Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Debt Ratios
Coverage Ratios
Tesla Inc., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
The solvency profile is characterized by low leverage and a strong ability to meet long-term obligations, although a notable divergence is observed between stable capital structure ratios and a declining interest coverage trend.
- Debt Ratios
- Debt to equity, debt to capital, and debt to assets all exhibited a similar downward trajectory from March 2022 through June 2023. Debt to equity declined from 0.17 to a low of 0.07, while debt to assets reached a floor of 0.04 during the same period. From mid-2023 through September 2026, these ratios remained relatively stable, with debt to equity hovering between 0.08 and 0.12, indicating a consistent and conservative approach to debt financing relative to equity and total assets.
- Financial Leverage
- A gradual reduction in financial leverage is observed, starting at 1.94 in March 2022 and reaching a minimum of 1.66 by June 2025. A slight upward reversal occurred in the final quarters, ending at 1.76 in September 2026. This pattern suggests a long-term trend toward deleveraging, followed by a modest increase in the proportion of assets financed by liabilities.
- Interest Coverage
- The interest coverage ratio demonstrates significant volatility. An aggressive increase was recorded from March 2022 (29.34) to a peak of 94.40 in June 2023, signaling a period of rapidly expanding earnings relative to interest expenses. However, a sustained downward trend followed this peak, with the ratio contracting to 13.11 by September 2026. While the ratio remains comfortably above critical thresholds, the consistent decline indicates a reduction in the margin of safety for servicing interest obligations.
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Debt to Equity
Tesla Inc., debt to equity calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Current portion of debt and finance leases | 1,387) | 1,418) | 1,447) | 1,640) | 1,924) | 2,040) | 2,237) | 2,456) | 2,291) | 2,264) | 2,461) | 2,373) | 2,861) | 2,485) | 2,461) | 2,565) | 2,540) | 2,714) | 2,784) | ||||||
| Debt and finance leases, net of current portion | 8,136) | 7,924) | 7,782) | 6,736) | 5,778) | 5,180) | 5,292) | 5,757) | 5,405) | 5,481) | 2,899) | 2,857) | 2,426) | 872) | 1,272) | 1,597) | 2,096) | 2,898) | 3,153) | ||||||
| Total debt | 9,523) | 9,342) | 9,229) | 8,376) | 7,702) | 7,220) | 7,529) | 8,213) | 7,696) | 7,745) | 5,360) | 5,230) | 5,287) | 3,357) | 3,733) | 4,162) | 4,636) | 5,612) | 5,937) | ||||||
| Stockholders’ equity | 89,289) | 86,858) | 84,116) | 82,137) | 79,970) | 77,314) | 74,653) | 72,913) | 69,931) | 66,468) | 64,378) | 62,634) | 53,466) | 51,130) | 48,054) | 44,704) | 39,851) | 36,376) | 34,085) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to equity1 | 0.11 | 0.11 | 0.11 | 0.10 | 0.10 | 0.09 | 0.10 | 0.11 | 0.11 | 0.12 | 0.08 | 0.08 | 0.10 | 0.07 | 0.08 | 0.09 | 0.12 | 0.15 | 0.17 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||||
| Ford Motor Co. | 4.42 | 4.51 | 4.20 | 4.54 | 3.42 | 3.50 | 3.48 | 3.54 | 3.55 | 3.46 | 3.49 | 3.49 | 3.22 | 3.28 | 3.29 | 3.21 | 3.05 | 2.92 | 3.01 | ||||||
| General Motors Co. | 2.05 | 2.06 | 2.04 | 2.13 | 2.00 | 2.05 | 2.06 | 2.06 | 1.80 | 1.84 | 1.84 | 1.89 | 1.60 | 1.65 | 1.64 | 1.69 | 1.73 | 1.73 | 1.77 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2026 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 9,523 ÷ 89,289 = 0.11
2 Click competitor name to see calculations.
The solvency profile exhibits a strong expansion of the equity base coupled with fluctuations in total debt, resulting in a consistently low debt-to-equity ratio over the analyzed period.
