equity report
TRANSCRIPT
EQUITY RESEARCH REPORT
ON TELSA MOTORS INC
(OTC SHARES)
4TH QUARTER, (2015)
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Equity Research Report on Telsa Motors Inc (OTC Shares) | Seven Star FX Ltd
Contents
To Our Clients ____________________________________________________________________________________________ 3
Strategic Highlights .......................................................................................................................................................................... 3
Financial Highlights ............................................................................................................................................................................ 3
Operating Highlights ........................................................................................................................................................................... 3
Financial Summary ______________________________________________________________________________________ 4
Financial Statements: ____________________________________________________________________________________ 5
Statement of Comprehensive Income (Profits and Losses) ...................................................................................... 8
Statement of Cash Flows includes Operating, Investing & Financing ............................................................... 10
Notes to Financial Statements _________________________________________________________________________ 11
Accounts ................................................................................................................................................................................................ 11
Debt ......................................................................................................................................................................................................... 11
Contingent Liabilities .................................................................................................................................................................... 11
Independent Analyst Report ___________________________________________________________________________ 12
About the Analyst: ______________________________________________________________________________________ 17
Research Reports on Tesla Motors Inc.
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ABOUT THE COMPANY
Tesla Motors, Inc. is an American automotive and energy storage company
that designs, manufactures, and sells electric cars, electric vehicle power train
components, and battery products Tesla Motors is a public company that trades on
the NASDAQ stock exchange under the symbol TSLA The company sells its
products through a network of Tesla stores and galleries, as well as through
Internet. It has collaboration agreement with EnerNOC, Inc. for the deployment
and management of energy storage systems in commercial and industrial building
Fundamental Grade Report:
SSFX Fundamental Grade represents an overall assessment of the fundamentals of the
company graded in relation to other listed equity securities in USA. The grade facilitates easy
comparison of fundamentals between several companies, irrespective of the size or the
industry they operate in. The grading factors in the following:
¾ Business Prospects: Business prospects factors in Industry prospects and
company’s future financial performance
¾ Management Evaluation: Factors such as track record of the management, strategy
are taken into consideration
¾ Corporate Governance: Assessment of adequacy of corporate governance
structure and disclosure norms
The grade points are assigned on a five-point scale from grade 5 (indicating Excellent
fundamentals) to grade 1 (Poor fundamentals)
Fundamental Grade Assessment
5/5 Excellent fundamentals
4/5 Superior fundamentals
3/5 Good fundamentals
2/5 Moderate fundamentals
1/5 Poor fundamentals
The Above Valuation Grade represents an assessment of the potential value in the company
stock for an equity investor over a 12 month period. The grade is assigned on a five-point scale
from grade 5 (indicating strong upside from the current market price (CMP)) to grade 1 (strong
downside from the CMP)
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Seven Star FX Ltd Valuation Grade Assessment
5/5 STRONG UPSIDE (>25% FROM CMP)
4/5 Upside (10-25% from CMP)
3/5 Align (+-10% from CMP)
2/5 Downside (negative 10-25% from CMP)
1/5 Strong downside (<-25% from CMP)
Analyst Recommendation:
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To Our Clients
STRATEGIC HIGHLIGHTS
It is essential for the valuation to estimate future cash flows. The foundation for these estimates will be
made in the strategic analysis. The purpose here is to identify the non-financial value drivers, which I
consider to have the greatest influence on the future value creation of the business. The analysis will
follow a ”bottom top ” approach, where a macro environmental-, industry-, and internal analysis
provides an assessment of Tesla’s strength, strengths, weaknesses, opportunities and threats.
FINANCIAL HIGHLIGHTS
As the next step in the Financial Highlights, I had perform a historical financial analysis. In order to
compare and benchmark performance across different periods and companies within the industry, and
calculate the correct value creation, income statements and balance sheets for Tesla, BMW, Audi,
General Motors, Ford and Toyota, will be reformulated based on Petersen & Plenborg (2012) unless
otherwise stated. I have also and Kotler et al. Theories where I have found it useful to draw upon
several sources. Profitability, growth and risk will be focused on. The analysis of financial ratios will
follow the structure of the Du Pont model as described by Petersen & Plenborg
OPERATING HIGHLIGHTS
Following the external analysis, I will focus on industry specific factors and explain the extent to which
these factors influence the industry. The traditional model consists of two vertical sources of
competition; the power of suppliers and the power of buyers, and three horizontal; competition from
established rivals, competition from substitutes and competition from relatively new entrants. The
traditional Five Forces model has also been criticized for presenting a brief picture of the industry
structure.
