Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Tesla Inc., profitability ratios (quarterly data)
Based on: 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).
- Gross Profit Margin
- From the initial available data in March 2021, the gross profit margin exhibited an upward trajectory, rising from 21.02% to a peak of 27.1% by June and September 2022. Subsequently, it entered a declining phase, decreasing steadily to 17.66% by March 2025. This pattern suggests that while cost management or pricing power improved up until mid-2022, there were pressures on gross profit in the following quarters, potentially due to higher costs or pricing challenges.
- Operating Profit Margin
- The operating profit margin followed a similar upward trend from 6.32% in March 2021 to a high point of approximately 16.76% in December 2022. After this peak, a decline is evident, with margins dropping consistently to 6.59% by March 2025. This indicates that operating efficiencies or other operational factors improved sharply through 2022 but faced headwinds thereafter, possibly reflecting increased operating expenses or lower operating leverage.
- Net Profit Margin
- The net profit margin also increased significantly from 2.29% in March 2021 to a high of 15.5% in March 2024, reflecting strong bottom-line growth through profitability improvements. After this peak, the margin decreased notably to 6.66% by March 2025. The sharp decline after March 2024 may point to non-operating factors such as increased taxes, interest expenses, or other one-time items affecting net income more severely than operating income.
- Return on Equity (ROE)
- ROE exhibited substantial growth, starting at 3.24% in March 2021 and reaching a peak above 28% by December 2022, demonstrating strong value creation for shareholders during this period. However, the ratio declined steadily afterward, reaching single digits around early 2025. This downward trend may indicate a deterioration in profitability, asset efficiency, or increased equity base diluting returns.
- Return on Assets (ROA)
- ROA followed a pattern closely aligned with ROE trends, increasing from 1.38% in March 2021 to a high of 15.25% in December 2022. Subsequently, it declined progressively to 5.09% by March 2025. This suggests that asset utilization and overall profitability peaked near the end of 2022 but declined significantly, possibly due to lower earnings or increased total assets without commensurate profit increases.
- Summary of Trends
- Overall, the data reveals strong growth in margins and returns from early 2021 through late 2022, indicating an era of operational strength and effective profitability management. Following these peaks, a persistent decline across all key profitability and efficiency measures is evident, extending through the first quarter of 2025. This shift may reflect emerging challenges in cost control, competitive pressures, or changes in market conditions adversely impacting profitability and returns on capital.
Return on Sales
Return on Investment
Gross Profit Margin
Tesla Inc., gross profit margin calculation (quarterly data)
| 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) | ||||||||||||||||||||||||||||
| Gross profit | 3,153) | 4,179) | 4,997) | 4,578) | 3,696) | 4,438) | 4,178) | 4,533) | 4,511) | 5,777) | 5,382) | 4,234) | 5,460) | 4,847) | 3,660) | 2,884) | 2,215) | 2,066) | 2,063) | 1,267) | 1,234) | |||||||
| Revenues | 19,335) | 25,707) | 25,182) | 25,500) | 21,301) | 25,167) | 23,350) | 24,927) | 23,329) | 24,318) | 21,454) | 16,934) | 18,756) | 17,719) | 13,757) | 11,958) | 10,389) | 10,744) | 8,771) | 6,036) | 5,985) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||
| Gross profit margin1 | 17.66% | 17.86% | 18.23% | 17.72% | 17.78% | 18.25% | 19.81% | 21.49% | 23.13% | 25.60% | 26.61% | 27.10% | 27.10% | 25.28% | 23.11% | 22.04% | 21.18% | 21.02% | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | ||||||||||||||||||||||||||||
| Ford Motor Co. | 7.69% | 8.26% | 7.60% | 8.11% | 8.61% | 9.25% | 10.30% | 10.07% | 10.22% | 9.85% | 9.58% | 10.10% | 8.41% | 9.20% | 7.13% | 7.30% | 5.61% | 2.75% | — | — | — | |||||||
| General Motors Co. | 11.61% | 11.97% | 11.38% | 11.02% | 10.70% | 10.36% | 11.96% | 12.32% | 12.19% | 11.87% | 10.92% | 10.43% | 10.71% | 11.49% | 12.00% | 12.88% | 11.66% | 10.25% | — | — | — | |||||||
Based on: 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 Q1 2025 Calculation
Gross profit margin = 100
× (Gross profitQ1 2025
+ Gross profitQ4 2024
+ Gross profitQ3 2024
+ Gross profitQ2 2024)
÷ (RevenuesQ1 2025
+ RevenuesQ4 2024
+ RevenuesQ3 2024
+ RevenuesQ2 2024)
= 100 × (3,153 + 4,179 + 4,997 + 4,578)
÷ (19,335 + 25,707 + 25,182 + 25,500)
= 17.66%
2 Click competitor name to see calculations.
The financial data from the most recent quarterly periods presents observable trends in Tesla Inc.'s gross profit, revenues, and gross profit margin.
