An Analysis of Teslas Development and Profitability

Tesla, which is the most famous electric car manufacturer in 2023, has developed a strong following in relatively short existence due in part to its more advanced technology as well as its forward-looking vision. Tesla is presented in the prominent markets of the United States, Europe, Asia and Canada and it is at the leading position of new energy vehicles markets. In current situation, Tesla seems to face several problems: quality, competition and production. Based on Tesla's financial statements from 2020 to 2023, this paper selects several key indicators such as earnings per share (EPS), net profit margin and return on equity (ROE) to do a horizontal analysis about Teslas profitability, so as to to judge new energy vehicle markets future trend. The study reveals that as the electric vehicle market is close to saturation, the main competition in the electric vehicle industry now lies in cost and quality issues. Tesla can vigorously research battery technology so as to reduce production costs and stabilize its market share.