| Position | Action |
|---|---|
| Current position | Trim 15-20% (smaller than Research Manager's 30-50%) |
| Residual exposure after trim | Pair with $290/$250 put spread sized to ~50% of residual |
| $297 swing low third test with confirmed close below on volume ≥50M | Trim further to Research Manager's 25% range |
| $332 VWMA reclaim with MACD histogram contracting for two sessions | Pause all further trims |
Tesla is mispriced relative to its optionality—the bear case is already in the price while the company executes a $16.8B AI compute vertical integration that has no auto-industry analog.
| Indicator | Value | Signal |
|---|---|---|
| close | $319.53 | — |
| 10 EMA | $324.67 | bearish |
| 50 SMA | $382.68 | bearish |
| 200 SMA | $409.39 | bearish |
| RSI | 36.94 | — |
| Bollinger Middle (20 SMA) | $347.29 | — |
| Bollinger Lower Band | $269.98 | — |
| Bollinger Upper Band | $424.61 | — |
| ATR | 14.87 | — |
| VWMA | $325.71 | bearish |
| MACD Line | -21.39 | bearish |
| MACD Signal | -21.04 | bearish |
| MACD Histogram | -0.35 | neutral |
Support: 298.32 · 269.98 | Resistance: 324.67 · 325.71 · 347.29 · 382.68 · 409.39
TSLA remains in a bearish regime following a 22% collapse over 12 trading days in July (high: $420.60 on 6/30, low: $298.32 on 7/29). The stock is currently attempting to stabilize near $310-$320 but lacks technical confirmation for a sustainable bounce. Key levels: immediate resistance at $324.67/$325.71 (10 EMA + VWMA) must be reclaimed on above-average volume to trigger a bullish scenario; support at $298.32 (July low) and $269.98 (lower Bollinger band) on further weakness. ATR compression to 14.87 suggests volatility is normalizing, allowing for tighter stop placement (~$29.74 or 2×ATR). RSI higher-low formation (25.42 → 36.94) is constructive but incomplete until 50 is cleared. MACD histogram flattening (-0.35) signals selling exhaustion without confirmed crossover. Recommended approach is to wait for reclaim triggers before entering long positions.
This report is AI-generated for informational and educational purposes only and is not investment advice or a recommendation to buy or sell any security. Full disclaimer.
Underweight maintained with paired 15-20% trim and $290/$250 put spread; $347 is rating-revalidation gate, not stop-loss
The directional Underweight case is dominant and unanimous. The execution synthesis: 15-20% trim (acknowledges directional bear evidence through actual position reduction), paired with $290/$250 put spread at ~50% of residual (addresses carry drag per 2026-08-05 lesson), preserves upside participation in binary catalysts (Terafab, FSD EU, robotaxi), defines tail risk via put spread, and defers additional action to actual catalyst gates rather than current fundamental snapshot. The $347 level is the rating-revalidation gate for upgrading from Underweight to Hold—not a stop-loss on directional exposure.
When: Reveal whether Q2 FCF inflection (-$1.1B) was one-off capex timing item or structural cash burn start
Then: Gate for re-evaluation of Underweight thesis
Tesla's balance sheet provides multi-year FCF absorption capacity and offensive optionality
↩ rebuts: “Bear claim of high multiple and stretched valuation”
· concedes: Bear makes a clean chart case and fair macro case; Bear may be right about the next two weeks; Near-term 2-week execution risk is acknowledged; Downside risk of ~$50 to Bollinger lower band at $269.98 exists
Tesla is not earning its multiple — it is borrowing it from speculative future revenue that hasn't materialized, while the core business deteriorates and competition intensifies.
