Tesla Intrinsic Value Calculator – California Class Action Accuses Tesla of Falsely Advertising Electric Vehicle Range Claims
August 11, 2023
🌧️Trending News
Tesla ($NASDAQ:TSLA) is a leading electric vehicle manufacturer, known for its cutting-edge technology and innovative designs. Recently, three Tesla owners have filed a class action lawsuit in California, claiming that the carmaker has been making false advertising claims about the range of its electric vehicles. The complaint alleges that the advertised range for Tesla’s vehicles was grossly exaggerated and that the company withheld important information about battery performance and charging efficiency from customers. The lawsuit states that the range of Tesla’s electric vehicles was misrepresented, which has resulted in an unexpected decrease in battery life and the need for additional charging stops during trips. The plaintiffs are seeking compensation for the overstated range of Tesla’s electric vehicles.
They also want Tesla to be more transparent about its advertising claims and to make essential information about battery performance and charging efficiency available to its customers. The lawsuit could have serious repercussions for Tesla if the allegations are found to be true. It may cause potential customers to think twice before buying a Tesla vehicle, as well as damage the carmaker’s reputation. Consequently, it remains to be seen how this legal action plays out and whether or not Tesla will be held accountable.
Price History
On Friday, TESLA stock opened at $261.0 and closed at $253.9, down by 2.1% from previous closing price of 259.3, following a California class-action lawsuit filed against the company alleging that it had falsely advertised the range of its electric vehicles. The lawsuit claims that Tesla has been advertising their vehicles as having much greater range than what it can actually sustain, misleading customers and leading to massive losses of battery power during their trips. The lawsuit is seeking unspecified damages from Tesla, stating that the company had violated California’s Consumer Legal Remedies Act as well as other state business laws. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Tesla. More…
| Total Revenues | Net Income | Net Margin |
| 94.03k | 12.23k | 13.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Tesla. More…
| Operations | Investing | Financing |
| 13.96k | -14.94k | -1.77k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Tesla. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 90.59k | 38.41k | 16.11 |
Key Ratios Snapshot
Some of the financial key ratios for Tesla are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 54.1% | 118.4% | 14.4% |
| FCF Margin | ROE | ROA |
| 6.6% | 17.0% | 9.3% |
Analysis – Tesla Intrinsic Value Calculator
At GoodWhale, we have conducted an in-depth analysis of TESLA‘s financials, and through our proprietary Valuation Line, we have concluded that the fair value of the TESLA share at this time is around $381.3. Currently, the TESLA stock is being traded at $253.9, which is 33.4% lower than its fair value, making it an attractive investment opportunity for those looking to capitalize on its undervalued price. As a result, we strongly recommend investing in TESLA stock at this time. More…
Peers
Tesla Inc is an American electric vehicle and clean energy company based in Palo Alto, California. Tesla’s current products include electric cars, battery energy storage from home to grid scale, solar panels and solar roof tiles, and related products and services. Some of Tesla’s notable competitors in the electric vehicle space include NIO Inc, XPeng Inc, and Li Auto Inc.
– NIO Inc ($SEHK:09866)
NIO Inc. is a Chinese electric vehicle manufacturer headquartered in Shanghai. The company was founded in 2014 and has since become one of the leading EV manufacturers in China. NIO produces a range of electric vehicles, including the ES8 SUV, the ES6 SUV, and the EC6 sedan. The company also offers a range of services, including the NIO Power battery-swapping service and the NIO Pilot autonomous driving system. NIO Inc. has a market cap of 154.77B as of 2022 and a Return on Equity of -13.53%. The company is one of the leading EV manufacturers in China and offers a range of electric vehicles and services.
– XPeng Inc ($SEHK:09868)
As of 2022, YPeng Inc has a market capitalization of 54.52 billion dollars and a return on equity of -11.13%. YPeng Inc is a Chinese multinational conglomerate holding company headquartered in Beijing. The company was founded in 1988 and has since grown to become one of the largest companies in China. YPeng Inc is involved in a wide variety of businesses, including but not limited to: e-commerce, retail, transportation, logistics, and financial services.
– Li Auto Inc ($SEHK:02015)
NIO Inc is a Chinese electric vehicle company headquartered in Shanghai. The company was founded in 2014 and is listed on the New York Stock Exchange. NIO Inc designs, manufactures, and sells electric vehicles in China, the United States, and Europe. The company has a market cap of 140.12B as of 2022 and a return on equity of -0.27%.
Summary
Tesla is a popular stock that has seen rapid growth in the past few years, making it an attractive investment opportunity. Despite this, investors should be aware of the risks associated with investing in Tesla. The company has been facing increasing scrutiny over its reported EV range claims in California, having recently been hit with a class action lawsuit.
Additionally, Tesla carries a high level of volatility due to its reliance on government incentives, changing consumer trends, and production challenges. As such, investors should conduct thorough due diligence before investing in Tesla’s stock.
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