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)
Tesla Inc., solvency ratios (quarterly data)
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
- Debt to Equity
- The debt to equity ratio demonstrates a consistent downward trend from March 2020 through December 2022, decreasing from 1.6 to 0.09. This indicates a significant reduction in leverage and a shift toward lower reliance on debt relative to equity. From March 2023 to September 2025, the ratio fluctuates slightly, generally maintaining a low range between 0.07 and 0.12, reflecting a stable and conservative capital structure in recent periods.
- Debt to Capital
- This ratio follows a similar declining pattern as debt to equity, starting at 0.62 in the first quarter of 2020 and falling steadily to 0.09 by December 2022. Thereafter, the ratio remains relatively stable around 0.06 to 0.10 up to the third quarter of 2025. The consistent decrease implies improved capitalization with less debt employed in the capital base over time.
- Debt to Assets
- The debt to assets ratio decreases from 0.39 in early 2020 to 0.05 by December 2022, indicating that less of the company’s assets are financed through debt. From 2023 onward, the ratio remains low with minor fluctuations between 0.04 and 0.07, suggesting sustained asset financing predominantly through equity or other non-debt means.
- Financial Leverage
- Financial leverage declines notably from 4.06 in March 2020 to 1.84 by December 2022. This suggests a reduction in the proportion of overall assets financed by equity, signifying more prudent and balanced use of financial resources. Post-2022, the leverage ratio stabilizes around 1.66 to 1.81, indicating a steady, moderate leverage level.
- Interest Coverage
- Interest coverage ratio data begins in September 2020 at 2.54 and shows a remarkable increase over time. By December 2022, the ratio reaches 72.83, peaking at 94.4 in September 2023. After that peak, a gradual decline is observed, with values around 19.97 by September 2025. The initial increase reflects growing earnings capacity relative to interest expenses, suggesting strengthening profitability and reduced financial risk. The subsequent decline, though still indicating strong coverage, suggests some moderation in earnings relative to interest obligations in recent quarters.
Debt Ratios
Coverage Ratios
Debt to Equity
Tesla Inc., debt to equity calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Current portion of debt and finance leases | 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) | 2,514) | 2,547) | 2,342) | 2,564) | 2,884) | 3,834) | 4,392) | 4,005) | |||||||
| Debt and finance leases, net of current portion | 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) | 5,245) | 6,438) | 7,871) | 9,053) | 9,556) | 10,559) | 10,416) | 10,666) | |||||||
| Total debt | 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) | 7,759) | 8,985) | 10,213) | 11,617) | 12,440) | 14,393) | 14,808) | 14,671) | |||||||
| Stockholders’ equity | 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) | 30,189) | 27,053) | 24,804) | 23,017) | 22,225) | 16,031) | 9,855) | 9,173) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||
| Debt to equity1 | 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 | 0.26 | 0.33 | 0.41 | 0.50 | 0.56 | 0.90 | 1.50 | 1.60 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||||||||
| Ford Motor Co. | 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 | 2.85 | 3.95 | 4.24 | 4.51 | 5.27 | 4.75 | 5.68 | 5.64 | |||||||
| General Motors Co. | 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 | 1.83 | 2.01 | 2.15 | 2.30 | 2.44 | 2.71 | 3.24 | 3.15 | |||||||
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q3 2025 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 7,702 ÷ 79,970 = 0.10
2 Click competitor name to see calculations.
The financial data reveals notable trends in Tesla Inc.’s debt and equity position over the observed quarterly periods spanning from the first quarter of 2020 through the third quarter of 2025.
- Total Debt
- The total debt demonstrates a general declining trend from March 2020 through June 2023, falling from approximately $14.7 billion to about $3.4 billion. This reduction indicates a consistent effort to deleverage over this period. However, from September 2023 onwards, the trend reverses slightly with fluctuations and an upward movement in debt, reaching approximately $7.7 billion by September 2025.
- Stockholders' Equity
- There is a consistent and substantial increase in stockholders’ equity across all periods, rising from about $9.2 billion in March 2020 to nearly $80 billion by September 2025. This steady growth suggests strong retained earnings, capital infusions, or other equity-enhancing activities contributing to an improved capital base.
- Debt to Equity Ratio
- The debt to equity ratio steadily declined from 1.6 in March 2020 to a low of around 0.07–0.10 by mid-2023, reflecting the simultaneous decrease in debt and rise in equity. This indicates a strengthening financial position with reduced reliance on debt financing relative to equity. From late 2023 through 2025, the ratio experiences a mild increase, fluctuating generally between 0.08 and 0.12, correlating with the observed increase in total debt, though it remains at historically low levels compared to early periods.