- Gross Profit
- Gross profit generally showed an increasing trend from March 2020 through December 2021, rising from 1,234 million US dollars to a peak of 4,847 million US dollars. There was continued growth through early 2022, reaching 5,777 million US dollars by December 2022. However, starting in 2023, gross profit exhibited volatility and a downward trend, dropping to 3,153 million US dollars by March 2025. This suggests challenges in maintaining previous profit levels in the later periods under review.
- Revenues
- Revenues increased steadily from 5,985 million US dollars in March 2020 to a high of 25,707 million US dollars in December 2024. Despite some fluctuations, the overall direction was upward, indicating growth in sales over the timeframe. Notably, revenues dipped in the latest quarter of March 2025 to 19,335 million US dollars, marking a significant reduction compared to previous peaks.
- Gross Profit Margin
- The gross profit margin, provided as a percentage starting in December 2020, revealed a rising trend initially, climbing from 21.02% to a peak of 27.10% sustained over two quarters in mid to late 2022. From that high point, the margin experienced a gradual decline, dropping below 20% by late 2023 and stabilizing around 17.66% by March 2025. This decline indicates decreasing profitability on revenue, despite the growth in absolute gross profit and revenues in earlier periods.
- Overall Insights
- The data indicates strong growth in revenues and gross profit from 2020 through 2022, accompanied by rising profit margins suggesting improved operational efficiency or pricing power during that period. However, the subsequent decline in gross profit margin and gross profit from 2023 into early 2025—despite relatively high revenues—signals potential pressures on costs, pricing, or market conditions impacting profitability. The noticeable drop in revenues in the latest quarter reinforces this observation, highlighting a period of volatility or contraction following prior growth.
Operating Profit Margin
Tesla Inc., operating profit margin calculation (quarterly data)
| 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) | ||||||||||||||||||||||||||||
| Income from operations | 399) | 1,583) | 2,717) | 1,605) | 1,171) | 2,064) | 1,764) | 2,399) | 2,664) | 3,901) | 3,688) | 2,464) | 3,603) | 2,613) | 2,004) | 1,312) | 594) | 575) | 809) | 327) | 283) | |||||||
| Revenues | 19,335) | 25,707) | 25,182) | 25,500) | 21,301) | 25,167) | 23,350) | 24,927) | 23,329) | 24,318) | 21,454) | 16,934) | 18,756) | 17,719) | 13,757) | 11,958) | 10,389) | 10,744) | 8,771) | 6,036) | 5,985) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||
| Operating profit margin1 | 6.59% | 7.24% | 7.78% | 6.93% | 7.81% | 9.19% | 11.18% | 13.46% | 14.78% | 16.76% | 16.52% | 15.91% | 15.33% | 12.12% | 9.57% | 7.86% | 6.41% | 6.32% | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||||||||||||
| Ford Motor Co. | 2.53% | 3.02% | 2.19% | 2.36% | 2.74% | 3.29% | 4.42% | 4.14% | 4.52% | 4.21% | 3.82% | 4.54% | 2.72% | 3.58% | 1.08% | 1.87% | -0.33% | -3.80% | — | — | — | |||||||
| General Motors Co. | 7.20% | 7.45% | 7.28% | 7.08% | 6.53% | 5.90% | 6.95% | 7.27% | 7.24% | 7.16% | 6.86% | 6.27% | 7.02% | 8.21% | 9.01% | 10.60% | 8.52% | 6.10% | — | — | — | |||||||
Based on: 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 Q1 2025 Calculation
Operating profit margin = 100
× (Income from operationsQ1 2025
+ Income from operationsQ4 2024
+ Income from operationsQ3 2024
+ Income from operationsQ2 2024)
÷ (RevenuesQ1 2025
+ RevenuesQ4 2024
+ RevenuesQ3 2024
+ RevenuesQ2 2024)
= 100 × (399 + 1,583 + 2,717 + 1,605)
÷ (19,335 + 25,707 + 25,182 + 25,500)