- Stockholders' Equity Expansion
- A consistent upward trajectory is observed in stockholders' equity, which increased from 34,085 million US dollars in March 2022 to 89,289 million US dollars by September 2026. This steady growth indicates a continuous strengthening of the company's net asset position, providing a substantial buffer against financial obligations.
- Total Debt Dynamics
- Debt levels transitioned through two distinct phases. An initial deleveraging trend occurred between March 2022 and June 2023, where total debt declined from 5,937 million US dollars to a period low of 3,357 million US dollars. Following this, a gradual upward trend emerged, with debt rising to 9,523 million US dollars by September 2026. A notable increase was recorded between March 2024 and June 2024, where debt rose by approximately 2,385 million US dollars in a single quarter.
- Debt to Equity Ratio Analysis
- The debt-to-equity ratio experienced an initial decline from 0.17 in March 2022 to a minimum of 0.07 in June 2023. Despite the subsequent rise in total debt, the ratio remained highly stable, fluctuating within a narrow range between 0.08 and 0.12 from September 2023 through September 2026. This stability is attributed to the fact that equity growth outpaced the increase in debt, ensuring that the company maintained a conservative leverage posture throughout the observed timeframe.
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Debt to Capital
Tesla Inc., debt to capital calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Current portion of debt and finance leases | 1,387) | 1,418) | 1,447) | 1,640) | 1,924) | 2,040) | 2,237) | 2,456) | 2,291) | 2,264) | 2,461) | 2,373) | 2,861) | 2,485) | 2,461) | 2,565) | 2,540) | 2,714) | 2,784) | ||||||
| Debt and finance leases, net of current portion | 8,136) | 7,924) | 7,782) | 6,736) | 5,778) | 5,180) | 5,292) | 5,757) | 5,405) | 5,481) | 2,899) | 2,857) | 2,426) | 872) | 1,272) | 1,597) | 2,096) | 2,898) | 3,153) | ||||||
| Total debt | 9,523) | 9,342) | 9,229) | 8,376) | 7,702) | 7,220) | 7,529) | 8,213) | 7,696) | 7,745) | 5,360) | 5,230) | 5,287) | 3,357) | 3,733) | 4,162) | 4,636) | 5,612) | 5,937) | ||||||
| Stockholders’ equity | 89,289) | 86,858) | 84,116) | 82,137) | 79,970) | 77,314) | 74,653) | 72,913) | 69,931) | 66,468) | 64,378) | 62,634) | 53,466) | 51,130) | 48,054) | 44,704) | 39,851) | 36,376) | 34,085) | ||||||
| Total capital | 98,812) | 96,200) | 93,345) | 90,513) | 87,672) | 84,534) | 82,182) | 81,126) | 77,627) | 74,213) | 69,738) | 67,864) | 58,753) | 54,487) | 51,787) | 48,866) | 44,487) | 41,988) | 40,022) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to capital1 | 0.10 | 0.10 | 0.10 | 0.09 | 0.09 | 0.09 | 0.09 | 0.10 | 0.10 | 0.10 | 0.08 | 0.08 | 0.09 | 0.06 | 0.07 | 0.09 | 0.10 | 0.13 | 0.15 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||||
| Ford Motor Co. | 0.82 | 0.82 | 0.81 | 0.82 | 0.77 | 0.78 | 0.78 | 0.78 | 0.78 | 0.78 | 0.78 | 0.78 | 0.76 | 0.77 | 0.77 | 0.76 | 0.75 | 0.74 | 0.75 | ||||||
| General Motors Co. | 0.67 | 0.67 | 0.67 | 0.68 | 0.67 | 0.67 | 0.67 | 0.67 | 0.64 | 0.65 | 0.65 | 0.65 | 0.61 | 0.62 | 0.62 | 0.63 | 0.63 | 0.63 | 0.64 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= 9,523 ÷ 98,812 = 0.10
2 Click competitor name to see calculations.
An analysis of the solvency trajectory indicates a period of initial deleveraging followed by a phase of controlled expansion in total debt. Total capital exhibits a consistent and significant growth pattern throughout the observed timeframe, reflecting a substantial expansion of the overall financial base.
