Investing№ 19Nasdaq: TSLA

Tesla

After all research spending, vehicles, services and energy earned $1.8B on $102.7B of revenue in the twelve months to September 2026; the price pays for autonomy and robotics, which have no reported revenue.

Updated Fiscal year ends 31 December28 min readPedrum Shokouhi

Can be disrupted

Research, not investment advice. Figures as of .

Key numbers

  • Revenue$103.6B (calculated)TTM Sep 2026; 2025 was $94.8B [4]
  • Operating income$3.5B (calculated)TTM Sep 2026; margin 3.3% [4]
  • Gross margin excluding regulatory credits18.4% (calculated)TTM Sep 2026; 19.3% with credits [4][5]
  • Free cash flow$3.3B (reported)TTM Sep 2026; capex $15.4B [4]
  • Cash and short-term investments$45.4B (reported)30 Sep 2026; debt $9.5B [3][4]
  • Regulatory credits, share of operating income34% (calculated)TTM Sep 2026; 46% in 2025 [4]

(reported)Reported in a filing (calculated)Calculated from reported figures (estimate)My estimate

The answer

  1. At $403.30 in Q4 2026, Tesla trades at 6.2 times my base value of $65 a share and 33% above my $303 bull case, because the price pays for autonomy and robotics and Tesla reports no revenue, units or profit for either.49504
  2. Vehicles, services and energy earned $1.8B on $102.7B of revenue after all research spending, or $6.2B before the $4.3B rise in R&D that I charge to autonomy, and with cash I value them at about $44 a share if margins recover to 9% on vehicles and 18% on energy (estimate).34
  3. The price needs autonomy and robotics to reach $600B of revenue and $337B of Adjusted EBITDA by year ten, against $15.0B of EBITDA today, and the margin of safety starts below $46.48

Six questions, one line each

Why
Tesla is a car and energy company with a 1.8% operating margin after all R&D, plus a bet on autonomy and robots with no reported revenue, and in my base case $359 of the $403.30 price is for the bet (estimate).34 →
The moat
A manufacturing cost advantage that showed in 2022 and that the margins since no longer show, and no switching costs; automotive gross margin without credits fell from 26.7% in 2022 to 17.8% in the last twelve months (calculated).4912 →
The advantage
Tesla leads in U.S. electric vehicles, charging coverage and supervised driving data; BYD leads in global battery-electric volume and in European registrations so far in 2026, and Waymo reports 500,000 rides a week where Tesla reports no ride count.425263032 →
Management
Musk has run Tesla since 2008, owns 19.8% and can earn up to 423.7M more shares under a 2025 award that starts at a $2.0T market value, and no filing names who leads autonomy or Optimus.5820 →
Margin of safety
Below $46, my base value less 30%, the tier for earnings that follow the car cycle; vehicles, services, energy and cash are worth $44 a share if margins recover and $28 at today’s margins (estimate).34 →
The price
$403.30 at the close in Q4 2026, 6.2 times my base value and 33% above my bull case, and 3.7 times my probability-weighted value of $110 ($67 at the CAPM rate of 12.7%); at the price my bull case earns 7.8% a year, less than the 10% I value it at (estimate).4950 →

The business

Tesla sells cars, energy storage and services. In the twelve months to September 2026 its revenue was $103.6B, up 8.3% on the twelve months before, after $94.8B in 2025, which was down 2.9%.491023 From 2019 to 2025 revenue grew 25.2% a year.9 Operating income was $3.5B, a margin of 3.3%, against 16.8% in 2022.49 Without regulatory credits and tariff refunds it was $1.84B on $102.7B, or 1.8%; before the $4.3B rise in R&D that I charge to autonomy it was $6.16B, or 6.0%. (calculated)34

Revenue and operating income

Fiscal years to 31 December, US$ billions

  • Revenue $94.8B in 2025
  • Operating income $4.4B
Revenue and operating incomeRevenue and operating income by fiscal year, 2016 to 2025. Revenue went from $7.0B to $94.8B; operating income from −$0.67B to $4.4B. TTM Sep 2026: revenue $103.6B.$0$50B$100BRevenue, 2016: $7.0BOperating income, 2016: −$0.67B’16Revenue, 2017: $11.8BOperating income, 2017: −$1.6BRevenue, 2018: $21.5BOperating income, 2018: −$0.39B’18Revenue, 2019: $24.6BOperating income, 2019: −$0.07BRevenue, 2020: $31.5BOperating income, 2020: $2.0B’20Revenue, 2021: $53.8BOperating income, 2021: $6.5BRevenue, 2022: $81.5BOperating income, 2022: $13.7B’22Revenue, 2023: $96.8BOperating income, 2023: $8.9BRevenue, 2024: $97.7BOperating income, 2024: $7.1B’24Revenue, 2025: $94.8BOperating income, 2025: $4.4BRevenue, TTM Sep 2026: $103.6BOperating income, TTM Sep 2026: $3.5BTTMRevenue and operating incomeRevenue and operating income by fiscal year, 2016 to 2025. Revenue went from $7.0B to $94.8B; operating income from −$0.67B to $4.4B. TTM Sep 2026: revenue $103.6B.$0$50B$100BRevenue, 2016: $7.0BOperating income, 2016: −$0.67B2016Revenue, 2017: $11.8BOperating income, 2017: −$1.6B2017Revenue, 2018: $21.5BOperating income, 2018: −$0.39B2018Revenue, 2019: $24.6BOperating income, 2019: −$0.07B2019Revenue, 2020: $31.5BOperating income, 2020: $2.0B2020Revenue, 2021: $53.8BOperating income, 2021: $6.5B2021Revenue, 2022: $81.5BOperating income, 2022: $13.7B2022Revenue, 2023: $96.8BOperating income, 2023: $8.9B2023Revenue, 2024: $97.7BOperating income, 2024: $7.1B2024Revenue, 2025: $94.8BOperating income, 2025: $4.4B2025Revenue, TTM Sep 2026: $103.6BOperating income, TTM Sep 2026: $3.5BTTMRevenue and operating incomeRevenue and operating income by fiscal year, 2016 to 2025. Revenue went from $7.0B to $94.8B; operating income from −$0.67B to $4.4B. TTM Sep 2026: revenue $103.6B.$0$50B$100BRevenue, 2016: $7.0BOperating income, 2016: −$0.67B2016Revenue, 2017: $11.8BOperating income, 2017: −$1.6B2017Revenue, 2018: $21.5BOperating income, 2018: −$0.39B2018Revenue, 2019: $24.6BOperating income, 2019: −$0.07B2019Revenue, 2020: $31.5BOperating income, 2020: $2.0B2020Revenue, 2021: $53.8BOperating income, 2021: $6.5B2021Revenue, 2022: $81.5BOperating income, 2022: $13.7B2022Revenue, 2023: $96.8BOperating income, 2023: $8.9B2023Revenue, 2024: $97.7BOperating income, 2024: $7.1B2024Revenue, 2025: $94.8BOperating income, 2025: $4.4B2025Revenue, TTM Sep 2026: $103.6BOperating income, TTM Sep 2026: $3.5BTTM
Source 10-K FY2025; SEC XBRL facts; 10-K FY2024; 10-K FY2023; 10-K FY2022; 10-K FY2021; 10-K FY2020; 10-K FY2019; 10-K FY2018; Q3 2026 Update [5][9][10][11][12][13][14][15][16][4]. Revenue and operating income reported.
Show the numbers
Revenue and operating income
2016201720182019202020212022202320242025TTM Sep 2026
Revenue (reported)$7.0B$11.8B$21.5B$24.6B$31.5B$53.8B$81.5B$96.8B$97.7B$94.8B$103.6B
Operating income (reported)−$0.67B−$1.6B−$0.39B−$0.07B$2.0B$6.5B$13.7B$8.9B$7.1B$4.4B$3.5B

The business has three lines, and they earn different money. Automotive, which holds vehicle sales, leasing and regulatory credits, brought in $75.0B and $14.3B of gross profit. Services and other, which holds used cars, service, paid Supercharging, insurance and merchandise, brought in $16.3B, up 36%, and $2.0B of gross profit. Energy generation and storage brought in $12.3B, up 2%, and $3.6B of gross profit. (calculated)451023 Tesla reports two segments and no segment operating income, so gross profit is the only profit by line. Every vehicle-versus-energy margin on this page, including the energy margins in my cases, is my allocation of costs by revenue.5

Where the money comes from

TTM Sep 2026, US$ billions. Bar length is revenue; the share is of the segments' total.

  • Segment revenue, TTM Sep 2026 $103.6B
  • Segment gross profit $20.0B
Where the money comes fromWhere the money comes from, TTM Sep 2026. Automotive: vehicles, leasing and credits $75.0B (72% of revenue), gross profit $14.3B; Services and other $16.3B (16% of revenue), gross profit $2.0B; Energy generation and storage $12.3B (12% of revenue), gross profit $3.6B.Automotive: vehicles, leasing and credits +5%Automotive: vehicles, leasing and credits revenue: $75.0B, 72% of the total, +5% on the year before$75.0B · 72%Automotive: vehicles, leasing and credits gross profit: $14.3B$14.3B · 19% marginServices and other +36%Services and other revenue: $16.3B, 16% of the total, +36% on the year before$16.3B · 16%Services and other gross profit: $2.0B$2.0B · 12% marginEnergy generation and storage +2%Energy generation and storage revenue: $12.3B, 12% of the total, +2% on the year before$12.3B · 12%Energy generation and storage gross profit: $3.6B$3.6B · 30% marginWhere the money comes fromWhere the money comes from, TTM Sep 2026. Automotive: vehicles, leasing and credits $75.0B (72% of revenue), gross profit $14.3B; Services and other $16.3B (16% of revenue), gross profit $2.0B; Energy generation and storage $12.3B (12% of revenue), gross profit $3.6B.Automotive: vehicles, leasing and credits +5%Automotive: vehicles, leasing and credits revenue: $75.0B, 72% of the total, +5% on the year before$75.0B · 72%Automotive: vehicles, leasing and credits gross profit: $14.3B$14.3B · 19% marginServices and other +36%Services and other revenue: $16.3B, 16% of the total, +36% on the year before$16.3B · 16%Services and other gross profit: $2.0B$2.0B · 12% marginEnergy generation and storage +2%Energy generation and storage revenue: $12.3B, 12% of the total, +2% on the year before$12.3B · 12%Energy generation and storage gross profit: $3.6B$3.6B · 30% marginWhere the money comes fromWhere the money comes from, TTM Sep 2026. Automotive: vehicles, leasing and credits $75.0B (72% of revenue), gross profit $14.3B; Services and other $16.3B (16% of revenue), gross profit $2.0B; Energy generation and storage $12.3B (12% of revenue), gross profit $3.6B.Automotive: vehicles, leasing and credits +5%Automotive: vehicles, leasing and credits revenue: $75.0B, 72% of the total, +5% on the year before$75.0B · 72%Automotive: vehicles, leasing and credits gross profit: $14.3B$14.3B · 19% marginServices and other +36%Services and other revenue: $16.3B, 16% of the total, +36% on the year before$16.3B · 16%Services and other gross profit: $2.0B$2.0B · 12% marginEnergy generation and storage +2%Energy generation and storage revenue: $12.3B, 12% of the total, +2% on the year before$12.3B · 12%Energy generation and storage gross profit: $3.6B$3.6B · 30% margin
Tesla reports two segments: automotive (which holds services and other) and energy generation and storage. Segment profit is gross profit; Tesla reports no segment operating income. I split services and other out using the revenue and cost lines on the income statement. Growth is against the twelve months to September 2025. TTM automotive gross profit includes $1,181M of regulatory credits and, in Q3 2026, about $260M of tariff refunds; energy includes about $187M net of refunds (reported) in Q3 2026. Source Q3 2026 Update; 10-Q Q3 2026; 10-K FY2025; 10-K FY2024; 10-Q Q3 2025 [4][3][5][10][23]. Segment revenue and gross profit and shares and margins calculated.
Show the numbers
Where the money comes from
SegmentRevenueShareGross profitMarginGrowth
Automotive: vehicles, leasing and credits (calculated)$75.0B72.4%$14.3B19.1%+4.7%
Services and other (calculated)$16.3B15.7%$2.0B12.4%+35.8%
Energy generation and storage (calculated)$12.3B11.8%$3.6B29.7%+2.2%

Per unit, a delivered vehicle brought in about $42,400 of revenue and $7,500 of gross profit without credits, and a kilowatt-hour of storage brought in $244 and $73. (calculated)45

What each unit earns

Twelve months to September 2026. Automotive excludes regulatory credits. Tesla reports no segment profit below gross profit.

What each unit earns
LineRevenue per unitGross profit per unitBasis
Automotive, per vehicle delivered (calculated)$42,356$7,529$73.8B and $13.1B over 1,742,908 deliveries; the revenue also holds leasing, Full Self-Driving and other software
Energy, per kWh deployed (calculated)$244$73$12.3B and $3.6B over 50.2 GWh; the revenue also holds Powerwall and solar, and is net of $339M of customer refunds
Full Self-Driving (reported)Not reportedNot reported1.74M active subscriptions, but the count mixes upfront purchases and monthly subscriptions, so no subscription count times a price gives annual revenue

Source Q3 2026 Update; 10-K FY2025 [4][5]. Figures calculated from reported data.

What drives each line

  • Cars. Deliveries peaked at 1,808,581 in 2023 and were 1,742,908 in the last twelve months. Production was 1.76M, at most 74% of installed capacity of more than 2.38M for Model 3, Model Y and Cybertruck. (calculated) In Q3 2026 production of 464,391 was below deliveries of 486,532, and days of supply fell from 15 to 11. That fits Tesla’s statement that battery supply, not demand, limited volume, alongside its largest passenger-vehicle backlog in four years. The 74% says factory capacity was not the limit, and I cannot test the battery claim.4111819 Model S and Model X ended in mid-2026.3
  • Energy. Storage deployments grew 49% to 46.7 GWh in 2025 and were 50.2 GWh in the last twelve months. (calculated) Energy revenue fell 6% in the first nine months of 2026, or 2% after adding back $339M of tariff refunds owed to customers, on a lower price per Megapack, fewer Powerwall deployments and the refunds, while deployments rose 11% to 36.0 GWh. (calculated) Megafactory Texas, planned at 50 GWh, began production in Q3 2026, and Tesla reports its highest order rate and backlog. My base case needs energy revenue to grow 15% in year one, and I cannot verify that.3418
  • Services and other. Gross profit reached a record $734M in Q3 2026, and the line grew 36% over the year.4
  • Autonomy and robotics. Full Self-Driving (Supervised) had 1.74M active subscriptions, up from 1.04M. Tesla’s Q2 2026 Update named seven Robotaxi metros: the Bay Area with a safety driver, and Austin, Dallas, Houston, Miami, Orlando and Tampa without one. Tesla began Robotaxi rides with Cybercab in Austin on 3 September 2026 and reports nearly 2M cumulative unsupervised miles. Optimus production began in Fremont. Tesla gives no revenue, ride, fleet or unit figure for any of them.3445

The United States was 50.2% of 2025 revenue and China 22.1%; in the first nine months of 2026 the shares were 46.2% and 17.9%. (calculated) China revenue was $14.07B in the nine months, 1.4% below a year earlier and 7.9% lower in Q3, while revenue outside the United States and China rose 49%. (calculated)35

What changed

Research and development was 4.1% of revenue in 2023 and is 8.6% in the last twelve months, $8.9B. (calculated) Capital spending was $8.5B in 2025, $15.4B in the last twelve months, and is guided above $20B for 2026 in the 10-Q; on the Q3 call Taneja said about $20B.54 Investment in what Tesla calls Super Intelligence (SI) infrastructure, which includes its Cortex training clusters, went from $6.8B to $11.0B at cost in nine months.345 The 10-Q says periods of heavy spending:

will necessitate additional funding beyond our operating cash flow

Tesla, Q3 2026 Form 10-Q, liquidity discussion3

It signed $30B of undrawn credit lines on 29 September 2026.321

Cars and energy pay for a business that has no revenue line.

The moat

I think Tesla had a manufacturing cost advantage that its margins since 2022 do not show, and has a set of assets whose worth depends on autonomy working. It has no switching costs. A Tesla owner can choose any car at the next purchase, and the charging network now serves other makers.

The cost advantage showed in 2022, when automotive gross margin without regulatory credits was 26.7%. It is not visible now: the margin was 15.4% in 2024 and 2025 and is 17.8% in the last twelve months, or 17.4% without the Q3 tariff refund. (calculated)345912 Against BYD the ratios do not show a cost lead either, as the next section sets out. In 2025 automotive sales fell 9%, on a decrease of about 8% in cash deliveries and a lower average price from mix and incentives, and 2023 is still the volume peak.5

Vertical integration is the other lever. Tesla makes 4680 cells at over 40 GWh a year in Texas, has begun lithium iron phosphate cells, cathode and lithium refining, and says battery availability still limits vehicle volume.4 The spending widens the asset base. Whether it widens the moat depends on cost per kilowatt-hour, which Tesla does not report.