Overall, the trends suggest a strategic focus on improving financial stability by reducing leverage significantly in the initial years, supported by robust growth in equity. The mild increase in debt positions after mid-2023 may denote renewed borrowing potentially aimed at supporting expansion or capital projects, though this has not yet materially impacted the strong equity base or the company’s overall conservative leverage ratio.
Debt to Capital
Tesla Inc., debt to capital calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Current portion of debt and finance leases | 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) | 2,514) | 2,547) | 2,342) | 2,564) | 2,884) | 3,834) | 4,392) | 4,005) | |||||||
| Debt and finance leases, net of current portion | 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) | 5,245) | 6,438) | 7,871) | 9,053) | 9,556) | 10,559) | 10,416) | 10,666) | |||||||
| Total debt | 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) | 7,759) | 8,985) | 10,213) | 11,617) | 12,440) | 14,393) | 14,808) | 14,671) | |||||||
| Stockholders’ equity | 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) | 30,189) | 27,053) | 24,804) | 23,017) | 22,225) | 16,031) | 9,855) | 9,173) | |||||||
| Total capital | 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) | 37,948) | 36,038) | 35,017) | 34,634) | 34,665) | 30,424) | 24,663) | 23,844) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||
| Debt to capital1 | 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 | 0.20 | 0.25 | 0.29 | 0.34 | 0.36 | 0.47 | 0.60 | 0.62 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||||||||
| Ford Motor Co. | 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 | 0.74 | 0.80 | 0.81 | 0.82 | 0.84 | 0.83 | 0.85 | 0.85 | |||||||
| General Motors Co. | 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 | 0.65 | 0.67 | 0.68 | 0.70 | 0.71 | 0.73 | 0.76 | 0.76 | |||||||
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q3 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= 7,702 ÷ 87,672 = 0.09
2 Click competitor name to see calculations.
- Total Debt
- The total debt shows a general declining trend from March 31, 2020, through June 30, 2023, decreasing from $14,671 million to approximately $3,357 million. This suggests a strategic effort to reduce leverage over this period. However, starting from September 30, 2023, there is a notable uptick in total debt, rising to $5,287 million and fluctuating around this higher level through the subsequent quarters, ending at about $7,702 million by September 30, 2025. This change may indicate new financing activities or shifts in capital structure strategy.
- Total Capital
- Total capital steadily increased across the entire period, from $23,844 million at the beginning of 2020 to approximately $87,672 million by the third quarter of 2025. The growth trend is consistent with expanding business operations or asset base, reflecting an ongoing accumulation of invested funds and equity financing. The rate of growth appears to accelerate particularly after December 31, 2022, with the capital base rising more sharply.
- Debt to Capital Ratio
- The debt-to-capital ratio significantly decreases from 0.62 in March 2020 to a low of 0.06 by June 2023, indicating a substantial reduction in reliance on debt relative to overall capital. This downward trend aligns with the reduction in total debt and the simultaneous increase in total capital. Starting around September 2023, the ratio shows a mild increase to approximately 0.1 and then stabilizes near this level through to September 2025. This suggests a rebalancing of the capital structure, with a slight increase in debt relative to capital but maintaining a conservative leverage position compared to earlier periods.
- Summary
- Overall, the financial data reflects a strong deleveraging phase through mid-2023, supported by consistent capital growth. This trend reflects prudent financial management prioritizing lower financial risk and increasing equity or retained earnings. The subsequent rise in both debt levels and the debt-to-capital ratio from late 2023 onward suggests a strategic shift, potentially to support growth opportunities, investments, or other corporate initiatives. Despite this recent increase, the leverage remains low compared to initial levels in 2020, maintaining a conservative capital structure relative to the significant growth in total capital.
Debt to Assets
Tesla Inc., debt to assets calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Current portion of debt and finance leases | 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) | 2,514) | 2,547) | 2,342) | 2,564) | 2,884) | 3,834) | 4,392) | 4,005) | |||||||
| Debt and finance leases, net of current portion | 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) | 5,245) | 6,438) | 7,871) | 9,053) | 9,556) | 10,559) | 10,416) | 10,666) | |||||||
| Total debt | 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) | 7,759) | 8,985) | 10,213) | 11,617) | 12,440) | 14,393) | 14,808) | 14,671) | |||||||
| Total assets | 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) | 62,131) | 57,834) | 55,146) | 52,972) | 52,148) | 45,691) | 38,135) | 37,250) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||
| Debt to assets1 | 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 | 0.12 | 0.16 | 0.19 | 0.22 | 0.24 | 0.32 | 0.39 | 0.39 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||||||||
| Ford Motor Co. | 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 | 0.54 | 0.57 | 0.59 | 0.59 | 0.60 | 0.61 | 0.65 | 0.63 | |||||||
| General Motors Co. | 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 | 0.45 | 0.46 | 0.46 | 0.47 | 0.47 | 0.49 | 0.54 | 0.51 | |||||||
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q3 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= 7,702 ÷ 133,735 = 0.06
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several important trends regarding the company's debt, assets, and leverage ratios over the observed periods.
