Proceedings of the 2025 International Conference on Financial Innovation and Marketing Management (FIMM 2025)

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Analysis of Company’s Financial Situation: Taking Tesla Company as an Example

Authors
Yuxiao Li1, *
1School of Accounting, Southwestern University of Finance and Economics, Chengdu, China
*Corresponding author. Email: 42227030@smail.swufe.edu.cn
Corresponding Author
Yuxiao Li
Available Online 3 November 2025.
DOI
10.2991/978-94-6463-874-5_97How to use a DOI?
Keywords
Tesla; Financial Statement Analysis; Inventory Management; Profitability; Electric Vehicle Industry
Abstract

This study, set against the backdrop of the rapid expansion and intensifying competition in the global electric vehicle industry, analyses Tesla’s financial performance (2018–2024) to assess its economic health, inventory management, and profitability amid rapid EV industry growth and competition. Findings reveal Tesla’s total assets quadrupled to 122 billion by 2024, fueled by global expansion and technological innovation. Due to price wars, delayed product refreshes, and market saturation, net profits in 2024 dropped by 53% to 7.15 billion. Inventory management followed an “expand- next- optimize” design, rising to 12.84 billion in 2022 from Gigafactory developments and supply chain disruptions, before declining 11.8% in 2024 via AI-driven need modelling, giga casting adoption, and strategic price cuts. Despite operating changes, Tesla’s inventory turnover ratio decreased to 8.05x in 2024, surpassing BYD’s 12.4x, reflecting over-reliance on raw materials and geopolitical risks. According to the analysis, Tesla must balance creativity and cost effectiveness. Recommendations include expanding cheap models, optimizing AI-based generation scheduling to minimize inventory, and enhancing partnerships in important areas like China (36.7% of global EV sales). Reducing mechanical margins by expanding revenue through the energy and solutions segments is crucial. This study provides stakeholders insight into Tesla’s attractiveness in an evolving market. It emphasizes the necessity of aligning economic tactics with market dynamics in the capital-intensive EV business.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2025 International Conference on Financial Innovation and Marketing Management (FIMM 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
3 November 2025
ISBN
978-94-6463-874-5
ISSN
2352-5428
DOI
10.2991/978-94-6463-874-5_97How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Yuxiao Li
PY  - 2025
DA  - 2025/11/03
TI  - Analysis of Company’s Financial Situation: Taking Tesla Company as an Example
BT  - Proceedings of the 2025 International Conference on Financial Innovation and Marketing Management (FIMM 2025)
PB  - Atlantis Press
SP  - 845
EP  - 852
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-874-5_97
DO  - 10.2991/978-94-6463-874-5_97
ID  - Li2025
ER  -