- Total Debt Trends
- Total debt experienced a steady decline from 5,937 million US$ in March 2022 to a period low of 3,357 million US$ in June 2023. Following this trough, debt levels increased, characterized by a notable jump in September 2023 to 5,287 million US$ and a subsequent climb to 9,523 million US$ by September 2026.
- Total Capital Growth
- Total capital demonstrated an uninterrupted upward trend, rising from 40,022 million US$ in March 2022 to 98,812 million US$ by September 2026. This consistent growth indicates a strong expansion of the company's funding base over the period.
- Debt to Capital Ratio Evolution
- The debt to capital ratio transitioned through two distinct phases. An initial contraction phase saw the ratio drop from 0.15 in March 2022 to a minimum of 0.06 in June 2023. A second phase of stabilization occurred from September 2023 onward, with the ratio remaining range-bound between 0.08 and 0.10, ultimately settling at 0.10 by September 2026.
The interaction between rising total debt and rapidly expanding total capital resulted in a stabilized solvency profile. While absolute debt levels increased in the latter half of the period, the proportional impact on the capital structure remained minimal, maintaining a low-leverage position relative to the initial 2022 levels.
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Debt to Assets
Tesla Inc., debt to assets calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Current portion of debt and finance leases | 1,387) | 1,418) | 1,447) | 1,640) | 1,924) | 2,040) | 2,237) | 2,456) | 2,291) | 2,264) | 2,461) | 2,373) | 2,861) | 2,485) | 2,461) | 2,565) | 2,540) | 2,714) | 2,784) | ||||||
| Debt and finance leases, net of current portion | 8,136) | 7,924) | 7,782) | 6,736) | 5,778) | 5,180) | 5,292) | 5,757) | 5,405) | 5,481) | 2,899) | 2,857) | 2,426) | 872) | 1,272) | 1,597) | 2,096) | 2,898) | 3,153) | ||||||
| Total debt | 9,523) | 9,342) | 9,229) | 8,376) | 7,702) | 7,220) | 7,529) | 8,213) | 7,696) | 7,745) | 5,360) | 5,230) | 5,287) | 3,357) | 3,733) | 4,162) | 4,636) | 5,612) | 5,937) | ||||||
| Total assets | 157,517) | 148,524) | 143,724) | 137,806) | 133,735) | 128,567) | 125,111) | 122,070) | 119,852) | 112,832) | 109,226) | 106,618) | 93,941) | 90,591) | 86,833) | 82,338) | 74,426) | 68,513) | 66,038) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to assets1 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.07 | 0.06 | 0.07 | 0.05 | 0.05 | 0.06 | 0.04 | 0.04 | 0.05 | 0.06 | 0.08 | 0.09 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||||
| Ford Motor Co. | 0.56 | 0.56 | 0.56 | 0.56 | 0.54 | 0.54 | 0.55 | 0.56 | 0.55 | 0.55 | 0.54 | 0.55 | 0.53 | 0.54 | 0.54 | 0.54 | 0.52 | 0.52 | 0.54 | ||||||
| General Motors Co. | 0.45 | 0.45 | 0.45 | 0.46 | 0.46 | 0.47 | 0.47 | 0.46 | 0.44 | 0.45 | 0.44 | 0.45 | 0.42 | 0.43 | 0.43 | 0.43 | 0.43 | 0.44 | 0.44 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= 9,523 ÷ 157,517 = 0.06
2 Click competitor name to see calculations.
The solvency profile reflects a highly conservative capital structure, characterized by a consistently low reliance on debt relative to the total asset base. Despite a notable increase in nominal debt levels in the latter half of the observed period, the aggressive growth of assets has ensured that the overall solvency risk remains minimal.
- Debt Trajectory
- Total debt experienced an initial downward trend, falling from 5,937 million US$ in March 2022 to a minimum of 3,357 million US$ by June 2023. Subsequently, a reversal occurred, with debt increasing to 5,287 million US$ in September 2023 and continuing a general upward trend to reach 9,523 million US$ by September 2026, despite minor fluctuations during the first half of 2025.
