Tesla’s shares held by non-affiliates alone were worth $893 billion on 30 June 2025 (10-K cover page), 9.4× its 2025 revenue of $94.8B. Full market capitalisation is higher, because it also includes shares held by insiders. Since 2016 revenue has grown 14× and this market value 36×.
Sources: Tesla Form 10-K filings 2016–2025 (latest 10-K). Analysis by The Business Engineer.
Correction (11 Oct 2026): an earlier data card on this page showed a market cap of “~$1.35T” without a date or source. This page now uses the 10-K cover-page value of non-affiliate shares, dated and linked; it excludes insider holdings, so it is lower than total market capitalisation.
How we source: figures on this page come from the company’s own filings (SEC 10-K, 10-Q and earnings releases, or its annual report), with the period stated next to each number. Last refreshed October 2026. Our methodology.
Tesla's non-affiliate shares alone were worth 9.4× its 2025 revenue. Source: Tesla Form 10-K filings 2016–2025 (cover page; revenue) (SEC EDGAR). Excludes shares held by affiliates; multiples calculated, approximate. Analysis by The Business Engineer.
Source: Tesla 10-K filings (each linked). *Aggregate market value of voting stock held by non-affiliates, 30 June. †Calculated; approximate.
What drives the multiple
Expectations, not current sales. Revenue fell in 2024 and 2025 (to $94.8B) while the market value rose, so the price reflects expected future growth rather than current sales.
Profit is thin relative to value. Operating income was $4.4B in 2025 (Tesla 2025 10-K).
Earlier analysis and background (pre-2026 figures)
The text below is the earlier version of this page. Its figures refer to earlier periods and some were corrected above; the current, sourced figures are in the sections above.
Financial Data · Updated 2026
Tesla Revenue vs. Market Cap
$1.35T Market Cap↑ vs $94.8B Revenue
Full Year 2026
24.6
19
31.5
20
53.8
21
81.5
22
96.8
23
97.7
24
94.8
25
Key Metrics
Market Cap
~$1.35T
Revenue
$94.8B (2025)
P/S Ratio
~14x
Net Income
$3.8B (2025)
In the peak of 2020 and 2021, Tesla reached a market cap revenue multiple of 21x and 18x, respectively. This means that Tesla was valued at 21X over its revenues in 2020 and 18X over its revenue in 2021. By the end of 2022, this multiple decreased to 4.7X. And by February 2024 the multiple increased to 6X.
Tesla in charts
Tesla revenue fell to $94.8B in 2025, its second decline in a row. Source: Tesla Form 10-K filings via SEC EDGAR XBRL company facts; Tesla Form 10-K for 2025 (SEC EDGAR). Analysis by The Business Engineer.Tesla's operating income fell to $4.36B in 2025. Source: Tesla Form 10-K filings via SEC EDGAR XBRL company facts; Tesla Form 10-K for 2025 (SEC EDGAR). Analysis by The Business Engineer.
By 2024, most of Tesla’s shares are still owned by Elon Musk, among the company’s co-founders and the CEO. Elon Musk is the top individual investor, with a 20.6% stake in the company. Musk is followed by Lawrence Ellison (founder of Oracle), with a 1.5% company stake. Ellison used to sit on Tesla’s board of directors. And Antonio Gracias, among the company’s first investors, has over 1.6 million shares. Other institutional investors and mutual funds like The Vanguard Group (6.9%), andBlackrock (5.6%).
Tesla is vertically integrated. Therefore, the company runs and operates the Tesla’s plants where cars are manufactured and the Gigafactory which produces the battery packs and stationary storage systems for its electric vehicles, which are sold via direct channels like the Tesla online store and the Tesla physical stores.
In 2023, Tesla generated $96.77 Billion in revenues. Tesla’s business model primarily relies on automotive sales, $78.5 billion (over 81% of the total revenues); services/others followed with over $8 billion; energy generation and storage generated over $6 billion in revenues.
Automotive sales are the most critical segment for Tesla, with over $82.4 billion in revenue from automotive parts; most of the gross profits come from automotive sales, with over $16 billion in gross profits, or a 19.4 % gross margin. However, the “energy platform” (generation & storage) is contributing more and more to it. With revenue of $6 billion, a gross profit of over a billion dollars, and gross margins of 18.9%, this might become a critical component of the business model, thus changing its whole strategy.
Tesla didn’t have an official advertising budget until 2023, to spend on advertising, as it has almost been null over the years. Indeed, Tesla leveraged a combination of Elon Musk’s ability to generate significant media coverage and build a product that sold via word of mouth and directly to consumers.
Tesla was profitable in 2023, with a net profit of $14.99B, compared to $12.55 billion in 2022. Tesla has been profitable since 2020. Indeed, Tesla generated $862 million in net profits in 2020. It will further generate $5.6 billion in net profits in 2021.
