Gross Margin % is calculated as gross profit divided by its revenue. Tesla's Gross Profit for the
three
months ended in Dec. 2023 was $4,438 Mil. Tesla's Revenue for the
three
months ended in Dec. 2023 was $25,167 Mil. Therefore, Tesla's Gross Margin % for the quarter that ended in Dec. 2023 was 17.63%.
The historical rank and industry rank for Tesla's Gross Margin % or its related term are showing as below:
TSLA'
s Gross Margin % Range Over the Past 10 Years
Min: 16.56 Med: 21.92 Max: 27.57
Current: 18.25
During the past 13 years, the highestGross Margin % of Tesla was 27.57%. The lowest was 16.56%. And the median was 21.92%.
TSLA's Gross Margin % is ranked worse than 54.02% of 1270
companies
in the Vehicles & Parts industry
Industry Median: 19.36
vs TSLA: 18.25
Tesla had a gross margin of 17.63% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Tesla was 3.90% per year.
Tesla Gross Margin % Historical Data
The historical data trend for Tesla's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Auto Manufacturers subindustry, Tesla's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Tesla Gross Margin % Distribution
For the Vehicles & Parts industry and Consumer Cyclical sector, Tesla's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tesla's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Tesla (NAS:TSLA) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Tesla had a gross margin of 17.63% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Tesla Gross Margin % Related Terms
Thank you for viewing the detailed overview of Tesla's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Founded in 2003 and based in Palo Alto, California, Tesla is a vertically integrated sustainable energy company that also aims to transition the world to electric mobility by making electric vehicles. The company sells solar panels and solar roofs for energy generation plus batteries for stationary storage for residential and commercial properties including utilities. Tesla has multiple vehicles in its fleet, which include luxury and midsize sedans and crossover SUVs. The company also plans to begin selling more affordable sedans and small SUVs, a light truck, a semi truck, and a sports car. Global deliveries in 2022 were a little over 1.3 million vehicles.
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