TSLA
Tesla, Inc.
Consumer Cyclical · Auto Manufacturers · United States · Stock
Score Breakdown
Scored for Safe Long-Term Investing profile
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Why Ranked Here
- The growth factor was heavily penalized by simultaneous revenue contraction of 2.9% and a near-halving of both net income and diluted EPS in FY2025, leaving little room for a higher composite score.
- The financial health factor scored perfectly due to the extremely low debt-to-equity ratio of 0.08, which anchored the composite and prevented a lower overall score.
- Zero scores on both the dividend factor (confirmed non-payer) and the theme factor weighed on the composite, contributing to the Monitor Only label at 38.4/100.
Why Not Higher
- Profitability, while positive, was limited to a 4.0% net margin and 2.8% return on assets — too thin to earn a high profitability score — and the growth picture was undermined by declining revenue and a steep drop in earnings per share from $2.04 to $1.08.
- The absence of any dividend history and the failure of the EV & EV Infrastructure theme assignment to generate a positive theme score both held the composite below what the strong balance sheet alone could support.
Data Confidence
8 / 10
High — most data fields present
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue declined from FY2024's $97,690,000,000 to FY2025's $94,827,000,000, a drop of 2.9%. Net income fell from FY2024's $7,091,000,000 to FY2025's $3,794,000,000 (-46.5%), and diluted EPS dropped from FY2024's $2.04 to FY2025's $1.08 (-47.1%).
The model penalized Tesla heavily for simultaneous top-line contraction and near-halving of both net income and earnings per share in FY2025, leaving little room for a higher growth score.
In FY2025, Tesla reported a net margin of 4.0%, an operating margin of 4.6%, and a return on assets of 2.8%.
These margins confirm that Tesla remained profitable in FY2025, but the relatively thin net and operating margins and modest asset returns limited the score to the mid-range rather than rewarding high profitability.
Tesla's debt-to-equity ratio in FY2025 was 0.08, against a total asset base of $137,806,000,000 in FY2025.
An extremely low debt-to-equity ratio of 0.08 signals that Tesla carries minimal financial leverage relative to its equity, which the model rewarded with a perfect score on this factor.
Quarterly revenue peaked at $28,095,000,000 in 2025Q3 before declining to $24,901,000,000 in 2025Q4 and further to $22,387,000,000 in 2026Q1. Net income followed a similar pattern, rising from $1,172,000,000 in 2025Q2 to $1,373,000,000 in 2025Q3, then falling to $840,000,000 in 2025Q4 and $477,000,000 in 2026Q1. Operating income also decelerated, dropping from $1,624,000,000 in 2025Q3 to $941,000,000 in 2026Q1.
The model captured a clear deceleration trend across revenue, net income, and operating income in the most recent quarters, which constrained the momentum score despite a mid-period peak.
Tesla does not currently pay a dividend and has no mapped dividend history, making it a genuine non-payer rather than a case of missing data.
Because the model rewards dividend income and yield history, a confirmed non-payer receives the minimum score on this factor.
Tesla is assigned to the EV & EV Infrastructure macro theme.
Although Tesla is assigned to the EV & EV Infrastructure theme, this assignment did not translate into a positive score under the model's current methodology for this factor.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Tesla's composite score of 38.4/100 reflects a company in a period of meaningful financial stress: annual revenue slipped 2.9% to $94,827,000,000 in FY2025 while net income fell 46.5% to $3,794,000,000, and quarterly results show a clear deceleration into early 2026. The one standout is Tesla's balance sheet, where a debt-to-equity ratio of just 0.08 against $137,806,000,000 in total assets signals exceptional financial resilience. Profitability remained positive but thin, with a net margin of 4.0% and operating margin of 4.6%, and the absence of any dividend history further constrained the overall score. The model's label for Tesla is Monitor Only.
Plain English
Tesla is still making money, but its sales and profits shrank noticeably in the past year, and its most recent quarters show things getting worse, not better — the one bright spot is that it carries almost no debt, which keeps it financially stable even as earnings shrink.
Bull Case vs. Bear Case
Bull Case
- Tesla's balance sheet is a genuine strength: a debt-to-equity ratio of 0.08 and a total asset base of $137,806,000,000 mean the company has enormous financial flexibility and very low insolvency risk.
- Despite significant earnings pressure, Tesla remained profitable in FY2025, posting a positive net margin of 4.0% and an operating margin of 4.6%, confirming it has not slipped into loss-making territory.
- Tesla's assignment to the EV & EV Infrastructure macro theme places it at the center of a structural industry shift, even if that theme did not translate into a positive score under the current model methodology.
Bear Case
- Revenue contracted 2.9% year-over-year to $94,827,000,000 in FY2025 while net income dropped 46.5% to $3,794,000,000, reflecting simultaneous top-line and bottom-line deterioration.
- Quarterly momentum is deteriorating sharply: revenue fell from a peak of $28,095,000,000 in 2025Q3 to $22,387,000,000 in 2026Q1, and net income collapsed from $1,373,000,000 in 2025Q3 to just $477,000,000 in 2026Q1.
- Tesla pays no dividend and has no dividend history, meaning investors receive no income cushion while the business navigates a difficult earnings environment.
What Could Change the Picture
Bullish Triggers
- A sustained reversal in quarterly revenue and net income trends — particularly a return to growth above the 2025Q3 peak of $28,095,000,000 in revenue — would signal that the deceleration has ended.
- A meaningful expansion in net margin beyond the current 4.0% would indicate that profitability is recovering and that the near-halving of earnings per share from $2.04 to $1.08 was a trough rather than a trend.
Bearish Triggers
- If quarterly net income continues its decline below the already-low $477,000,000 recorded in 2026Q1, the thin profitability cushion could erode further and raise concerns about sustained earnings viability.
- Any increase in financial leverage from the current debt-to-equity ratio of 0.08 — the company's primary structural strength — would remove the one factor currently scoring at its maximum.
Risk Profile
Low RiskTesla's risk rating is Low, anchored primarily by its debt-to-equity ratio of 0.08 and a total asset base of $137,806,000,000, which provide a substantial buffer against financial distress. However, the momentum picture is a watchpoint: operating income fell from $1,624,000,000 in 2025Q3 to $941,000,000 in 2026Q1, and net income dropped to $477,000,000 in the same quarter, indicating that operational pressures are intensifying even as the balance sheet remains sound.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.