Tesla, Inc. (TSLA): a likely value trap?

Avoid — still priced for a robotaxi/robot future at ~280x earnings while the actual car business is losing money and burning cash.

⚠ TRAP Fundamentals45/100

Down 35% from its all-time high of $481.20 — now $313.03

Why TSLA dropped

Tesla crashed after Q2 2026 earnings (reported July 22) because profits collapsed even as revenue hit a record: operating margin fell to 1.4% from 4.1% a year ago, adjusted EPS of $0.33 missed the $0.53-0.54 estimate, and free cash flow turned negative for the first time since early 2024 as spending on AI, Optimus and robotaxi surged.

Fwd P/E 141.0Op margin 1.4%Rev growth 25.5%Debt/equity 18.4%Analyst upside 28.1%

How this scored 45/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 3.7%

✅ Generates cash Free cash flow $4.8B

✅ Not drowning in debt Debt/equity 18.4% (limit 200%)

✅ Can pay its bills Current ratio 1.9 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 2/25

Operating margin 1.4% 1/9

Net profit margin 3.7% 1/8

Return on equity 4.7% 0/8

Growth Is it getting bigger, or dying? 18/25

Revenue growth 25.5% 9/9

Earnings growth -3.0% 1/8

Expected profit change 101.8% 8/8

Value Is it cheap right now? 3/25

Forward P/E 141.0 0/10

PEG ratio 4.5 0/8

Analyst target upside 28.1% 3/7

Balance sheet Will it survive? 22/25

Debt / equity 18.4% 10/10

Current ratio 1.9 5/8

Free cash flow $4.8B 7/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-07-26. Research only — not financial advice.