NEW YORK (TheStreet) -- Tesla Motors (TSLA) - Get Report stock is gaining by 0.87% to $230.94 in early-morning trading on Tuesday, as the electric vehicle manufacturer boosts hiring for its autonomous car program.
Tesla plans to open a Nevada-based battery factory in the near future, and will hire thousands of employees in the next few years, the Wall Street Journal reports.
The automobile maker has expanded to 14,000 employees from 899 in 2010, and hopes to grow by 4,500 more in California alone throughout the next four years, the Journal adds. The company has 1,600 open listings, and is emphasizing its autopilot program in particular.
However, Tesla faces competition from not only established companies such as Apple (AAPL)and Alphabet (GOOGL) but startups such as Faraday Future, Karma Automotive and Atieva as well.
The company has a $30 billion valuation, but has been burning cash on upcoming product programs and is rapidly outgrowing its Palo Alto headquarters, the Journal notes.
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate TESLA MOTORS INC as a Hold with a ratings score of C-. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- TSLA's revenue growth has slightly outpaced the industry average of 9.4%. Since the same quarter one year prior, revenues slightly increased by 10.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- After a year of stock price fluctuations, the net result is that TSLA's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- 36.49% is the gross profit margin for TESLA MOTORS INC which we consider to be strong. Regardless of TSLA's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TSLA's net profit margin of -24.53% significantly underperformed when compared to the industry average.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Automobiles industry and the overall market, TESLA MOTORS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to -$203.34 million or 626.31% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full analysis from the report here: TSLA