Telsa’s profit margins moved from negative 3.15% in 2019 to over 15% in 2022. As Tesla scaled up manufacturing and improved its economies of scale (with new facilities) and scope, the company became extremely profitable by 2022.
Tesla’s profit margin per car in 2023 was $8,279, compared to $9580 in 2022, over $6000 in 2021, and over $1700 in 2020. As Tesla was working toward mass manufacturing in 2020, the company’s profitability per car increased massively between 2020 and 2023, though in an attempt to gain market shares, it decreased in 2023 compared to 2022.
Tesla R&D’s costs have doubled in absolute number, from almost $1.5 billion in 2020 to nearly $4 billion in 2024. Yet they have decreased as a percentage of revenue, from 5% in 2020 to 4% in 2022 and 2023. These R&D expenses primarily comprise costs associated with personnel for teams in engineering and research, manufacturing engineering and manufacturing test organizations, prototyping expenses, contracts, and professional services.
In the peak of 2020 and 2021, Tesla reached a market cap revenue multiple of 21x and 18x, respectively. This means that Tesla was valued at 21X over its revenues in 2020 and 18X over its revenue in 2021. By the end of 2022, this multiple decreased to 4.7X. And by February 2024 the multiple increased to 6X.
Elon Musk, seen as one of the most visionary tech entrepreneurs from the Silicon Valley scene, started his “career” as an entrepreneur at an early age. After selling his first startup, Zip2, in 1999, he made $22 million, which he used to found X.com, which would later become PayPal, and sell for over a billion to eBay (Musk made $180 million from the deal). He founded other companies like Tesla (he didn’t start it but became a major investor in the early years) and SpaceX. Tesla started as an electric sports car niche player, eventually turned into a mass manufacturing electric car maker.
Founded in 2003 by Eberhard and Tarpenning, eventually, the initial co-founders left the company, and by 2004, Musk first became the main investor. After that, by 2008, he took over as CEO of the company. Tesla would go through many near-death experiences until 2018. And yet, by 2021, Tesla will become a trillion-dollar company.
Tesla is vertically integrated. Therefore, the company runs and operates the Tesla’s plants where cars are manufactured and the Gigafactory, which produces the battery packs and stationary storage systems for its electric vehicles, which are sold via direct channels like the Tesla online store and the Tesla physical stores.
As an electric automaker and builder of sports cars and now trucks, Tesla’s competitors comprise companies like Ford, Mercedes-Benz, Porsche, Lamborghini, Audi, Rivian Lucid Motors, Toyota, and more. At the same time, Tesla is an electric energy production and storage company (SolarCity); it competes with Sunrun, SunPower, and Vivint Solar. And as an autonomous driving company, it competes with companies like Zoox, Waymo, and Baidu with self-driving software.
A real-time insurance business model enables Tesla to build its insurance arm by dynamically adjusting the premiums based on real-time driving behavior. Reduced insurance premiums hooked with the leasing arm enable Tesla to scale its demand side of the business.
As of March 2026, Tesla’s market capitalization is approximately $1.35 trillion, making it one of the most valuable companies globally. This valuation is remarkable given Tesla’s 2025 revenue of $94.8 billion, implying a price-to-sales ratio of approximately 14x.
Why is Tesla’s market cap so high relative to revenue?
Tesla’s premium valuation reflects investor expectations for future growth in AI/autonomous driving, energy storage, and robotics (Optimus). The market prices Tesla as a technology/AI company rather than a traditional automaker. For comparison, Toyota (revenue ~$275B) has a market cap of ~$250B with a P/S ratio below 1x.
How has Tesla’s revenue grown over time?
Tesla’s revenue grew from $24.6 billion in 2019 to $97.7 billion in 2024, before dipping slightly to $94.8 billion in 2025. The 2025 decline was driven by price cuts, increased competition (especially from BEV makers in China), and softer demand in some markets.
Gennaro Cuofano is a CRO and tech executive who has worked in AI since late 2015, starting with bringing NLP, natural-language generation, voice and chatbot products to the marketing industry. His background is in law and finance: he holds a Master's degree in Law and an International MBA with an emphasis on corporate finance (LUISS Business School and the University of San Diego, 2012), and worked as a financial analyst at a real-estate investment firm in San Diego and as an assistant controller. His work focuses on business model strategy, business engineering and, more broadly, structural analysis: how companies make money, read from their own filings. He created FourWeekMBA and leads research there and at The Business Engineer, his newsletter on AI and business strategy, with over 95,000 subscribers and more than 1,000 published analyses. His writing has also appeared on Entrepreneur (for example, How to Digitize a Family Business in Europe) and HackerNoon. Find him on LinkedIn and Substack. See how we source.
