NASDAQ · Consumer Cyclical

Tesla, Inc.

TSLA · Auto Manufacturers

$400.49

▲ 4.11 (1.04%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

F⤢

Gross Profit Margin 21.1%

Operating Margin 4.2%

Net Income Margin 2.1%

Fin. Health

B⤢

Years to Pay Off Debt 33.3 yrs

Working Capital vs Long-Term Debt $28.0B

Working Capital $35.6B

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 17.88x

Cash Flow

C⤢

Free Cash Flow $1.4B

CapEx % of Net Income 522.6%

Owner Earnings $4.6B

Profitability

Gross Profit Margin 21.1%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 4.2%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin 2.1%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt 33.3 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt $28.0B

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital $35.6B

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Cash Flow

Free Cash Flow $1.4B

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 522.6%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $4.6B

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About Tesla, Inc.

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

Market Data

Market Cap $1,504.1B

Enterprise Value $1,491.6B

P/E (TTM) 367.42

Dividend Yield N/A

Exchange NASDAQ

Key Margins

Gross Profit 21.1%

Operating Margin 4.2%

Net Margin 2.1%

Company Info

Sector Consumer Cyclical

Industry Auto Manufacturers

Employees 134785

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Tesla, Inc. at $400.49.

The business passes only 2 of 7 of Graham's defensive criteria — well below his required standard.

At $400.49, the stock trades at a 4850% premium to its Graham Number of $8.09. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Trading at 138.9x NCAV. Expected for most quality businesses — NCAV was designed to find depression-era bargains and rarely applies to modern profitable companies..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Gross Profit %	21.1%▲	20.1%•	N/A
Operating Margin %	4.2%▼	6.3%•	N/A
Net Income %	2.1%▼	3.4%•	N/A
Diluted EPS	0.13▼	0.24•	N/A

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Total Assets	$143.7B	$137.8B	N/A
Total Debt	$15.9B▲	$14.7B•	N/A
Working Capital	$35.6B▼	$36.9B•	N/A
Years to Pay Debt	33.31	17.52	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Free Cash Flow	$1.4B▲	$1.4B•	N/A
Owner Earnings	$4.6B	$4.9B	N/A
CapEx % of Net Income	522.6%	284.9%	N/A

Income Statement

	2026	2025	2024
Tax Effect Of Unusual Items	0	-44,581
Tax Rate For Calcs	0	0
Normalized EBITDA	2,430,000	3,071,000
Total Unusual Items	0	-162,000
Total Unusual Items Excluding Goodwill	0	-162,000
Net Income From Continuing Operation Net Minority Interest	477,000	840,000
Reconciled Depreciation	1,590,000	1,643,000
Reconciled Cost Of Revenue	17,667,000	19,892,000
EBITDA	2,430,000	2,909,000
EBIT	840,000	1,266,000
Net Interest Income	342,000	364,000
Interest Expense	92,000	85,000
Interest Income	434,000	449,000
Normalized Income	477,000	957,419
Net Income From Continuing And Discontinued Operation	477,000	840,000
Total Expenses	21,446,000	23,330,000
Rent Expense Supplemental			242,000
Total Operating Income As Reported	941,000	1,409,000
Diluted Average Shares	3,538,000	3,539,000
Basic Average Shares	3,234,000	3,231,000
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	477,000	840,000
Net Income Common Stockholders	477,000	840,000
Net Income	477,000	840,000
Minority Interests	-14,000	-16,000
Net Income Including Noncontrolling Interests	491,000	856,000
Net Income Continuous Operations	491,000	856,000
Tax Provision	257,000	325,000
Pretax Income	748,000	1,181,000
Other Income Expense	-535,000	-754,000
Other Non Operating Income Expenses	-535,000	-592,000
Special Income Charges	0	-162,000
Restructuring And Mergern Acquisition	0	162,000
Net Non Operating Interest Income Expense	342,000	364,000
Interest Expense Non Operating	92,000	85,000
Interest Income Non Operating	434,000	449,000
Operating Income	941,000	1,571,000
Operating Expense	3,779,000	3,438,000
Research And Development	1,946,000	1,783,000
Selling General And Administration	1,833,000	1,655,000
Gross Profit	4,720,000	5,009,000
Cost Of Revenue	17,667,000	19,892,000
Total Revenue	22,387,000	24,901,000
Operating Revenue	22,387,000	24,901,000

