Tesla stock: fundamental analysis

Stocks · TSLA · Consumer Cyclical

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. Below are its fundamentals, explained in the order worth reading them: business quality, debt, growth and, last, whether the price is reasonable.

Data as of September 18, 2026 · Yahoo Finance

Quick read

Business quality

ROE of 4.7%: a low return on shareholders' money. Out of every 100 in sales, 3.7 end up as profit.

Financial health

It holds more cash than debt (net debt/EBITDA of -2.6x): a very comfortable position.

Growth

Revenue is growing 25.5% year on year: a solid pace. Earnings are down 3.0%.

Valuation

It trades at a P/E of 343.7, above the 20.4 median of the consumer cyclical companies we track. On expected earnings the P/E falls to 165.8: the market expects profits to rise. Paying more can be justified by faster growth or a higher-quality business.

Dividend

Tesla does not pay a dividend right now: it reinvests profits or returns cash through buybacks.

Tools

All metrics

TeslaSector median
Business quality
ROE4.7%26.4%
ROA1.9%7.0%
Gross margin18.9%50.8%
Operating margin1.4%13.7%
Net margin3.7%8.4%
Financial health
Net debt/EBITDA-2.6x2.5x
Debt/equity0.2x0.6x
Current ratio1.9x1.2x
Growth
Revenue growth25.5%7.4%
Earnings growth-3.0%8.0%
Valuation
P/E ratio343.7x20.4x
Forward P/E165.8x18.7x
EV/EBITDA132.0x15.4x
Price/book16.6x7.0x
FCF yield0.3%3.6%
Dividend
Dividend yield3.1%
Payout ratio0.0%59.7%
Beta (volatility)1.8x1.0x

Frequently asked questions

What is Tesla's P/E ratio?

Tesla's P/E is 343.7 based on trailing 12-month earnings and 165.8 on expected earnings. The median for its sector among the companies we track is 20.4. Data as of September 18, 2026.

What dividend does Tesla pay?

Tesla does not pay a dividend right now: it reinvests profits or returns cash through buybacks.

Is Tesla stock expensive?

It trades at a P/E of 343.7, above the 20.4 median of the consumer cyclical companies we track. On expected earnings the P/E falls to 165.8: the market expects profits to rise. Paying more can be justified by faster growth or a higher-quality business. This is an educational reading based on ratios, not a buy or sell recommendation.

Does Tesla have a lot of debt?

It holds more cash than debt (net debt/EBITDA of -2.6x): a very comfortable position.

What is Tesla's market cap?

Tesla has a market cap of 1.4T USD and its shares trade at 364.27 USD, with a 52-week range of 297.38 USD to 498.83 USD (data as of September 18, 2026).

Other companies in the sector

Trailing 12-month metrics. Educational content, not investment advice.