Tesla’s charging network gives it coverage, and other makers can use it, so I do not count it as a moat. It had 8,904 Supercharger stations and 84,465 connectors at Q3 2026, up 14.8% and 14.4% in a year, and the 10-K says all major automakers have announced adoption of Tesla’s connector standard in certain markets.45 Customer deposits rose from $1.31B to $1.88B in nine months, and Tesla held more than half of U.S. electric vehicles in Q3 2026 in a market that fell 39.5%.326

The asset that could become a wide moat is the one the price rests on. Tesla has a lead in supervised driving data and in U.S. share, and none in unsupervised miles: it reports nearly 2M cumulative unsupervised Robotaxi miles, and Waymo reports 271.3M rider-only miles through June 2026.427 Cumulative deliveries of 10.2M, 1.74M paying FSD subscribers and over 160M kilometres logged in nine European countries are a large driving-data position, and whether it becomes a lead in unsupervised driving is the open question.4 In energy storage Tesla is among the top two on Wood Mackenzie’s 2025 ranking, with Sungrow, which does not give the order, and second on Benchmark’s, behind BYD, in a market where Chinese integrators hold 76%.2829

The moat: evidence

Tesla's own figures unless marked third party. The direction is my reading.

The moat: evidence
EvidenceEarlierLatestDirection
Automotive gross margin without credits (calculated)591326.7% (2022)17.8% (TTM Sep 2026)Fell 9 points since 2022, recovering
Deliveries (reported)11181941,808,581 (2023)1,742,908 (TTM Sep 2026)Flat for three years
Cars delivered against BYD’s battery-electric cars, BYD third party242518Tesla 1,636,129; BYD 2,256,714 (2025)Tesla 480,126; BYD 557,090 (Q2 2026)Behind
Registrations in Europe, January to August, EU, EFTA and UK, ACEA32Tesla 133,853; BYD 95,898 (2025)Tesla 191,787; BYD 234,099 (2026)Behind BYD; ACEA counts every powertrain
Supercharger connectors (reported)45About 73,800 (Q3 2025, from the reported 14.4% rise)84,465 (Q3 2026)Growing, but open to other makers
Share of U.S. electric vehicles, third party26Tesla sales down 20% in a market down 39.5% (Q3 2026 on Q3 2025)More than half in Q3 2026Holding
Days of supply (reported)3427 (Q1 2026)11 (Q3 2026)Improving
Energy gross margin without Q3 refunds (calculated)3423.8% (Q3 2026)29.7% (TTM, with refunds)Healthy, contested
Share of storage integrators, third party2829Wood Mackenzie: Tesla and Sungrow the top two in 2025Benchmark: BYD 13%, Tesla 10%Contested
Gross margin without regulatory credits, company-wide, Tesla and BYD (calculated)93738Tesla 15.5%; BYD 19.44% (2024)Tesla 16.3%; BYD 17.74% (2025)Behind BYD; not a like-for-like comparison
Research and development, share of revenue (calculated)494.1% (2023)8.6% (TTM Sep 2026)Spending more for the same cars
Customers using Full Self-Driving (reported)41.04M subscriptions (Q3 2025)1.74M (Q3 2026)Growing; revenue not reported

The earlier Supercharger count is the Q3 2026 figure divided by 1.144, the reported rise. U.S. share, Europe and storage rankings are third-party or industry-body figures; ACEA counts every powertrain, BYD sells plug-in hybrids and Tesla sells only battery-electric cars. Both gross margins are company-wide, not automotive only, and BYD's includes batteries and a handset assembly business. Source 10-Q Q3 2026; Q3 2026 Update; 10-K FY2025; SEC XBRL facts; 10-K FY2023; 10-K FY2021; Q4 2025 deliveries; Q4 2024 deliveries; CnEVPost, Q2 2026; CnEVPost, 2025; Cox Q3 2026 EV; Wood Mackenzie BESS; Electrek on Benchmark; ACEA, Aug 2026; CnEVPost, BYD 2025 results; BYD investor relations [3][4][5][9][11][13][18][19][24][25][26][28][29][32][37][38]. Figures calculated from reported data.

How much of the profit is the business running

Operating income, twelve months to September 2026, US$ billions, and what is left after two items that will not repeat.

  • Reported
  • Core, my calculation
  • Below operating income
How much of the profit is the business runningOperating income as reported: $3.47B; Without Q3 tariff refunds: $3.02B; Without refunds and credits: $1.84B; Interest income, below operating income: $1.75B.Operating income as reportedOperating income as reported: $3.47B$3.47BWithout Q3 tariff refundsWithout Q3 tariff refunds: $3.02B$3.02BWithout refunds and creditsWithout refunds and credits: $1.84B$1.84BInterest income, below operating incomeInterest income, below operating income: $1.75B$1.75BHow much of the profit is the business runningOperating income as reported: $3.47B; Without Q3 tariff refunds: $3.02B; Without refunds and credits: $1.84B; Interest income, below operating income: $1.75B.Operating income as reportedOperating income as reported: $3.47B$3.47BWithout Q3 tariff refundsWithout Q3 tariff refunds: $3.02B$3.02BWithout refunds and creditsWithout refunds and credits: $1.84B$1.84BInterest income, below operating incomeInterest income, below operating income: $1.75B$1.75BHow much of the profit is the business runningOperating income as reported: $3.47B; Without Q3 tariff refunds: $3.02B; Without refunds and credits: $1.84B; Interest income, below operating income: $1.75B.Operating income as reportedOperating income as reported: $3.47B$3.47BWithout Q3 tariff refundsWithout Q3 tariff refunds: $3.02B$3.02BWithout refunds and creditsWithout refunds and credits: $1.84B$1.84BInterest income, below operating incomeInterest income, below operating income: $1.75B$1.75B
Regulatory credits carry almost no cost, so I remove their full revenue. The refunds relate to tariffs paid in earlier quarters. Source 10-Q Q3 2026; Q3 2026 Update; 10-K FY2025 [3][4][5]. Reported figures, with my subtraction of credits and refunds.
Show the numbers
How much of the profit is the business running
US$ billions
Operating income as reported (reported)$3.47B
Without Q3 tariff refunds (calculated)$3.02B
Without refunds and credits (calculated)$1.84B
Interest income, below operating income (reported)$1.75B

Automotive gross margin without credits was 26.7% in 2022 and is 17.8% today, and the moat the price needs is not yet in the numbers.

Regulatory credits are payments from rivals that miss emission rules. They were $1,993M in 2025 and $1,181M in the last twelve months, 34% of operating income, and Q3 2026 credit revenue was $113M after a $475M reversal. The contracted backlog fell from $4.68B at the end of 2024 to $384M at 30 September 2026.34510 The 10-K says credits carry negligible incremental cost, so I subtract their full revenue.5

The competitive advantage

Tesla’s advantage over named rivals is largest in the United States and in supervised driving data, and smallest in global volume, in Europe, in cost and in storage. Every rival figure here is third party or from an industry body.

MeasureTeslaRival
Battery-electric cars, 2025, BYD third party18251,636,129 deliveredBYD 2,256,714
Battery-electric cars, Q2 2026, BYD third party424480,126 deliveredBYD 557,090
U.S. electric vehicles, Q3 2026, third party26More than half of 262,649 sold; Tesla sales down 20%All other brands combined: less than half
Europe (EU, EFTA and UK), January to August 2026, ACEA32191,787 registrations, up 43.3%; August up 4.0%BYD 234,099, up 144.1%; ACEA counts every powertrain and BYD sells plug-in hybrids25
Gross margin, 2025, company-wide (calculated)9373816.3% without regulatory credits (18.0% with)BYD 17.74%
Energy storage, 2025, third party2829Top two with Sungrow (Wood Mackenzie); 10% (Benchmark)BYD third (Wood Mackenzie); 13% (Benchmark)
Robotaxi, rival figures third party42730313945Seven metros named; nearly 2M unsupervised miles; no ride countWaymo: over 500,000 rides a week in April 2026; 271.3M rider-only miles to June 2026; 15 service areas listed

Battery-electric cars delivered, Tesla and BYD

Thousands of cars. Tesla's figures are its own; BYD's are passenger battery-electric counts from a third-party tally.

  • Tesla
  • BYD
Battery-electric cars delivered, Tesla and BYDTesla 2025: 1,636; BYD 2025: 2,257; Tesla, first half 2026: 838; BYD, first half 2026: 867.Tesla 2025Tesla 2025: 1,6361,636BYD 2025BYD 2025: 2,2572,257Tesla, first half 2026Tesla, first half 2026: 838838BYD, first half 2026BYD, first half 2026: 867867Battery-electric cars delivered, Tesla and BYDTesla 2025: 1,636; BYD 2025: 2,257; Tesla, first half 2026: 838; BYD, first half 2026: 867.Tesla 2025Tesla 2025: 1,6361,636BYD 2025BYD 2025: 2,2572,257Tesla, first half 2026Tesla, first half 2026: 838838BYD, first half 2026BYD, first half 2026: 867867Battery-electric cars delivered, Tesla and BYDTesla 2025: 1,636; BYD 2025: 2,257; Tesla, first half 2026: 838; BYD, first half 2026: 867.Tesla 2025Tesla 2025: 1,6361,636BYD 2025BYD 2025: 2,2572,257Tesla, first half 2026Tesla, first half 2026: 838838BYD, first half 2026BYD, first half 2026: 867867
BYD also sold 2,288,709 plug-in hybrids in 2025, which Tesla has no equivalent for. Source Q4 2025 deliveries; CnEVPost, Q2 2026; CnEVPost, 2025 [18][24][25]. Tesla reported; BYD third party.
Show the numbers
Battery-electric cars delivered, Tesla and BYD
Thousands
Tesla 2025 (reported)1,636
BYD 20252,257
Tesla, first half 2026 (reported)838
BYD, first half 2026867

Where Tesla leads

In the United States Tesla held more than half of the 262,649 electric vehicles sold in Q3 2026, in a market that fell 39.5% after federal incentives ended, though its own sales fell 20%.26 Its cars sit at 11 days of supply.4 The lead I would defend is the one in the United States, the charging coverage and the supervised driving data. I cannot show a cost lead over BYD. Without regulatory credits Tesla’s gross margin was 16.3% in 2025 against BYD’s 17.74%, and 15.5% in 2024 against 19.44%. (calculated)93738 Both are company-wide figures, and BYD’s includes a handset assembly business that was 19% of its 2025 revenue, so the comparison is between companies, not cars.37

Where it trails

BYD sold more battery-electric cars than Tesla in 2025 and in Q2 2026, and sells 2,288,709 plug-in hybrids that Tesla has no match for.2425 In Europe BYD registered 234,099 vehicles in January to August 2026, 22% more than Tesla’s 191,787, and Tesla’s growth slowed to 4.0% in August from 43.3% for the eight months. ACEA counts every powertrain, and BYD sells plug-in hybrids. (calculated)2532 Waymo reports more than 500,000 rides a week, against Tesla’s none, and lists 15 service areas. Tesla’s equivalent is the seven metros in its own Update and no reported ride count.303945 In storage BYD led Benchmark’s 2025 ranking with 13% against Tesla’s 10%, and Tesla deployed 46.7 GWh against over 60 GWh for BYD.1829 China was 17.9% of nine-month revenue and I found no primary share series for Tesla there from CPCA or CAAM; Tesla’s own China revenue was lower, as the business section shows.3 Tesla itself names competition in AI and robotics as a risk.5

Management

Elon Musk has been chief executive since October 2008 and a director since 2004. He is also chief executive of SpaceX, runs Neuralink and The Boring Company, and led xAI Holdings, which became a SpaceX subsidiary on 2 February 2026. Tesla’s 10-K says it depends heavily on him, that he does not devote his full time to Tesla, and that none of its key employees has a fixed-term contract.58 Vaibhav Taneja has been chief financial officer since August 2023 and chief accounting officer since March 2019. Tom Zhu, who led the construction and operations of Gigafactory Shanghai, runs Asia-Pacific and global vehicle manufacturing.8

The proxy names three executive officers: Musk, Taneja and Zhu. None runs autonomy or Optimus, and no Tesla filing I read names who does, so I cannot give a reader the tenure of the people who lead the two businesses the price rests on.8 The only senior departure the 8-Ks record since January 2024 is Andrew Baglino, senior vice president for powertrain and energy engineering since October 2019, who resigned on 14 April 2024.22

Who runs it

Executive officers and directors as of 19 October 2026. The proxy names three executive officers: Musk, Taneja and Zhu. None runs autonomy or Optimus, and no Tesla filing names who does.

Who runs it
NameRoleTenureAgeNote
Elon MuskChief Executive Officer; directorCEO since Oct 2008; director since 200455Also runs SpaceX, Neuralink and The Boring Company, and led xAI Holdings, which became a SpaceX subsidiary in Feb 2026. Tesla’s 10-K says he does not devote his full time to Tesla.
Vaibhav TanejaChief Financial OfficerCFO since Aug 2023; joined Tesla’s finance team in 2017 (SolarCity from Mar 2016)48Chief Accounting Officer from Mar 2019, Controller from May 2018. 10b5-1 plan to sell up to 84,000 shares adopted 17 Nov 2025.
Tom ZhuSVP, APAC and Global Vehicle ManufacturingJoined Apr 2014; SVP since Apr 2023; current role since Jun 202546Led Gigafactory Shanghai as Vice President, Greater China.
Robyn DenholmIndependent Chair; Audit and Disclosure Controls chairDirector since 2014; Chair since Nov 201863On all four board committees. Led the special committee that designed the 2025 award with Kathleen Wilson-Thompson.
Kimbal MuskDirectorSince 200454Brother of the CEO. Recused with Elon Musk on the April 2026 award decisions.
JB StraubelDirectorSince 202350Tesla co-founder and CTO until July 2019. CEO of Redwood Materials, a Tesla supplier and customer.
Ira EhrenpreisDirector; Compensation and Nominating chairSince 200757Founder of DBL Partners.
James MurdochDirectorSince 201753CEO of Lupa Systems.
Kathleen Wilson-ThompsonDirectorSince 201869Former Walgreens chief human resources officer.
Joe GebbiaDirectorSince 202245Airbnb co-founder; named the US Chief Design Officer in August 2025.
Jack HartungDirectorSince 202569Former Chipotle finance chief and president; his son-in-law is a Tesla employee.

Source 2026 proxy; 10-K FY2025 [8][5]. Figures as reported.

From 2019 to 2025 revenue grew 25.2% a year, from $24.6B to $94.8B, and gross profit went from $4.1B to $17.1B.9 The capital spending record is mixed. Tesla spent above the range it gave in 2022 ($7.2B against $5.0B to $7.0B) and 2023 ($8.9B against $6.0B to $8.0B), met its outlook of over $10.0B for 2024 with $11.3B, and fell $2.5B short of over $11.0B in 2025, when it spent $8.5B.510111213 Its Q3 2026 update gives no number for deliveries, margin or earnings.4

Capital spending: what Tesla said and what it spent

The outlook sentence in each annual report against the year's capital expenditure, on my definition, which includes solar and energy-system purchases. Tesla counted those from 2025 and restated earlier years; I apply the same definition to every year.

Capital spending: what Tesla said and what it spent
Where statedOutlookActualResult
FY2021 10-K, Feb 20222022: $5.0B to $7.0B$7.2BAbove the range
FY2022 10-K, Jan 20232023: $6.0B to $8.0B$8.9BAbove the range
FY2023 10-K, Jan 20242024: over $10.0B$11.3BAbove the floor (met)
FY2024 10-K, Jan 20252025: over $11.0B$8.5BBelow the floor by $2.5B
FY2025 10-K, Jan 2026; repeated Oct 20262026: over $20B$13.0B in nine monthsImplies about $7.0B or more in Q4 against $4.7B in Q3

Source 10-K FY2021; 10-K FY2022; 10-K FY2023; 10-K FY2024; 10-K FY2025; 10-Q Q3 2026 [13][12][11][10][5][3]. Figures as reported.

The record that matters more is the one on autonomy, because the price rests on it. Tesla was on time on three milestones it set for itself: Austin in June 2025, Cybercab production in the first half of 2026 and the start of Optimus production in 2026. It was late on five of the seven cities it planned for the first half of 2026. It has not delivered the 2019 aim of customer cars that drive unsupervised, and it has not reported a Cybercab cost.44041434445

What Tesla said about autonomy, and what its filings show

Statements from Tesla's own quarterly Updates, filed with the SEC, and the same documents' later reports. I paraphrase, with short quotes where the words matter.

What Tesla said about autonomy, and what its filings show
SaidWhat the filings show by 21 October 2026
24 April 2019 (Q1 2019 Update): vehicles would become fully autonomous by software update, ‘subject to regulatory approvals’, and owners could earn income on a Tesla ride-hailing network40Customer cars are still ‘FSD (Supervised)’ with active driver supervision required. In April 2026 Tesla wrote of ‘eventually’ deploying unsupervised autonomy on customer-owned cars. Unsupervised rides run on Tesla’s own fleet444
24 April 2019: a purpose-built robotaxi ‘should cost less than $38,000 to produce’40Cybercab production began in Q2 2026. No Update reports a Cybercab cost or a production count445
22 April 2025 (Q1 2025 Update): ‘on track for pilot launch of Robotaxi in Austin by June’41The Austin service launched in June 2025 with a safety rider, as the Q2 2025 Update reports42
28 January 2026 (Q4 2025 Update): Robotaxi in Dallas, Houston, Phoenix, Miami, Orlando, Tampa and Las Vegas in the first half of 202643Dallas and Houston went unsupervised in April; Miami, Orlando and Tampa in July; Phoenix and Las Vegas were ‘preparations underway’ on 22 July 2026. The Q3 Update gives no list. Two of seven on time4445
22 April 2025, repeated through 28 January 2026: Cybercab volume production in 2026, later ‘commencing 1H26’4143Production began in Q2 2026, inside the first half, and Cybercab rides began in Austin on 3 September 2026. Tesla reports no Cybercab production count, so ‘volume’ cannot be checked445
28 January 2026: start of Optimus production ‘before the end of 2026’43The Q3 Update says Optimus production began in Fremont. No unit count, revenue or cost is reported4

Statements made on earnings calls, in interviews or on social media are not in this table because they are not in a filing I could cite. Source Q3 2026 Update; Q1 2019 Update; Q1 2025 Update; Q2 2025 Update; Q4 2025 Update; Q1 2026 Update; Q2 2026 Update [4][40][41][42][43][44][45]. Figures as reported.