Balance Sheet

	2026	2025	2024
Ordinary Shares Number	3,755,000	3,751,000
Share Issued	3,755,000	3,751,000
Total Debt	15,890,000	14,719,000
Tangible Book Value	83,330,000	80,748,000
Invested Capital	93,135,000	90,290,000
Working Capital	35,610,000	36,928,000
Net Tangible Assets	83,330,000	80,748,000
Capital Lease Obligations	6,871,000	6,566,000
Common Stock Equity	84,116,000	82,137,000
Total Capitalization	91,761,000	88,721,000
Total Equity Gross Minority Interest	84,802,000	82,865,000
Minority Interest	686,000	728,000
Stockholders Equity	84,116,000	82,137,000
Gains Losses Not Affecting Retained Earnings	334,000	361,000
Other Equity Adjustments	334,000	361,000
Retained Earnings	39,480,000	39,003,000
Additional Paid In Capital	44,299,000	42,770,000
Capital Stock	3,000	3,000
Common Stock	3,000	3,000
Total Liabilities Net Minority Interest	58,922,000	54,941,000
Total Non Current Liabilities Net Minority Interest	24,784,000	23,227,000
Other Non Current Liabilities	1,454,000	1,339,000
Non Current Deferred Liabilities	3,847,000	3,631,000
Non Current Deferred Revenue	3,847,000	3,631,000
Long Term Debt And Capital Lease Obligation	13,455,000	12,125,000
Long Term Capital Lease Obligation	5,810,000	5,541,000
Long Term Debt	7,645,000	6,584,000
Long Term Provisions	6,028,000	6,132,000
Current Liabilities	34,138,000	31,714,000
Other Current Liabilities	2,131,000	1,932,000
Current Deferred Liabilities	5,183,000	4,735,000
Current Deferred Revenue	5,183,000	4,735,000
Current Debt And Capital Lease Obligation	2,435,000	2,594,000
Current Capital Lease Obligation	1,061,000	1,025,000
Current Debt	1,374,000	1,569,000
Other Current Borrowings	1,374,000	1,569,000
Current Provisions	3,015,000	3,004,000
Payables And Accrued Expenses	21,374,000	19,449,000
Current Accrued Expenses	5,065,000	4,484,000
Payables	16,309,000	14,965,000
Total Tax Payable	1,613,000	1,594,000
Accounts Payable	14,696,000	13,371,000
Total Assets	143,724,000	137,806,000
Total Non Current Assets	73,976,000	69,158,000
Other Non Current Assets	7,490,000	4,664,000
Non Current Deferred Assets	7,060,000	6,925,000
Non Current Deferred Taxes Assets	7,060,000	6,925,000
Investments And Advances
Other Investments
Goodwill And Other Intangible Assets	786,000	1,389,000
Other Intangible Assets	786,000	1,132,000
Goodwill		257,000	244,000
Net PPE	58,640,000	56,180,000
Accumulated Depreciation	-21,351,000	-23,443,000
Gross PPE	79,991,000	79,623,000
Leases	4,608,000	4,439,000
Construction In Progress	9,629,000	8,786,000
Other Properties	23,511,000	17,711,000
Machinery Furniture Equipment	29,685,000	30,190,000
Land And Improvements	12,558,000	11,837,000
Properties	0	6,660,000
Current Assets	69,748,000	68,642,000
Other Current Assets	6,612,000	7,615,000
Inventory	14,434,000	12,392,000
Other Inventories	1,360,000	1,296,000
Finished Goods	6,842,000	4,849,000
Work In Process	1,922,000	1,725,000
Raw Materials	4,310,000	4,522,000
Receivables	3,959,000	4,576,000
Accounts Receivable	3,959,000	4,576,000
Cash Cash Equivalents And Short Term Investments	44,743,000	44,059,000
Other Short Term Investments	28,140,000	27,546,000
Cash And Cash Equivalents	16,603,000	16,513,000
Cash Equivalents	2,133,000	1,890,000
Cash Financial	14,470,000	14,623,000