- Asset Base Growth
- A strong and consistent expansion of total assets is observed, rising from 66,038 million US$ in March 2022 to 157,517 million US$ by September 2026. This steady growth indicates a significant increase in the company's resource base, which has fundamentally outpaced the accumulation of debt.
- Debt to Assets Ratio Interpretation
- The debt to assets ratio began at 0.09 and reached its lowest point of 0.04 in the first half of 2023. From September 2023 through September 2026, the ratio remained remarkably stable, oscillating between 0.05 and 0.07 before settling at 0.06. This stability confirms that the company has maintained a disciplined leverage ratio, ensuring that total debt constitutes a small fraction of the overall asset value.
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Financial Leverage
Tesla Inc., financial leverage calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Total assets | 157,517) | 148,524) | 143,724) | 137,806) | 133,735) | 128,567) | 125,111) | 122,070) | 119,852) | 112,832) | 109,226) | 106,618) | 93,941) | 90,591) | 86,833) | 82,338) | 74,426) | 68,513) | 66,038) | ||||||
| Stockholders’ equity | 89,289) | 86,858) | 84,116) | 82,137) | 79,970) | 77,314) | 74,653) | 72,913) | 69,931) | 66,468) | 64,378) | 62,634) | 53,466) | 51,130) | 48,054) | 44,704) | 39,851) | 36,376) | 34,085) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Financial leverage1 | 1.76 | 1.71 | 1.71 | 1.68 | 1.67 | 1.66 | 1.68 | 1.67 | 1.71 | 1.70 | 1.70 | 1.70 | 1.76 | 1.77 | 1.81 | 1.84 | 1.87 | 1.88 | 1.94 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||||
| Ford Motor Co. | 7.92 | 7.99 | 7.54 | 8.04 | 6.35 | 6.50 | 6.37 | 6.36 | 6.48 | 6.35 | 6.40 | 6.39 | 6.06 | 6.09 | 6.06 | 5.92 | 5.86 | 5.56 | 5.62 | ||||||
| General Motors Co. | 4.60 | 4.56 | 4.48 | 4.60 | 4.34 | 4.36 | 4.38 | 4.44 | 4.08 | 4.12 | 4.15 | 4.25 | 3.78 | 3.85 | 3.82 | 3.89 | 3.99 | 3.96 | 4.05 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2026 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 157,517 ÷ 89,289 = 1.76
2 Click competitor name to see calculations.
Analysis of the financial position from March 2022 through September 2026 reveals a period of significant balance sheet expansion characterized by a general reduction in financial leverage followed by a modest stabilization and slight uptick in the final periods.
- Total Assets Growth
- A consistent upward trajectory in total assets is observed, increasing from US$ 66,038 million in March 2022 to US$ 157,517 million by September 2026. This growth represents a substantial expansion of the asset base over the analyzed period, with the most pronounced increases occurring between December 2023 and September 2024.
- Stockholders' Equity Expansion
- Stockholders' equity demonstrated steady growth, rising from US$ 34,085 million in March 2022 to US$ 89,289 million in September 2026. The growth in equity closely mirrors the expansion of total assets, indicating a strong internal accumulation of capital or equity-based financing.
- Financial Leverage Trend
- The financial leverage ratio exhibited a downward trend for the majority of the period, decreasing from a peak of 1.94 in March 2022 to a low of 1.66 in June 2025. This decline indicates a reduction in the reliance on debt relative to equity, thereby improving the solvency profile. However, starting in September 2025, a gradual reversal is noted, with the ratio climbing back to 1.76 by September 2026.
- Solvency Implications
- The overall trend suggests a strategic shift toward a more conservative capital structure between 2022 and mid-2025. The subsequent increase in leverage toward the end of 2026 suggests a potential shift in financing strategy or an increase in liabilities to fund further asset growth.