Who holds the votes

Musk beneficially owns 699.6M shares, 19.8%, of which 413.2M are in his trust and 286.4M are restricted shares from exercising the 2018 award, which vest on service to 19 January 2028. He has pledged 207.5M shares, worth $84B at the close (calculated), 29.7% of his stake. The board caps his pledge-backed borrowing at the lesser of $3.5B and 25% of the pledged value, 4.2% of that value at the close (calculated), but exempts pledges for taxes and the $334.09 award offset. The 10-K says that if he borrows against his shares and the price falls substantially, lenders could force sales.4958

The proxy computes Musk’s 19.8% on a base that leaves out the 423.7M unearned award shares, as its footnote 2 says, and every other holder’s percentage on 3,952.6M shares. I use 3,529M for market value because the unearned shares vest only on milestones.8 The board has nine directors in three staggered classes and judges seven independent; the table gives the chair, Musk’s brother, a supplier’s chief executive and the 2025 say-on-pay vote.8

Who owns the stock

Shares beneficially owned at 30 September 2026. Musk's 19.8% is calculated on a base that leaves out the 423.7M unearned shares; the proxy computes every other holder's percentage on 3,952.6M shares. I use 3,529M for market value because the unearned shares vest only on milestones.

Who owns the stock
HolderSharesShareNote
Elon Musk, beneficial699,580,88219.8%Counts 413,152,109 shares in his trust and 286,428,773 restricted shares from the 2018 award; excludes the 423.7M unearned shares.
of which pledged as collateral for personal debt207,498,72129.7% of his stakeProxy footnote 2. At the close the pledged shares are worth $84B. The board caps pledge-backed borrowing at the lesser of $3.5B and 25% of the pledged value, but exempts pledges for taxes and the $334.09 award offset.
Unearned 2025 award shares, outside the 19.8%423,743,90410.7% of cover countVoted proportionally to all other votes by the corporate secretary until earned.
Musk if every tranche were earned (before the $334.09 offset)1,123,324,78628.4% of 3,952.6MCalculated; the offset is paid in shares or cash at vesting, so net issuance is lower.
Vanguard Capital Management210,796,5125.3% of 3,952.6MSchedule 13G filed 30 April 2026. On 3,529M shares it would be 6.0%.
Vaibhav Taneja, CFO1,499,490under 1%Includes 1,362,518 options exercisable within 60 days.
Tom Zhu, SVP2,263,273under 1%Includes 2,195,673 options exercisable within 60 days.
Robyn Denholm, Chair134,387under 1%Independent Chair since November 2018; on all four board committees.
Kimbal Musk, director1,376,373under 1%The CEO’s brother. All 1,376,373 shares pledged.
James Murdoch, director734,306under 1%
Ira Ehrenpreis, director855,394under 1%
All 11 current directors and executive officers706,496,61520.0%Excludes the 423.7M unearned shares; 3,607,578 are options.
Say-on-pay support, 2025 meeting78.2%Of shares present and entitled to vote.

Source 2026 proxy; 10-K FY2025 [8][5]. Figures as reported.

Pay and incentives

Musk takes no salary or bonus. His pay is two stock awards. The 2018 award, reinstated by the Delaware Supreme Court on 19 December 2025, was exercised in the second quarter of 2026. The 2025 award is 423.7M restricted shares in twelve tranches. Each tranche needs a market value and a number of operating milestones: the first needs $2.0T and any one milestone, and the twelfth needs $8.5T, all twelve milestones and a board-approved succession framework. Vested shares carry an offset of $334.09 each, which works like a strike price.3820

The 2025 CEO Performance Award: twelve tranches

Each tranche is 35,311,992 restricted shares, earned only when a market-cap milestone and the stated number of operational milestones are both met. Vested shares are reduced by an offset of $334.09 each unless Musk pays that in cash.

The 2025 CEO Performance Award: twelve tranches
TrancheShares (M)Market-cap milestoneShare price needed, cover count (vs $403.30)Share price needed, economic countOperational milestonesStatus 30 Sep 2026
135.312$2.0T$506 (25%)$567 (41%)Any 1 of 12Not earned
235.312$2.5T$632 (57%)$708 (76%)Any 2 of 12Not earned
335.312$3.0T$759 (88%)$850 (111%)Any 3 of 12Not earned
435.312$3.5T$885 (120%)$992 (146%)Any 4 of 12Not earned
535.312$4.0T$1,012 (151%)$1,133 (181%)Any 5 of 12Not earned
635.312$4.5T$1,138 (182%)$1,275 (216%)Any 6 of 12Not earned
735.312$5.0T$1,265 (214%)$1,417 (251%)Any 7 of 12Not earned
835.312$5.5T$1,391 (245%)$1,559 (286%)Any 8 of 12Not earned
935.312$6.0T$1,518 (276%)$1,700 (322%)Any 9 of 12Not earned
1035.312$6.5T$1,644 (308%)$1,842 (357%)Any 10 of 12Not earned
1135.312$7.5T$1,897 (370%)$2,125 (427%)Any 11 of 12 and CEO succession framework approvedNot earned
1235.312$8.5T$2,150 (433%)$2,409 (497%)Any 12 of 12 and CEO succession framework approvedNot earned
Total423.744

Market cap for the award is the closing price times the total shares outstanding at the transfer agent, averaged over six months and 30 days (2025 proxy). The proxy does not say whether the unearned shares are in that count, so I show both. At the close, market cap on the cover count was $1,594B, 80% of the first milestone. Source 10-Q Q3 2026; 2026 proxy; 2025 proxy [3][8][20]. Figures calculated from reported data.

The milestones are Tesla’s own chosen yardsticks: 20M vehicles delivered, 10M FSD subscriptions, 1M bots, 1M Robotaxis, and Adjusted EBITDA from $50B to $400B over four quarters.8 Tesla has reached 10.2M vehicles and 1.74M subscriptions and has $15.0B of EBITDA.4 Its accounting treats only the 20M-vehicle milestone as probable: $802M of expense was recognized in nine months, and $105.8B to $120.4B is unrecognized for the rest.3 The proxy shows 2025 compensation of $158.4B on the summary table, of which $132.3B is the maximum value of the 2025 award and $26.1B an interim award forfeited on 21 April 2026. Realized pay was zero.8

Operational milestones against what Tesla reports

Tranche 1 needs any one milestone, tranche 2 any two, and so on. Unrecognized stock pay for the milestones not deemed probable is $105.8B to $120.4B.

Operational milestones against what Tesla reports
#MilestoneReported so farTesla's accounting view
120 million Tesla vehicles delivered10.2M cumulative at Q3 2026 (award definition: includes unsupervised Robotaxis in commercial operation)Tesla deems this milestone probable over the award term
210 million active FSD subscriptions1.74M at Q3 2026 (up from 1.04M a year earlier; includes upfront payment and monthly, excludes free trials)Not deemed probable
31 million bots deliveredNo bot count in the filings; Optimus production began in Fremont in Q3 2026 (company statement)Not deemed probable
41 million Robotaxis in commercial operationNo fleet count in the filings; Cybercab joined the Austin fleet on 3 September 2026 (company statement)Not deemed probable
5-10Adjusted EBITDA of $50B, $80B, $130B, $210B, $300B, $400B (four quarters)TTM Adjusted EBITDA $15.0B (company definition)Not deemed probable
11-12Adjusted EBITDA of $400B in two further non-overlapping periods, plus board approval of a CEO succession frameworkNo framework disclosedNot deemed probable

Source 10-Q Q3 2026; Q3 2026 Update; 2026 proxy [3][4][8]. Figures as reported.

The award ties Musk’s pay to market value and operating milestones, not to return on capital or free cash flow, and free cash flow after stock pay is negative. Its first step is a market value of $2.0T. On the full 3,953M shares the close gave $1,594B, 80% of the step; the 2025 proxy does not say whether unearned shares are in the count the award uses.493820 If every tranche were earned, Musk would hold 28.4% before the offset.8

Capital allocation

Tesla has returned no cash to owners. Over 2016 to 2025 it generated $79.4B of operating cash flow, spent $55.0B on capital and kept $24.5B of free cash flow. (calculated) It sold $15.2B of stock, the last $12.3B in 2020, and diluted shares rose 5.6% a year, from 2.16B to 3.53B. (calculated) The 10-K says Tesla has never paid a cash dividend; I found no repurchase programme.59

Capital allocation, ten years

Calendar 2016 to 2025 unless stated.

Capital allocation, ten years
ItemFigureNote
Operating cash flow, 2016-2025$79.4BReported; sum of ten years.
Capital expenditure, 2016-2025$55.0BCalculated; includes solar and energy systems purchases.
Free cash flow, 2016-2025$24.5BCalculated.
Net income to common, 2016-2025$40.2BReported; includes a one-time $5.93B non-cash tax benefit in 2023 (full-year tax line: a $5.0B benefit).
Stock-based compensation, 2016-2025$14.5BReported; 3.0% of 2025 revenue and 4.2% of TTM revenue.
Common stock sold, 2016-2025$15.2BReported: $1.7B (2016), $0.4B (2017), $0.8B (2019), $12.3B (2020); none since.
Diluted share count, 2016 to 20252.16B to 3.53BCalculated, split-adjusted: 5.6% a year. The 2018 award exercise and the 2025 award are not in these weighted averages in full.
Dividends and buybacksNoneThe 10-K says Tesla has never declared or paid cash dividends. I found no repurchase programme.
Debt and finance leases$12.0B (2018) to $9.5B (Sep 2026)Reported; peak $13.4B at end-2019. Almost all of today’s debt is non-recourse.
Cash and short-term investments$3.7B (2018) to $45.4B (Sep 2026)Reported.
Investments outside the operating businessBitcoin $1.5B (Q1 2021); SpaceX $2.0B (Mar 2026); SI hardware company $1.95B in stock (Q2 2026)Reported. SolarCity was acquired in November 2016.

Source 10-Q Q3 2026; 10-K FY2025; 2026 proxy; SEC XBRL facts; 10-K FY2024; 10-K FY2023; 10-K FY2022; 10-K FY2021; 10-K FY2020; 10-K FY2018 [3][5][8][9][10][11][12][13][14][16]. Figures calculated from reported data.

Three uses sit outside the car and energy business. Tesla bought $1.5B of bitcoin in the first quarter of 2021 and holds 11,509 coins worth $962M against a $386M cost.313 It invested $2.0B in SpaceX common stock in March 2026, after a related-party review; the stake is carried at $2.865B, and at the Q4 2026 SpaceX close it would be $2.56B. It paid $1.95B in stock and awards for a Super Intelligence (SI) hardware company in the second quarter of 2026; the 10-Q does not name the seller.364751 SpaceX bought $626M of Megapacks in nine months, and Tesla’s receivable from it is $729M, mostly for products not yet delivered.3

Tesla’s 10-Q also says a committee of disinterested directors is exploring a deeper relationship with SpaceX, including a business combination, and that there is no assurance of a transaction. SpaceX’s board has formed a committee too. Musk would sit on both sides of any deal, and my values assume none.348

The pay shows what he is paid to do. The 2025 award vests on market value and Adjusted EBITDA, not on cash left after stock pay, and its first step is $2.0T.8 His 19.8% is large, but 286.4M of those shares came through the 2018 award and 207.5M are pledged, so I cannot say how much is his own cash. Over 2016 to 2025 Tesla kept $24.5B of free cash flow, paid none out, sold $15.2B of stock and added 5.6% a year to the share count.59 The pay rewards size: revenue grew 25.2% a year from 2019. Cash after stock pay was $3.4B in 2025 and −$1.0B in the last twelve months.4

Management has built a large autonomy bet on cash from cars and energy, and has not yet shown what it returns.

Financials

Tesla earned $3.5B of operating income, and $1.6B of it is regulatory credits and tariff refunds. Three items sit inside or below it.34

  1. Regulatory credits were $1,181M, 34% of operating income. They are running off.34
  2. Tariff refunds added a net $447M to Q3 2026 gross profit. Without them the Q3 gross margin was 17.8%, not 19.6%, and the energy margin 23.8%, not 33.1%. (calculated)3
  3. Interest income of $1.75B sits below operating income and equals 50.5% of it. Net income of $3.2B also holds an $863M SpaceX mark, a $353M bitcoin loss and a net $230M benefit from tax items.34

What is inside the trailing twelve months

Items that move TTM profit but are not the car, energy or services business running at a steady rate. Sources: Q3 2026 Update, 10-Q Q3 2026.

What is inside the trailing twelve months
ItemSizeDetail
Tariff refunds (IEEPA), Q3 2026+$447M gross profit (net)$526M off energy cost, $260M off automotive cost, less $339M off energy revenue for refunds owed to customers. Related tariffs were paid in earlier periods.
SpaceX equity mark+$863M pre-tax in nine months+$1,005M in Q2, −$142M in Q3; Tesla’s TTM figure is +$863M. Non-operating; flows through other income.
Bitcoin marks−$353M pre-tax TTMLosses of $307M, $222M and $112M in Q4 2025, Q1 and Q2 2026; a $288M gain in Q3.
‘Certain tax items’, Q2 and Q3 2026+$274M benefit in Q2; −$44M charge in Q3Tesla’s footnote names a release of valuation allowances on certain California deferred tax assets and Pillar Two accruals; it does not split them by quarter.
Regulatory credit reversal, Q3 2026−$475M revenueCredits contractually returned; Q3 credit revenue was $113M after it.
Restructuring, Q4 2025$162M expenseConvergence of AI chip design efforts.
Interest income on cash+$1,750M TTM50% of TTM operating income of $3,466M.
Foreign-exchange and other items−654M TTM in other incomeMostly the marks above plus intercompany currency remeasurement.

Source 10-Q Q3 2026; Q3 2026 Update [3][4]. Figures as reported.

After all R&D, vehicles, services and energy earned $1.84B on $102.7B of revenue, a 1.8% margin. Before the $4.3B rise in R&D that I charge to autonomy they earned $6.16B, 6.0%. (calculated)34 Stock pay was $4.3B, 1.34 times net income. (calculated)4

Margins

Fiscal years to 31 December, share of revenue

  • Gross 18.0%
  • Operating 4.6%
  • Free cash flow 6.6%
MarginsMargins by fiscal year as a share of revenue. Gross margin 22.8% in 2016, 18.0% in 2025; Operating margin −9.5% in 2016, 4.6% in 2025; Free cash flow margin −22.3% in 2016, 6.6% in 2025.−25%0%25%’16’18’20’22’24TTMGross, 2016: 22.8%Gross, 2017: 18.9%Gross, 2018: 18.8%Gross, 2019: 16.6%Gross, 2020: 21.0%Gross, 2021: 25.3%Gross, 2022: 25.6%Gross, 2023: 18.2%Gross, 2024: 17.9%Gross, 2025: 18.0%Gross, TTM Sep 2026: 19.3%Operating, 2016: −9.5%Operating, 2017: −13.9%Operating, 2018: −1.8%Operating, 2019: −0.3%Operating, 2020: 6.3%Operating, 2021: 12.1%Operating, 2022: 16.8%Operating, 2023: 9.2%Operating, 2024: 7.2%Operating, 2025: 4.6%Operating, TTM Sep 2026: 3.3%Free cash flow, 2016: −22.3%Free cash flow, 2017: −35.2%Free cash flow, 2018: −1.0%Free cash flow, 2019: 4.0%Free cash flow, 2020: 8.6%Free cash flow, 2021: 9.3%Free cash flow, 2022: 9.3%Free cash flow, 2023: 4.5%Free cash flow, 2024: 3.7%Free cash flow, 2025: 6.6%Free cash flow, TTM Sep 2026: 3.2%19.3%3.3%3.2%MarginsMargins by fiscal year as a share of revenue. Gross margin 22.8% in 2016, 18.0% in 2025; Operating margin −9.5% in 2016, 4.6% in 2025; Free cash flow margin −22.3% in 2016, 6.6% in 2025.−40%−20%0%20%’16’17’18’19’20’21’22’23’24’25TTMGross, 2016: 22.8%Gross, 2017: 18.9%Gross, 2018: 18.8%Gross, 2019: 16.6%Gross, 2020: 21.0%Gross, 2021: 25.3%Gross, 2022: 25.6%Gross, 2023: 18.2%Gross, 2024: 17.9%Gross, 2025: 18.0%Gross, TTM Sep 2026: 19.3%Operating, 2016: −9.5%Operating, 2017: −13.9%Operating, 2018: −1.8%Operating, 2019: −0.3%Operating, 2020: 6.3%Operating, 2021: 12.1%Operating, 2022: 16.8%Operating, 2023: 9.2%Operating, 2024: 7.2%Operating, 2025: 4.6%Operating, TTM Sep 2026: 3.3%Free cash flow, 2016: −22.3%Free cash flow, 2017: −35.2%Free cash flow, 2018: −1.0%Free cash flow, 2019: 4.0%Free cash flow, 2020: 8.6%Free cash flow, 2021: 9.3%Free cash flow, 2022: 9.3%Free cash flow, 2023: 4.5%Free cash flow, 2024: 3.7%Free cash flow, 2025: 6.6%Free cash flow, TTM Sep 2026: 3.2%Gross 19.3%Operating 3.3%Free cash flow 3.2%MarginsMargins by fiscal year as a share of revenue. Gross margin 22.8% in 2016, 18.0% in 2025; Operating margin −9.5% in 2016, 4.6% in 2025; Free cash flow margin −22.3% in 2016, 6.6% in 2025.−40%−20%0%20%2016201720182019202020212022202320242025TTMGross, 2016: 22.8%Gross, 2017: 18.9%Gross, 2018: 18.8%Gross, 2019: 16.6%Gross, 2020: 21.0%Gross, 2021: 25.3%Gross, 2022: 25.6%Gross, 2023: 18.2%Gross, 2024: 17.9%Gross, 2025: 18.0%Gross, TTM Sep 2026: 19.3%Operating, 2016: −9.5%Operating, 2017: −13.9%Operating, 2018: −1.8%Operating, 2019: −0.3%Operating, 2020: 6.3%Operating, 2021: 12.1%Operating, 2022: 16.8%Operating, 2023: 9.2%Operating, 2024: 7.2%Operating, 2025: 4.6%Operating, TTM Sep 2026: 3.3%Free cash flow, 2016: −22.3%Free cash flow, 2017: −35.2%Free cash flow, 2018: −1.0%Free cash flow, 2019: 4.0%Free cash flow, 2020: 8.6%Free cash flow, 2021: 9.3%Free cash flow, 2022: 9.3%Free cash flow, 2023: 4.5%Free cash flow, 2024: 3.7%Free cash flow, 2025: 6.6%Free cash flow, TTM Sep 2026: 3.2%Gross 19.3%Operating 3.3%Free cash flow 3.2%
Gross margin includes regulatory credits (1.9% of 2025 revenue, 1.1% of TTM revenue) and, in Q3 2026, $447M of net tariff refunds. See the credits table. Source 10-K FY2025; SEC XBRL facts; 10-K FY2024; 10-K FY2023; 10-K FY2022; 10-K FY2021; 10-K FY2020; 10-K FY2019; 10-K FY2018; Q3 2026 Update [5][9][10][11][12][13][14][15][16][4]. Margins calculated from reported figures.
Show the numbers
Margins
2016201720182019202020212022202320242025TTM Sep 2026
Gross margin (calculated)22.8%18.9%18.8%16.6%21.0%25.3%25.6%18.2%17.9%18.0%19.3%
Operating margin (calculated)−9.5%−13.9%−1.8%−0.3%6.3%12.1%16.8%9.2%7.2%4.6%3.3%
Free cash flow margin (calculated)−22.3%−35.2%−1.0%4.0%8.6%9.3%9.3%4.5%3.7%6.6%3.2%

