TeslaFRA:TL01 85 Interest Coverage is 10.23 as of Mar. 2026, which is 42% below its 10-year median of 17.51. GuruFocus rates FRA:TL01 with a GF Score™ of 85/100 and a GF Value™ of €15.25 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,066 Vehicles & Parts companies, Tesla ranks better than 63.88% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Tesla's
Operating Income
for the
three
months ended in Mar. 2026 was €814 Mil. Tesla's Interest Expense for the
three
months ended in Mar. 2026 was €-80 Mil.
Tesla's interest coverage for the quarter that ended in Mar. 2026 was 10.23.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Tesla's Interest Coverage or its related term are showing as below:
FRA:TL01'
s Interest Coverage Range Over the Past 10 Years
Min: 0.12 Med: 17.51 Max: 72.42
Current: 15.63
FRA:TL01's Interest Coverage is ranked better than 63.88% of 1066
companies
in the Vehicles & Parts industry
Industry Median: 8.295
vs FRA:TL01: 15.63
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Tesla Interest Coverage Related Terms
Tesla Interest Coverage Historical Data
* Premium members only.
The historical data trend for Tesla's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
FRA:TL01 vs GM, F, RIVN: Interest Coverage Comparison
For the Auto Manufacturers subindustry, Tesla's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Tesla's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Tesla's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Tesla (FRA:TL01) has a Interest Coverage of 10.23 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Tesla and its competitors. This is 42% below median its historical median of 17.51. Over the past decade, Tesla's Interest Coverage has ranged from 0.12 to 72.42. According to the industry distribution chart, Tesla ranks #385 out of 1066 companies in the Vehicles & Parts industry, placing it in the top 36.1%.
Is Tesla's Interest Coverage too high?
Tesla's current Interest Coverage of 10.23 is 42% below median its 10-year median of 17.51. Over the past 10 years, this metric has ranged from a low of 0.12 to a high of 72.42. The Vehicles & Parts industry median Interest Coverage is 8.30. Tesla's value of 10.23 is 23.3% above this industry median. Based on the distribution chart, Tesla ranks #385 out of 1066 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Tesla has a GF Score™ of 85/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tesla's Interest Coverage compare to GM and F?
According to the Vehicles & Parts industry distribution chart, Tesla ranks #385 out of 1066 companies for Interest Coverage. This puts Tesla in the upper half of its industry. The industry median Interest Coverage is 8.30. Tesla's value of 10.23 is 23.3% above this benchmark. Historically, Tesla's own Interest Coverage has ranged from 0.12 to 72.42 over the past decade. While the company's 10-year median is 17.51 vs. the industry median of 8.30, Tesla has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Vehicles & Parts company?
The median Interest Coverage among Vehicles & Parts companies is 8.30, based on 1,066 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tesla's current Interest Coverage of 10.23 is 23.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Tesla and its competitors. For the Vehicles & Parts industry, the median Interest Coverage is 8.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tesla's current Interest Coverage is 10.23, which is 42% below median its own 10-year median of 17.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tesla stock overvalued right now?
Based on GuruFocus' analysis, Tesla (FRA:TL01) is currently considered Modestly Overvalued. The stock's GF Value™ is €15.25, compared to a current price of €20.10 — trading 31.8% above its estimated fair value. The current Interest Coverage is 10.23, which is 42% below median its 10-year median of 17.51 and 23.3% above the Vehicles & Parts industry median of 8.30. Tesla's overall GF Score™ is 85/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Tesla (FRA:TL01), the current Interest Coverage is 10.23 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Tesla (FRA:TL01) Overvalued in 2026?
Based on GuruFocus' analysis, Tesla stock appears to be overvalued.
The current stock price of €20.10 is trading 31.8% above its estimated GF Value™ of €15.25.
GuruFocus considers Tesla to be Modestly Overvalued.
Key valuation signals for FRA:TL01:
Interest Coverage: 10.23 (42% below median its 10-year median of 17.51)
GF Value™: €15.25 vs. price of €20.10 (31.8% above fair value)
Industry Position: 23.3% above the Vehicles & Parts median (#385 of 1066)
No single metric tells the full story. See the FRA:TL01 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tesla is a vertically integrated battery electric vehicle automaker and developer of real-world artificial intelligence software, which includes autonomous driving and humanoid robots. The company has multiple vehicles in its fleet, which include a midsize sedan and crossover SUV in the entry-level luxury category, a luxury light truck, and a semitruck. Tesla also runs a robotaxi service in four US metropolitan areas. Global deliveries in 2025 were nearly 1.64 million vehicles. Additionally, the company sells batteries for stationary storage for residential and commercial properties, including utilities, solar panels, and solar roofs for energy generation. Tesla also owns a fast-charging network and a US auto insurance business.
85GF Score
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