Market Value Added (MVA)
Market value added (MVA) is the difference between a firm fair value and its invested capital. MVA is a measure of the value a company has created in excess of the resources already committed to the enterprise.
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MVA
Tesla Inc., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
The data reflects Tesla Inc.'s financial performance over five consecutive years from 2020 to 2024. Key financial indicators analyzed include market (fair) value, invested capital, and market value added.
- Market (fair) value of Tesla
- The market value shows a fluctuating trend over the period. It increased from approximately 866 billion USD in 2020 to nearly 950 billion USD in 2021. However, there was a significant decline in 2022, bringing the value down to around 549 billion USD. This was followed by a moderate recovery to about 606 billion USD in 2023. The most notable change occurred in 2024, when the market value surged dramatically to approximately 1.28 trillion USD, exceeding all previous years.
- Invested capital
- Invested capital shows a steady and consistent increase over the five years. Starting at roughly 39.2 billion USD in 2020, it rose marginally to 40.2 billion USD in 2021. The upward trajectory continued in 2022 with an increase to nearly 49.6 billion USD, followed by further growth to approximately 59.5 billion USD in 2023, and finally reaching 67.5 billion USD in 2024. This steady increase implies ongoing investment and capital commitment into the company's operations.
- Market value added (MVA)
- Market value added, representing the difference between market value and invested capital, follows a pattern closely linked to the market value. It increased from about 827 billion USD in 2020 to 910 billion USD in 2021. The MVA then dropped significantly to approximately 500 billion USD in 2022, reflecting the decline in market value. It increased again in 2023 to 547 billion USD and experienced a substantial jump in 2024 to roughly 1.21 trillion USD, mirroring the sharp rise in market (fair) value. This suggests enhanced investor confidence and a considerable increase in perceived company value beyond its invested capital during the latest period.
In summary, while invested capital grew steadily each year, both the market value and market value added exhibited considerable volatility, especially with a notable dip in 2022 followed by a strong rebound in 2024. The large increase in 2024 indicates a significant market revaluation, which greatly outpaced the steady increase in capital investment, underscoring a strong positive market sentiment toward the company in that year.
MVA Spread Ratio
Tesla Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Ford Motor Co. | ||||||
| General Motors Co. | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2024 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added exhibited a fluctuating pattern during the analyzed period. Initially, there was an increase from approximately 827 billion US dollars in 2020 to about 910 billion US dollars in 2021. This was followed by a notable decline to roughly 500 billion US dollars in 2022. Subsequently, the value recovered somewhat in 2023, reaching approximately 547 billion US dollars, and experienced a strong rebound in 2024, peaking at approximately 1.214 trillion US dollars. This indicates significant volatility with recovery and growth toward the end of the period.
- Invested Capital
- The Invested Capital showed a steady upward trend throughout the period. Starting at around 39.2 billion US dollars in 2020, it gradually increased year over year, reaching approximately 40.2 billion in 2021, 49.6 billion in 2022, 59.5 billion in 2023, and culminating at 67.5 billion US dollars in 2024. This consistent increase indicates ongoing capital investment and expansion efforts during the timeframe.
- MVA Spread Ratio
- The MVA Spread Ratio experienced substantial fluctuations during the period analyzed. Initially, it was very high, nearing 2109% in 2020 and increasing slightly to about 2260% in 2021. The ratio then sharply declined to approximately 1007% in 2022 and continued to decrease to around 920% in 2023. In 2024, the ratio improved significantly to roughly 1797%, suggesting an enhancement in value creation relative to invested capital after several years of decline.
- Overall Analysis
- The data reveals a complex financial landscape marked by strong growth in invested capital paired with volatility in market value added and the MVA spread ratio. While invested capital increased steadily, indicating consistent investments, the market value added and MVA spread ratio show sharp divergences, with periods of decline and recovery. The sharp rebound in both market value added and MVA spread ratio in 2024 suggests improved market perceptions of value creation and effective utilization of invested capital in the most recent year.
MVA Margin
Tesla Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Revenues | ||||||
| Add: Increase (decrease) in deferred revenue | ||||||
| Adjusted revenues | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Ford Motor Co. | ||||||
| General Motors Co. | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 MVA. See details »
2 2024 Calculation
MVA margin = 100 × MVA ÷ Adjusted revenues
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The market value added demonstrates a fluctuating pattern over the analyzed five-year period. Starting at approximately 827 billion US dollars in 2020, it increased to around 910 billion in 2021. However, a significant decline followed, dropping to nearly 500 billion by the end of 2022. The value experienced a modest recovery in 2023, rising to about 547 billion, and then surged substantially in 2024, reaching over 1.2 trillion US dollars. This indicates periods of both contraction and strong expansion in the company's market valuation.
- Adjusted Revenues
- Adjusted revenues show consistent growth year-on-year from 2020 through 2023, increasing from roughly 31.9 billion US dollars to nearly 98.3 billion. In 2024, revenues slightly declined to approximately 98.1 billion, representing a stabilization after several years of robust growth. The overall trend suggests successful revenue expansion, with a plateau effect emerging in the latest year observed.
- MVA Margin
- The MVA margin exhibits a declining trend from an exceptionally high level of 2591.75% in 2020 to significantly lower values across subsequent years, reaching a low of 556.13% in 2023. This margin then more than doubled to 1237.94% in 2024. Despite the decline over the initial years, the resurgence in 2024 indicates an improved relationship between market value added and revenues, potentially reflecting enhanced market perceptions or operational efficiencies.