= 6.59%
2 Click competitor name to see calculations.
The data reveals several notable trends in financial performance over the given time periods. Revenues demonstrate a generally increasing trajectory from March 2020 to March 2025, with periodic fluctuations. Starting from approximately 5,985 million US dollars in March 2020, revenues rose steadily to peak near 25,700 million US dollars in late 2024, before exhibiting a decline to around 19,335 million US dollars by the end of the observed period.
Income from operations shows more pronounced volatility across the quarters. Beginning at 283 million US dollars in early 2020, the figure grew significantly until reaching a peak of around 3,901 million US dollars in December 2022. Subsequent quarters saw declining results, falling dramatically to 399 million US dollars by March 2025. This sharp decrease in operating income towards the end of the period contrasts with the more moderate revenue fluctuations.
The operating profit margin, which measures operating income relative to revenues, was not reported in the earliest quarters but starts at approximately 6.32% in March 2021. It climbed steadily, reaching a high of roughly 16.76% in December 2022, indicating improved operational efficiency or higher profitability during this time. Following this peak, the margin declined gradually to near 6.59% by March 2025, mirroring the downturn observed in operating income.
In summary, the financial data reflect strong revenue growth accompanied by significant increases in operating income and profitability margins through 2022. However, a notable contraction in both operating income and profit margins emerges thereafter, suggesting potential challenges affecting operational performance despite relatively stable revenue levels toward the latter part of the timeline.
- Revenue Trend
- Consistent overall growth with peaks around late 2024 and a decline by early 2025.
- Income from Operations
- Marked growth through 2022 followed by a sharp decrease in subsequent quarters.
- Operating Profit Margin
- Improved markedly between 2021 and late 2022, then declined steadily through early 2025.
Net Profit Margin
Tesla Inc., net profit margin calculation (quarterly data)
| 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 | 409) | 2,317) | 2,167) | 1,478) | 1,129) | 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) | |||||||
| Revenues | 19,335) | 25,707) | 25,182) | 25,500) | 21,301) | 25,167) | 23,350) | 24,927) | 23,329) | 24,318) | 21,454) | 16,934) | 18,756) | 17,719) | 13,757) | 11,958) | 10,389) | 10,744) | 8,771) | 6,036) | 5,985) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||
| Net profit margin1 | 6.66% | 7.26% | 13.07% | 13.00% | 14.37% | 15.50% | 11.21% | 12.97% | 13.66% | 15.41% | 14.95% | 14.17% | 13.51% | 10.25% | 7.40% | 5.21% | 3.18% | 2.29% | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||||||||||||
| Ford Motor Co. | 2.95% | 3.40% | 2.06% | 2.27% | 2.35% | 2.62% | 3.75% | 2.58% | 1.85% | -1.33% | 6.32% | 8.42% | 9.26% | 14.21% | 2.31% | 2.72% | 3.37% | -1.10% | — | — | — | |||||||
| General Motors Co. | 3.37% | 3.50% | 6.62% | 6.80% | 6.69% | 6.42% | 6.33% | 6.56% | 6.35% | 6.90% | 7.20% | 7.37% | 8.47% | 8.82% | 9.48% | 10.12% | 8.43% | 5.91% | — | — | — | |||||||
Based on: 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 Q1 2025 Calculation
Net profit margin = 100
× (Net income attributable to common stockholdersQ1 2025
+ Net income attributable to common stockholdersQ4 2024
+ Net income attributable to common stockholdersQ3 2024
+ Net income attributable to common stockholdersQ2 2024)
÷ (RevenuesQ1 2025
+ RevenuesQ4 2024
+ RevenuesQ3 2024
+ RevenuesQ2 2024)
= 100 × (409 + 2,317 + 2,167 + 1,478)
÷ (19,335 + 25,707 + 25,182 + 25,500)
= 6.66%
2 Click competitor name to see calculations.
- Net income attributable to common stockholders
- The net income displays a general upward trend from March 31, 2020, through December 31, 2023, with fluctuations. It started at 16 million USD in early 2020 and steadily increased to 7,928 million USD by the end of 2023. After peaking in December 2023, net income experiences a significant decline during 2024, dropping to 409 million USD by March 31, 2025. The data indicates periods of strong growth interspersed with sharp declines toward the later quarters.
