thus far, Tesla has been a great bet in 2021, with the stock up nearly threefold over its 52-week low. But some think that the runup has been too far and too fast. Although eight market analysts have a “buy” or “strong buy” rating on the stock, the consensus price target of $757.17 is significantly below the current price.

Is Tesla Worth the Money?

Tesla is the ultimate love-it or hate-it stock. Short sellers keep betting the company will go out of business — which seems unlikely at this point — while dreamers and believers see the company as changing the fundamental auto and energy landscape. Therefore, the stock is likely to continue to undergo enormous price swings.

Whether or not you find Tesla to be worth the money will likely depend on which camp you fall into.

Regardless of your choice, share price is just one of the variables you should consider when investing in a specific stock. Your financial situation plays a large part in determining whether or not you should invest in stocks at all — let alone invest in a specific stock like Tesla. Working with a fiduciary financial advisor is a good way to delineate your investment objectives, risk tolerance and personal financial situation to determine if investing in stocks is a good match for you.

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Company Net Worth Guides

Daria Uhlig and Sean Dennison contributed to the reporting for this article.

Data is accurate as of Oct. 27, 2021, and subject to change.

Methodology: The GOBankingRates Evaluation assesses a company’s net worth based on the company’s total assets, total liabilities, and revenue and net income from the last three years. Base value is established by subtracting total liabilities from total assets from the company’s last full fiscal year. Income value is established by taking the average of the revenue from the last three full fiscal years, plus 10 times the average of the net profits from the last three full fiscal years, and then calculating the average of those two figures. The final GOBankingRates Evaluation number is the sum of the base value and the income value.