Tesla, Inc. (NASDAQ: TSLA) closed May 15, 2026 at $443.30, capitalizing the company at approximately $1.45T against FY2025 revenue of $94.83B, a 2.9% decline from the $97.69B reported in FY2024, per the company’s Form 10-K filed January 29, 2026. Net income contracted 46.8% year-over-year to $3.79B, compressing diluted EPS to $1.08 from $2.04. With the stock trading at 382x trailing earnings and 122x EV/EBITDA, the gap between current automotive fundamentals and the embedded option value of autonomy, robotics, and energy storage has widened materially. This report unpacks the components advisors should weigh.

Company Snapshot

Tesla operates two reporting segments per its 10-K: Automotive, which encompasses vehicle sales, regulatory credits, leasing, services, and Supercharging; and Energy Generation and Storage, covering solar and Megapack/Powerwall systems. The company is headquartered in Austin, Texas, employs 125,665 full-time staff, and is led by CEO Elon R. Musk. Manufacturing footprint spans Fremont (California), Austin (Texas), Shanghai, Berlin-Brandenburg, and Nevada (battery and Semi).

Geographic revenue concentration remains tilted toward the United States and China, with Europe a smaller contributor. The Automotive segment continues to generate the majority of consolidated revenue, though Energy Storage deployments (Megapack) have become an increasingly material gross profit contributor, a trend Tesla has flagged in successive quarterly disclosures. Beta sits at 1.79, reflecting equity sensitivity well above the S&P 500 and consistent with the stock’s 52-week range of $273.21 to $498.83.

Recent Financial Performance

The three-year trajectory from Tesla’s audited filings shows clear margin compression:

• Revenue: $96.77B (FY2023) → $97.69B (FY2024) → $94.83B (FY2025). The FY2025 figure represents a 2.9% year-over-year contraction.
• Gross profit: $17.66B → $17.45B → $17.09B. Gross margin held at 18.0% in FY2025 versus 17.9% in FY2024, but is well below the >25% levels achieved in FY2022.
• Operating income: $8.89B → $7.08B → $4.36B. Operating margin fell to 4.6% in FY2025 from 7.2% in FY2024 and 9.2% in FY2023.
• Net income: $15.00B → $7.13B → $3.79B. The FY2023 figure was inflated by a $5.0B deferred tax benefit; on a continuing-operations basis the trend is downward.
• Diluted EPS: $4.31 → $2.04 → $1.08.

R&D spending rose to $6.41B in FY2025 from $4.54B in FY2024, a 41.2% increase, reflecting elevated investment in Full Self-Driving, the Optimus humanoid program, and Dojo compute infrastructure. SG&A also expanded to $5.83B from $5.15B. The combined operating expense step-up of roughly $2.55B explains the bulk of operating income deterioration even as gross profit was broadly stable.

Operating cash flow per share of $4.57 and free cash flow per share of $1.93 in FY2025 imply approximately $14.7B in operating cash and $6.2B in free cash flow on the reported share counts. Capex coverage of 1.73x and an interest coverage ratio of 12.9x indicate the balance sheet remains funded internally. Net debt to EBITDA stood at -0.69x at year-end 2025, meaning Tesla holds more cash and equivalents than gross debt.