· concedes: Tesla is not facing a solvency crisis; $43.5B liquidity is real; Terafab may eventually execute and become a real moat; Unitree IPO validates the humanoid robotics category; The long-term story (AI, robotics, Terafab) could work; Lower Bollinger band at $269.98 hasn't been touched — bears haven't fully capitulated; Ford Fathom at $28,350 is not a direct Tesla competitor today
→ vs conservative: Conflating solvency with equity quality—Lehman Brothers had a fortress balance sheet in 2007, Enron had liquidity; what matters is whether equity is priced correctly, not whether the company can survive
→ vs neutral: Waiting for confirmation when it already occurred on August 4th and 6th—the neutral analyst is asking for a second heart attack before calling the doctor
Market Cap
$1.262T
PE Ratio (TTM)
293.1x
Forward PE
144.0x
PEG Ratio
4.72
Price/Book
14.5x
EPS (TTM)
$1.09
Forward EPS
$2.22
Beta
1.83
52-Week High
$498.83
52-Week Low
$297.38
50-Day MA
$388.86
200-Day MA
$411.06
Revenue (TTM)
$103.6B
Gross Profit (TTM)
$19.5B
EBITDA (TTM)
$10.76B
Net Income (TTM)
$3.81B
Profit Margin
3.67%
Operating Margin
1.41%
ROE
4.67%
ROA
1.93%
Debt/Equity
18.37
Current Ratio
1.94
Book Value/Share
$21.99
Free Cash Flow (TTM)
$4.84B
Revenue 2021
$81.5B
Gross Profit 2021
$20.9B
Operating Income 2021
$13.86B
Net Income 2021
$12.58B
Diluted EPS 2021
$3.62
Revenue 2022
$81.5B
Gross Profit 2022
$20.85B
Operating Income 2022
$13.83B
Net Income 2022
$12.58B
Diluted EPS 2022
$3.62
Revenue 2023
$96.8B
Gross Profit 2023
$17.66B
Operating Income 2023
$8.89B
Net Income 2023
$14.999B
Diluted EPS 2023
$4.31
Revenue 2024
$97.7B
Gross Profit 2024
$17.45B
Operating Income 2024
$7.76B
Net Income 2024
$7.13B
Diluted EPS 2024
$2.04
Revenue 2025
$94.8B
Gross Profit 2025
$17.09B
Operating Income 2025
$4.85B
Net Income 2025
$3.79B
Diluted EPS 2025
$1.08
Q2 2025 Revenue
$22.50B
Q2 2025 Gross Profit
$3.88B
Q2 2025 Operating Income
$923M
Q2 2025 Net Income
$1,172M
Q2 2025 Diluted EPS
$0.33
Q3 2025 Revenue
$28.10B
Q3 2025 Gross Profit
$5.05B
Q3 2025 Operating Income
$1,624M
Q3 2025 Net Income
$1,373M
Q3 2025 Diluted EPS
$0.39
Q4 2025 Revenue
$24.90B
Q4 2025 Gross Profit
$5.01B
Q4 2025 Operating Income
$1,409M
Q4 2025 Net Income
$840M
Q4 2025 Diluted EPS
$0.24
Q1 2026 Revenue
$22.39B
Q1 2026 Gross Profit
$4.72B
Q1 2026 Operating Income
$941M
Q1 2026 Net Income
$477M
Q1 2026 Diluted EPS
$0.13
Q2 2026 Revenue
$28.24B
Q2 2026 Gross Profit
$4.75B
Q2 2026 Operating Income
$398M
Q2 2026 Net Income
$1,114M
Q2 2026 Diluted EPS
$0.32
Q2 2026 Gross Margin
16.8%
Q2 2026 R&D
$2.37B
Total Assets Q2 2026
$148.5B
Cash & Equivalents Q2 2026
$15.2B
Short-Term Investments Q2 2026
$28.3B
Total Liquid Assets Q2 2026
$43.5B
Total Liabilities Q2 2026
$61.0B
Total Debt Q2 2026
$16.08B
Capital Lease Obligations Q2 2026
$7.02B
Total Equity Q2 2026
$87.5B
Net PPE Q2 2026
$62.4B
Inventory Q2 2026
$13.75B
Receivables Q2 2026
$4.09B
Working Capital Q2 2026
$33.3B
Diluted Shares Q2 2026
3.540B
Ordinary Shares Q2 2026
3.949B
Retained Earnings Q2 2026
$40.6B
Gross PPE Q2 2026
$84.0B
OCF 2021
$14.72B
CapEx 2021
-$7.17B
FCF 2021
$7.55B
OCF 2022
$14.72B
CapEx 2022
-$7.16B
FCF 2022
$7.55B
OCF 2023
$13.26B
CapEx 2023
-$8.90B
FCF 2023
$4.36B
OCF 2024
$14.92B
CapEx 2024
-$11.34B
FCF 2024
$3.58B
OCF 2025
$14.75B
CapEx 2025
-$8.53B
FCF 2025
$6.22B
OCF Q2 2025
$2.54B
CapEx Q2 2025
-$2.39B
FCF Q2 2025
+$0.15B
OCF Q3 2025
$6.24B
CapEx Q3 2025
-$2.25B
FCF Q3 2025
+$3.99B
OCF Q4 2025
$3.81B
CapEx Q4 2025
-$2.39B
FCF Q4 2025
+$1.42B
OCF Q1 2026
$3.94B
CapEx Q1 2026
-$2.49B
FCF Q1 2026
+$1.44B
OCF Q2 2026
$4.70B
CapEx Q2 2026
-$5.80B
FCF Q2 2026
-$1.10B
SBC 2021
$1.56B
SBC 2025
$2.83B
Stock-Based Compensation Increase
$1.27B
Investing Cash Flow Q2 2026
-$5.93B
Strengths
Concerns
Tesla presents a deeply conflicted fundamental picture: core automotive profitability has deteriorated severely with operating margin compressed to just 1.41%, EPS declining 75% from its 2023 peak, and Q2 2026 free cash flow turning negative at -$1.1B due to a CapEx surge to $5.8B tied to AI infrastructure and Optimus development. Meanwhile, the balance sheet remains exceptionally strong with $43.5B in liquid assets, near-zero true leverage, and ~$15B annual operating cash flow, providing runway for heavy investment. The stock trades at an extreme 293x trailing PE, ~36% below its 200-day moving average, and near 52-week lows, reflecting significant bearish sentiment that could reverse if FSD/robotaxi execution succeeds or operating margins recover sustainably above 5%.