Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 15 Apr, 26 | TSLA | Buy | USD 388.35 | USD 408.0 | USD 430.0 | 22 days | Closed |
10.91%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally. The company operates in two segments, Automotive, and Energy Generation and Storage. The Automotive segment offers electric vehicles, as well as sells automotive regulatory credits; and non-warranty after-sales vehicle, used vehicles, body shop and parts, supercharging, retail merchandise, and vehicle insurance services. This segment also provides sedans and sport utility vehicles through direct and used vehicle sales, a network of Tesla Superchargers, and in-app upgrades; purchase financing and leasing services; services for electric vehicles through its company-owned service locations and Tesla mobile service technicians; and vehicle limited warranties and extended service plans. The Energy Generation and Storage segment engages in the design, manufacture, installation, sale, and leasing of solar energy generation and energy storage products, and related services to residential, commercial, and industrial customers and utilities through its website, stores, and galleries, as well as through a network of channel partners; and provision of service and repairs to its energy product customers, including under warranty, as well as various financing options to its solar customers. The company was formerly known as Tesla Motors, Inc. and changed its name to Tesla, Inc. in February 2017. Tesla, Inc. was incorporated in 2003 and is headquartered in Austin, Texas.
Expansion in Free Cash Flow: USD 6,220 Mn in FY25 vs USD 3,581 Mn in FY24
Growth in FSD Subscriptions: 1.1 Mn in FY25 vs 0.8 Mn in FY24
Reduction in Operating Income: USD 4,355 Mn in FY25 vs USD 7,076 Mn in FY24
Decline in Total Revenue: USD 94,827 Mn in FY25 vs USD 97,690 Mn in FY24
The company faces risks from declining automotive demand, margin pressures due to rising costs and heavy AI investments, and execution challenges in scaling new technologies such as autonomy, robotics, and energy infrastructure
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 388.35 | 350.0 | 408.0 | 430.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Revenue Performance and Segmental Trends: Tesla reported total revenues of USD 94,827 million in FY2025, reflecting a marginal decline of 3% compared to USD 97,690 million in FY2024, primarily impacted by lower vehicle deliveries and reduced regulatory credit revenues . However, the decline was partially offset by robust growth in energy generation and storage as well as services and other revenues, highlighting increasing diversification beyond core automotive operations. The energy segment continued to emerge as a key growth driver amid rising global demand for clean energy solutions.
Automotive Segment Performance: Automotive revenues declined 10% year-over-year to USD 69,526 million in FY2025 from USD 77,070 million in FY2024, reflecting weaker delivery volumes and evolving pricing dynamics . Total vehicle deliveries decreased 9% to 1.64 million units, indicating demand normalization and competitive pressures. Despite volume softness, Tesla focused on enhancing product mix and rolling out updated variants, including the refreshed Model Y, while preparing for next-generation platforms such as Cybercab and Tesla Semi.
Profitability and Margin Dynamics: Total gross profit declined slightly to USD 17,094 million in FY2025 from USD 17,450 million in FY2024, while gross margins remained relatively stable at 18.0% . However, operating income fell significantly by 38% to USD 4,355 million, with operating margins contracting to 4.6%, driven by higher operating expenses, including investments in AI, R&D, and infrastructure expansion. Net income also declined sharply, reflecting increased cost pressures and lower operating leverage.
Cost Structure and Investment Trends: Operating expenses increased 23% year-over-year to USD 12,739 million in FY2025, reflecting elevated spending on artificial intelligence, robotics, and next-generation technologies . Tesla continued to invest heavily in vertical integration, AI infrastructure, and battery manufacturing capabilities, positioning itself as a physical AI company. These investments, while impacting near-term profitability, are aligned with long-term strategic growth initiatives.
Cash Flow and Balance Sheet Strength: Tesla generated operating cash flow of USD 14,747 million in FY2025, broadly stable compared to FY2024, while free cash flow increased significantly by 74% to USD 6,220 million . The company strengthened its liquidity position, with cash, cash equivalents, and investments rising 21% to USD 44,059 million. This robust balance sheet provides flexibility to fund expansion, innovation, and strategic investments, including AI and energy infrastructure.
Operational Expansion and Infrastructure Growth: Operationally, Tesla expanded its global footprint, with total locations increasing to 1,553 and Supercharger stations rising to 8,182 in FY2025 . Energy storage deployments surged significantly, while FSD subscriptions grew 38%, reflecting increasing adoption of software-driven revenue streams. Additionally, Tesla advanced its AI ecosystem, including development of AI5 chips and expansion of training compute infrastructure.
Strategic Shift Toward AI and Robotics: Tesla continued its transition toward becoming a physical AI and robotics company, advancing Full Self-Driving capabilities, launching Robotaxi services, and progressing on the Optimus humanoid robot program . The company also announced a USD 2 billion investment in xAI to strengthen its AI capabilities. These initiatives position Tesla to unlock new high-margin revenue streams through software, autonomy, and AI-driven services over the long term.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given to Tesla Inc. (NASDAQ: TSLA) at the current market price of USD 388.35, as on 15 April,2026 at 11:22 am PDT
Data Powered by EOD Historical Data (“EODHD”).
Sector: Consumer Cyclical Industry: Auto Manufacturers
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| TSLA Tesla Inc |
-11.27 2.96% | 369.57 | 45.91 | 67.57 | 5.67 | 8.35 | 12.42 | 58.23 |
| TOYOF Toyota Motor Corp |
0.04 0.22% | 17.88 | 8.97 | 9.44 | 0.0059 | 1.11 | 0.0097 | 0.05 |
| TM Toyota Motor Corporation ADR |
0.92 0.52% | 178.53 | 8.87 | 9.34 | 0.0052 | 1.07 | 1.27 | 6.98 |
| BYDDY BYD Co Ltd ADR |
0.10 0.88% | 11.41 | 27.15 | 20.49 | 0.18 | 3.56 | 1.12 | 7.45 |
| BYDDF BYD Company Limited |
0.15 1.33% | 11.47 | 26.56 | 20.08 | 0.17 | 3.49 | 1.11 | 7.37 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
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 as on April 15, 2026. 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 has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
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.
Target: 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. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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