TeslaFRA:TL01 -2.31%84 Net Margin % is 2.13% as of Mar. 2026, which is 31% below its 10-year median of 3.10. GuruFocus rates FRA:TL01 with a GF Score™ of 84/100 and a GF Value™ of €16.19 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,326 Vehicles & Parts companies, Tesla ranks better than 56.03% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Tesla's Net Income for the
three
months ended in Mar. 2026 was €413 Mil. Tesla's Revenue for the
three
months ended in Mar. 2026 was €19,365 Mil. Therefore, Tesla's net margin for the quarter that ended in Mar. 2026 was 2.13%.
The historical rank and industry rank for Tesla's Net Margin % or its related term are showing as below:
FRA:TL01'
s Net Margin % Range Over the Past 10 Years
Min: -16.69 Med: 3.1 Max: 15.5
Current: 3.95
FRA:TL01's Net Margin % is ranked better than 56.03% of 1326
companies
in the Vehicles & Parts industry
Industry Median: 3.205
vs FRA:TL01: 3.95
Tesla (FRA:TL01) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Tesla Net Margin % Related Terms
Tesla Net Margin % Historical Data
* Premium members only.
The historical data trend for Tesla's Net 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 Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Tesla's Net Margin % distribution charts can be found below:
* The bar in red indicates where Tesla's Net 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.
Tesla (FRA:TL01) has a Net Margin % of 2.13% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Tesla and its competitors. This is 31% below median its historical median of 3.10. According to the industry distribution chart, Tesla ranks #583 out of 1326 companies in the Vehicles & Parts industry, placing it in the top 44%.
Is Tesla's Net Margin % too high?
Tesla's current Net Margin % of 2.13% is 31% below median its 10-year median of 3.10. The Vehicles & Parts industry median Net Margin % is 3.21. Tesla's value of 2.13% is 33.5% below this industry median. Based on the distribution chart, Tesla ranks #583 out of 1326 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Tesla has a GF Score™ of 84/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tesla's Net Margin % compare to GM and F?
According to the Vehicles & Parts industry distribution chart, Tesla ranks #583 out of 1326 companies for Net Margin %. This puts Tesla in the upper half of its industry. The industry median Net Margin % is 3.21. Tesla's value of 2.13% is 33.5% below this benchmark. While the company's 10-year median is 3.10 vs. the industry median of 3.21, Tesla has consistently been below 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 Net Margin % for a Vehicles & Parts company?
The median Net Margin % among Vehicles & Parts companies is 3.21, based on 1,326 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tesla's current Net Margin % of 2.13% is 33.5% below 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Tesla and its competitors. For the Vehicles & Parts industry, the median Net Margin % is 3.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tesla's current Net Margin % is 2.13%, which is 31% below median its own 10-year median of 3.10. 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 €16.19, compared to a current price of €21.10 — trading 30.3% above its estimated fair value. The current Net Margin % is 2.13%, which is 31% below median its 10-year median of 3.10 and 33.5% below the Vehicles & Parts industry median of 3.21. Tesla's overall GF Score™ is 84/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Tesla (FRA:TL01), the current Net Margin % is 2.13% 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 €21.10 is trading 30.3% above its estimated GF Value™ of €16.19.
GuruFocus considers Tesla to be Modestly Overvalued.
Key valuation signals for FRA:TL01:
Net Margin %: 2.13% (31% below median its 10-year median of 3.10)
GF Value™: €16.19 vs. price of €21.10 (30.3% above fair value)
Industry Position: 33.5% below the Vehicles & Parts median (#583 of 1326)
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.
84GF Score
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