Cash

Operating cash flow was $18.7B and capital spending $15.4B, so free cash flow was $3.3B. After $4.3B of stock pay it was negative $1.0B. (calculated)4 Four free cash flow figures appear on this page, and the table bridges them. I start the reverse DCF from 2025 because the twelve-month figure is negative, and no growth rate turns a negative start into a positive cash flow. (calculated) Tesla counts energy-system purchases as capital spending from 2025; I apply that back to 2016, which lowers earlier free cash flow by up to $0.7B a year.45 Nine months of 2026 capital spending were $13.0B, so the guide of over $20B implies $7.0B or more in Q4, against $4.7B in Q3. (calculated)34

Four free cash flow figures, one bridge

US$ billions. The last line is the one I test the price against.

Four free cash flow figures, one bridge
2025Twelve months to Sep 2026
Operating cash flow (reported)$14.7B$18.7B
Less capital spending (reported)$8.5B$15.4B
Free cash flow as Tesla reports it (calculated)$6.2B$3.3B
Less stock-based pay (reported)$2.8B$4.3B
Free cash flow after stock pay (calculated)$3.4B−$1.0B
Less after-tax interest income on the cash pile (calculated)$1.3B$1.4B
Free cash flow I test the price against (calculated)$2.05B−$2.40B

Interest income is $1.68B in 2025 and $1.75B in the twelve months, taxed at 20%. I leave it out because the model adds the cash itself. Source 10-Q Q3 2026; Q3 2026 Update; 10-K FY2025; SEC XBRL facts [3][4][5][9]. Figures calculated from reported data.

Free cash flow

Fiscal years to 31 December, US$ billions

  • Free cash flow $6.2B in 2025
Free cash flowFree cash flow by fiscal year, −$1.6B in 2016 and $6.2B in 2025.−$5B$0$5B$10BFree cash flow, 2016: −$1.6B’16Free cash flow, 2017: −$4.1BFree cash flow, 2018: −$0.22B’18Free cash flow, 2019: $0.97BFree cash flow, 2020: $2.7B’20Free cash flow, 2021: $5.0BFree cash flow, 2022: $7.6B’22Free cash flow, 2023: $4.4BFree cash flow, 2024: $3.6B’24Free cash flow, 2025: $6.2BFree cash flow, TTM Sep 2026: $3.3BTTM−$1.6B$6.2B$3.3BFree cash flowFree cash flow by fiscal year, −$1.6B in 2016 and $6.2B in 2025.−$5B$0$5B$10BFree cash flow, 2016: −$1.6B2016Free cash flow, 2017: −$4.1B2017Free cash flow, 2018: −$0.22B2018Free cash flow, 2019: $0.97B2019Free cash flow, 2020: $2.7B2020Free cash flow, 2021: $5.0B2021Free cash flow, 2022: $7.6B2022Free cash flow, 2023: $4.4B2023Free cash flow, 2024: $3.6B2024Free cash flow, 2025: $6.2B2025Free cash flow, TTM Sep 2026: $3.3BTTM−$1.6B$6.2B$3.3BFree cash flowFree cash flow by fiscal year, −$1.6B in 2016 and $6.2B in 2025.−$5B$0$5B$10BFree cash flow, 2016: −$1.6B2016Free cash flow, 2017: −$4.1B2017Free cash flow, 2018: −$0.22B2018Free cash flow, 2019: $0.97B2019Free cash flow, 2020: $2.7B2020Free cash flow, 2021: $5.0B2021Free cash flow, 2022: $7.6B2022Free cash flow, 2023: $4.4B2023Free cash flow, 2024: $3.6B2024Free cash flow, 2025: $6.2B2025Free cash flow, TTM Sep 2026: $3.3BTTM−$1.6B$6.2B$3.3B
Capital expenditure includes solar and energy systems purchases. 2026 capex is guided above $20B; nine months were $13.0B. Source Q3 2026 Update; 10-K FY2025; SEC XBRL facts; 10-K FY2024; 10-K FY2023; 10-K FY2022; 10-K FY2021; 10-K FY2020; 10-K FY2019; 10-K FY2018 [4][5][9][10][11][12][13][14][15][16]. Free cash flow calculated. Free cash flow is operating cash flow less capital spending.
Show the numbers
Free cash flow
2016201720182019202020212022202320242025TTM Sep 2026
Operating cash flow (reported)−$0.12B−$0.06B$2.1B$2.4B$5.9B$11.5B$14.7B$13.3B$14.9B$14.7B$18.7B
Free cash flow (calculated)−$1.6B−$4.1B−$0.22B$0.97B$2.7B$5.0B$7.6B$4.4B$3.6B$6.2B$3.3B
Capital spending (calculated)$1.4B$4.1B$2.3B$1.4B$3.2B$6.5B$7.2B$8.9B$11.3B$8.5B$15.4B

Revenue was $22.4B in Q1 2026, the weakest quarter of the year, on 358,023 deliveries, and $28.2B in Q2.47

The last five quarters

US dollars, millions, except units and GWh. TTM is the sum of the last four quarters, Q4 2025 to Q3 2026. My sums match Tesla's own TTM table for operating cash flow (18,710), capital expenditure (15,407), free cash flow (3,303), net income (3,218), stock-based compensation (4,300) and depreciation (6,704).

The last five quarters
Q3 2025Q4 2025Q1 2026Q2 2026Q3 2026TTM Sep 2026
Revenue28,09524,90122,38728,23628,046103,570
Automotive (vehicles, leasing, credits)21,20517,69316,23420,51620,56075,003
Services and other3,4753,3713,7454,5814,60516,302
Energy generation and storage3,4153,8372,4083,1392,88112,265
Regulatory credits (inside automotive)4175423801461131,181
Gross profit5,0545,0094,7204,7515,49419,974
Gross margin18.0%20.1%21.1%16.8%19.6%19.3%
Gross margin excluding regulatory credits16.8%18.3%19.7%16.4%19.3%18.4%
Operating income1,6241,4099413987183,466
Operating margin5.8%5.7%4.2%1.4%2.6%3.3%
Net income to common1,3738404771,1147873,218
Operating cash flow6,2383,8133,9374,6976,26318,710
Capital expenditure2,2482,3932,4935,7894,73215,407
Free cash flow3,9901,4201,444−1,0921,5313,303
Stock-based compensation6639541,0301,1511,1654,300
Research and development1,6301,7831,9462,3712,7618,861
Vehicle deliveries (units)497,099418,227358,023480,126486,5321,742,908
Energy storage deployed (GWh)12.514.28.813.513.750.2
Cash and short-term investments, period end41,64744,05944,74343,52445,44745,447

Gross margin and its ex-credits version are calculated by me from reported lines; Q3 2026 revenue is net of a $475M reversal of regulatory credit revenue and $339M of tariff refunds owed to energy customers. Source Q3 2026 Update; 10-Q Q3 2026 [4][3]. Figures as reported.

The balance sheet

Cash and short-term investments were $45.4B at 30 September 2026 against $9.5B of debt and finance leases, almost all non-recourse, and $0.6B of minority interests.3 That is net cash of $35.3B, or $39.2B with the SpaceX stake and bitcoin. Operating leases of $6.9B and a warranty reserve of $10.1B are not deducted; their cost runs through gross margin.3 The $30B of new credit lines include a $20B delayed-draw loan, and the 10-Q says spending may need more funding.321

The numbers, year by year

Calendar years. Money in US dollars, billions. TTM Sep 2026 is the four quarters Q4 2025 to Q3 2026, summed from the Q3 2026 Update. Capex is property and equipment plus solar and energy systems purchases, Tesla's definition since Q1 2025, applied back to 2016: that adds back $160M (2016), $667M (2017), $219M (2018) and $105M (2019) that Tesla's earlier free cash flow figures excluded. 2016 and 2017 are not restated for the 2018 revenue rule, and regulatory credits sit inside automotive sales for those two years. Diluted EPS and shares are adjusted for the 5-for-1 (August 2020) and 3-for-1 (August 2022) splits by me: 2016 and 2017 by 15, 2018 and 2019 by 3. 2023 net income includes a one-time $5.93B non-cash tax benefit from releasing a valuation allowance (the full-year tax line was a $5.0B benefit). 2024 is as recast for the digital assets rule. TTM net income includes an $863M pre-tax SpaceX mark and a net $230M benefit from 'certain tax items' (a California valuation-allowance release and Pillar Two accruals); Q3 2026 includes $447M of net tariff refunds in gross profit. Deliveries for 2016 are not in the filings I read; 2017 is S and X plus Model 3 per the FY2017 10-K.

Financial summary by fiscal year
2016201720182019202020212022202320242025TTM Sep 2026
Revenue (reported)$7.0B$11.8B$21.5B$24.6B$31.5B$53.8B$81.5B$96.8B$97.7B$94.8B$103.6B
Revenue growth (calculated)–68.0%82.5%14.5%28.3%70.7%51.4%18.8%0.9%−2.9%–
Gross profit (reported)$1.6B$2.2B$4.0B$4.1B$6.6B$13.6B$20.9B$17.7B$17.4B$17.1B$20.0B
Gross margin (calculated)22.8%18.9%18.8%16.6%21.0%25.3%25.6%18.2%17.9%18.0%19.3%
Automotive regulatory credits revenue (reported)$0.30B$0.36B$0.42B$0.59B$1.6B$1.5B$1.8B$1.8B$2.8B$2.0B$1.2B
Gross profit excluding regulatory credits (calculated)$1.3B$1.9B$3.6B$3.5B$5.0B$12.1B$19.1B$15.9B$14.7B$15.1B$18.8B
Operating income (reported)−$0.67B−$1.6B−$0.39B−$0.07B$2.0B$6.5B$13.7B$8.9B$7.1B$4.4B$3.5B
Operating margin (calculated)−9.5%−13.9%−1.8%−0.3%6.3%12.1%16.8%9.2%7.2%4.6%3.3%
Net income attributable to common stockholders (reported)−$0.68B−$2.0B−$0.98B−$0.86B$0.72B$5.5B$12.6B$15.0B$7.1B$3.8B$3.2B
Diluted EPS (split-adjusted) (calculated)−$0.31−$0.79−$0.38−$0.33$0.21$1.63$3.62$4.30$2.04$1.08$0.91
Operating cash flow (reported)−$0.12B−$0.06B$2.1B$2.4B$5.9B$11.5B$14.7B$13.3B$14.9B$14.7B$18.7B
Capital expenditure (property and equipment plus solar and energy systems purchases) (calculated)$1.4B$4.1B$2.3B$1.4B$3.2B$6.5B$7.2B$8.9B$11.3B$8.5B$15.4B
Free cash flow (calculated)−$1.6B−$4.1B−$0.22B$0.97B$2.7B$5.0B$7.6B$4.4B$3.6B$6.2B$3.3B
Free cash flow margin (calculated)−22.3%−35.2%−1.0%4.0%8.6%9.3%9.3%4.5%3.7%6.6%3.2%
Stock-based compensation (reported)$0.33B$0.47B$0.75B$0.90B$1.7B$2.1B$1.6B$1.8B$2.0B$2.8B$4.3B
Free cash flow less stock-based compensation (calculated)−$1.9B−$4.6B−$0.97B$0.07B$0.98B$2.9B$6.0B$2.5B$1.6B$3.4B−$1.00B
Research and development (reported)$0.83B$1.4B$1.5B$1.3B$1.5B$2.6B$3.1B$4.0B$4.5B$6.4B$8.9B
Depreciation, amortization and impairment (reported)$0.95B$1.6B$1.9B$2.2B$2.3B$2.9B$3.7B$4.7B$5.4B$6.1B$6.7B
Diluted weighted shares (split-adjusted) (calculated)2.16B2.49B2.56B2.66B3.25B3.39B3.48B3.48B3.50B3.53B3.54B
Cash, cash equivalents and short-term investments, year end (reported)$3.4B$3.4B$3.7B$6.3B$19.4B$17.7B$22.2B$29.1B$36.6B$44.1B$45.4B
Debt and finance leases, year end (reported)$6.8B$10.2B$12.0B$13.4B$11.7B$6.8B$3.1B$5.2B$8.2B$8.4B$9.5B

(reported)Reported in a filing (calculated)Calculated from reported figures (estimate)My estimate

Source 10-K FY2025; SEC XBRL facts; 10-K FY2024; 10-K FY2023; 10-K FY2022; 10-K FY2021; 10-K FY2020; 10-K FY2019; 10-K FY2018; Q3 2026 Update; 10-Q Q3 2026; 10-K FY2017; Q4 2024 deliveries; Q4 2025 deliveries [5][9][10][11][12][13][14][15][16][4][3][17][19][18]. Lines marked C are calculated from the reported lines above them.

Deliveries and energy storage deployed

Vehicle deliveries in units and storage deployed in GWh; the same periods as the table above.

Deliveries and energy storage deployed
2016201720182019202020212022202320242025TTM Sep 2026
Vehicle deliveries (units) (reported)n/a103,184245,506367,656499,647936,2221,313,8511,808,5811,789,2261,636,1291,742,908
Energy storage deployed (GWh) (reported)n/a0.41.01.63.04.06.514.731.446.750.2

Deliveries for 2016 are not in the filings I read; 2017 is S and X plus Model 3 deliveries per the FY2017 10-K. Source Q3 2026 Update; 10-K FY2024; 10-K FY2023; 10-K FY2022; 10-K FY2021; 10-K FY2020; 10-K FY2019; 10-K FY2018; 10-K FY2017; Q4 2025 deliveries; Q4 2024 deliveries [4][10][11][12][13][14][15][16][17][18][19]. Figures as reported.

Accounting to watch

  1. Capitalized compute. SI infrastructure at cost rose from $6.8B to $11.0B in nine months, with $11.2B more in construction in progress. Construction in progress is not depreciated until it is in service.3
  2. Taxes. The effective rate was 27% in 2025 and 16% in Q3 2026, and 2023 carried a $5.0B net benefit. The CEO award expense is not tax-deductible.3511
  3. Related-party revenue. SpaceX and xAI are customers and Musk’s companies; $648M of deferred revenue and a $729M receivable sit against SpaceX.3
  4. Marks. The SpaceX stake is carried at its 30 September closing price, a quoted Level 1 price, with sale restrictions that end in December 2026. At the Q4 2026 close of $134.72 it would be worth $2.56B, $307M less than carried, or $0.09 a Tesla share. (calculated)34751
  5. Warranty and litigation. In Benavides the jury awarded $129M of compensatory damages and found Tesla 33% at fault, plus $200M of punitive damages. That makes Tesla’s share about $243M. (calculated) Tesla has appealed to the Eleventh Circuit and recorded an immaterial accrual. The Ninth Circuit vacated the FSD class certification on 16 October 2026.3

Valuation

Before the numbers

I start with how this goes wrong, in three ways. Autonomy comes late or small while the build is paid for: with no autonomy revenue and the spending kept, my base is $21 a share (estimate).4 The cars stay at today’s margin: the core earns 1.8% after all R&D, and credits are 34% of operating income and running off.34 Or control goes wrong: one person runs the company, has pledged 29.7% of his stake and would sit on both sides of a SpaceX deal.38 I think the first is the most likely.

Next, what an owner can take out. Net income was $3.2B, with $1.75B of interest on cash in it. Free cash flow was $3.3B, and after $4.3B of stock pay it was −$1.0B.34 That is harsh, as most of the $15.4B of capital spending is for growth. If standing still cost only the $6.7B of depreciation, owner cash would be $7.7B, with interest and $1.18B of fading credits still in it (calculated). Tesla does not say what standing still costs, so I show the range: −$1.0B to $7.7B, or −0.1% to 0.5% of the $1,423B market value (estimate).

I cannot know how large autonomy gets or at what margin, because Tesla reports no fleet, ride count or Robotaxi revenue. So I give a range: $15 to $303 a share, with $65 in the middle (estimate).

What the price implies

At $403.30 the market value is $1,423B on 3,529M shares, and the enterprise value $1,387B.495034 The share count matters: the 10-Q cover shows 3,953M shares, which includes 423.7M unearned award shares, and that count gives $1,594B. The proxy computes Musk’s percentage without those shares, so I use 3,529M for market value and 3,541M, the Q3 diluted average, for value per share.38

Ways to read the price

What $403.30 needs to be true. Multiples on reported figures are calculated; everything on my cash flows is my estimate.

Ways to read the price
ReadingWhat the price needs
Enterprise value to revenue (calculated)13.4x the last twelve months’ $103.6B; 12.3x my base-case year one of $113.0B (estimate)4934
Price to earnings (calculated)443x the last twelve months’ GAAP earnings per share of $0.91, and 234x Tesla’s non-GAAP $1.72494
Free cash flow yield (calculated)0.23% on $3.3B of free cash flow, and negative after $4.3B of stock pay: −$1.0B494
One growth rate for fifteen years (calculated)39.4% a year, from $2.05B to $300B, 147 times the start (calculated)45
Vehicles, services, energy and cash (estimate)About $44 a share if vehicle margin recovers to 9% and energy to 18%, before the $4.3B rise in R&D; $28 at today’s margins before that rise and $9 after it. The other $359 is autonomy, robotics and whatever else the market adds (estimate)
Consensus earnings per share (estimate)Nasdaq consensus: $0.71 for 2026 and $1.17 for 2027 (14 estimates each), $1.16 for 2028 (5). It does not reconcile with reported results: its $0.27 for Q4 against $0.71 for the year implies $0.44 for the first nine months, and Tesla reported $0.67 of GAAP earnings per share. Nasdaq does not state its basis, its years end in December, and no revenue consensus was available, so I do not lean on it. My base case earns $1.22 in year one to September 2027 and $1.66 in year two, on a GAAP-like basis (operating income taxed at 20% plus after-tax interest on cash) (estimate)346
Return a year on my cash flows at the price (estimate)Bear −19.2%, base −3.8%, bull 7.8%, holding fifteen years, taking my free cash flows and selling at my 10% value in year 15 (estimate)
What a 10% return takes (calculated)A price of $1,046 in ten years: $3.7T of market value on 3,541M shares, or $4.1T on the 3,953M shares the award counts. The award’s fourth step is $3.5T (calculated)320

Source Nasdaq quote; 10-Q Q3 2026; Q3 2026 Update; 10-K FY2025; 2025 proxy; Nasdaq, TSLA consensus [49][3][4][5][20][46]. Judgements are my estimates.

Tesla’s free cash flow after stock pay was negative in the last twelve months,4 so no constant growth rate gets from today’s cash flow to the price. Starting from 2025’s $2.05B, the price needs free cash flow to grow 39.4% a year for fifteen years, to $300B in year 15, 147 times the start. (calculated) A constant rate is a crude shape, so the next table turns the price into autonomy revenue.

Reverse DCF: the inputs

Solve for one growth rate that takes 2025's free cash flow to the price. It is a crude shape, because the cash flow is depressed by the build.

Reverse discounted cash flow
Starting free cash flow, 2025, after stock pay and without interest on cash (calculated)$2.05B (owner free cash flow $3.40B less $1.34B of after-tax interest)
Why 2025 and not the last twelve months (calculated)The twelve months to September 2026 give −$2.4B (owner free cash flow −$1.0B less $1.4B of after-tax interest), and no growth rate turns a negative start into a positive one
Discount rate (estimate)10.0%
Growth after year 15, the same 3.0% as my base case (estimate)3.0%
Cash and short-term investments less debt and minority interests, plus SpaceX and bitcoin (calculated)$39.2B
Diluted shares (reported)3,541M (Q3 2026 weighted average)
Price (reported)$403.30 (close, Q4 2026)
Free cash flow the price needs in year 15 (calculated)$300B, 147 times the starting figure
What the price implies, years 1 to 15 (calculated)39.4%

Source Nasdaq quote; 10-Q Q3 2026; Q3 2026 Update; 10-K FY2025 [49][3][4][5]. Inputs from the filings and my model; the implied rate is calculated.

What the price assumes

Value depends on one thing the filings do not show: how large autonomy and robotics become, and at what margin.34 My base case for the other lines is vehicles and services growing 5.4% a year to $152B in year ten at a 9% operating margin, and energy growing 11.4% a year to $37B at 18%. (estimate) Everything else is autonomy and robotics. Holding all of that, the price needs $600B of autonomy and robotics revenue in year ten at my 40% margin after depreciation. Total revenue would be $790B, operating income $253B and Adjusted EBITDA $337B. (calculated)

The price needs year-ten Adjusted EBITDA near $337B, more than 22 times the last twelve months and above Tesla’s fifth award step of $300B.

Adjusted EBITDA: today, the CEO award's steps and what the price needs

US$ billions, four quarters. Tesla's definition adds back depreciation and stock pay.

  • Reported
  • Award step
  • My cases
  • What the price needs
Adjusted EBITDA: today, the CEO award's steps and what the price needsTesla, last twelve months: $15.0B; Award step 1: $50B; My base case, year 10: $69B; Award step 2: $80B; Award step 3: $130B; My bull case, year 10: $214B; Award step 4: $210B; Award step 5: $300B; What the price needs, year 10: $337B; Award step 6: $400B.Tesla, last twelve monthsTesla, last twelve months: $15.0B$15.0BAward step 1Award step 1: $50B$50BMy base case, year 10My base case, year 10: $69B$69BAward step 2Award step 2: $80B$80BAward step 3Award step 3: $130B$130BMy bull case, year 10My bull case, year 10: $214B$214BAward step 4Award step 4: $210B$210BAward step 5Award step 5: $300B$300BWhat the price needs, year 10What the price needs, year 10: $337B$337BAward step 6Award step 6: $400B$400BAdjusted EBITDA: today, the CEO award's steps and what the price needsTesla, last twelve months: $15.0B; Award step 1: $50B; My base case, year 10: $69B; Award step 2: $80B; Award step 3: $130B; My bull case, year 10: $214B; Award step 4: $210B; Award step 5: $300B; What the price needs, year 10: $337B; Award step 6: $400B.Tesla, last twelve monthsTesla, last twelve months: $15.0B$15.0BAward step 1Award step 1: $50B$50BMy base case, year 10My base case, year 10: $69B$69BAward step 2Award step 2: $80B$80BAward step 3Award step 3: $130B$130BMy bull case, year 10My bull case, year 10: $214B$214BAward step 4Award step 4: $210B$210BAward step 5Award step 5: $300B$300BWhat the price needs, year 10What the price needs, year 10: $337B$337BAward step 6Award step 6: $400B$400BAdjusted EBITDA: today, the CEO award's steps and what the price needsTesla, last twelve months: $15.0B; Award step 1: $50B; My base case, year 10: $69B; Award step 2: $80B; Award step 3: $130B; My bull case, year 10: $214B; Award step 4: $210B; Award step 5: $300B; What the price needs, year 10: $337B; Award step 6: $400B.Tesla, last twelve monthsTesla, last twelve months: $15.0B$15.0BAward step 1Award step 1: $50B$50BMy base case, year 10My base case, year 10: $69B$69BAward step 2Award step 2: $80B$80BAward step 3Award step 3: $130B$130BMy bull case, year 10My bull case, year 10: $214B$214BAward step 4Award step 4: $210B$210BAward step 5Award step 5: $300B$300BWhat the price needs, year 10What the price needs, year 10: $337B$337BAward step 6Award step 6: $400B$400B
My year-ten Adjusted EBITDA is operating income plus 10.6% of revenue, the share that depreciation and stock pay were of revenue in the last twelve months. Source 10-Q Q3 2026; Q3 2026 Update; 2026 proxy [3][4][8]. Reported steps from the proxy; my cases are estimates.
Show the numbers
Adjusted EBITDA: today, the CEO award's steps and what the price needs
US$ billions
Tesla, last twelve months (reported)$15.0B
Award step 1 (reported)$50B
My base case, year 10 (estimate)$69B
Award step 2 (reported)$80B
Award step 3 (reported)$130B
My bull case, year 10 (estimate)$214B
Award step 4 (reported)$210B
Award step 5 (reported)$300B
What the price needs, year 10 (calculated)$337B
Award step 6 (reported)$400B

If all of that revenue were rides at $70K of revenue per vehicle-year, a figure I chose and Tesla does not report, the fleet would be 8.6 million robotaxis. Tesla’s own award asks for 1M. Waymo’s fleet is over 4,000 on a third-party report. (estimate)3831 At about 125 rides a vehicle a week, Waymo’s approximate pace from an April ride count and a September fleet count, $70K is a fare of $10.77 a ride. (calculated)3031

Robotaxis in service: where Tesla is, what its award asks and what the price needs

Thousands of vehicles.

  • Third party or Tesla target
  • My cases, year 10
  • What the price needs
Robotaxis in service: where Tesla is, what its award asks and what the price needsWaymo, over 4,000 (third-party report): 4+; My base case: 500; The CEO award's milestone: 1,000; My bull case: 2,500; The price, at my 40% margin: 8,571.Waymo, over 4,000 (third-party report)Waymo, over 4,000 (third-party report): 4+4+My base caseMy base case: 500500The CEO award's milestoneThe CEO award's milestone: 1,0001,000My bull caseMy bull case: 2,5002,500The price, at my 40% marginThe price, at my 40% margin: 8,5718,571Robotaxis in service: where Tesla is, what its award asks and what the price needsWaymo, over 4,000 (third-party report): 4+; My base case: 500; The CEO award's milestone: 1,000; My bull case: 2,500; The price, at my 40% margin: 8,571.Waymo, over 4,000 (third-party report)Waymo, over 4,000 (third-party report): 4+4+My base caseMy base case: 500500The CEO award's milestoneThe CEO award's milestone: 1,0001,000My bull caseMy bull case: 2,5002,500The price, at my 40% marginThe price, at my 40% margin: 8,5718,571Robotaxis in service: where Tesla is, what its award asks and what the price needsWaymo, over 4,000 (third-party report): 4+; My base case: 500; The CEO award's milestone: 1,000; My bull case: 2,500; The price, at my 40% margin: 8,571.Waymo, over 4,000 (third-party report)Waymo, over 4,000 (third-party report): 4+4+My base caseMy base case: 500500The CEO award's milestoneThe CEO award's milestone: 1,0001,000My bull caseMy bull case: 2,5002,500The price, at my 40% marginThe price, at my 40% margin: 8,5718,571
The last bar divides the revenue the price needs ($600B) by $70K of revenue per robotaxi-year, my estimate, as if all of it were rides; software and robots would lower it. Waymo's bar is 4,000 vehicles and too short to see. Source 10-Q Q3 2026; 2026 proxy; Drive Tesla Canada, Waymo [3][8][31]. Waymo is a third-party count; Tesla reports no fleet figure.
Show the numbers
Robotaxis in service: where Tesla is, what its award asks and what the price needs
Thousands of vehicles
Waymo, over 4,000 (third-party report)4+
My base case (estimate)500
The CEO award's milestone (reported)1,000
My bull case (estimate)2,500
The price, at my 40% margin (calculated)8,571

One robotaxi, as my base case implies it

Tesla reports no fare, ride, mile-per-vehicle or cost figure for Robotaxi. Everything here is my assumption or follows from it.

One robotaxi, as my base case implies it
ItemFigureBasis
Revenue per vehicle-year (estimate)$70KMy assumption; varied to $50K in the sensitivities
Fare that earns it at about 125 rides a vehicle a week (calculated)$10.77 a ride$70K over 125 rides a week for 52 weeks. 125 is Waymo’s approximate pace; I found no Waymo fare
Capital per vehicle (calculated)$46.7K$70K over the base case’s $1.50 of revenue per $1 of new capital, which covers the vehicle and its share of compute and depots
Operating margin after depreciation (estimate)40%, or $28.0KMy assumption, before autonomy R&D; the sensitivities show 30% and 50%
Payback on that capital (calculated)1.7 yearsCapital over contribution, at full use
Fleet added a year, base case (calculated)50,000 a year0.5 million in year ten, over ten years; Waymo’s fleet is over 4,000 on a third-party report
Not modelled (estimate)n/aRevenue per mile, miles a year, vehicle life and cost per mile: Tesla reports none and I found no primary figure for Waymo

Source Q3 2026 Update; Alphabet Q1 2026 release; Drive Tesla Canada, Waymo [4][30][31]. Judgements are my estimates.

What the price assumes

Value per share by autonomy and robotics revenue in year ten and its margin after depreciation. Bold is at or above $403.30.

What the price assumes
Autonomy revenue, year 1030% margin40%50%60%
$70B, my base case (estimate)$51$65$79$93
$150B (estimate)$86$116$146$177
$265B, my bull case (estimate)$136$190$243$296
$400B (estimate)$195$276$356$436
$600B, about what the price needs at 40% (estimate)$283$403$524$644
$800B (estimate)$370$531$692$852

Every cell uses my base case for vehicles, energy, R&D, compute and capital, a 10% discount rate and 3.0% growth after year 15; only year-ten autonomy revenue and its margin change. At a 60% margin, which is software-like, the price still needs $368B of revenue, more than my bull case. Source 10-Q Q3 2026; Q3 2026 Update [3][4]. Judgements are my estimates.

Even a software-like 60% margin leaves the price needing $368B of autonomy revenue. (estimate)494 My bull case has $265B at 50%, and it earns 7.8% a year at the price.

The discount rate

I use 10%, the rate on my NVIDIA, Palantir and TSMC pages, so that the pages can be compared. For Tesla it is the favourable end of the range. The capital asset pricing model gives 12.7% on Damodaran’s own basis: his 4.20% equity risk premium of 1 October is measured against a 5.29% Treasury yield, and Tesla’s beta against the S&P 500 is 1.75 over 60 months. Pairing the premium with the 5.00% yield of Q4 2026 mixes dates and gives 12.4%. The 36-month beta of 1.68 gives 12.4% and the ten-year beta of 1.92 gives 13.4% on his basis. (calculated)333435 Beta measures how the stock moves with the market and nothing else, and my case weights are probabilities, not a risk premium. At 12.7% my base case is worth $41, my bull case $179 and my probability-weighted value $67, against $110 at 10%. (estimate)

My cases at other discount rates

Value per share; discount rate down the side.

My cases at other discount rates
Discount rateBearBaseBullWeighted
8.0% (estimate)$18$103$500$177
9.0% (estimate)$16$81$383$137
10.0%, my rate (estimate)$15$65$303$110
11.0% (estimate)$14$54$246$90
12.0% (estimate)$14$45$203$75
12.7%, CAPM on Damodaran’s basis, 60-month beta (1.75) (estimate)$13$41$179$67

The price is $403.30. At 8%, below any rate the betas give, my bull case is worth $500. Weights are 30% bear, 45% base and 25% bull. The bull case includes award dilution. The 12.7% row pairs Damodaran's 4.20% premium with the 5.29% Treasury rate it is measured against; with the 5.00% rate of Q4 2026 the CAPM rate is 12.4%. Source U.S. Treasury yields; Damodaran ERP; Yahoo monthly prices [33][34][35]. Judgements are my estimates.

Three cases

Each case runs three businesses for fifteen years and then a terminal value: vehicles and services, energy, and autonomy and robotics. Vehicles and services start from $90.1B of revenue and energy from $12.6B, with the margins in the table below, which remove credits and refunds and charge the $4.3B rise in R&D since 2024 to autonomy. (calculated)349 Autonomy and robotics start at zero revenue and carry that cost.

From reported operating income to the profit I value

US$ billions, twelve months to September 2026. Interest income, the SpaceX mark and the bitcoin mark sit below operating income and are left out of free cash flow.

From reported operating income to the profit I value
StepAmountShare of revenue
Operating income as reported (reported)$3.47B3.3% of $103.6B
Less: net tariff refunds in Q3 2026 gross profit (reported)−$0.45B
Less: regulatory credits, which carry almost no cost (reported)−$1.18B
Core operating income, after all R&D (calculated)$1.84B1.8% of $102.7B
Add: R&D above the 2024 level, which I charge to autonomy and robotics (calculated)$4.32B
Vehicles and services, before autonomy costs (estimate)$4.20B4.7% of $90.1B
Energy, before autonomy costs (estimate)$1.96B15.6% of $12.6B
Starting point of my model (estimate)$6.16B6.0%

Revenue of $102.7B is reported revenue less $1.18B of credits plus $0.34B of customer tariff refunds. I split gross profit between vehicles and energy from the segment lines ($14.9B and $3.5B after removing credits and refunds) and spread the remaining operating costs by revenue. Tesla reports no segment operating income, so every vehicle versus energy margin on this page is my allocation by revenue. Source 10-Q Q3 2026; Q3 2026 Update; 10-K FY2025; SEC XBRL facts [3][4][5][9]. Figures calculated from reported data.

I count stock pay as a cost, as under GAAP, which includes about $1.1B a year of expense on the 2025 award, and tax at 20%, against 27% in 2025 and 16% in Q3 2026. Each case also spends on compute and the fleet before revenue arrives. (estimate)35

The vehicle margin is the assumption that moves the core most, so the table sets it against the past. Without credits and refunds, company operating margin was 14.9% in 2022, 7.5% in 2023, 4.5% in 2024 and 2.5% in 2025. In the last twelve months it was 1.8%, or 6.0% before the R&D rise. My base case reaches 10.8% for vehicles, services and energy by year ten, between 2023 and 2022, and it needs volume back toward installed capacity, because factories made at most 74% of what they can. The bear case holds today’s 5% on vehicles, so it is not a shock to the core. (calculated)34912

Operating margin, 2022 to today, against what my cases assume

Company-wide operating margin as reported, without regulatory credits and tariff refunds, and without credits and before the rise in R&D above its 2024 level, which I charge to autonomy. The case rows are vehicles, services and energy combined, before autonomy cost.

Operating margin, 2022 to today, against what my cases assume
Period or caseAs reportedWithout credits and refundsAnd before the R&D rise since 2024
2022 (calculated)16.8%14.9%14.9%
2023 (calculated)9.2%7.5%7.5%
2024 (calculated)7.2%4.5%4.5%
2025 (calculated)4.6%2.5%4.6%
Twelve months to September 2026 (calculated)3.3%1.8%6.0%
Bear case, year 10: vehicles and services 5%, energy 10% (estimate)5.8%
Base case, year 10: vehicles and services 9%, energy 18% (estimate)10.8%
Bull case, year 10: vehicles and services 13%, energy 22% (estimate)14.8%

The base case reaches 10.8% by year ten, between 2023 (7.5%) and 2022 (14.9%). It needs volume back toward installed capacity, because factories made at most 74% of what they can. Credits are subtracted at their full revenue because they carry almost no cost. The twelve-month figure also removes the $447M of net tariff refunds in Q3 2026 gross profit. Source 10-Q Q3 2026; Q3 2026 Update; 10-K FY2025; SEC XBRL facts; 10-K FY2024; 10-K FY2023; 10-K FY2022; 10-K FY2021; 10-K FY2020; 10-K FY2018 [3][4][5][9][10][11][12][13][14][16]. Figures calculated from reported data.

Three cases

Each case is built from revenue by business down to free cash flow after stock pay. US$ billions; years run October to September, so year one ends September 2027.

Bear, base and bull cases
BearBaseBull
Revenue, year 1 (to Sep 2027), growth on $102.7B of core revenue (estimate)$106.5B (+3.7%)$113.0B (+10.0%)$118.7B (+15.5%)
Revenue, year 10 (to Sep 2036) (estimate)$132.4B$259.6B$521.7B
Vehicles and services growth a year, years 1 to 10 (estimate)1.8%5.4%8.5%
Vehicles and services revenue, year 10 (estimate)$107.7B$152.4B$204.2B
Vehicles and services operating margin, years 1 / 5 / 10 (estimate)5.0% / 5.0% / 5.0%5.5% / 9.0% / 9.0%6.5% / 12.5% / 13.0%
Energy growth a year, years 1 to 10 (estimate)5.4%11.4%15.4%
Energy revenue, year 10 (estimate)$21.3B$37.2B$52.6B
Energy operating margin, years 1 / 5 / 10 (estimate)12.0% / 10.0% / 10.0%16.0% / 18.0% / 18.0%17.0% / 22.0% / 22.0%
Robotaxis in service, year 10 (at $70K of revenue each) (estimate)0.02M ($1.4B)0.50M ($35.0B)2.50M ($175.0B)
Software and robot revenue, year 10 (estimate)$2.0B$35.0B$90.0B
Autonomy and robotics revenue, year 10 (estimate)$3.4B$70.0B$265.0B
Autonomy margin, after depreciation and before R&D (estimate)20%40%50%
Autonomy R&D and compute cost, years 1 / 5 / 10 (estimate)$4.3B / $2.0B / $2.0B$4.5B / $6.5B / $7.0B$5.0B / $9.0B / $12.0B
Compute and fleet built ahead of revenue, years 1 to 5 (estimate)$9B$29B$60B
Operating margin (GAAP), years 1 / 5 / 10 (estimate)1.9% / 4.1% / 4.7%3.2% / 9.0% / 16.0%4.5% / 17.8% / 30.4%
Core revenue per $1 of new capital (estimate)$1.40$1.90$2.50
Free cash flow before award dilution, years 1 / 5 / 10 / 15 (estimate)−$7.1B / $1.6B / $2.4B / $3.3B−$11.7B / $1.0B / $23.2B / $39.5B−$14.5B / $4.6B / $107.8B / $188.9B
Growth after year 15 (estimate)2.5%3.0%3.5%
Value after year 15, share of the total (estimate)20%60%66%
Award tranches vested by year 10 (estimate)NoneNone2
Award dilution, value per share (estimate)NoneNone−$3.09
Weight (estimate)30%45%25%
Value per share (estimate)$15$65$303
Versus the price, Q4 2026 (calculated)−96%−84%−25%
Bear
Autonomy stays supervised and Tesla stops the build by year three; price competition holds vehicles to a 5% margin and energy to 10%.
Base
Autonomy works in U.S. cities at 0.5 million robotaxis and $35B of software and robots by year ten; vehicles earn 9% and energy 18% once volume recovers, and the build costs $29B before the revenue arrives.
Bull
The plan works: 2.5 million robotaxis and $90B of software and robots by year ten at a 50% margin, vehicles earn 13%, energy 22%, and two award tranches vest.

Source Nasdaq quote; 10-Q Q3 2026; Q3 2026 Update; 10-K FY2025; 2026 proxy; 2025 proxy; U.S. Treasury yields; Damodaran ERP; Yahoo monthly prices; Yahoo daily closes, one year [49][3][4][5][8][20][33][34][35][36]. Assumptions and values are my estimates.

The three paths, year by year

US$ billions; years run October to September, so year one ends September 2027.

The three paths, year by year
TTMYear 1Year 2Year 3Year 5Year 10Year 15
Bear: revenue (estimate)$103.6B$106.5B$107.6B$109.7B$115.6B$132.4B$150.5B
Bear: operating income (estimate)$3.5B$2.0B$2.8B$3.8B$4.7B$6.2B$7.4B
Bear: free cash flow before award dilution (estimate)−$2.4B−$7.1B−$1.6B$1.6B$1.6B$2.4B$3.3B
Base: revenue (estimate)$103.6B$113.0B$123.5B$135.0B$163.2B$259.6B$325.9B
Base: operating income (estimate)$3.5B$3.7B$5.6B$8.1B$14.7B$41.4B$57.4B
Base: free cash flow before award dilution (estimate)−$2.4B−$11.7B−$9.2B−$5.8B$1.0B$23.2B$39.5B
Bull: revenue (estimate)$103.6B$118.7B$137.5B$160.3B$231.4B$521.7B$767.0B
Bull: operating income (estimate)$3.5B$5.4B$9.9B$15.9B$41.2B$158.6B$259.4B
Bull: free cash flow before award dilution (estimate)−$2.4B−$14.5B−$14.1B−$9.3B$4.6B$107.8B$188.9B

TTM revenue and operating income are reported; TTM free cash flow is calculated, after stock pay and without interest on cash. Years 1 to 15 are my model: free cash flow is after tax and after the capital the growth needs, and before award dilution, which lowers the bull value by $3 a share and is a line in 'What the price pays for'. Source 10-Q Q3 2026; Q3 2026 Update [3][4]. Judgements are my estimates.

The bear case is that autonomy stays supervised and Tesla stops the build by year three. Price competition holds vehicles to a 5% margin, about today’s level, and energy to 10%. Free cash flow is negative for two years and reaches $2.4B in year ten. The value is $15: the core at today’s margins with no recovery is worth $23 with cash, the autonomy spending takes off $7, and cash is $11 of the total. (estimate)34

The base case is that autonomy works in U.S. cities at 0.5 million robotaxis, which is at most 125 times Waymo’s fleet today and 50,000 added a year for ten years, with $35B of software and robots on top, and the business earns a 40% margin before its R&D. Vehicles earn 9% and energy 18% once volume recovers. Free cash flow is negative for four years, $29B in total, which cash covers, and reaches $23.2B in year ten. (estimate)3431 Year-ten Adjusted EBITDA is $69B, above the award’s first step and below its second.8

The bull case is that the plan works: 2.5 million robotaxis, $90B of software and robots, a 50% autonomy margin, 13% on vehicles and 22% on energy. Year-ten revenue is $522B and Adjusted EBITDA $214B, past four of the award’s six EBITDA steps. The year-ten value of $689 a share would vest two tranches, which costs holders $3 a share and overlaps, by at most that, the award expense already in my margins. (estimate)820 Growth after year 15 is 2.5% in the bear case, 3.0% in the base and 3.5% in the bull, each continuing its last forecast year for vehicles and services; at 3.0% the bull value is $288.

I weight the cases 30%, 45% and 25%, which gives $110. The weights are my judgement. No weighting reaches the price: 100% on the bull case is $303, and the table shows two others. (estimate)34

What the case weights do

Probability-weighted value per share at different weights on bear, base and bull. The weights are my judgement.

What the case weights do
Weights: bear, base, bullValue per shareAgainst the price
30%, 45%, 25%, mine (estimate)$110−73%
20%, 40%, 40% (estimate)$150−63%
40%, 40%, 20% (estimate)$93−77%
0%, 0%, 100% (estimate)$303−25%

No weighting of the three cases reaches the price. I would move weight to the bull case if Tesla reported ride, fleet and revenue figures that track my base path, and to the bear case if it reported none by Q3 2028. Source Nasdaq quote [49]. Judgements are my estimates.

What it is worth, against the price

Value per share in US dollars. My bear, base and bull cases against the closing price in Q4 2026.

  • Bear to bull range
  • Base case $65
  • Price, Q4 2026 close $403.30
  • Margin-of-safety zone below $46
What it is worth, against the priceValue per share: bear $15, base $65, bull $303. Price in Q4 2026: $403.30, 518% above the base value. Margin-of-safety price $46.Margin-of-safety zone: below $46$0$200$400$600Bear to bull: $15 to $303Bear case: $15 per shareBase case: $65 per shareBull case: $303 per shareBEAR$15BASE$65BULL$303Price in Q4 2026: $403.30Price $403.30Close, Q4 2026Margin of safety below $46What it is worth, against the priceValue per share: bear $15, base $65, bull $303. Price in Q4 2026: $403.30, 518% above the base value. Margin-of-safety price $46.Margin-of-safety zone: below $46$0$200$400$600Bear to bull: $15 to $303Bear case: $15 per shareBase case: $65 per shareBull case: $303 per shareBEAR$15BASE$65BULL$303Price in Q4 2026: $403.30Price $403.30Close, Q4 2026Margin of safety below $46What it is worth, against the priceValue per share: bear $15, base $65, bull $303. Price in Q4 2026: $403.30, 518% above the base value. Margin-of-safety price $46.Margin-of-safety zone: below $46$0$200$400$600Bear to bull: $15 to $303Bear case: $15 per shareBase case: $65 per shareBull case: $303 per shareBEAR$15BASE$65BULL$303Price in Q4 2026: $403.30Price $403.30Close, Q4 2026Margin of safety below $46
Source Nasdaq quote; 10-Q Q3 2026; Q3 2026 Update; 10-K FY2025; 2026 proxy; 2025 proxy; U.S. Treasury yields; Damodaran ERP; Yahoo monthly prices; Yahoo daily closes, one year [49][3][4][5][8][20][33][34][35][36]. Case values are my estimates; the margin-of-safety price is calculated; the price is reported.
Show the numbers
What it is worth, against the price
Per shareAgainst the price
Bear case (estimate)$1596% below price
Base case (estimate)$6584% below price
Bull case (estimate)$30325% below price
Margin-of-safety price (calculated)$4689% below price
Price, Q4 2026 (reported)$403.30

What the price pays for

Value per share by business at a 10% discount rate, against the $403.30 price. The market does not split its price; the last rows show how far it sits above each case.

What the price pays for
Per shareBearBaseBull
Cash and investments, net of debt (calculated)$11.06$11.06$11.06
Vehicles and services (estimate)$8.30$21.63$47.28
Energy (estimate)$3.33$11.66$22.05
Autonomy and robotics, after its R&D and build (estimate)−$7.42$20.87$226.02
2025 CEO award dilution (estimate)$0.00$0.00−$3.09
Value per share (estimate)$15.27$65.21$303.32
Price, Q4 2026 (reported)$403.30$403.30$403.30
Price above value (calculated)$388.03$338.09$99.98

Vehicles, services and energy plus cash are worth $44.35 in the base case if vehicle margin recovers to 9% and energy to 18%, 11% of the price. The parts add up because the model is linear in each business's cash flow. Bull-case dilution is the cost of the award tranches its year-10 value would vest. Source Nasdaq quote; 10-Q Q3 2026; Q3 2026 Update; 10-K FY2025 [49][3][4][5]. Judgements are my estimates.

What the price pays for

Value per share at a 10% discount rate, against the price. The light segment is the part of the price my base case does not explain.

  • Cash, vehicles, services and energy
  • Autonomy and robotics
  • Price beyond my base case
What the price pays forWhat the price pays for. Price: $44 per share cash, vehicles, services and energy, $21 per share autonomy and robotics, $338 per share price beyond my base case; My base: $44 per share cash, vehicles, services and energy, $21 per share autonomy and robotics; My bull: $80 per share cash, vehicles, services and energy, $226 per share autonomy and robotics; My bear: $23 per share cash, vehicles, services and energy.PricePrice, cash, vehicles, services and energy: $44 of $403Price, autonomy and robotics: $21 of $403Price, price beyond my base case: $338 of $403$403.30My baseMy base, cash, vehicles, services and energy: $44 of $65My base, autonomy and robotics: $21 of $65$65My bullMy bull, cash, vehicles, services and energy: $80 of $306My bull, autonomy and robotics: $226 of $306$306My bearMy bear, cash, vehicles, services and energy: $23$15What the price pays forWhat the price pays for. Price: $44 per share cash, vehicles, services and energy, $21 per share autonomy and robotics, $338 per share price beyond my base case; My base: $44 per share cash, vehicles, services and energy, $21 per share autonomy and robotics; My bull: $80 per share cash, vehicles, services and energy, $226 per share autonomy and robotics; My bear: $23 per share cash, vehicles, services and energy.PricePrice, cash, vehicles, services and energy: $44 of $403Price, autonomy and robotics: $21 of $403Price, price beyond my base case: $338 of $403$403.30My baseMy base, cash, vehicles, services and energy: $44 of $65My base, autonomy and robotics: $21 of $65$65My bullMy bull, cash, vehicles, services and energy: $80 of $306My bull, autonomy and robotics: $226 of $306$306My bearMy bear, cash, vehicles, services and energy: $23$15What the price pays forWhat the price pays for. Price: $44 per share cash, vehicles, services and energy, $21 per share autonomy and robotics, $338 per share price beyond my base case; My base: $44 per share cash, vehicles, services and energy, $21 per share autonomy and robotics; My bull: $80 per share cash, vehicles, services and energy, $226 per share autonomy and robotics; My bear: $23 per share cash, vehicles, services and energy.PricePrice, cash, vehicles, services and energy: $44 of $403Price, autonomy and robotics: $21 of $403Price, price beyond my base case: $338 of $403$403.30My baseMy base, cash, vehicles, services and energy: $44 of $65My base, autonomy and robotics: $21 of $65$65My bullMy bull, cash, vehicles, services and energy: $80 of $306My bull, autonomy and robotics: $226 of $306$306My bearMy bear, cash, vehicles, services and energy: $23$15
In the price row the first two segments are my base-case values, so the light segment is the price less my base value, $338. The bull row is before $3 of award dilution. In the bear row autonomy is worth −$7.4, so the bar shows cash and the businesses before it. Source Nasdaq quote; 10-Q Q3 2026; Q3 2026 Update [49][3][4]. The price is reported; the split is my estimate.
Show the numbers
What the price pays for
Cash, vehicles, services and energyAutonomy and roboticsPrice beyond my base caseTotal
Price (calculated)$44$21$338$403
My base (estimate)$44$210$65
My bull (estimate)$80$2260$306
My bear (estimate)$2300$23

What closes the gap

My base value for vehicles, services, energy and cash is about $44 a share if margins recover to 9% and 18%: vehicles $22, energy $12 and cash $11. (estimate)493 That is 11% of the price. At today’s margins it is $28 before the $4.3B rise in R&D and $9 after it, and the table shows the range, including a floor for a shock to the core. The base case adds $21 for autonomy after its cost, and the remaining $338 is not in my base case. In my base case autonomy is worth −$3 a share over the first fifteen years and $24 after them, so the value after year 15 is 113% of its $21. (estimate)

What vehicles, services, energy and cash are worth at different margins

Value per share with no autonomy revenue or spending, at the base case's growth unless stated, a 10% discount rate and $11.06 of cash and investments per share. Margins are operating margins before autonomy cost.

What vehicles, services, energy and cash are worth at different margins
CaseVehicles and services marginEnergy marginValue per shareShare of the price
Today’s margins after the $4.3B rise in R&D (estimate)0.5%11.3%$92%
Today’s margins, before the rise (estimate)4.7%15.6%$287%
Bear-case margins, no autonomy spending (estimate)5.0%10.0%$236%
Core impairment: vehicle revenue down 10% in year one, then 2% a year (estimate)1.0%10.0%$154%
My base case: margins recover (estimate)9.0%18.0%$4411%
Bull-case margins (estimate)13.0%22.0%$6015%

The first line charges the whole rise in R&D to the core, which leaves a 1.8% operating margin. Cash is $11.06 of every figure. The margin of 5% on vehicles and services is about today's, so my bear case is the core at today's margin, not a shock to it; the impairment line is the floor for a shock. Source Nasdaq quote; 10-Q Q3 2026; Q3 2026 Update; 10-K FY2025 [49][3][4][5]. Judgements are my estimates.

One input does most of the work. Swapping in the bull case’s autonomy revenue alone takes the base from $65 to $206; its margin adds $60, vehicles $20 and energy $8. The bull case’s R&D and capital path lowers the value by $7, and its 3.5% growth after year 15 adds $15. (estimate)34

From my base to my bull, one change at a time

Value per share when one group of base-case assumptions is replaced by the bull case's; everything else as in the base case.

From my base to my bull, one change at a time
ChangeValueAgainst the price
My base case (estimate)$65−84%
Vehicles and services: bull growth and margin (estimate)$85−79%
Energy: bull growth and margin (estimate)$73−82%
Autonomy and robotics revenue: bull fleet, software and timing (estimate)$206−49%
Autonomy margin: 50% in place of 40% (estimate)$79−80%
Autonomy R&D, compute and capital: bull path (estimate)$51−87%
Core capital: $2.50 of revenue per $1 of new capital (estimate)$68−83%
Growth after year 15: 3.5% in place of 3.0% (estimate)$68−83%
All bull inputs together, before award dilution (estimate)$306−24%
Bull value after award dilution (estimate)$303−25%

The price is $403.30. Autonomy revenue alone takes the base to $206. Applied in order, autonomy revenue adds $140, its margin $60, the bull R&D and capital path −$7, vehicles $20, energy $8, core capital $5 and growth after year 15 $15. Source Nasdaq quote [49]. Judgements are my estimates.

Other single changes to the base: autonomy revenue of zero, with the spending kept, gives $21; a vehicle margin 2 points lower gives $58 and 2 points higher $73; an energy margin 4 points lower gives $62 and 4 points higher $69; energy growth of 5% in years one and two gives $63; a 25% tax rate gives $60; $50K of revenue per robotaxi in place of $70K gives $59; a 30% autonomy margin gives $51. (estimate)35 The value after year 15 is 60% of my base, 20% of the bear and 66% of the bull.

Where each case's value comes from

Value per share at a 10% discount rate, split by when the cash arrives.

  • Cash and years 1 to 10
  • Years 11 to 15
  • After year 15
Where each case's value comes fromWhere each case's value comes from. Bear: $11 per share cash and years 1 to 10, $1 per share years 11 to 15, $3 per share after year 15; Base: $12 per share cash and years 1 to 10, $14 per share years 11 to 15, $39 per share after year 15; Bull: $40 per share cash and years 1 to 10, $62 per share years 11 to 15, $201 per share after year 15.BearBear, cash and years 1 to 10: $11 of $15Bear, years 11 to 15: $1 of $15Bear, after year 15: $3 of $15$15, 27% lateBaseBase, cash and years 1 to 10: $12 of $65Base, years 11 to 15: $14 of $65Base, after year 15: $39 of $65$65, 81% lateBullBull, cash and years 1 to 10: $40 of $303Bull, years 11 to 15: $62 of $303Bull, after year 15: $201 of $303$303, 87% lateWhere each case's value comes fromWhere each case's value comes from. Bear: $11 per share cash and years 1 to 10, $1 per share years 11 to 15, $3 per share after year 15; Base: $12 per share cash and years 1 to 10, $14 per share years 11 to 15, $39 per share after year 15; Bull: $40 per share cash and years 1 to 10, $62 per share years 11 to 15, $201 per share after year 15.BearBear, cash and years 1 to 10: $11 of $15Bear, years 11 to 15: $1 of $15Bear, after year 15: $3 of $15$15, 27% lateBaseBase, cash and years 1 to 10: $12 of $65Base, years 11 to 15: $14 of $65Base, after year 15: $39 of $65$65, 81% lateBullBull, cash and years 1 to 10: $40 of $303Bull, years 11 to 15: $62 of $303Bull, after year 15: $201 of $303$303, 87% lateWhere each case's value comes fromWhere each case's value comes from. Bear: $11 per share cash and years 1 to 10, $1 per share years 11 to 15, $3 per share after year 15; Base: $12 per share cash and years 1 to 10, $14 per share years 11 to 15, $39 per share after year 15; Bull: $40 per share cash and years 1 to 10, $62 per share years 11 to 15, $201 per share after year 15.BearBear, cash and years 1 to 10: $11 of $15Bear, years 11 to 15: $1 of $15Bear, after year 15: $3 of $15$15, 27% lateBaseBase, cash and years 1 to 10: $12 of $65Base, years 11 to 15: $14 of $65Base, after year 15: $39 of $65$65, 81% lateBullBull, cash and years 1 to 10: $40 of $303Bull, years 11 to 15: $62 of $303Bull, after year 15: $201 of $303$303, 87% late
Cash is the $39.2B of cash and short-term investments less debt and minority interests, plus SpaceX and bitcoin, $11.06 a share. The base case spends more than it earns for four years, so its years 1 to 10 are mostly cash. Source 10-Q Q3 2026; Q3 2026 Update; 10-K FY2025 [3][4][5]. My estimates.
Show the numbers
Where each case's value comes from
Cash and years 1 to 10Years 11 to 15After year 15Total
Bear (estimate)$11$1$3$15
Base (estimate)$12$14$39$65
Bull (estimate)$40$62$201$303

The margin of safety

  • Price$403.30Close, Q4 2026 [49]
  • Base value$65My estimate (estimate)
  • Margin of safety below$46my base value less 30%, to the nearest dollar (calculated)

My rule for the discount to base value is 25% for a business with net cash and no customer above a tenth of revenue, 30% when one cycle or two customers drive results, and 35% when fixed charges such as leases sit ahead of the shares. Tesla’s vehicle earnings follow the car cycle, so it takes the 30% tier. Two facts argue against going lower: one person controls both the company and the outcome the price rests on, and the board’s cap on his pledge-backed borrowing exempts pledges for taxes and the award offset.358 That gives $46. The price is 777% above that line, so the stock would have to fall 89% to reach it. (calculated)

I did not set the line from the core value. They land close, $46 against $44, only if margins recover; at today’s margins vehicles, services, energy and cash are worth $28, below the line. At the line my base case returns 13.2% a year and my bear case loses 4.4%, holding fifteen years and selling at my year-15 value at a 10% rate. (estimate) At the CAPM rate of 12.7% my base is $41, so the $46 line sits above it, and the same discount would put the line at $29. The lowest close of the past year was $298.32, on 29 July 2026, still 6.5 times the line. (calculated)3652

What each case is worth at a given price

Value against price, and the yearly return my cash flows give at that price: hold fifteen years, take my free cash flow each year and sell at my 10% value in year 15.

What each case is worth at a given price
At a price ofBear valueBase valueBull valueReturn a year: bear, base, bull
$403.30, the close in Q4 2026 (estimate)−96%−84%−25%−19.2%, −3.8%, 7.8%
$46, the margin-of-safety price (estimate)−67%+42%+559%−4.4%, 13.2%, 27.5%

At the margin-of-safety price the bear value is 33% of the price and the probability-weighted value of $110 is 139% above it. A return below 10% means the price is above my value at 10%; at the CAPM rate of 12.7% my base value is $41. Source Nasdaq quote [49]. Judgements are my estimates.

Where this could be in 5 and 10 years

I value each case at a date the way I value it today. It is the present value of the free cash flow after that date, per share, in that year's dollars. (estimate)

My three cases in 5 and 10 years

US dollars per share on today's 3,541M shares. Year 5 is September 2031 and year 10 is September 2036. Value is in the dollars of that date; cash is owner cash from today to September 2036; the return runs from today's price to September 2036.

My three cases in 5 and 10 years
CaseValue, Sep 2031Value, Sep 2036Cash to Sep 2036Return a year
Bear (estimate)$20$22$2−24.7%
Base (estimate)$109$145$13−8.9%
Bull (estimate)$501$689$86+6.8%

Value at a date is the present value, at 10%, of the free cash flow after it, plus today's $11 a share of cash and investments net of debt. Owner cash is my free cash flow after stock pay, summed over years 1 to 10; it is negative while Tesla builds. The return a year takes that cash each year and sells at the year-10 value. The bull is before $3 of award dilution. The page gives free cash flow for years 1, 2, 3, 5, 10 and 15; I fill in the years between. Source My model, from 'Three cases'. Judgements are my estimates.

For my base to be right at five years, Tesla has to reach $163B of revenue and a 9% operating margin by September 2031. Free cash flow has to turn positive, at $1.0B, after $29B of build. For ten years it has to reach $260B of revenue and $23B of free cash flow. That needs 0.5 million robotaxis and $35B of software and robots at a 40% margin. (estimate) The base value goes from $65 to $109 to $145 mostly because time passes at a 10% rate. Owners get $13 a share in cash over the ten years.

The cases differ on three numbers. One is autonomy revenue in year ten: $3B, $70B or $265B. One is the margin on vehicles, 5%, 9% or 13%. One is the capital the growth needs. The bull's $689 comes from 2.5 million robotaxis. Even there, today's price earns 6.8% a year over ten years, under my 10% rate. (estimate)

The most likely way my base is wrong is autonomy. It supplies $70B of year-ten revenue from zero, and Tesla reports no robotaxi revenue, fleet or ride figure. At a 30% margin instead of 40%, the base is $51 today, not $65. At a 12.7% discount rate it is $41. (estimate)

The next best use of the same dollar is another page here. Alphabet owns Waymo, the robotaxi business Tesla is chasing, and my base case returns 5.4% a year over ten years on it, against −8.9% for Tesla.3058 Quality and price are separate questions. Tesla looks like a business I cannot yet judge, at a price that does not wait: 6.2 times my base value. The price needs several things at once: $600B of autonomy revenue, a 40% margin and vehicles back at 9%. At even odds on each, all three come to one in eight, and $600B is more than twice my bull case’s $265B (estimate).

These are estimates of value, not forecasts of the share price. The market price can sit above or below value for years.

The case for the price

What most people miss

Tesla’s Q3 Update lists a Cybercab line of more than 125,000 a year in Texas. That is 2.5 times the 50,000 a year my base case adds, and it sits outside the 2.38M of car capacity I used earlier. (calculated)4 Tesla’s Lars Moravy said on the call that the listed figure is the rate Tesla can run today, and that “the actual capacity of that vehicle line is significantly higher”.54

Energy customers are paying ahead. Their prepayments rose from $2.04B to $3.30B in nine months, while energy revenue fell 6%. SpaceX accounts for $648M of deferred revenue, and contract revenue due within a year slipped from $4.96B to $4.80B.35 Musk said Tesla is “almost sold out of all Megapacks for 2027”.54

Half of FSD’s more than 1.7M paying customers now pay by subscription, Vaibhav Taneja said. The filings do not give that split.54

The bull case

The fullest case is ARK’s. On 19 October 2026 Tasha Keeney and Daniel Maguire published an open model that runs 32 inputs through a simulation. It gives an expected value of about $4,400 a share in 2031, with about $3,300 and $5,000 at the 25th and 75th percentiles. Its base has 8.1M robotaxis, $753B of net ride-hail revenue, $212B from Optimus and $902B of EBITDA, and it puts about 80% of enterprise value on robotaxis.57 The workbook on GitHub shows a saved run that averages $4,342, and ARK notes that each run differs.55

Ron Baron puts it per car. His letter of 4 August 2026 says a robotaxi will cost Tesla $30,000 and that robotaxis “could each earn Tesla $50,000 to $60,000 cash flow every year”. A car sold once earns $7,000 to $10,000.56 On the Q3 call Taneja said that “using exponential math” Robotaxi would become a significant part of revenue and profit in 2027. Musk said it starts to show around Q2 2027 and is “probably a big deal by Q3 or Q4”.54

Against reality

To reach the price, my model needs $600B of autonomy and robot revenue by September 2036 at a 40% margin, with everything else on my base case. That is $337B of Adjusted EBITDA, profit before depreciation and stock pay. Today it is $15.0B. (estimate)4

If Tesla has about 257,000 robotaxis and $34B of autonomy and robot revenue by September 2029, then 857,000 and $120B by September 2031, reaches $600B by September 2036, and vehicles and energy hit my base margins, the price is possible. (estimate) That is my base path, scaled up 8.6 times.

Today’s numbers are a long way off. Tesla reports nearly 2M unsupervised miles, but no ride count, fleet count or Robotaxi revenue.4 The revenue needed is 8.6 times my base and 2.3 times my bull. (calculated) My base gives one robotaxi $28.0K of operating profit a year, about half of Baron’s figure, on a stricter measure. (estimate) ARK’s reported 2031 EBITDA of $902B is 2.7 times the $337B, about five years sooner, on a different definition. (calculated)57

The Cybercab line at its listed rate makes 375,000 by September 2029 and 625,000 by September 2031. (calculated) That clears the first date. The second needs more lines or customers’ cars. Taneja said the key is regulatory approval to deploy them as fast as Tesla can build them.54

What they have to hit

Tesla gives no fleet count, so these are six lines it does publish. The FSD, margin and energy thresholds match my signposts in the next section.

The six lines to check

Each row is published on a schedule. The case column uses my model; the next check is the next document that carries the line.

The six lines to check
IndicatorTodayWhat the case needsWhere to track itNext check
Cybercab line capacity (estimate)More than 125,000 a year, Texas, in production4About 300,000 a year by September 2029, the rate that adds 600,000 robotaxis in two years, or customers’ cars in the network (estimate)Quarterly Update, Installed Annual Manufacturing Capacity table, Cybercab rowQ4 2026 Update, expected late January 2027
Services and other revenue (estimate)$16.3B in the last twelve months, $4.6B in Q3. Robotaxi is booked here, with Supercharging and insurance454About $18B of rides added by September 2029 and $60B by September 2031, at $70K a vehicle-year. My base path adds about $2B and $7B (estimate)Quarterly Update, financial summary, Services and other revenue line. Add four quartersQ4 2026 Update, expected late January 2027
Active FSD subscriptions (estimate)1.74M, up from 1.04M a year earlier. The count includes upfront buyers45M by the end of 2027, on the way to the 10M the award asks for8Quarterly Update, operational summary, Active FSD Subscriptions lineQ4 2026 Update, expected late January 2027
Vehicle gross margin without credits (estimate)18.1% in Q3 with the tariff refund. Last twelve months 17.8%, or 17.4% without it34Above 21% for four quarters, which my 9% vehicle operating margin needs (estimate)Quarterly Update, GAAP to non-GAAP reconciliation, automotive gross margin excluding regulatory credit sales. Published by quarterQ4 2026 Update, expected late January 2027
Energy storage deployed (estimate)50.2 GWh in the last twelve months, 13.7 GWh in Q3; 23.8% gross margin in Q3 without one-offs34Above 65 GWh a year with gross margin above 25% (estimate)GWh: Tesla’s quarterly production, deliveries and deployments 8-K, or Update, Storage deployed line. Margin: 10-Q, MD&A, energy generation and storage gross marginQ4 deliveries release, expected early January 2027
Adjusted EBITDA (estimate)$15.0B in the last twelve months4$337B by September 2036. The award’s first step is $50B8. My base has $69B and my bull $214B (estimate)Quarterly Update, financial summary, Adjusted EBITDA line. Add four quarters; the trailing twelve months page only charts itQ4 2026 Update, expected late January 2027

Source 10-Q Q3 2026; Q3 2026 Update; 2026 proxy; Q3 2026 call [3][4][8][54]. Tesla has not set the dates; last year’s came on 2 and 28 January [18][43]. Tesla posts each Update free at ir.tesla.com (opens in a new tab) and SEC EDGAR (opens in a new tab). Judgements are my estimates.

Where I come down

The Cybercab line moved me more than the prepayments, because the factory does not stop the 2029 path. ARK’s fleet did not, at 16 times my base fleet and five years sooner. A reported autonomy revenue line tracking $4B in year three and $14B in year five would raise my values. So would the listed line run full for ten years: 1.25M robotaxis against my 0.5M lifts my base to about $98, still under a quarter of the price. (estimate)

Risks, and what would change my view

  1. Autonomy does not arrive, or arrives slowly. This is the risk the price carries. With autonomy revenue at zero and the spending kept, my base value is $21. A two-year delay to the whole ramp, with the spending kept, lowers the base to $50. (estimate) The 10-Q says scaling autonomy “presents significant challenges due to evolving regulations”.3
  2. Key person and control. Tesla depends on one person who runs several companies, holds 19.8% and has pledged 29.7% of it. The award can add up to 423.7M gross shares, and unearned shares vote in proportion to other votes.58
  3. Thin core profit. Core operating margin is 1.8% after all R&D and 6.0% before the rise; credits, refunds, interest and marks flatter reported profit, and credits are running off. (calculated)34
  4. Capital intensity. Free cash flow is $3.3B on $15.4B of capital spending, and spending is guided above $20B.34
  5. Competition and trade. BYD leads global battery-electric volume and, so far in 2026, European registrations; Chinese integrators hold 76% of storage; the Supreme Court voided the IEEPA tariffs in February 2026, which created the Q3 refunds, and Tesla says the tariff regime hits energy storage more than automotive; and U.S. electric vehicle sales fell 39.5% after incentives ended.324262832
  6. Product liability and regulation. The Benavides verdict, the FSD class action, a securities suit over Autopilot, FSD and Robotaxi statements, and requests from NHTSA, the NTSB, the SEC and the Department of Justice.3
  7. Related parties and a possible combination. Megapack sales to SpaceX and xAI, a $2.0B SpaceX stake and a $1.95B acquisition from an unnamed seller. A committee of Tesla’s disinterested directors is exploring a business combination with SpaceX, no terms exist, and my values assume none.3848
  8. Gaps in what I can verify. Tesla gives no Robotaxi fleet or ride count, Optimus units or FSD revenue, and tesla.com did not load, so I took no FSD price. Waymo’s own site gives no fleet size, so the fleet figure is a news report; U.S. share and storage figures are also third party. I found no primary source for Tesla’s share of the Chinese market and no revenue consensus; Nasdaq’s earnings consensus does not state its basis.3146

What would change my view

The figures I will check each quarter, today's reading, and the thresholds that move my base value.

