Tesla Beneish M Score

TSLA
 Stock
  

USD 194.86  0.16  0.08%   

This module uses fundamental data of Tesla to approximate the value of its Beneish M Score. Tesla M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Additionally, take a look at Tesla Piotroski F Score and Tesla Altman Z Score analysis.
  
Tesla Total Debt is projected to increase significantly based on the last few years of reporting. The past year's Total Debt was at 2.43 Billion. The current year Debt Current is expected to grow to about 609.8 M, whereas Issuance Repayment of Debt Securities is forecasted to decline to about 519 M. Tesla Long Term Debt to Equity is projected to slightly decrease based on the last few years of reporting. The past year's Long Term Debt to Equity was at 0.17. The current year PPandE Turnover is expected to grow to 3.67, whereas Accounts Payable Turnover is forecasted to decline to 5.90.
At this time, it appears that Tesla Inc is an unlikely manipulator. The earnings manipulation may begin if Tesla's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Tesla executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Tesla's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.77
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.0Focus
Asset Quality1.0Focus
Expense Coverage1.0Focus
Gross Margin Strengs1.02Focus
Accruals Factor1.0Focus
Depreciation Resistance1.0Focus
Net Sales Growth1.08Focus
Financial Leverage Condition1.0Focus

Tesla Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Tesla's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Selling General and Administrative Expense895.5 M830 M
Significantly Up
Increasing
Slightly volatile
Revenues58.1 B53.8 B
Significantly Up
Increasing
Slightly volatile
Trade and Non Trade Receivables164.1 M152.1 M
Significantly Up
Increasing
Slightly volatile
Property Plant and Equipment NetB4.7 B
Significantly Up
Increasing
Slightly volatile
Operating IncomeB6.5 B
Significantly Up
Increasing
Slightly volatile
Net Cash Flow from Operations12.4 B11.5 B
Significantly Up
Increasing
Slightly volatile
Liabilities Non CurrentB3.7 B
Significantly Up
Increasing
Slightly volatile
Current Liabilities21.3 B19.7 B
Significantly Up
Increasing
Slightly volatile
Total Liabilities34.5 B31.9 B
Significantly Up
Increasing
Slightly volatile
Investments Current26.4 M26 M
Fairly Up
Increasing
Slightly volatile
Investments26.4 M26 M
Fairly Up
Increasing
Slightly volatile
Gross Margin25.8625.2792
Fairly Up
Decreasing
Very volatile
Depreciation Amortization and Accretion410.4 M380.3 M
Significantly Up
Increasing
Slightly volatile
Debt Non CurrentB1.9 B
Significantly Up
Increasing
Slightly volatile
Debt Current609.8 M565.1 M
Significantly Up
Increasing
Slightly volatile
Total Debt2.6 B2.4 B
Significantly Up
Increasing
Slightly volatile
Assets Non Current5.1 B4.8 B
Significantly Up
Increasing
Slightly volatile
Current Assets29.2 B27.1 B
Significantly Up
Increasing
Slightly volatile
Total Assets67 B62.1 B
Significantly Up
Increasing
Slightly volatile

Tesla Inc Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Tesla's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Tesla in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Tesla's degree of accounting gimmicks and manipulations.

About Tesla Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation Amortization and Accretion

410.36 Million

Tesla Depreciation Amortization and Accretion is projected to increase significantly based on the last few years of reporting. The past year's Depreciation Amortization and Accretion was at 380.33 Million

Tesla Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Tesla. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Revenues11.76 B21.46 B24.58 B31.54 B53.82 B58.07 B
Total Assets28.66 B29.74 B34.31 B52.15 B62.13 B67.04 B
Current Assets6.57 B8.31 B12.1 B26.72 B27.1 B29.24 B
Total Liabilities24.42 B24.82 B27.69 B29.92 B31.94 B34.46 B
Current Liabilities7.67 B9.99 B10.67 B14.25 B19.7 B21.26 B
Operating Income(1.63 B)(388.07 M)(69 M)1.99 B6.52 B7.04 B
Gross Margin18.918.8316.5621.0225.2825.86

Tesla ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Tesla's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Tesla's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About Tesla Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Tesla Inc's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Tesla using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Tesla Inc based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally. Tesla, Inc. was incorporated in 2003 and is headquartered in Austin, Texas. Tesla operates under Auto Manufacturers classification in the United States and is traded on NASDAQ Exchange. It employs 99290 people.

Tesla Investors Sentiment

The influence of Tesla's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Tesla. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to Tesla's public news can be used to forecast risks associated with investment in Tesla. The trend in average sentiment can be used to explain how an investor holding Tesla can time the market purely based on public headlines and social activities around Tesla Inc. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Tesla's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Tesla's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Tesla's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Tesla.

Tesla Implied Volatility

    
  60.14  
Tesla's implied volatility exposes the market's sentiment of Tesla Inc stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Tesla's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Tesla stock will not fluctuate a lot when Tesla's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Tesla in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Tesla's short interest history, or implied volatility extrapolated from Tesla options trading.

Currently Active Assets on Macroaxis

Additionally, take a look at Tesla Piotroski F Score and Tesla Altman Z Score analysis. You can also try Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.

Complementary Tools for analysis

When running Tesla Inc price analysis, check to measure Tesla's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Tesla is operating at the current time. Most of Tesla's value examination focuses on studying past and present price action to predict the probability of Tesla's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Tesla's price. Additionally, you may evaluate how the addition of Tesla to your portfolios can decrease your overall portfolio volatility.
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Go
Global Correlations
Find global opportunities by holding instruments from different markets
Go
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Go
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Is Tesla's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Tesla. If investors know Tesla will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Tesla listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.98
Market Capitalization
615.3 B
Quarterly Revenue Growth YOY
0.56
Return On Assets
0.12
Return On Equity
0.32
The market value of Tesla Inc is measured differently than its book value, which is the value of Tesla that is recorded on the company's balance sheet. Investors also form their own opinion of Tesla's value that differs from its market value or its book value, called intrinsic value, which is Tesla's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Tesla's market value can be influenced by many factors that don't directly affect Tesla's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Tesla's value and its price as these two are different measures arrived at by different means. Investors typically determine Tesla value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Tesla's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.