Quality Investor

Tesla, Inc.

Rank #438Value

TSLA · Nasdaq · Consumer Cyclical

Tesla, Inc. (TSLA) — Rank #438 by gross profitability (GP/assets 0.12) · ROE 4.4% · Piotroski F-Score 5 / 9.

As-of 2026-09-15 · CIK 0001318605 · all metrics point-in-time as of the filing date.

About

Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally.

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The company operates in two segments, Automotive; and Energy Generation and Storage. The company offers electric vehicles, as well as sells automotive regulatory credits; and non-warranty maintenance services and collision, automotive insurance services, as well as part sales and retail merchandise sale. It also provides sedans and sport utility vehicles through direct and used vehicle sales, a network of Tesla Superchargers, and in-app upgrades; purchase financing and leasing services; services for electric vehicles through its company-owned service locations and Tesla mobile service technicians; and vehicle limited warranties and extended service plans. In addition, the company engages in the design, manufacture, installation, sale, and leasing of solar energy generation and energy storage products, and related services to residential, commercial, and industrial customers and utilities through its website, stores, and galleries, as well as through a network of channel partners. Further, it provides services and repairs to its energy product customers, including under warranty and extended service plans; and various financing options to its residential customers; lithium-ion battery energy storage products, such as Powerwall and Megapack; energy generation products, including solar panels and solar roof; self-driving development and artificial intelligence software, vehicle control and infotainment software, and battery and powertrain. The company was formerly known as Tesla Motors, Inc. and changed its name to Tesla, Inc. in February 2017. Tesla, Inc.

was incorporated in 2003 and is headquartered in Austin, Texas.

Industry
Auto Manufacturers
Sector
Consumer Cyclical
State
TX
Filer Category
Large accelerated filer
Fiscal Year End
December 31
Website
tesla.com

Price History

TSLA+49.4% · +8.4% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and dividend yield are the primary valuation lenses for mature businesses.

Market Cap

$1.42T

P/E (annual)

333.4

P/S (annual)

15.0

P/B

16.4

P/OCF (annual)

96.5

Shareholder Yield

-0.9%

Employees

134,785

Industry

Auto Manufacturers

Exchange

Nasdaq

Signal Flags

2 green1 yellow3 red
RPO outpacing revenueRemaining performance obligations growing faster than recognized revenue — forward demand building
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak
Disclosure regressionA previously-disclosed line item is no longer reported — worth checking the filing for why
Revenue declining YoYRevenue contracted year over year
Operating margin decliningOperating margin lower than prior year
Valuation convergenceEPS declining, shares diluting, and revenue growth decelerating simultaneously

Quality Profile

Profitability

1/1 pass
GP / assets
0.12
Return on equity
4.4%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.70
Current ratio
1.94×
Net cash
$34.46B

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
3.0%

Growth

1/2 pass
Revenue growth
-2.9%
Piotroski F-Score
5 / 9
Share dilution
0.9%

Terry Smith quality gate

Passes 1/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

40.3%

stretched

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 0.9% — per-share value needs a total required return of 41.2% once share-count change is priced in.

vs. own 6-year median revenue growth: 23.6%

priced above its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

34.3%

r = 10% (base)

40.3%

r = 12%

45.6%

Net debt / market cap: -2.7%

Base FCF: $6.2B3Y mean FCF: $4.7B

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

385.7xExpensive
44.4xmed 129.0x449.7x

P / S

Price / revenue per share

15.5xExpensive
0.2xmed 6.6x15.5x

P / B

Price / book value per share

17.9xExpensive
0.6xmed 11.0x19.2x

P / GP

Price / gross profit per share

86.0xExpensive
0.9xmed 27.0x86.0x

P / FCF

Price / free cash flow per share

236.3xExpensive
8.8xmed 111.9x390.7x

Dividend yield and payout ratio are the primary reads at this stage (trailing P/E — see valuation above).

Profitability

Gross profitability (GP / assets)

0.12

Primary signal (Novy-Marx).

5th pctl of 22 SIC 37 peers

Return on equity

4.4%

Gross margin

18.0%

33rd pctl of 22 SIC 37 peers

Revenue growth (YoY)

-2.9%

RPO growth (YoY)

45.1%

Remaining performance obligations growth — RPO > revenue = forward demand building.

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

5.2%

Revenue CAGR (5Y)

24.6%

Earnings CAGR (3Y)

-32.9%

FCF CAGR (3Y)

-6.3%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.70

80th pctl of 21 SIC 37 peers (best = lowest)

Current ratio

1.94×

33rd pctl of 22 SIC 37 peers

Quick ratio

1.34×

Net cash

$34.46B

Cash & equivalents minus total debt.

Recession resistance

Revenue through recessions

Worst single-year YoY revenue decline, 17 years of history

Strong
2008-2009 (GFC)
N/AN/A
2020 (COVID)
28.3%Grew through it
Worst year on record(any fiscal year, not recession-limited)
-2.9%Mild decline

Cash-flow health

Free cash flow

$6.22B

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.64

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

3.0%

Stock-based comp intensity.

Piotroski F-Score

F-Score

5 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20202025
Hypergrowth
Op. Leverage
Value