<p>In today's rapidly changing and fiercely competitive business landscape, it is essential for investors and industry enthusiasts to thoroughly analyze companies. In this article, we will conduct a comprehensive industry comparison, evaluating <b>Tesla (NASDAQ:TSLA)</b> against its key competitors in the Automobiles industry. By examining key financial metrics, market position, and growth prospects, we aim to provide valuable insights for investors and shed light on company's performance within the industry.</p>
<h3>Tesla Background</h3>
<p>Tesla is a vertically integrated battery electric vehicle automaker and developer of real world artificial intelligence software, which includes autonomous driving and humanoid robots. The company has multiple vehicles in its fleet, which include luxury and midsize sedans, crossover SUVs, a light truck, and a semi truck. Tesla also plans to begin selling a sports car and offer a robotaxi service. Global deliveries in 2024 were a little below 1.8 million vehicles. The company sells batteries for stationary storage for residential and commercial properties including utilities and solar panels and solar roofs for energy generation. Tesla also owns a fast-charging network and an auto insurance business.</p>
<table>
<thead>
<tr>
<th><strong>Company</strong></th>
<th><strong>P/E</strong></th>
<th><strong>P/B</strong></th>
<th><strong>P/S</strong></th>
<th><strong>ROE</strong></th>
<th><strong>EBITDA (in billions)</strong></th>
<th><strong>Gross Profit (in billions)</strong></th>
<th><strong>Revenue Growth</strong></th>
</tr>
</thead>
<tbody>
<tr>
<td>Tesla Inc</td>
<td>316.99</td>
<td>19.12</td>
<td>16.93</td>
<td>1.75%</td>
<td>$3.66</td>
<td>$5.05</td>
<td>11.57%</td>
</tr>
<tr>
<td>Toyota Motor Corp</td>
<td>9.54</td>
<td>1.17</td>
<td>0.89</td>
<td>2.54%</td>
<td>$1824.36</td>
<td>$1968.84</td>
<td>8.15%</td>
</tr>
<tr>
<td>General Motors Co</td>
<td>15.83</td>
<td>1.17</td>
<td>0.44</td>
<td>1.95%</td>
<td>$5.74</td>
<td>$3.11</td>
<td>-0.34%</td>
</tr>
<tr>
<td>Ferrari NV</td>
<td>35.58</td>
<td>14.99</td>
<td>8.06</td>
<td>10.42%</td>
<td>$0.67</td>
<td>$0.88</td>
<td>7.4%</td>
</tr>
<tr>
<td>Ford Motor Co</td>
<td>11.35</td>
<td>1.12</td>
<td>0.28</td>
<td>5.29%</td>
<td>$3.67</td>
<td>$4.3</td>
<td>9.39%</td>
</tr>
<tr>
<td>Li Auto Inc</td>
<td>15.83</td>
<td>1.68</td>
<td>0.90</td>
<td>-0.86%</td>
<td>$-0.71</td>
<td>$4.47</td>
<td>-36.17%</td>
</tr>
<tr>
<td>Thor Industries Inc</td>
<td>19.79</td>
<td>1.28</td>
<td>0.57</td>
<td>0.5%</td>
<td>$0.11</td>
<td>$0.32</td>
<td>11.5%</td>
</tr>
<tr>
<td>Winnebago Industries Inc</td>
<td>31.76</td>
<td>0.93</td>
<td>0.40</td>
<td>0.45%</td>
<td>$0.03</td>
<td>$0.09</td>
<td>12.32%</td>
</tr>
<tr>
<td>Workhorse Group Inc</td>
<td>0.07</td>
<td>1.49</td>
<td>0.35</td>
<td>-28.77%</td>
<td>$-0.01</td>
<td>$-0.01</td>
<td>-4.97%</td>
</tr>
<tr>
<td><strong>Average</strong></td>
<td><strong>17.47</strong></td>
<td><strong>2.98</strong></td>
<td><strong>1.49</strong></td>
<td><strong>-1.06%</strong></td>
<td><strong>$229.23</strong></td>
<td><strong>$247.75</strong></td>
<td><strong>0.91%</strong></td>
</tr>
</tbody>
</table>