- Revenues
- Revenues show consistent growth over the examined period, beginning at 5,985 million USD in March 2020 and rising to a peak of 25,707 million USD in December 2024. Despite this overall upward trend, some quarters, specifically in 2022 and early 2024, exhibit slight decreases or plateaus in revenue, suggesting occasional variability in sales performance. The increase in revenue is generally steady, indicating expanding business operations or market penetration.
- Net profit margin
- The net profit margin improved notably from the establishment point in March 2020 to reach a high level of approximately 15.5% in early 2024. Initially around 2-3%, margins strengthened through 2021 and 2022, demonstrating increasing profitability relative to revenue. Post the peak margin in December 2023, a downward trend is observed, with a decrease to around 6.66% by March 2025. This decline in margin aligns with the drop in net income, suggesting pressures on profitability that are not yet evident in revenue figures alone.
- Overall analysis
- The financial indicators exhibit substantial growth in revenue and net income for most of the reported quarters, reflecting strong business expansion and improved earnings efficiency over the 2020 to 2023 period. However, the sharp decline in net income and profit margin in 2024 and early 2025, despite generally stable revenues, signals emerging challenges that could include increased costs, operational inefficiencies, or market pressures. Continued monitoring of profitability and cost structure will be necessary to understand and address the causes of these downturns.
Return on Equity (ROE)
Tesla Inc., ROE calculation (quarterly data)
| 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 | 409) | 2,317) | 2,167) | 1,478) | 1,129) | 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) | |||||||
| Stockholders’ equity | 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) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||
| ROE1 | 8.53% | 9.73% | 18.16% | 18.64% | 21.15% | 23.94% | 20.12% | 23.85% | 24.45% | 28.09% | 28.08% | 26.16% | 24.64% | 18.28% | 12.82% | 8.79% | 4.97% | 3.24% | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| ROE, Competitors2 | ||||||||||||||||||||||||||||
| Ford Motor Co. | 11.24% | 13.11% | 7.96% | 8.80% | 9.15% | 10.16% | 13.92% | 9.47% | 6.81% | -4.58% | 21.39% | 26.42% | 25.71% | 36.97% | 7.83% | 9.87% | 11.75% | -4.17% | — | — | — | |||||||
| General Motors Co. | 9.03% | 9.53% | 15.61% | 16.14% | 16.08% | 15.75% | 13.46% | 14.32% | 13.44% | 14.65% | 14.83% | 13.75% | 16.00% | 16.77% | 20.54% | 24.67% | 18.94% | 14.27% | — | — | — | |||||||
Based on: 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 Q1 2025 Calculation
ROE = 100
× (Net income attributable to common stockholdersQ1 2025
+ Net income attributable to common stockholdersQ4 2024
+ Net income attributable to common stockholdersQ3 2024
+ Net income attributable to common stockholdersQ2 2024)
÷ Stockholders’ equity
= 100 × (409 + 2,317 + 2,167 + 1,478)
÷ 74,653 = 8.53%
2 Click competitor name to see calculations.
- Net Income Attributable to Common Stockholders
- The net income demonstrates a general upward trend from March 31, 2020, to March 31, 2025, albeit with fluctuations. Starting at a relatively low value of 16 million USD, the figure surges through the periods, peaking significantly at 7928 million USD on December 31, 2023. However, following this peak, there is a notable decline in net income values. The net income drops sharply after December 2023, ending at 409 million USD on March 31, 2025. This indicates periods of robust profitability interspersed with declines towards the latter part of the timeline.
- Stockholders’ Equity
- Stockholders’ equity shows a consistent and steady increase throughout the reported periods. Beginning at 9,173 million USD in March 2020, it increases without any apparent decline to reach 74,653 million USD by March 31, 2025. This growth reflects continuous capital accumulation and retained earnings augmentation, signaling improved financial strength and possibly equity financing or earnings retention as drivers.