- Total Debt
-
The total debt shows a significant downward trend from early 2020 through mid-2023, decreasing from $14,671 million to a trough near $3,357 million. This decline indicates a progressive reduction in borrowing or repayment of outstanding obligations over this time frame.
However, starting in the third quarter of 2023, the total debt begins to increase notably, rising again to $7,702 million by the third quarter of 2025. This reversal suggests a renewed reliance on debt financing or increased borrowing activities after a prolonged period of debt reduction.
- Total Assets
-
Total assets exhibit a consistent upward trajectory throughout the entire analyzed period, growing steadily from $37,250 million in the first quarter of 2020 to $133,735 million in the third quarter of 2025. This steady increase in asset base indicates ongoing investments, growth in operational scale, or accumulation of resources.
The asset growth appears to accelerate notably from late 2022 onwards, reflecting possibly stronger capital expenditures or asset acquisitions during this phase.
- Debt to Assets Ratio
-
The debt to assets ratio declines significantly from 0.39 in the first quarter of 2020 to a low near 0.04 by mid-2023, which reflects a reduction in leverage and an improvement in the company's capital structure, pointing to lower financial risk over this period.
Following mid-2023, the ratio experiences a slight increase and stabilizes around 0.06-0.07, coinciding with the rising total debt figures, although remaining relatively low compared to the initial levels in 2020.
Overall, the data portrays a company that substantially deleverages its balance sheet over a multi-year period, improving financial stability, supported by a growing asset base. The recent uptick in debt from late 2023, accompanied by a moderate rise in the debt to assets ratio, might indicate strategic shifts such as financing new investments, acquisitions, or managing liquidity with increased borrowing. Despite this rise, leverage remains relatively low in comparison to earlier years, suggesting maintained cautious financial management.
Financial Leverage
Tesla Inc., financial leverage calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Total assets | 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) | 62,131) | 57,834) | 55,146) | 52,972) | 52,148) | 45,691) | 38,135) | 37,250) | |||||||
| Stockholders’ equity | 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) | 30,189) | 27,053) | 24,804) | 23,017) | 22,225) | 16,031) | 9,855) | 9,173) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||
| Financial leverage1 | 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 | 2.06 | 2.14 | 2.22 | 2.30 | 2.35 | 2.85 | 3.87 | 4.06 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||||||||
| Ford Motor Co. | 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 | 5.30 | 6.91 | 7.17 | 7.71 | 8.71 | 7.85 | 8.74 | 8.91 | |||||||
| General Motors Co. | 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 | 4.10 | 4.41 | 4.68 | 4.93 | 5.22 | 5.53 | 6.04 | 6.15 | |||||||
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q3 2025 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 133,735 ÷ 79,970 = 1.67
2 Click competitor name to see calculations.
- Total Assets
- The total assets have exhibited a consistent upward trend from March 31, 2020, through September 30, 2025. Starting at $37,250 million, total assets increased steadily across all periods, reaching $133,735 million by the end of the last quarter reported. This growth reflects a significant expansion in the company's asset base over the time horizon, with particularly notable accelerations observed in the periods leading up to and following December 31, 2023.
- Stockholders’ Equity
- Stockholders’ equity has also shown continuous growth throughout the period analyzed. Beginning at $9,173 million in March 2020, equity rose markedly to $79,970 million by September 2025. This increase suggests sustained capital accumulation and retained earnings growth, supporting the company’s stronger financial position. Equity growth was relatively steady with a noticeable upward momentum coinciding with the increase in total assets.
- Financial Leverage
- The financial leverage ratio declined significantly from a high of 4.06 in March 2020 to a range around 1.66-1.71 in the more recent quarters. This downward trend indicates a decreasing reliance on debt financing relative to equity. The company appears to have strengthened its equity base faster than liabilities, leading to improved leverage ratios. The ratio stabilized somewhat after 2023, hovering close to 1.7, which suggests a more balanced and potentially lower-risk capital structure compared to the initial periods.