Key Person:
Management of Tesla Motors Inc:
Mr. Elon Musk Mr. Deepak Ahuja Mr. Jay Vijayan
CEO CFO CIO
Research Reports on Tesla Motors Inc.
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Financial Summary
The details of Telsa Motors financial information is presented in a structured manner
and in a form easy to understand. They typically include basic financial statements,
accompanied by a management discussion and analysis The Financial Summary is
Described below into Certain Parts
1. A balance sheet, also referred to as a statement of financial position, reports
on a company's assets, liabilities, and ownership equity at a given point in
time.
2. An income statement, also known as a statement of comprehensive
income, statement of revenue & expense, P&L or profit and loss report,
reports on a company's income, expenses, and profits over a period of time. A
profit and loss statement provides information on the operation of the
enterprise. These include sales and the various expenses incurred during the
stated period.
3. A statement of cash flows reports on a company's cash flow activities,
particularly its operating, investing and financing activities.
Apart From That the Analyst Has Recommend the Stock Dealers Some part of Technical
Indicators that helps them to Deal in Their Decision Making Process
Research Reports on Tesla Motors Inc.
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Financial Statements:
• Liabilities
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Source: Tesla Audit Report
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• Ownership Equity
Source: NASDAQ Screen Watch
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STATEMENT OF COMPREHENSIVE INCOME (PROFITS AND LOSSES)
• Income
(In Thousands $)
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• Balance Sheet
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Cash Flow
STATEMENT OF CASH FLOWS INCLUDES OPERATING, INVESTING & FINANCING
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Notes to Financial Statements
ACCOUNTS
The Balance Sheet of Telsa motors shows the optimistic returns with an expected rise of
7.3%. and downtrend in Crude Oil Prices
DEBT
As per the Previous Year The Debt Increased for more than Two times as compared to
previous year with a record high which alarm the Danger if the Company goes in
Financial Crisis in Future
CONTINGENT LIABILITIES
The carrying values of our financial instruments including cash equivalents, accounts
receivable and accounts payable approximate their fair value due to their short-term
nature. As a basis for determining the fair value of certain of our assets and liabilities, we
established a three-tier fair value hierarchy which prioritizes the inputs used in
measuring fair value as follows
The Financial assets that are measured at fair value on a recurring basis consist of cash
equivalents. Telsa liabilities t are measured at fair value on a recurring basis consist of
our common stock warrant liability
Research Reports on Tesla Motors Inc.
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Independent Analyst Report
Source: Morning Star
From The Above Financial Reports & Analyst the Future of Tesla Motors Inc. Looks Quite
Optimistic but in Relatively the Momentum of Share Price in Co-relation With the Market
Data contradicts which can show a down trend in October – November of this year
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Source: Morning Star
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Watch List of Tesla Motors Inc.
Research Reports on Tesla Motors Inc.
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Technical Analysis: RSI
RSI Band Showed a trend Reversal of 73.51 on Friday moving the Graph Upwards from
66.14 on Thursday. Beneficial From Buyers Point of View
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Bollinger Bands (BB)
While the BB have a reversal mark on 276.71 on Upper End
Disclaimer: This Exchange-commissioned Report is based on data publicly available or from sources considered reliable.
Seven Star FX Ltd does not represent that it is accurate or complete and hence, it should not be relied upon as such. The Report
are subject to change without any prior notice. Opinions expressed herein are our current opinions as on the date of this Report.
Nothing in this Report constitutes investment, legal, accounting or tax advice or any solicitation, whatsoever. The user assumes
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REPORTED BY:
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About the Analyst:
Mr. Dhruv Williams, Market Analyst at Seven Star FX Ltd. Originally trained in the art of technical
analysis, he has since developed to become a strategist with great experience of FX majors and equity
markets. He provides research and strategy on Foreign Exchange, CFDs and Stock for Seven Star FX for our
clients. He is also a founder of SSFX Knowledge Center (Research arm of Seven Star FX). D’Williams is a
Graduate & Post Graduate from Mumbai University, and Holds MBA cum CFA from ICFAI University.
MR. DHRUV WILLIAMS ANALYST (GLOBAL MARKETS)
Email: [email protected]
Analyst Disclosure
The preparation of the grading report,
hereby affirms that there exists no conflict of
interest that can bias the grading
recommendation of the company.
Seven Star FX Ltd
No. 5, Cork Street, Belize City, Central America
Tel +1 316 413 3777
www.sevenstarfx.com