<p>After thoroughly examining Tesla, the following trends can be inferred: </p>
<ul>
<li>
Notably, the current Price to Earnings ratio for this stock, 316.99, is 18.14x above the industry norm, reflecting a higher valuation relative to the industry.
</li>
<li>
The elevated Price to Book ratio of 19.12 relative to the industry average by 6.42x suggests company might be overvalued based on its book value.
</li>
<li>
With a relatively high Price to Sales ratio of 16.93, which is 11.36x the industry average, the stock might be considered overvalued based on sales performance.
</li>
<li>
With a Return on Equity (ROE) of 1.75% that is 2.81% above the industry average, it appears that the company exhibits efficient use of equity to generate profits.
</li>
<li>
Compared to its industry, the company has lower Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $3.66 Billion, which is 0.02x below the industry average, potentially indicating lower profitability or financial challenges.
</li>
<li>
The gross profit of $5.05 Billion is 0.02x below that of its industry, suggesting potential lower revenue after accounting for production costs.
</li>
<li>
The company's revenue growth of 11.57% exceeds the industry average of 0.91%, indicating strong sales performance and market outperformance.
</li>
</ul>
<h3>Debt To Equity Ratio</h3>
<p><img src="https://imageproxy.pbkrs.com/https://www.benzinga.com/files/images/story/2025/1767106855_0.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="debt to equity" width="500" height="400" original-src="https://imageproxy.pbkrs.com/https://www.benzinga.com/files/images/story/2025/1767106855_0.png"/></p>

<p>The debt-to-equity (D/E) ratio helps evaluate the capital structure and financial leverage of a company.</p>
<p>Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.</p>
<p>In terms of the Debt-to-Equity ratio, Tesla can be assessed by comparing it to its top 4 peers, resulting in the following observations:</p>
<ul>
<li>
Tesla exhibits a stronger financial position compared to its top 4 peers in the sector, as indicated by its lower debt-to-equity ratio of 0.17.
</li>
<li>
This suggests that the company has a more favorable balance between debt and equity, which can be seen as a positive aspect for investors.
</li>
</ul>
<h3>Key Takeaways</h3>
<p>The high PE, PB, and PS ratios suggest that Tesla is relatively overvalued compared to its peers in the Automobiles industry. On the other hand, the high ROE and revenue growth indicate strong performance potential, while the low EBITDA and gross profit levels may raise concerns about profitability and operational efficiency. Overall, Tesla's valuation appears stretched based on traditional metrics, but its growth prospects and return on equity are promising compared to industry peers.</p>
<p><em>This article was generated by Benzinga's automated content engine and reviewed by an editor.</em></p>

TSLA

TSDD

TSLL

TSLQ

09366

07766

07366

TSLR

<p>The article compares Tesla (NASDAQ:TSLA) with its competitors in the automobile industry, analyzing financial metrics, market position, and growth prospects. Tesla's high Price to Earnings (P/E), Price to Book (P/B), and Price to Sales (P/S) ratios suggest it may be overvalued. However, its Return on Equity (ROE) and revenue growth are strong. Tesla's debt-to-equity ratio of 0.17 indicates a favorable financial position compared to peers. Overall, while Tesla's valuation appears stretched, its growth potential remains promising.</p>

- This article analyzes Tesla's performance within the automobile industry, comparing it against competitors like Toyota and General Motors.  
- Despite Tesla's high Price to Earnings, Price to Book, and Price to Sales ratios indicating overvaluation, its strong revenue growth and Return on Equity suggest solid performance potential.  
- The overall assessment reveals Tesla's valuation may be stretched, but its growth prospects and efficient equity use offer an optimistic outlook for investors.

Comparing Tesla With Industry Competitors In Automobiles Industry