- Return on Equity (ROE)
- Return on equity starts with missing data in the earlier periods but becomes available from December 31, 2020. It exhibits a strong upward trajectory, rising from 3.24% to a peak of 28.09% on December 31, 2022, indicating increasing efficiency in generating profit from equity. Post this peak, ROE shows a gradual decline, falling to 8.53% by March 31, 2025. This decreasing trend after the peak suggests diminishing returns on equity despite the increase in equity base, potentially linked to the fluctuations observed in net income.
- Overall Analysis
- The financial data reveals a company that has grown its equity significantly while experiencing volatile net income figures, particularly a sharp peak and subsequent decline near the end of the period. The ROE trend correlates with net income movements, rising in tandem with profitability increases and falling as net income declines, which points to the impact of profit generation ability on shareholder returns. The sustained increase in stockholders’ equity despite net income volatility may indicate prudent capital management or external equity funding. Careful consideration may be warranted regarding the causes of recent profitability contraction and its implications for future returns.
Return on Assets (ROA)
Tesla Inc., ROA calculation (quarterly data)
| 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 | 409) | 2,317) | 2,167) | 1,478) | 1,129) | 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) | |||||||
| Total assets | 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) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||
| ROA1 | 5.09% | 5.81% | 10.60% | 10.98% | 12.46% | 14.07% | 11.45% | 13.46% | 13.53% | 15.25% | 15.04% | 13.89% | 12.72% | 8.88% | 6.00% | 3.95% | 2.16% | 1.38% | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||||||||||||
| Ford Motor Co. | 1.76% | 2.06% | 1.23% | 1.39% | 1.43% | 1.59% | 2.30% | 1.55% | 1.12% | -0.77% | 3.65% | 4.75% | 4.57% | 6.98% | 1.13% | 1.38% | 1.52% | -0.48% | — | — | — | |||||||
| General Motors Co. | 2.06% | 2.15% | 3.83% | 3.92% | 3.87% | 3.71% | 3.56% | 3.72% | 3.52% | 3.76% | 3.71% | 3.47% | 3.95% | 4.09% | 4.66% | 5.27% | 3.84% | 2.73% | — | — | — | |||||||
Based on: 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 Q1 2025 Calculation
ROA = 100
× (Net income attributable to common stockholdersQ1 2025
+ Net income attributable to common stockholdersQ4 2024
+ Net income attributable to common stockholdersQ3 2024
+ Net income attributable to common stockholdersQ2 2024)
÷ Total assets
= 100 × (409 + 2,317 + 2,167 + 1,478)
÷ 125,111 = 5.09%
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in net income, total assets, and return on assets (ROA) over the observed periods.
- Net Income Attributable to Common Stockholders (in US$ millions)
- Net income displays a generally strong upward trajectory from March 2020 through March 2023, rising from 16 million to a peak of 7,928 million in December 2023. This substantial growth suggests effective operational performance and possibly improved revenue generation or cost management during this timeframe. However, after December 2023, net income experiences significant volatility and a marked downward trend, dropping to 409 million by March 2025. Such fluctuations in the latter periods may indicate increased business challenges, market volatility, or rising expenses affecting profitability.
- Total Assets (in US$ millions)
- Total assets progressively increase throughout the entire period analyzed, moving from approximately 37,250 million in March 2020 to 125,111 million in March 2025. The growth in total assets appears steady and consistent without evident interruptions, indicating ongoing investment and expansion. This sustained asset growth reflects capital accumulation possibly through reinvestment of earnings, asset acquisitions, or balance sheet strengthening efforts.
- Return on Assets (ROA, %)
- ROA data, available from December 2020 onward, show a generally positive trend with improvement from 1.38% at inception to a peak of around 15.25% in March 2023. This increase demonstrates enhanced efficiency in utilizing assets to generate net income during the earlier years. Post-March 2023, ROA declines gradually with some fluctuations, falling to approximately 5.09% by March 2025. The decline in ROA corresponds with the reduction and instability in net income despite the continued increase in total assets, suggesting lower asset productivity or profitability strains in recent quarters.
In summary, while total assets have continuously expanded reflecting growth initiatives or asset accumulation, profitability measured by net income and efficiency indicated by ROA have shown considerable variability. Strong gains in net income and ROA persisted until early 2023, after which both metrics demonstrate a weakening performance. This divergence points to a scenario where asset growth is not translating proportionally into earnings, raising potential concerns about operational efficiency or external economic factors impacting recent financial results.