Financial Analysis and Risk Study of Tesla Inc.

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.