Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Tesla Inc., FCFE 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 information reveals a significant shift in free cash flow to equity (FCFE) over the five-year period. Net cash provided by operating activities demonstrates a generally positive trend, while FCFE exhibits a dramatic improvement and subsequent stabilization.
- Net Cash from Operations
- Net cash provided by operating activities increased from US$11,497 million in 2021 to US$14,724 million in 2022. A slight decrease was observed in 2023, falling to US$13,256 million, before recovering to US$14,923 million in 2024 and remaining relatively stable at US$14,747 million in 2025. This indicates a consistent ability to generate cash from core business operations, with some year-to-year fluctuation.
- Free Cash Flow to Equity (FCFE)
- FCFE experienced a substantial turnaround. In 2021, FCFE was negative at -US$758 million. However, a marked improvement occurred in 2022, with FCFE rising to US$3,686 million. This positive trend continued into 2023, reaching US$6,444 million. From 2023 to 2025, FCFE remained relatively consistent, with values of US$6,430 million and US$6,150 million respectively. The stabilization suggests a maturing cash flow profile after a period of rapid growth.
The divergence between the initial negative FCFE and the subsequent positive and stable values suggests a successful transition in the company’s financial performance. The consistent operating cash flow, coupled with the improved FCFE, indicates an increasing capacity to return value to equity holders or reinvest in the business without relying on external financing.
Price to FCFE Ratio, Current
Tesla Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 3,752,431,984 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 6,150) |
| FCFE per share | 1.64 |
| Current share price (P) | 430.41 |
| Valuation Ratio | |
| P/FCFE | 262.62 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Ford Motor Co. | 3.06 |
| General Motors Co. | 8.30 |
| P/FCFE, Sector | |
| Automobiles & Components | 44.10 |
| P/FCFE, Industry | |
| Consumer Discretionary | 43.14 |
Based on: 10-K (reporting date: 2025-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Tesla Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 3,752,431,984 | 3,216,517,037 | 3,184,790,415 | 3,164,102,701 | 3,100,522,833 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | 6,150) | 6,430) | 6,444) | 3,686) | (758) | |
| FCFE per share3 | 1.64 | 2.00 | 2.02 | 1.16 | -0.24 | |
| Share price1, 4 | 416.56 | 400.28 | 190.93 | 173.22 | 302.45 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 254.16 | 200.23 | 94.36 | 148.69 | — | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Ford Motor Co. | — | 2.03 | 3.43 | 10.02 | — | |
| General Motors Co. | 8.53 | 3.30 | 2.84 | 3.50 | 9.87 | |
| P/FCFE, Sector | ||||||
| Automobiles & Components | — | 34.70 | 19.12 | 26.63 | — | |
| P/FCFE, Industry | ||||||
| Consumer Discretionary | — | 39.73 | 30.88 | 36.44 | 83.50 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
3 2025 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 6,150,000,000 ÷ 3,752,431,984 = 1.64
4 Closing price as at the filing date of Tesla Inc. Annual Report.
5 2025 Calculation
P/FCFE = Share price ÷ FCFE per share
= 416.56 ÷ 1.64 = 254.16
6 Click competitor name to see calculations.
The Price to Free Cash Flow to Equity (P/FCFE) ratio exhibits considerable fluctuation over the observed period. Initial values are unavailable for 2021, but a significant value of 148.69 is recorded for 2022. This is followed by a decrease to 94.36 in 2023, before increasing again to 200.23 in 2024 and further to 254.16 in 2025.
- Share Price
- The share price demonstrates a decline from US$302.45 in 2021 to US$173.22 in 2022. A partial recovery is seen in 2023 with a price of US$190.93, followed by substantial increases to US$400.28 in 2024 and US$416.56 in 2025. This indicates increasing investor confidence or market valuation towards the end of the period.
- FCFE per Share
- Free Cash Flow to Equity per share was negative in 2021, at -US$0.24. A positive value of US$1.16 is recorded for 2022, which then increases to US$2.02 in 2023 and remains relatively stable at US$2.00 in 2024. A slight decrease to US$1.64 is observed in 2025. The shift from negative to positive FCFE per share suggests improved cash generation for equity holders.
- P/FCFE Ratio Trend
- The P/FCFE ratio’s initial high value in 2022 likely reflects the depressed share price combined with improving, but still modest, FCFE per share. The subsequent decline in 2023 is attributable to the increase in FCFE per share outpacing the increase in share price. The increases in 2024 and 2025 are driven by the more substantial increases in share price, despite relatively stable or slightly declining FCFE per share. The increasing ratio suggests investors are willing to pay more for each dollar of FCFE generated, potentially indicating heightened growth expectations or a premium valuation.
Overall, the observed trends suggest a period of volatility followed by increasing investor valuation, as evidenced by the share price and P/FCFE ratio. The FCFE per share demonstrates a positive trajectory, indicating improving financial health, although a slight decrease is noted in the final year of the observation period.