Cash Flow

	2026	2025
Free Cash Flow	1,444,000	1,420,000
Repayment Of Debt	-3,548,000	-767,000
Issuance Of Debt	4,331,000	1,354,000
Capital Expenditure	-2,493,000	-2,393,000
End Cash Position	17,655,000	17,616,000
Beginning Cash Position	17,616,000	19,584,000
Effect Of Exchange Rate Changes	-47,000	37,000
Changes In Cash	86,000	-2,005,000
Financing Cash Flow	1,172,000	710,000
Cash Flow From Continuing Financing Activities	1,172,000	710,000
Net Other Financing Charges	28,000	-23,000
Proceeds From Stock Option Exercised	361,000	146,000
Net Issuance Payments Of Debt	783,000	587,000
Net Long Term Debt Issuance	783,000	587,000
Long Term Debt Payments	-3,548,000	-767,000
Long Term Debt Issuance	4,331,000	1,354,000
Investing Cash Flow	-5,023,000	-6,528,000
Cash Flow From Continuing Investing Activities	-5,023,000	-6,528,000
Net Investment Purchase And Sale	-2,530,000	-4,135,000
Sale Of Investment	7,790,000	8,072,000
Purchase Of Investment	-10,320,000	-12,207,000
Net PPE Purchase And Sale	-2,493,000	-2,393,000
Purchase Of PPE	-2,493,000	-2,393,000
Operating Cash Flow	3,937,000	3,813,000
Cash Flow From Continuing Operating Activities	3,937,000	3,813,000
Change In Working Capital	375,000	-214,000
Change In Other Working Capital	263,000	-462,000
Change In Other Current Assets	174,000	-79,000
Change In Payables And Accrued Expense	1,401,000	1,397,000
Change In Prepaid Assets	231,000	-901,000
Change In Inventory	-2,255,000	-214,000
Change In Receivables	561,000	45,000
Changes In Account Receivables	561,000	45,000
Other Non Cash Items	1,000	37,000
Stock Based Compensation	1,030,000	954,000
Asset Impairment Charge	77,000	49,000
Deferred Tax	-136,000	-111,000
Deferred Income Tax	-136,000	-111,000
Depreciation Amortization Depletion	1,590,000	1,643,000
Depreciation And Amortization	1,590,000	1,643,000
Depreciation	1,590,000	1,643,000
Operating Gains Losses	509,000	599,000
Net Foreign Currency Exchange Gain Loss	287,000	292,000
Gain Loss On Sale Of PPE	222,000	307,000
Net Income From Continuing Operations	491,000	856,000

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $19.3B ▲ $22.4B +15.8%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 16.3% ▲ 21.1% +4.8pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 4.9% ▲ 4.2% -0.7pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: 2.1% ▲ 2.1% +0.0pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$22.4B/qtr (≈$89.5B ann.)

vs > $1.5B annualised revenue

✅ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

2.04x current ratio

vs ≥ 2.0x

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$1.4B

vs Positive

Operating Cash Flow

$3.9B

Latest quarter · Buffett's cash reality check

ROIC

0.7%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

17.7x

Net Assets: $84.8B

Asset Context — Auto Manufacturers

Asset-heavy businesses (energy, industrials, utilities, REITs) have physical assets with real replacement value — book value and Net Assets are more meaningful here than for technology or consumer brand companies. A low Market Cap / Net Assets ratio may indicate genuine undervaluation.

Peers & Industry Comparison

Auto Manufacturers — Auto-detected peers

Company	Price	Market Cap	P/E	Gross Margin	Net Margin	Revenue
TSLA	$400.49	$1,504.1B	367.42	21.1%	2.1%	$22.4B
F Ford Motor Company	$14.06	$56.0B	N/A	7.1%	-3.2%	$189.9B
GM General Motors Company	$79.29	$71.5B	28.9	11.1%	1.4%	$184.6B
TM Toyota Motor Corporation	$173.94	$206.0B	9.4	16.7%	7.6%	$50,685.0B
STLA Stellantis N.V.	$6.34	$18.4B	N/A	5.8%	-13.9%	$155.8B

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

11.11%

High — management has strong skin in the game

Return on Equity (ROE)

0.6%

Weak — poor returns on equity

Return on Assets (ROA)

0.3%

Poor — assets are not generating adequate returns

Debt Trend YoY

+8.0% YoY

Debt is roughly stable

Leadership Team

Elon Musk

Co-Founder, Technoking of Tesla, CEO & Director

Age 54

Vaibhav Taneja

Chief Financial Officer

Age 47

Pay: $403,000

0.084% of net income

Xiaotong Zhu

Senior Vice President of APAC & Global Vehicle Manufacturing

Age 45

Pay: $376,322

0.079% of net income

John Walker

Vice President of Sales - North America

Age 62

Pay: $121,550

0.025% of net income

Lars Moravy

Vice President of Vehicle Engineering

Top Institutional Holders

Institution	% Owned	Shares
Blackrock Inc.	5.54%	208,095,009
Vanguard Capital Management LLC	4.87%	182,850,783
State Street Corporation	3.05%	114,695,458
Geode Capital Management, LLC	1.81%	68,003,110
Vanguard Portfolio Management LLC	1.31%	49,252,925
JPMORGAN CHASE & CO	1.23%	46,075,161
Capital World Investors	1.14%	42,904,073
Morgan Stanley	1.04%	39,177,400

Risk Analysis

Beta (Market Risk)

1.80

High volatility — moves more than the market

Short Interest

2.3% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.19x

Conservative balance sheet — low financial risk

Current Ratio

2.04x

Strong liquidity — Graham approved

52-Week Price Range

Low: $288.77 Current: $400.49 High: $498.83

Currently at 53% of 52-week range

Tesla, Inc.

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry Comparison

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis