Analysis of Geographic Areas
Tesla Inc. operates in 2 regions: United States and Other International.
Area Asset Turnover
Tesla Inc., asset turnover by geographic area
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| United States | 1.33 | 1.47 | 1.70 | 1.87 | 1.26 |
| Other International | 5.02 | 6.02 | 6.19 | 5.55 | 5.31 |
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).
Asset turnover ratios for the specified geographic areas demonstrate distinct trends over the five-year period. The United States exhibits a fluctuating pattern, while Other International consistently maintains a higher turnover and a more stable profile.
- United States
- The asset turnover ratio for the United States increased from 1.26 in 2021 to 1.87 in 2022, indicating improved efficiency in asset utilization. However, this was followed by a decline to 1.70 in 2023 and a further decrease to 1.47 in 2024. The most recent year, 2025, shows a continued downward trend, with the ratio falling to 1.33. This suggests a diminishing ability to generate sales from its asset base within the United States.
- Other International
- In contrast to the United States, the asset turnover ratio for Other International consistently remained above 5.0 throughout the period. The ratio increased from 5.31 in 2021 to 5.55 in 2022 and peaked at 6.19 in 2023. A slight decrease to 6.02 was observed in 2024, followed by a more noticeable decline to 5.02 in 2025. Despite this recent decrease, the ratio remains significantly higher than that of the United States, indicating a substantially more efficient use of assets in international markets.
- Comparative Analysis
- The difference in asset turnover between the two areas is substantial. Throughout the period, Other International consistently generated significantly more sales revenue per dollar of assets than the United States. The gap widened between 2021 and 2023, before narrowing slightly in 2024 and 2025 as the United States ratio decreased and the Other International ratio experienced a more pronounced decline. The decreasing trend in the United States, coupled with the relatively stable, high turnover in Other International, suggests a potential shift in operational efficiency or market dynamics.
Overall, the analysis indicates a divergence in asset utilization performance between the United States and Other International regions. While both areas experienced some fluctuation, Other International consistently demonstrated a superior ability to generate revenue from its asset base.
Area Asset Turnover: United States
Tesla Inc.; United States; area asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenues | 47,627) | 47,725) | 45,235) | 40,553) | 23,973) |
| Long-lived assets | 35,847) | 32,461) | 26,629) | 21,667) | 19,026) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 1.33 | 1.47 | 1.70 | 1.87 | 1.26 |
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 2025 Calculation
Area asset turnover = Revenues ÷ Long-lived assets
= 47,627 ÷ 35,847 = 1.33
Analysis of the presented financial information reveals evolving performance regarding asset utilization within the United States geographic area. Revenues exhibited substantial growth between 2021 and 2023, followed by a moderation in growth rate during the subsequent two years. Simultaneously, long-lived assets increased consistently throughout the observed period. Consequently, the area asset turnover ratio demonstrates a fluctuating pattern.
- Revenue Trend
- Revenues increased significantly from US$23,973 million in 2021 to US$45,235 million in 2023, representing a considerable expansion of sales within the United States. However, revenue growth slowed considerably in 2024 and 2025, reaching US$47,725 million and US$47,627 million respectively, indicating a potential stabilization or maturity of the market.
- Long-Lived Asset Trend
- Long-lived assets increased steadily from US$19,026 million in 2021 to US$35,847 million in 2025. This consistent increase suggests ongoing investment in property, plant, and equipment within the United States, potentially to support increased production capacity or expansion into new areas. The rate of increase in long-lived assets appears to be accelerating.
- Area Asset Turnover
- The area asset turnover ratio, a measure of how efficiently assets are used to generate revenue, initially improved from 1.26 in 2021 to 1.87 in 2022, coinciding with the rapid revenue growth. The ratio then decreased to 1.70 in 2023, followed by further declines to 1.47 in 2024 and 1.33 in 2025. This downward trend suggests that while revenues are still growing, the rate of revenue growth is not keeping pace with the growth in long-lived assets, indicating diminishing returns on asset investment. The decreasing ratio warrants further investigation to determine the underlying causes, such as potential inefficiencies in asset utilization or an overinvestment in assets relative to sales.
In summary, the United States area demonstrates strong revenue growth initially, but a slowing growth rate coupled with consistently increasing long-lived assets has resulted in a declining area asset turnover ratio. This suggests a potential need to optimize asset utilization strategies to improve efficiency and maximize returns on investment.
Area Asset Turnover: Other International
Tesla Inc.; Other International; area asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenues | 47,200) | 49,965) | 51,538) | 40,909) | 29,850) |
| Long-lived assets | 9,400) | 8,299) | 8,325) | 7,370) | 5,623) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 5.02 | 6.02 | 6.19 | 5.55 | 5.31 |
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 2025 Calculation
Area asset turnover = Revenues ÷ Long-lived assets
= 47,200 ÷ 9,400 = 5.02
Analysis of the financial information reveals a generally positive trend in area asset turnover for the period examined, followed by a recent decline. Revenues exhibited consistent growth from 2021 to 2023, while long-lived assets also increased throughout the period. However, revenue growth slowed in 2024 and contracted in 2025, while long-lived assets continued to increase.
- Revenues
- Revenues increased from US$29,850 million in 2021 to US$51,538 million in 2023, representing substantial growth. This growth slowed to US$49,965 million in 2024 and further decreased to US$47,200 million in 2025. This suggests a potential deceleration in sales within this geographic area.
