Financial Analysis and Risk Study of Tesla Inc.

Authors

  • Zixin Zheng

DOI:

https://doi.org/10.54097/w3w70d66

Keywords:

Electric vehicle, China, Tesla, Risk analysis, Financial analysis

Abstract

In recent years, the development of energy-saving energy has become an important and promising market trend to strengthen the protection of the environment, achieve zero emission of transportation and reduce dependence on oil. The electric vehicle (EV) industry is growing rapidly with strong policy impetus in various countries, especially China. In 2022, China's EV sales accounted for 61.2% of global EV sales. However, with the continuous development of the market, the increasing progress of technology and the constant change of policies, the complexity of the market has increased. Therefore, it is challenging to predict the future direction of the EV industry and identify projects with long-term investment value. However, whether Tesla has the ability of sustainable development as the industry leader is the research topic of this paper. This paper describes the opportunities and challenges of the EV industry and analyzes its profitability, operating capacity, solvency, and development capacity based on TESLA's financial statements from 2020 to 2022. At the same time, the financial statements of companies in the industry, BYD and SAIC, were compared and analyzed with, and the opportunities and challenges encountered by them in China were analyzed. Ratio analysis is the main method used in this article in financial analysis, it is collected from the annual report of the company to calculate. The study found that from these different dimensions of financial analysis, it can be concluded that Tesla is a promising company.

Downloads

Download data is not yet available.

References

Sathiyan, S. P., Pratap, C. B., Stonier, A. A., Peter, G., Sherine, A., Praghash, K., & Ganji, V. (2022). Comprehensive assessment of electric vehicle development, deployment, and policy initiatives to reduce GHG emissions: opportunities and challenges. IEEE Access, 10, 53614-53639.

Razmjoo, A., Ghazanfari, A., Jahangiri, M., Franklin, E., Denai, M., Marzband, M., ... & Maheri, A. (2022). A Comprehensive Study on the Expansion of Electric Vehicles in Europe. Applied Sciences, 12(22), 11656.

Kumar, R. R., Guha, P., & Chakraborty, A. (2022). Comparative assessment and selection of electric vehicle diffusion models: A global outlook. Energy, 238, 121932.

Chen, F. (2022, July). Analysis of Key Factors for Tesla’s Success. In 2022 2nd International Conference on Enterprise Management and Economic Development (ICEMED 2022) (pp. 758-763). Atlantis Press.

Huang, J. (2022). BRAND MARKETING STRATEGY OF NEW ENERGY VEHICLES IN THE CHINESE MARKET-TAKING TESLA AS AN EXAMPLE. Journal of Buddhist Education and Research, 8 (3), 128-134.

Qin, Y., Xiao, Y., & Yuan, J. (2021, September). The Comprehensive Competitiveness of Tesla Based on Financial Analysis: A Case Study. In 2021 International Conference on Financial Management and Economic Transition (FMET 2021) (pp. 462-469). Atlantis Press.

Archsmith, J., Muehlegger, E., & Rapson, D. S. (2022). Future paths of electric vehicle adoption in the United States: predictable determinants, obstacles, and opportunities. Environmental and Energy Policy and the Economy, 3 (1), 71-110.

Wen, W., Yang, S., Zhou, P., & Gao, S. Z. (2021). Impacts of COVID-19 on the electric vehicle industry: Evidence from China. Renewable and Sustainable Energy Reviews, 144, 111024.

Liu, B., Zhang, Q., Liu, J., Hao, Y., Tang, Y., & Li, Y. (2022). The impacts of critical metal shortage on China's electric vehicle industry development and countermeasure policies. Energy, 248, 123646.

Maisel, F., Neef, C., Marscheider-Weidemann, F., & Nissen, N. F. (2023). A forecast on future raw material demand and recycling potential of lithium-ion batteries in electric vehicles. Resources, Conservation and Recycling, 192, 106920.

Ahmad, S., & Khan, M. (2019). Tesla: Disruptor or Sustaining Innovator. Journal of Case Research, 10 (1).

Wu, M., & Chen, W. (2022). Forecast of electric vehicle sales in the world and China based on PCA-GRNN. Sustainability, 14 (4), 2206.

Kane, M. (2023), Global Plug-In Electric Car Sales Exceeded 10 Million In 2022, INSIDEEVs, viewed 31 August 2023, <https://insideevs.com/news/651947/global-plugin-car-sales-december2022/>.

Downloads

Published

22-01-2024

How to Cite

Zheng, Z. (2024). Financial Analysis and Risk Study of Tesla Inc. Highlights in Business, Economics and Management, 24, 521-527. https://doi.org/10.54097/w3w70d66