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Tesla

TSLA
43
Auto - Manufacturers · Consumer Cyclical
Price
$362.86
+17.73 (+5.14%)
Market Cap
$1.43T
Exchange
NASDAQ
Winston Score
43
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Weak
Growth
Mixed
Cash Flow
Strong
Stability
Exceptional
Valuation
Good

Share count rising — dilution

+4.2% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 3.39B (2021) → 3.53B (2025)

Winston Score History

The full picture

Tesla makes electric cars, trucks, and SUVs that run entirely on battery power instead of gasoline. Its main products include the Model 3, Model Y, Model S, Model X, and the newer Cybertruck. Tesla also sells solar panels, home battery systems called Powerwalls, and energy storage products for businesses and utilities.

Tesla earns most of its revenue by selling vehicles directly to consumers, cutting out traditional car dealerships. It operates in North America, Europe, and China, with major factories in California, Texas, Nevada, Germany, and Shanghai. Tesla's main competitive advantages are its charging network, software capabilities, and brand loyalty among EV buyers. However, with an operating margin of just 4.2% and growing competition from both legacy automakers and Chinese EV brands like BYD, the company faces real pressure on pricing and profitability. Its ability to scale its autonomous driving technology, called Full Self-Driving, is widely seen as the biggest factor that could either strengthen or strain the business going forward.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+25.5% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

-6.5% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$6.4B/ year

Rising (+41% vs prior year)

6.8% of revenue

1.7x the sector average (4%)

R&D investment increasing — building for the future

Insider Activity

30.0%ownership

Flat

Insider ownership roughly steady over the past year

Cash Runway

5+ years

Quarterly Free Cash Flow

↓ Burn rate worsening

$43.5B cash & investments at current burn rate

Revenue accelerating

Tesla grew revenue 26% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale
Gross Margin
16.8%
Thin — 16.8% gross margin
Profit after running costs
Operating Margin
1.4%
Thin — 1.4% operating margin
Return on the money invested
ROCE
4.5%
Weak — 4.5% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales growth
Sales YoY
+11.8%
Steady sales growth (+11.8% YoY)
Profit growth
EPS YoY
-37.6%
Earnings shrinking (-37.6% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is
EPS Consistency
2/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash
Cash Conversion
489%
Turns 489% of profit into real cash
Spare cash per sale
FCF Margin
5.6%
Thin free cash flow (5.6%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
0.11
Conservative — low debt load (0.11)
Covers its interest
Interest Cover
13.09x
Comfortably covers interest (13.1x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
307.5x
Expensive — P/E 307.5

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year
P/E vs Forward
+209.8
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (307.5 → 97.7)

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Dividends

Not applicable for this business.
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