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Tesla Operating Margin %

: 14.94% (As of Sep. 2021)
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Operating Margin % is calculated as Operating Income divided by its Revenue. Tesla's Operating Income for the three months ended in Sep. 2021 was $2,055 Mil. Tesla's Revenue for the three months ended in Sep. 2021 was $13,757 Mil. Therefore, Tesla's Operating Margin % for the quarter that ended in Sep. 2021 was 14.94%.

The historical rank and industry rank for Tesla's Operating Margin % or its related term are showing as below:

NAS:TSLA' s Operating Margin % Range Over the Past 10 Years
Min: -123.13   Med: -7.69   Max: 9.52
Current: 9.52

-123.13
9.52

NAS:TSLA's Operating Margin % is ranked higher than
74% of the 1178 Companies
in the Vehicles & Parts industry.

( Industry Median: 5.20 vs. NAS:TSLA: 9.52 )

Tesla's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Tesla's Operating Income for the three months ended in Sep. 2021 was $2,055 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2021 was $4,458 Mil.


Tesla Operating Margin % Historical Data

The historical data trend for Tesla's Operating 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.

* Premium members only.

Tesla Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -9.53 -13.88 -1.18 0.33 6.32

Tesla Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
Operating Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.22 5.35 4.75 11.16 14.94

Competitive Comparison

For the Auto Manufacturers subindustry, Tesla's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, Tesla's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Tesla's Operating Margin % falls into.



Tesla Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Tesla's Operating Margin % for the fiscal year that ended in Dec. 2020 is calculated as

Operating Margin %=Operating Income (A: Dec. 2020 ) / Revenue (A: Dec. 2020 )
=1994 / 31536
=6.32 %

Tesla's Operating Margin % for the quarter that ended in Sep. 2021 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2021 ) / Revenue (Q: Sep. 2021 )
=2055 / 13757
=14.94 %

* 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  (NAS:TSLA) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Tesla Operating Margin % Related Terms

Thank you for viewing the detailed overview of Tesla's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Tesla Business Description

Tesla logo
Industry
Consumer Cyclical » Vehicles & Parts NAICS : 336211 SIC : 3711
Address
3500 Deer Creek Road, Palo Alto, CA, USA, 94304
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 mid-size sedans and crossover SUVs. The company also plans to begin selling more affordable sedans and small SUVs, a light-truck, semi-truck, and a sports car. Global deliveries in 2020 were roughly 500,000 units.
Executives
Baglino Andrew D officer: SVP Powertrain and Energy Eng. 3500 DEER CREEK ROAD FREMONT CA 94538
Kirkhorn Zachary officer: Chief Financial Officer 3500 DEER CREEK ROAD PALO ALTO CA 94304
Guillen Jerome M officer: President, Automotive 3500 DEER CREEK RD. PALO ALTO CA 94304
Taneja Vaibhav officer: Chief Accounting Officer 3500 DEER CREEK ROAD PALO ALTO CA 94304
Wilson-thompson Kathleen director PO BOX 3599 BATTLE CREEK MI 49016-3599
Musk Kimbal director C/O TESLA MOTORS, INC. 3500 DEER CREEK ROAD PALO ALTO CA 94304
Denholm Robyn M director 4150 NETWORK CIRCLE SANTA CLARA CA 95054
Mizuno Hiromichi director 1-2-33-A504, KOMAZAWA SETAGAYA TOKYO M0 154-0012
Gracias Antonio J. director C/O VALOR EQUITY PARTNERS 200 SOUTH MICHIGAN AVENUE, SUITE 1020 CHICAGO IL 60604
Musk Elon director, 10 percent owner, officer: CEO C/O TESLA MOTORS, INC. 3500 DEER CREEK ROAD PALO ALTO CA 94304
Ellison Lawrence Joseph director C/O DELPHI ASSET MGMT CORPORATION 5525 KIETZKE LANE, SUITE 200 RENO NV 89511
Jurvetson Stephen T director 2882 SAND HILL ROAD, SUITE 150 MENLO PARK CA 94025
Straubel Jeffrey B officer: Chief Technical Officer C/O TESLA MOTORS, INC. 3500 DEER CREEK ROAD PALO ALTO CA 94304
Ehrenpreis Ira Matthew director 100 SHORELINE HWY SUITE 282, BLDG. B MILL VALLEY CA 94941
Buss Brad W director 198 CHAMPION COURT SAN JOSE CA 95134

Tesla Headlines

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