- Overall Analysis
- The data reflect a company that is expanding its asset base substantially while simultaneously growing its equity capital. The decline in financial leverage ratio over the entire period signals a strategic reduction in debt dependency, implying a focus on financial stability and possibly lower financial risk. This trend points toward an improving balance sheet quality, with asset growth supported strongly by equity rather than debt.
Interest Coverage
Tesla Inc., interest coverage calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Net income attributable to common stockholders | 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) | 2,321) | 1,618) | 1,142) | 438) | 270) | 331) | 104) | 16) | |||||||
| Add: Net income attributable to noncontrolling interest | 16) | 18) | 11) | 15) | 16) | 16) | 15) | 15) | 25) | (89) | 26) | 20) | 39) | 10) | (38) | 22) | 41) | 36) | 26) | 26) | 38) | 25) | 52) | |||||||
| Add: Income tax expense | 570) | 359) | 169) | 381) | 602) | 371) | 483) | (5,752) | 167) | 323) | 261) | 276) | 305) | 205) | 346) | 292) | 223) | 115) | 69) | 83) | 186) | 21) | 2) | |||||||
| Add: Interest expense | 76) | 86) | 91) | 96) | 92) | 86) | 76) | 61) | 38) | 28) | 29) | 33) | 53) | 44) | 61) | 71) | 126) | 75) | 99) | 246) | 163) | 170) | 169) | |||||||
| Earnings before interest and tax (EBIT) | 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) | 2,706) | 2,008) | 1,368) | 632) | 625) | 718) | 320) | 239) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||
| Interest coverage1 | 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 | 18.10 | 8.49 | 5.73 | 3.38 | 2.54 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | ||||||||||||||||||||||||||||||
| Ford Motor Co. | 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 | 10.86 | 2.50 | 2.91 | 3.10 | 0.32 | — | — | — | |||||||
| General Motors Co. | 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 | 14.39 | 14.95 | 15.87 | 11.08 | 8.37 | — | — | — | |||||||
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q3 2025 Calculation
Interest coverage
= (EBITQ3 2025
+ EBITQ2 2025
+ EBITQ1 2025
+ EBITQ4 2024)
÷ (Interest expenseQ3 2025
+ Interest expenseQ2 2025
+ Interest expenseQ1 2025
+ Interest expenseQ4 2024)
= (2,035 + 1,635 + 680 + 2,620)
÷ (76 + 86 + 91 + 96)
= 19.97
2 Click competitor name to see calculations.
The analysis of the earnings before interest and tax (EBIT) shows significant fluctuations over the periods. Initially, EBIT increased steadily from 239 million US$ in Q1 2020 to a peak of 2,706 million US$ in Q4 2021. This upward trend indicates substantial operational improvement and growth during this timeframe. However, starting from Q1 2022, EBIT values show volatility with periods of both growth and decline. Notably, EBIT reached another high point of 4,016 million US$ in Q4 2022 but subsequently experienced a downward trend into 2023 and early 2024 before partially recovering towards the end of 2024 and into 2025.
Interest expense has demonstrated a gradual decrease from 169 million US$ in Q1 2020 to lower values, often below 50 million US$ during the middle periods of 2022, reflecting a reduction in borrowing costs or debt levels. Starting from late 2023, interest expense regressively increased, reaching up to approximately 96 million US$ by mid-2025. This suggests either an increase in debt or rising interest rates impacting financing costs.
The interest coverage ratio, which measures the company’s ability to meet its interest obligations, exhibits a remarkable rising trend. From an initial value of approximately 2.54 in Q3 2020, the ratio improved dramatically, reaching exceptionally high levels above 90 during 2022 and 2023. This improvement indicates a strong ability to cover interest expenses through earnings, reflecting enhanced operational earnings relative to fixed financing costs. Although the ratio declines gradually after its peak, it remains robust, staying well above 20 into mid-2025, signifying continued strong financial health in terms of interest coverage.
- EBIT Trend
- Substantial growth from early 2020 to late 2021, peaking above 2.7 billion US$, followed by volatility with a secondary peak in late 2022 and subsequent fluctuations through 2025.
- Interest Expense Trend
- Gradual decrease through mid-2022, indicating reduced finance costs, followed by a resurgence towards 2025, likely reflecting higher debt or interest rates.
- Interest Coverage Ratio
- Strong and consistent improvement indicating enhanced ability to service interest obligations; peaking above 90 in 2022–2023 before a moderate decline while remaining at strong levels above 20.
Overall, the data suggests that operational profitability improved significantly over the early years with some variability in more recent quarters. Interest expense management appears generally effective until 2023, after which costs increased. Nevertheless, the company maintains a strong capacity to cover interest expenses given the high interest coverage ratios.