US · Nasdaq · TSLA
Tesla (TSLA) stock analysis: valuation and financials
Industrials · Auto Manufacturing
$379.09 -0.9% Price as of Oct 12, 2026
Eroding core: FY2025 revenue -2.9%, ROIC 6.9% from 51.0%, but $34.5B net cash and fast-growing storage sit against a 394x PE pricing unproven autonomy — downside skew.
- Market cap
- $1.5T
- P/E
- 393.6x
- EV/Sales
- 14.1x
- FCF yield
- 0.4%
- 52-week range
- $298.32 – $489.88
- Next earnings
- Oct 21, 2026
Research as of Oct 13, 2026
Business quality scorecard
- Growth9
- Profitability12
- Cash flow68
- Balance sheet94
- Capital allocation25
- Innovation69
- Valuation2
0–100, computed from reported financials; higher is better, and a higher valuation score means cheaper.
How it makes money
Customers buy Tesla EVs, FSD and other software/services, and energy storage and solar directly from Tesla, plus regulatory credits sold to other regulated entities; automotive is the profit engine with 86.5% of FY2025 revenue ($82.06B), while energy storage grows fastest at +26.6% yoy.
Financials by year
| FY2021Jan–Dec 2021 | FY2022Jan–Dec 2022 | FY2023Jan–Dec 2023 | FY2024Jan–Dec 2024 | FY2025Jan–Dec 2025 | |
|---|---|---|---|---|---|
| Revenue | $53.8B | $81.5B | $96.8B | $97.7B | $94.8B |
| Revenue growth | +70.7% | +51.4% | +18.8% | +0.9% | -2.9% |
| Gross margin | 25.3% | 25.6% | 18.2% | 17.9% | 18.0% |
| Operating margin | 12.1% | 16.8% | 9.2% | 7.2% | 4.6% |
| Net income | $5.5B | $12.6B | $15.0B | $7.1B | $3.8B |
| Free cash flow | $5.0B | $7.6B | $4.4B | $3.6B | $6.2B |
| FCF margin | 9.3% | 9.3% | 4.5% | 3.7% | 6.6% |
Amounts in USD · What is free cash flow?
Margins FY2025 gross margin 18.0% vs FY2024 17.9%; TTM 18.9%. Operating margin fell to 4.6% from 7.2% (TTM 4.2%). Q2 FY2026 gross margin 16.8% and operating margin 1.4%. Main reason: lower ASP and higher incentives plus AI-driven R&D and SBC, not unit cost.
- Cash flow WatchTTM operating cash flow $18.69B versus net income $3.80B, a 166% conversion, lifted by $5.44B depreciation and amortisation and $3.80B stock-based compensation; earnings quality depends on non-cash add-backs.
- Debt LowNet debt is negative $34.46B, a net cash position: total debt $9.06B against $15.22B cash and $28.31B short-term investments; net debt to EBITDA is -3.51x.
Balance sheet Leverage · Net cash
- Cash & short-term investments
- $43.5B
- Total debt
- $9.1B
- Net cash
- $34.5B
- Interest coverage
- 13.1x
- Current ratio
- 1.9x
As of Jun 30, 2026 · Amounts in USD · How to read a balance sheet
Management and track record
- Management AdequateExecution has faded: revenue -2.9% in FY2025 after a 24.6% five-year CAGR, operating margin down to 4.6% from 16.8% in FY2022, and ROIC at 6.9% versus 51.0% in FY2022.
- Credibility LowThe 2026 releases carry no quantitative revenue, margin, EPS or capex guidance; outlook language is qualitative, so beat/miss scoring against company-set targets is not possible for the last four quarters.
Valuation range
Implied value per share · Price when researched: $379.09
Each scenario assumes five years of revenue growth, an FCF margin and an exit multiple, discounted to today. The assumptions and sensitivities are in the full report.
The full report also covers
- Revenue, growth and outlook of each segment
- Moat and main competitors
- Key risks
- Capital allocation: where the free cash flow went
- What management promised, and what they delivered
- Scenario assumptions and sensitivities
- A source for every claim
- Ask AI about this company
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