Value Investing in the EV Industry: A Case Study of Tesla

Ruiyang Ding ()
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Ruiyang Ding: Hunan Agricultural University, College of Public Administration and Law

A chapter in Proceedings of the 2025 International Conference on Financial Risk and Investment Management (ICFRIM 2025), 2025, pp 929-937 from Springer

Abstract: Abstract This study examines Tesla Inc. Through the lens of value investing principles, analyzing its long-term investment potential in the rapidly evolving electric vehicle and sustainable energy markets. Through SWOT analysis and key financial metrics evaluation, the research reveals Tesla’s achievement of 1.809 million vehicle deliveries and $96.77 billion revenue in 2023, while maintaining robust liquidity management with $29.094 billion in cash and investments. Despite profitability pressure from intense competition leading to declining automotive gross margins, Tesla is successfully transitioning from a pure EV manufacturer to a technology-driven energy company, supported by significant growth in energy storage business and service revenue. Looking forward, Tesla’s value will primarily depend on the successful launch of its next-generation platform, expansion of energy business, and commercialization of AI and autonomous driving technologies. While facing near-term challenges in market competition and macroeconomic uncertainties, Tesla’s leading position in EVs and sustainable energy, coupled with continuous improvements in technological innovation and operational efficiency, underpins its long-term investment value, offering a cautiously optimistic outlook for value investors in the sustainable energy sector.

Keywords: EV Industry; Value Investing; Case Study (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-748-9_101

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DOI: 10.2991/978-94-6463-748-9_101

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