The risks of investing in Tesla, Inc. (TSLA)

From the Sep 29, 2026 report · Read the full report

Risks flagged in the analysis

Debt-to-equity ratio of 18.37 indicates high financial risk for a cyclical auto manufacturer.
Profit margin of 3.67% is below automotive industry average, signaling operational inefficiency.
Rising 10Y Treasury yield (5.17%) pressures high-multiple growth stocks like TSLA.

Bear case

P/E ratio of 334.07 implies market expects 250%+ EPS growth to justify current price.
Negative Q2 2026 free cash flow (-$1.10B) contrasts with historical positive FCF.
Price trading 20% below 200 SMA (395.18) confirms long-term downtrend.

Risk in numbers

Beta: 1.85
Debt / equity: 18.4
Annual volatility: 46.5%
Largest fall in 12 months: -39.1%

52-week range

$297.38$498.83

Frequently asked questions

What are the risks of investing in TSLA?

Debt-to-equity ratio of 18.37 indicates high financial risk for a cyclical auto manufacturer. Profit margin of 3.67% is below automotive industry average, signaling operational inefficiency. Rising 10Y Treasury yield (5.17%) pressures high-multiple growth stocks like TSLA.

Data as of Sep 29, 2026. Sources: Yahoo Finance (prices, financial statements and analysts' estimates) and the U.S. Treasury (10-year yield). Indicators and valuation are computed without AI.

AI-generated informational content. Not financial advice or a personalised investment recommendation. Investing involves risk, including loss of capital.

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