- Long-lived assets
- Long-lived assets increased steadily from US$5,623 million in 2021 to US$9,400 million in 2025. This consistent increase indicates ongoing investment in the area, despite the recent revenue contraction. The continued investment without corresponding revenue growth may warrant further investigation.
- Area asset turnover
- The area asset turnover ratio improved from 5.31 in 2021 to a peak of 6.19 in 2023, indicating increasing efficiency in generating revenue from long-lived assets. However, the ratio decreased to 6.02 in 2024 and then to 5.02 in 2025. This decline suggests a diminishing ability to generate sales from the invested asset base, potentially due to the slower revenue growth and continued asset investment. The 2025 ratio represents the lowest value in the observed period.
The combination of increasing long-lived assets and declining revenues in the most recent periods has resulted in a decreased area asset turnover ratio. This trend suggests a potential need to evaluate the effectiveness of asset utilization and the return on investment in this geographic area.
Revenues
Tesla Inc., revenues by geographic area
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| United States | 47,627) | 47,725) | 45,235) | 40,553) | 23,973) |
| Other International | 47,200) | 49,965) | 51,538) | 40,909) | 29,850) |
| Total | 94,827) | 97,690) | 96,773) | 81,462) | 53,823) |
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).
Total revenues demonstrate a significant growth trajectory between 2021 and 2023, followed by a stabilization and slight decline in the subsequent two years. A detailed examination of revenue contributions by geographic area reveals distinct patterns within the overall trend.
- United States Revenue
- Revenue generated from the United States experienced substantial growth from US$23,973 million in 2021 to US$45,235 million in 2023, representing a nearly 89% increase. Growth slowed considerably in 2024, reaching US$47,725 million, and experienced a minor decrease in 2025, settling at US$47,627 million. This suggests a maturing market within the United States, with diminishing returns on revenue growth.
- Other International Revenue
- Revenue from regions outside the United States also exhibited strong growth, increasing from US$29,850 million in 2021 to US$51,538 million in 2023, a rise of approximately 72.5%. Similar to the United States, growth decelerated in 2024 to US$49,965 million, and continued to decline in 2025 to US$47,200 million. The decline in 2024 and 2025 may indicate increased competition or macroeconomic factors impacting international sales.
- Relative Contribution
- In 2021, Other International revenue represented approximately 55.4% of total revenue. By 2023, this proportion increased to approximately 53.2%. However, in 2025, Other International revenue accounted for approximately 50% of total revenue. This indicates a shift in revenue concentration towards the United States market in the later periods, despite the overall revenue decline.
- Overall Trend
- Total revenue increased significantly from 2021 to 2023, growing from US$53,823 million to US$96,773 million. While 2024 saw a slight increase to US$97,690 million, 2025 experienced a decrease to US$94,827 million. The stabilization and subsequent decline in total revenue suggest potential challenges in sustaining the rapid growth experienced in earlier years. The combined slowdown in both the United States and Other International revenue streams contributed to this overall trend.
Long-lived assets
Tesla Inc., long-lived assets by geographic area
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| United States | 35,847) | 32,461) | 26,629) | 21,667) | 19,026) |
| Other International | 9,400) | 8,299) | 8,325) | 7,370) | 5,623) |
| Total | 45,247) | 40,760) | 34,954) | 29,037) | 24,649) |
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).
Long-lived assets exhibited a consistent upward trend across all geographic segments examined between December 31, 2021, and December 31, 2025. The United States consistently represents the largest portion of these assets, and demonstrates a more rapid rate of growth compared to the aggregate of other international locations.
- United States
- Long-lived assets in the United States increased from US$19,026 million in 2021 to US$35,847 million in 2025, representing a cumulative growth of 88.0%. The growth rate accelerated over the period, with larger absolute increases observed in 2023 (US$4,832 million) and 2024 (US$5,832 million) compared to earlier years. This suggests increasing investment in long-lived assets within the United States.
- Other International
- Long-lived assets categorized as “Other International” grew from US$5,623 million in 2021 to US$9,400 million in 2025, a cumulative increase of 67.2%. While positive, the growth rate appears more moderate than that of the United States. A slight decrease was observed between 2022 and 2023 (US$7,370 million to US$8,325 million), followed by a decrease in 2023 to 2024 (US$8,325 million to US$8,299 million) before resuming growth in 2024 to 2025.
- Total Long-Lived Assets
- Total long-lived assets increased from US$24,649 million in 2021 to US$45,247 million in 2025, a cumulative growth of 83.7%. The overall growth trajectory mirrors that of the United States, indicating that the growth in US assets significantly influences the total. The largest year-over-year increase occurred between 2023 and 2024 (US$5,806 million).
- Geographic Concentration
- The United States consistently accounted for approximately 76% to 79% of total long-lived assets throughout the examined period. This indicates a substantial concentration of these assets within the United States. The proportion of assets held internationally remained relatively stable, fluctuating between 21% and 24% of the total.
The observed trends suggest a strategic focus on expanding long-lived asset investment within the United States. While international assets are also growing, the pace is slower, and the relative proportion remains considerably smaller. The slight fluctuations in international asset values warrant further investigation to understand the underlying drivers.