Important note

This AI stock analysis for Tesla is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!

Tesla - AI Stock Analysis

Analysis generated July 8, 2025

Tesla, Inc. (NASDAQ: TSLA) is an American electric vehicle (EV) and clean energy company based in Palo Alto, California. Founded in 2003, Tesla has rapidly emerged as one of the leaders in the EV industry, known for its innovation in battery technology, autonomous driving, and solar energy solutions. Under the leadership of CEO Elon Musk, Tesla has expanded its market reach and is now a prominent name in the automotive and energy sectors globally.

Fundamental Analysis

Tesla reported revenue of $19.3 billion in the last quarter, marking a decrease of 24.79% compared to the previous quarter and a year-over-year decrease of 9.23%. This indicates potential concerns about the company's growth trajectory and market conditions.

Net income for the last quarter was $409 million, showcasing an acute decrease of 82.64% compared to the previous quarter and a 63.77% year-over-year decline. These significant drops highlight potential strains on profitability and operational efficiency.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the last quarter stood at $2.13 billion. This signifies a decrease of 51.19% compared to the last quarter and a 26.02% decrease from the same period last year. The reduced EBITDA indicates a tighter margin scenario for Tesla.

Tesla's current price-to-earnings (P/E) ratio is 182.28. This high P/E ratio might suggest that the stock is overvalued, which could signal a bearish market sentiment. The recent insider selling within the company also adds to this bearish narrative.

Technical Analysis

Tesla's current stock price stands at $297.81, reflecting a 0.90% increase over the past month. This short-term rise indicates a positive trend. Over the past year, the stock has increased by 13.52%, showing a generally positive long-term trend despite a prevailing bearish sentiment.

The Simple Moving Average over the past 10 days (SMA10) is $311.08, down from the previous SMA10 of $313.66. This reduction implies a potential downward trend in price movement.

The Relative Strength Index (RSI) is currently at 39.4, which suggests a neutral condition. All these technical indicators suggest that the market sentiment towards Tesla is currently cautious.

Alternative Data Analysis

In terms of job postings and employee sentiment, Tesla currently has 2,214 open positions, reflecting a 36% reduction in the last couple of months. This reduction may imply cost-cutting initiatives, which are concerning for a growth-centric company.

Customer acquisition data shows an estimated 30 million visitors to Tesla's webpage, down by 9% over the past couple of months. This decrease could indicate a diminishing interest or loss of potential buyers.

Tesla's mobile app downloads hover around 12,000 daily, with no significant change recently, suggesting stabilization but not growth in customer engagement.

Customer engagement on social media reveals a slight 1% decrease in Instagram followers, now at 9.5 million. This decline can be an indicator of waning public interest.

AltIndex’s AI score for Tesla is 39, signaling a sell. This score combines fundamental, technical, and alternative data, emphasizing the overall negative market outlook.

Conclusion and Recommendation

Based on the data above, Tesla's current financial health appears to exhibit potential concerns, with notable decreases in revenue, net income, and EBITDA compared to both the previous quarter and the same quarter last year. Despite positive short-term and long-term stock price trends, the bearish sentiment driven by high P/E ratio and insider selling raises red flags. Technical indicators suggest cautiousness, reinforced by declining job postings, webpage visits, and social media engagement.

Ultimately, while Tesla remains a pivotal player in the EV and clean energy sectors, potential investors should consider these signals carefully. Given the high P/E ratio, fundamental weaknesses, and bearish technical and alternative data indicators, a cautious or bearish investment approach may be appropriate at this time.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.