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Interest Coverage
Tesla Inc., interest coverage calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Net income attributable to common stockholders | 787) | 1,114) | 477) | 840) | 1,373) | 1,172) | 409) | 2,128) | 2,173) | 1,400) | 1,390) | 7,928) | 1,853) | 2,703) | 2,513) | 3,687) | 3,292) | 2,259) | 3,318) | ||||||
| Add: Net income attributable to noncontrolling interest | 17) | 14) | 14) | 16) | 16) | 18) | 11) | 15) | 16) | 16) | 15) | 15) | 25) | (89) | 26) | 20) | 39) | 10) | (38) | ||||||
| Add: Income tax expense | 152) | 201) | 257) | 325) | 570) | 359) | 169) | 381) | 602) | 371) | 483) | (5,752) | 167) | 323) | 261) | 276) | 305) | 205) | 346) | ||||||
| Add: Interest expense | 90) | 81) | 92) | 85) | 76) | 86) | 91) | 96) | 92) | 86) | 76) | 61) | 38) | 28) | 29) | 33) | 53) | 44) | 61) | ||||||
| Earnings before interest and tax (EBIT) | 1,046) | 1,410) | 840) | 1,266) | 2,035) | 1,635) | 680) | 2,620) | 2,883) | 1,873) | 1,964) | 2,252) | 2,083) | 2,965) | 2,829) | 4,016) | 3,689) | 2,518) | 3,687) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Interest coverage1 | 13.11 | 16.62 | 17.04 | 16.62 | 19.97 | 21.42 | 22.07 | 26.69 | 28.48 | 31.31 | 45.64 | 64.93 | 92.91 | 94.40 | 82.09 | 72.83 | 55.02 | 36.16 | 29.34 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||||
| Ford Motor Co. | -7.18 | -7.80 | -6.25 | -8.43 | 5.41 | 4.77 | 6.55 | 7.49 | 3.57 | 3.88 | 3.69 | 4.05 | 6.58 | 4.59 | 3.38 | -1.40 | 6.10 | 7.71 | 7.10 | ||||||
| General Motors Co. | 8.21 | 4.04 | 4.95 | 5.29 | 7.21 | 10.22 | 11.75 | 11.07 | 15.31 | 14.65 | 13.66 | 12.42 | 13.39 | 13.65 | 12.65 | 12.75 | 12.89 | 11.56 | 13.21 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2026 Calculation
Interest coverage
= (EBITQ3 2026
+ EBITQ2 2026
+ EBITQ1 2026
+ EBITQ4 2025)
÷ (Interest expenseQ3 2026
+ Interest expenseQ2 2026
+ Interest expenseQ1 2026
+ Interest expenseQ4 2025)
= (1,046 + 1,410 + 840 + 1,266)
÷ (90 + 81 + 92 + 85)
= 13.11
2 Click competitor name to see calculations.
The solvency profile exhibits a distinct cyclical pattern over the analyzed period, characterized by a period of rapid expansion in coverage capacity followed by a sustained contraction.
- Interest Coverage Ratio Trends
- The interest coverage ratio experienced a significant ascent from 29.34 in March 2022 to a peak of 94.40 in June 2023. Following this peak, a consistent downward trajectory is observed, with the ratio declining to 13.11 by September 2026. This represents a substantial reduction in the margin of safety for servicing interest obligations.
- Earnings Before Interest and Tax (EBIT) Performance
- EBIT showed strong performance through late 2022, peaking at 4,016 million USD in December 2022. However, a general downward trend followed, punctuated by significant volatility. A notable trough occurred in March 2025, with EBIT dropping to 680 million USD, before partially recovering and stabilizing between 1,046 and 1,410 million USD in the final quarters of the period.
- Interest Expense Evolution
- Interest expenses remained relatively low and stable between March 2022 and June 2023, fluctuating between 28 and 61 million USD. Starting in September 2023, a visible upward trend in interest costs emerged, peaking at 96 million USD in December 2023 and remaining elevated, generally ranging between 76 and 92 million USD through 2026.
The combined effect of declining operating earnings and rising interest costs has led to a persistent compression of the interest coverage ratio. While the final ratio remains well above the critical threshold of 1.0, the trajectory indicates a diminished capacity to cover interest payments compared to the peak efficiency observed in mid-2023.
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