Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Tesla Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The financial performance indicators demonstrate a period of substantial growth followed by a stabilization and subsequent decline. Earnings before interest, tax, depreciation and amortization (EBITDA) experienced significant increases between 2021 and 2022, but growth moderated in subsequent periods. A closer examination of the progression of these metrics reveals key insights into the company’s profitability and operational efficiency.
- EBITDA Trend
- EBITDA increased notably from US$9,625 million in 2021 to US$17,657 million in 2022, representing a growth of approximately 83.6%. This growth rate slowed considerably in 2023, with EBITDA reaching US$14,796 million, a rise of 16.6% from the prior year. EBITDA remained relatively stable in 2024 at US$14,708 million, before decreasing to US$11,764 million in 2025. This represents a decline of approximately 20.1% from 2024.
- Relationship between Net Income and EBITDA
- While both net income attributable to common stockholders and EBITDA increased substantially from 2021 to 2022, the subsequent patterns diverged. Net income continued to grow in 2023, reaching US$14,997 million, but then experienced a significant decrease in 2024 and 2025, falling to US$7,091 million and US$3,794 million respectively. This suggests that factors beyond operational profitability, such as interest expenses, taxes, or non-operating items, are increasingly impacting the bottom line. The ratio of EBITDA to net income decreased over the period, indicating a diminishing operational contribution to overall profitability.
- EBIT and EBT Correlation
- Earnings before interest and tax (EBIT) and earnings before tax (EBT) followed a similar trajectory, with both metrics increasing from 2021 to 2022 and then exhibiting a downward trend. The difference between EBIT and EBT remained relatively consistent across the observed period, indicating that interest expenses did not significantly fluctuate. The decline in both EBIT and EBT from 2023 to 2025 suggests a weakening of core operational performance before considering the impact of financing costs.
In summary, the company experienced a period of rapid EBITDA growth, followed by a plateau and then a decline. The decreasing trend in EBITDA, coupled with a more pronounced decrease in net income, suggests increasing pressure on profitability from factors beyond core operational performance. Further investigation into the drivers of these changes is warranted.
Enterprise Value to EBITDA Ratio, Current
Tesla Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 1,580,071) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 11,764) |
| Valuation Ratio | |
| EV/EBITDA | 134.31 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Ford Motor Co. | 11.03 |
| General Motors Co. | 9.80 |
| EV/EBITDA, Sector | |
| Automobiles & Components | 37.12 |
| EV/EBITDA, Industry | |
| Consumer Discretionary | 22.62 |
Based on: 10-K (reporting date: 2025-12-31).
1 Click competitor name to see calculations.
If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.
Enterprise Value to EBITDA Ratio, Historical
Tesla Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 1,528,100) | 1,259,861) | 584,941) | 529,785) | 927,706) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 11,764) | 14,708) | 14,796) | 17,657) | 9,625) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 129.90 | 85.66 | 39.53 | 30.00 | 96.39 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Ford Motor Co. | — | 9.86 | 12.34 | 25.07 | 5.97 | |
| General Motors Co. | 9.91 | 7.12 | 6.17 | 5.96 | 6.40 | |
| EV/EBITDA, Sector | ||||||
| Automobiles & Components | — | 30.01 | 17.43 | 17.29 | 20.13 | |
| EV/EBITDA, Industry | ||||||
| Consumer Discretionary | — | 20.91 | 18.33 | 20.01 | 21.51 | |
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).
3 2025 Calculation
EV/EBITDA = EV ÷ EBITDA
= 1,528,100 ÷ 11,764 = 129.90
4 Click competitor name to see calculations.
The Enterprise Value to EBITDA ratio exhibits significant fluctuation over the observed period. Initially, a substantial decrease is noted, followed by increases in subsequent years.
- Enterprise Value to EBITDA Trend
- In 2021, the ratio stood at 96.39. A marked decline occurred in 2022, with the ratio falling to 30.00. This represents a considerable contraction. The ratio then increased to 39.53 in 2023. Further increases were observed in 2024 and 2025, reaching 85.66 and 129.90 respectively. This indicates a growing multiple of enterprise value relative to EBITDA in the latter part of the period.
Enterprise Value demonstrated an initial decrease from 2021 to 2022, dropping from US$927,706 million to US$529,785 million. It then experienced an increase to US$584,941 million in 2023, followed by more substantial growth to US$1,259,861 million in 2024 and US$1,528,100 million in 2025.
- EBITDA Trend
- EBITDA increased from US$9,625 million in 2021 to US$17,657 million in 2022, representing a significant improvement in earnings. However, EBITDA decreased to US$14,796 million in 2023. This trend continued with a slight decrease to US$14,708 million in 2024, and a more pronounced decrease to US$11,764 million in 2025.
The increasing EV/EBITDA ratio from 2023 onwards, despite a declining EBITDA, suggests that the market valuation (as reflected in Enterprise Value) is growing at a faster rate than the company’s earnings before interest, taxes, depreciation, and amortization. This could be due to factors such as increased investor confidence, growth expectations, or changes in market sentiment.