The Comprehensive Competitiveness of Tesla Based on Financial Analysis: A Case Study

Abstract

Contemporarily, the new energy automobile industry has developed rapidly, which has attracted plenty of investors due to the great market potential. The increasing listed companies lead to fierce competition in this industry, i.e., it is crucial to analyse the comprehensive competitiveness of these companies for both industry and investors. Based on relative literatures, Tesla, a leader in the industry, is selected as a case to analyse. Specifically, we used Tesla's financial statements from 2018 to 2020 and compared the financial performance with other competitors in the industry. Through the case study method, the current issues of Tesla is pointed out, which have a negative impact on financial performance. Subsequently, some feasible suggestions are put forward accordingly. These results serve as a strong basis for the long-term investment value of listed companies and help investors make correct investment decisions.

Financial Analysis and Risk Study of Tesla Inc.

“…Qin et al chose EV industry leader Tesla as a case and compared its financial statements from 2018 to 2020 with other competitors in the EV industry to analyze its comprehensive competitiveness. Through the case study method, the author points out the existing problems of Tesla and puts forward some feasible suggestions, which will help investors make the right investment decision [6]. In order to inform the desire for growth in the EV market held by investors, the authors study and quantify the main determinants of future EV demand.…”

Electric High-tech Car and Environment Sustainable: Analysis of Tesla’s problems

“…While Tesla has shortened its global operations, it has also implemented layoffs and pay cuts for temporary employees, leading to the forced departures of some employees. Tesla mentioned in its financial statement that in April 2020, due to the outbreak of covid-19, many temporary employees were laid off, and the base salary of other employees was reduced [6]. The wage cut sparked employee dissatisfaction, leading to employees resigning from Tesla [6].…”

“…Tesla mentioned in its financial statement that in April 2020, due to the outbreak of covid-19, many temporary employees were laid off, and the base salary of other employees was reduced [6]. The wage cut sparked employee dissatisfaction, leading to employees resigning from Tesla [6]. In the future, when Tesla wants to expand its scale to recruit some new employees, there will be a labor shortage problem.…”

A Study of Negative Working Capital Verses Profitability with Reference to Tesla Inc.

“…The fundamental analysis of the financial statements of Tesla ltd by the author concluded that it is a good choice to invest in the firm. Qin et al (2021) did a case on Tesla Inc. where the financial performance of the company was compared with its competitors in the same industry based on various financial ratios, capital structure leverage and return on capital employed (ROCE) was studied. The main objective of the study was to find out the level of competitiveness in the electric vehicle automotive industry.…”