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: 2025-12-31), 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).
1 Fair value of debt. See details »
2 Invested capital. See details »
The information presents a five-year trend of market value, invested capital, and market value added. Significant fluctuations are observed in the market value of the company over the period, impacting the overall MVA.
- Market Value Trend
- The market value experienced a substantial decrease from 2021 to 2022, falling from US$949,793 million to US$549,282 million. A modest recovery occurred in 2023, reaching US$606,330 million, followed by a considerable increase in 2024 to US$1,281,473 million. This upward trajectory continued into 2025, with the market value reaching US$1,551,014 million. The volatility suggests sensitivity to external factors or shifts in investor sentiment.
- Invested Capital Trend
- Invested capital demonstrated a consistent upward trend throughout the observed period. Starting at US$40,247 million in 2021, it increased to US$49,621 million in 2022, US$59,453 million in 2023, US$67,545 million in 2024, and finally US$69,754 million in 2025. The rate of increase slowed between 2024 and 2025, indicating potentially diminishing returns from further capital investment or a shift in investment strategy.
- Market Value Added (MVA) Trend
- The MVA mirrored the fluctuations in market value. It decreased significantly from US$909,546 million in 2021 to US$499,661 million in 2022. A slight increase was noted in 2023, reaching US$546,877 million. The substantial growth in market value in 2024 and 2025 resulted in corresponding increases in MVA, reaching US$1,213,928 million and US$1,481,260 million respectively. The MVA is heavily influenced by changes in the market value, and the correlation is strong.
The relationship between invested capital and MVA indicates that while invested capital has grown steadily, the MVA’s responsiveness is primarily driven by market perception and valuation. The significant swings in MVA suggest that investor expectations and external market conditions play a crucial role in the company’s overall value creation.
MVA Spread Ratio
Tesla Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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: 2025-12-31), 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).
1 MVA. See details »
2 Invested capital. See details »
3 2025 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
The Market Value Added (MVA) and associated MVA spread ratio exhibit considerable fluctuation over the observed period. Initial values demonstrate a substantial MVA, followed by a period of decline and subsequent recovery, culminating in significant growth by the end of the period. Invested capital consistently increases throughout the five years, though at a decreasing rate.
- Market Value Added (MVA)
- The MVA experienced a significant decrease from US$909,546 million in 2021 to US$499,661 million in 2022. A modest recovery was noted in 2023, reaching US$546,877 million. Subsequent years show substantial growth, with MVA increasing to US$1,213,928 million in 2024 and further to US$1,481,260 million in 2025. This indicates a strengthening of the market’s perception of the company’s value creation capabilities in the later years of the period.
- Invested Capital
- Invested capital demonstrates a consistent upward trend, increasing from US$40,247 million in 2021 to US$69,754 million in 2025. However, the rate of increase decelerates over time. The largest absolute increase occurred between 2021 and 2022 (US$9,374 million), while the smallest occurred between 2024 and 2025 (US$2,209 million). This suggests a potential shift in capital allocation efficiency or a maturing of investment opportunities.
- MVA Spread Ratio
- The MVA spread ratio mirrors the trend in MVA, initially declining sharply from 2,259.91% in 2021 to 1,006.95% in 2022. It continues to decrease, reaching 919.85% in 2023, before experiencing a substantial increase to 1,797.21% in 2024 and 2,123.55% in 2025. This ratio indicates the amount of value created per dollar of invested capital. The increasing trend in the latter years suggests improved efficiency in value creation relative to invested capital.
Overall, the period began with a high level of market-perceived value creation, experienced a downturn, and then demonstrated a strong recovery and growth trajectory. The increasing MVA spread ratio in the final years suggests that the company is becoming more effective at generating value from its invested capital.
MVA Margin
Tesla Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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: 2025-12-31), 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).
1 MVA. See details »
2 2025 Calculation
MVA margin = 100 × MVA ÷ Adjusted revenues
= 100 × ÷ =
3 Click competitor name to see calculations.
The Market Value Added (MVA) exhibited significant fluctuation over the five-year period. Initially, a substantial decrease in MVA was observed, followed by a period of recovery and subsequent growth. Adjusted revenues demonstrated an increasing trend initially, peaking in 2023, before experiencing a slight decline in the subsequent two years. The MVA margin, calculated as MVA relative to adjusted revenues, mirrored the volatility of the MVA itself, displaying considerable variation annually.
- Market Value Added (MVA)
- The MVA decreased considerably from US$909,546 million in 2021 to US$499,661 million in 2022. A moderate recovery occurred in 2023, with MVA reaching US$546,877 million. Substantial growth was then recorded in 2024 and 2025, with MVA increasing to US$1,213,928 million and US$1,481,260 million respectively. This indicates a strengthening of investor confidence and perceived value creation in the later years of the period.
- Adjusted Revenues
- Adjusted revenues increased from US$54,580 million in 2021 to US$82,514 million in 2022, representing significant growth. This upward trend continued into 2023, reaching US$98,337 million. However, revenues experienced a slight decrease in 2024 to US$98,060 million, followed by a further decline to US$95,397 million in 2025. While still substantial, the leveling off and subsequent decrease in revenues suggest potential challenges in maintaining growth momentum.
- MVA Margin
- The MVA margin experienced a dramatic decline from 1,666.45% in 2021 to 605.55% in 2022, directly correlating with the decrease in MVA and increase in adjusted revenues. The margin remained relatively stable in 2023 at 556.13%. A significant increase was then observed in 2024, with the margin rising to 1,237.94%, and continuing to increase in 2025 to 1,552.73%. This suggests that the company became increasingly efficient at generating market value relative to its revenue in the latter part of the period, despite the slight revenue decline.
The relationship between MVA and adjusted revenues indicates that changes in MVA have a disproportionately large impact on the MVA margin. The substantial margin values suggest that the market places a high premium on each dollar of revenue generated, particularly in 2021, 2024 and 2025.