What would change my view
SignalTodayRaises my valueLowers my value
Robotaxi scale (estimate)Seven metros named in the Q2 2026 Update, six of them unsupervised; nearly 2M cumulative unsupervised miles; no ride, fleet or revenue figure445Tesla reports rides, fleet and revenue; about 30,000 robotaxis in service in year three and 100,000 in year five (estimate)No fleet or revenue figure by Q3 2028, or fewer than 10,000 vehicles
Vehicle gross margin without credits (estimate)17.8% TTM; 17.4% without the Q3 tariff refund34Above 21% for four quarters, what a 9% operating margin needs at today’s cost base (estimate)Below 15%
Deliveries (estimate)1.74M TTM against production of 1.76M, at most 74% of capacity; Q3 486,5324Above 2.0M a year by Q3 2027Below 1.7M
Energy storage (estimate)50.2 GWh TTM; 29.7% gross margin with refunds, 23.8% in Q3 without34Above 65 GWh with gross margin above 25% without one-offsMargin below 20%, or share loss to BYD and Sungrow
Capital spending and free cash flow (estimate)$15.4B capex and $3.3B free cash flow TTM; over $20B guided for 2026 in the 10-Q, about $20B on the call3454Capex at or under $20B with free cash flow above zero every quarterCapex above $25B in 2027, or two quarters of negative free cash flow
Full Self-Driving (estimate)1.74M active subscriptions, up from 1.04M; no revenue line45M subscriptions by the end of 2027, with revenue reportedSubscriptions flat for two quarters
Regulatory credits (estimate)$1,181M TTM; $113M in Q3 after a $475M reversal; backlog $384M34Not in my casesReported margin falls by about 1 point as credits run off
Control and dilution (estimate)207.5M of Musk’s shares pledged; 423.7M unearned award shares; annual meeting 3 December 20268Pledge repaid; award tied to profit as well as market valueNew pledges, or sales by Musk to meet a call
SpaceX combination (estimate)A committee of disinterested Tesla directors is exploring a deeper relationship, including a business combination; SpaceX’s board formed a committee too; no terms348Terms that value a Tesla share above my base valueTerms below my base value, or terms that leave Musk’s control on both sides of the deal

Source 10-Q Q3 2026; Q3 2026 Update; 2026 proxy; Q2 2026 Update; SpaceX 10-Q Q3 2026 [3][4][8][45][48]. Judgements are my estimates.

What would move me

What would raise my base value: a reported autonomy revenue line that tracks my path of $4B in year three and $14B in year five, vehicle gross margin without credits above 21%, deliveries above 2.0M, and free cash flow above zero with capital spending at or under $20B. What would lower it: no ride or fleet figure by Q3 2028, vehicle margin below 15%, capital spending above $25B in 2027, or new pledges of Musk’s shares. (estimate)4

The next tests come in December 2026, when the annual meeting is held on 3 December and the SpaceX sale restrictions end, and in early January 2027, when I expect Tesla to report Q4 deliveries; it reported Q4 2025 deliveries on 2 January 2026.3818

Sources

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  25. 25Tesla loses BEV crown to BYD in 2025 as global deliveries drop in Q4 (opens in a new tab)Third partyCnEVPost · 2 Jan 2026 · BYD 2,256,714 BEVs; Tesla 1,636,129 · Accessed 25 Oct 2026↩︎
  26. 26Cox Automotive Q3 2026 EV sales report: commentary (opens in a new tab)Third partyCox Automotive · 12 Oct 2026 · 262,649 EVs; down 39.5% on Q3 2025; Tesla down 20% · Accessed 25 Oct 2026↩︎
  27. 27Waymo Safety Impact: rider-only miles through June 2026 (opens in a new tab)CompanyWaymo · 25 Oct 2026 · 'Through June 2026, Waymo has driven 271.3M rider-only miles'; the page states no fleet or ride count; its 24 September 2026 blog post says over 270 million miles · Accessed 25 Oct 2026↩︎
  28. 28Wood Mackenzie: Chinese integrators hold 76% of global BESS market in 2025 (opens in a new tab)Third partyWood Mackenzie · 29 Jun 2026 · Integrator ranking 2025 · Accessed 25 Oct 2026↩︎
  29. 29BYD surpasses Tesla in energy storage on Benchmark's 2025 ranking (opens in a new tab)Third partyElectrek · 13 May 2026 · Benchmark Mineral Intelligence 2025 BESS shares · Accessed 25 Oct 2026↩︎
  30. 30Alphabet Q1 2026 results (8-K Exhibit 99.1) (opens in a new tab)FilingSEC EDGAR · 29 Apr 2026 · CEO statement: Waymo surpassed 500,000 fully autonomous rides a week · Accessed 25 Oct 2026↩︎
  31. 31Waymo begins paid rides in Denver, San Diego and Tampa (Drive Tesla Canada) (opens in a new tab)Third partyDrive Tesla Canada · 1 Sep 2026 · Fleet over 4,000 vehicles, a news report of a Waymo statement; waymo.com states no fleet size · Accessed 25 Oct 2026↩︎
  32. 32ACEA press release: new car registrations, August 2026 year to date (opens in a new tab)Industry bodyACEA · 24 Sep 2026 · Page 6, EU + EFTA + UK by manufacturer, January to August: Tesla 191,787 (+43.3%), BYD 234,099 (+144.1%); August: Tesla 15,430 (+4.0%) · Accessed 25 Oct 2026↩︎
  33. 33U.S. Treasury daily par yield curve rates, 2026 (opens in a new tab)RatesU.S. Department of the Treasury · 23 Oct 2026 · Row 10/23/2026, 10 Yr = 5.00 · Accessed 25 Oct 2026↩︎
  34. 34Aswath Damodaran, NYU Stern: implied equity risk premium on 1 October 2026 (opens in a new tab)RatesNYU Stern · 1 Oct 2026 · Implied ERP on 1 October 2026 = 4.20% (trailing 12 month, with adjusted payout), measured against a 5.29% U.S. Treasury rate · Accessed 25 Oct 2026↩︎
  35. 35TSLA and S&P 500 monthly closes, Yahoo Finance chart API (beta) (opens in a new tab)PriceYahoo Finance · 25 Oct 2026 · Monthly closes November 2016 to the 23 October 2026 close, retrieved 2026-10-25T06:23:33Z; S&P 500 from ^GSPC, same range and interval · Accessed 25 Oct 2026↩︎
  36. 36TSLA daily closes, 24 October 2025 to 23 October 2026, Yahoo Finance chart API (opens in a new tab)PriceYahoo Finance · 23 Oct 2026 · 251 daily closes, retrieved 2026-10-25T06:40:48Z; lowest $298.32 on 2026-07-29, highest $489.88 on 2025-12-16 · Accessed 25 Oct 2026↩︎
  37. 37BYD's 2025 net profit drops 19% as domestic price war bites (CnEVPost) (opens in a new tab)Third partyCnEVPost · 27 Mar 2026 · Segment revenue: automobiles 648.65B yuan, mobile handset components and assembly 155.24B yuan, of 803.97B yuan · Accessed 25 Oct 2026↩︎
  38. 38BYD Company Limited 2025 annual results announcement (HKEX stock code 01211), five-year comparison of key financial figures (opens in a new tab)FilingHKEX · 27 Mar 2026 · Financial Highlights, PDF page 5: revenue 803,964,958 and gross profit 142,659,797 (RMB thousand) for 2025; 777,102,455 and 151,055,839 for 2024, restated; profit attributable to owners of the parent 32,619,022 for 2025 · Accessed 30 Oct 2026↩︎
  39. 39Waymo home page: service areas (opens in a new tab)CompanyWaymo · 25 Oct 2026 · 'Serving Riders In' lists 15 locations; no ride or fleet count · Accessed 25 Oct 2026↩︎
  40. 40Tesla First Quarter 2019 Update (8-K Exhibit 99.1) (opens in a new tab)FilingSEC EDGAR · 24 Apr 2019 · Autopilot section · Accessed 25 Oct 2026↩︎
  41. 41Tesla First Quarter 2025 Update (8-K Exhibit 99.1) (opens in a new tab)FilingSEC EDGAR · 22 Apr 2025 · Artificial intelligence software and hardware; manufacturing outlook · Accessed 25 Oct 2026↩︎
  42. 42Tesla Second Quarter 2025 Update (8-K Exhibit 99.1) (opens in a new tab)FilingSEC EDGAR · 23 Jul 2025 · Artificial intelligence software and hardware · Accessed 25 Oct 2026↩︎
  43. 43Tesla Fourth Quarter 2025 Update (8-K Exhibit 99.1) (opens in a new tab)FilingSEC EDGAR · 28 Jan 2026 · Robotics; Robotaxi; planned Robotaxi coverage table · Accessed 25 Oct 2026↩︎
  44. 44Tesla First Quarter 2026 Update (8-K Exhibit 99.1) (opens in a new tab)FilingSEC EDGAR · 22 Apr 2026 · Robotaxi; AI software; announced Robotaxi coverage table · Accessed 25 Oct 2026↩︎
  45. 45Tesla Second Quarter 2026 Update (8-K Exhibit 99.1) (opens in a new tab)FilingSEC EDGAR · 22 Jul 2026 · Robotaxi coverage table; Cybercab; Optimus · Accessed 25 Oct 2026↩︎
  46. 46Nasdaq analyst earnings forecast for TSLA (consensus EPS by fiscal year) (opens in a new tab)ConsensusNasdaq · 25 Oct 2026 · Year to Dec 2026: $0.71 (14 estimates); Dec 2027: $1.17 (14); Dec 2028: $1.16 (5); quarter to Dec 2026: $0.27 (11); basis not stated; retrieved 2026-10-25T08:45Z; the revenue-forecast endpoint returned HTTP 404 · Accessed 25 Oct 2026↩︎
  47. 47SPCX historical quotes, Nasdaq Global Select Market, 25 September to 23 October 2026 (opens in a new tab)PriceNasdaq · 23 Oct 2026 · Close $147.49 on 23 October 2026 and $150.86 on 30 September 2026; retrieved 2026-10-25T08:45Z · Accessed 25 Oct 2026↩︎
  48. 48Space Exploration Technologies Corp. Form 10-Q, quarter ended 30 September 2026 (SEC EDGAR) (opens in a new tab)FilingSEC EDGAR · 22 Oct 2026 · Evaluation of potential combination with Tesla, Inc. · Accessed 25 Oct 2026↩︎
  49. 49TSLA historical quotes, close on 29 October 2026 (Nasdaq) (opens in a new tab)PriceNasdaq · 29 Oct 2026 · tradesTable row 10/29/2026, Close/Last $403.30; the 30 October session was still open at retrieval; retrieved 2026-10-30T16:51Z · Accessed 30 Oct 2026↩︎
  50. 50TSLA daily bar, close on 29 October 2026 (Yahoo Finance, cross-check) (opens in a new tab)PriceYahoo Finance · 29 Oct 2026 · chart.result[0].indicators.quote[0].close, bar at 2026-10-29T13:30Z; retrieved 2026-10-30T16:51Z · Accessed 30 Oct 2026↩︎
  51. 51SPCX quote, Nasdaq Global Select Market, close on 30 October 2026 (opens in a new tab)PriceNasdaq · 30 Oct 2026 · Closed at $134.72 at 4:00 PM ET on 30 October 2026, down 6.37%; retrieved 30 Oct 2026, 8:13 PM ET · Accessed 30 Oct 2026↩︎
  52. 52TSLA daily closes, one year to 29 October 2026, Yahoo Finance chart API (opens in a new tab)PriceYahoo Finance · 29 Oct 2026 · 252 daily bars, the last (30 October) still open at retrieval; lowest close $298.32 on 2026-07-29, highest $489.88 on 2025-12-16, both unchanged from the earlier series; retrieved 2026-10-30T16:51Z · Accessed 30 Oct 2026↩︎
  53. 53Tesla, Inc. filing index (SEC EDGAR) (opens in a new tab)FilingSEC EDGAR · 30 Oct 2026 · Latest results filings: 8-K and Form 10-Q of 21 and 22 Oct 2026; later filings are proxy materials and a Schedule 13G/A · Accessed 30 Oct 2026↩︎
  54. 54Tesla Q3 2026 earnings call transcript (The Motley Fool) (opens in a new tab)Third partyThe Motley Fool · 22 Oct 2026 · Call of 21 October 2026: remarks by Musk, Taneja and Moravy on Cybercab capacity, Megapack supply, FSD subscriptions and Robotaxi timing · Accessed 30 Oct 2026↩︎
  55. 55ARK Invest Tesla valuation model, “Tesla 2031 Valuation Extract for Github” workbook, V9 (opens in a new tab)ResearchARK Invest on GitHub · 19 Oct 2026 · Tesla Valuation Inputs and Monte Carlo Simulation Output tabs, saved run of 5,000; share count note. ARK’s article of the same date, “ARK’s Expected Share Price For Tesla In 2031”, returned an access block and was not read · Accessed 30 Oct 2026↩︎
  56. 56Letter from Ron, Q2 2026 (opens in a new tab)LetterBaron Capital · 4 Aug 2026 · Ron Baron on robotaxi cost and cash flow per vehicle · Accessed 30 Oct 2026↩︎
  57. 57ARK’s Expected Share Price For Tesla In 2031, Tasha Keeney and Daniel Maguire (opens in a new tab)ResearchARK Invest · 19 Oct 2026 · Expected value about $4,400; 25th and 75th percentiles about $3,300 and $5,000; base table for 2031 · Accessed 31 Oct 2026↩︎
  58. 58Alphabet (GOOGL): the search moat, the cloud build and the price (opens in a new tab)Own pagePedrum Shokouhi · Investing notebook · Alphabet page, section “Where this could be in 5 and 10 years”: base case, return a year to September 2036, 5.4%, from $283.82 · Accessed 31 Oct 2026↩︎

How the figures are labelled

(reported)Reported: taken from a filing or a price feed, as printed.

(calculated)Calculated: arithmetic on reported figures, such as a margin or a growth rate.

(estimate)Estimate: my judgement, such as a case value or a growth assumption.

The price

Close in Q4 2026: $403.30, from Nasdaq [49] and checked against Yahoo Finance [50]. Retrieved in Q4 2026. The first version of this page used a close of $372.22 [1][2]. The stock is up about 8% since. Tesla’s filing list shows no results filing after the Q3 report, so I changed no estimate of value [53]. Only the price and the figures that depend on it moved.

Fiscal years are calendar years. TTM Sep 2026 is the four quarters from October 2025 to September 2026, summed from the Q3 2026 Update and checked against Tesla's own trailing table. Per-share values use 3,529.0M shares: the 10-Q cover count of 3,952.8M at 15 October 2026 less 423.7M unearned CEO award shares. Tesla became a Texas corporation on 13 June 2024. Stooq's quote service returned no price when I checked in Q4 2026, so the price is Nasdaq's record, checked against Yahoo Finance.

The valuation

Fifteen-year model of free cash flow for three businesses: vehicles and services, energy, and autonomy and robotics, for the years to September 2027 through September 2041. Operating income is GAAP, after stock pay. The vehicle and energy margins are before the $4.3B rise in research and development since 2024, which I charge to autonomy and robotics. Tesla reports no segment operating income, so every vehicle and energy margin on the page is my allocation of costs by revenue. New capital is revenue growth divided by revenue per $1 of capital, plus a build of compute and fleet ahead of autonomy revenue. Cash flows are discounted at 10%, at year end; discounting at mid-year would add about 4%. Growth after year 15 is 2.5% in the bear case, 3.0% in the base case and 3.5% in the bull case; the bull value at 3.0% is $288. I add cash and short-term investments less debt and minority interests, plus the SpaceX stake and bitcoin at their 30 September carrying values, and divide by 3,541M diluted shares. Re-marked to the Q4 2026 SpaceX close the stake is worth $0.09 a share less.51 The bull case is charged for the two tranches of the 2025 CEO award that its year-10 market value would vest; stock pay in the margins already carries about $1.1B a year of expense on that award, so the charge overlaps it by at most $3 a share. The return a year in the tables holds each case for fifteen years, takes my free cash flows and sells at my 10% value in year 15. Values are as of 30 September 2026, the date of the last balance sheet; dating them from Q4 2026 adds about 0.7%.

The margin-of-safety price is $46, my base value less 30%, to the nearest dollar. No rating: the page states a range and the price, and leaves the decision to the reader.

Research, not investment advice. Figures as of .

Legal information and disclosures

These are my own views as of the update shown on this page. They can change without notice, and I have no duty to update them. Past performance does not indicate future results, and any investment can lose money.

This is for education only. It is not investment, legal, tax or accounting advice, and it is not an offer to sell or a solicitation to buy any security in any jurisdiction. It does not consider your goals or circumstances.

Figures from company filings and other third parties are believed to be reliable, but I have not independently verified them and cannot guarantee them. Bear, base and bull values, and anything marked as an estimate, are my own and rest on assumptions that may prove wrong.

Please do not copy or republish this material without my written consent.