TeslaCHIX:TL0D +5.02%86 Return-on-Tangible-Equity is 2.34% as of Mar. 2026, which is 53% below its 10-year median of 4.98. GuruFocus rates CHIX:TL0D with a GF Score™ of 86/100 and a GF Value™ of €257.64 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,285 Vehicles & Parts companies, Tesla ranks worse than 60.7% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Tesla's annualized net income for the quarter that ended in Mar. 2026 was €1,650 Mil. Tesla's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €70,520 Mil. Therefore, Tesla's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 2.34%.
The historical rank and industry rank for Tesla's Return-on-Tangible-Equity or its related term are showing as below:
CHIX:TL0d'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -47.9 Med: 4.98 Max: 34.67
Current: 4.89
During the past 13 years, Tesla's highest Return-on-Tangible-Equity was 34.67%. The lowest was -47.90%. And the median was 4.98%.
CHIX:TL0d's Return-on-Tangible-Equity is ranked worse than 60.7% of 1285
companies
in the Vehicles & Parts industry
Industry Median: 7.51
vs CHIX:TL0d: 4.89
Tesla (CHIX:TL0d) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Tesla Return-on-Tangible-Equity Related Terms
Tesla Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Tesla's Return-on-Tangible-Equity 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.
CHIX:TL0D vs GM, F, RIVN: Return-on-Tangible-Equity Comparison
For the Auto Manufacturers subindustry, Tesla's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Tesla's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Tesla's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 2.34% mean?
Tesla (CHIX:TL0D) has a Return-on-Tangible-Equity of 2.34% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Tesla and its competitors. This is 53% below median its historical median of 4.98. According to the industry distribution chart, Tesla ranks #780 out of 1285 companies in the Vehicles & Parts industry, placing it in the top 60.7%.
Is Tesla's Return-on-Tangible-Equity too high?
Tesla's current Return-on-Tangible-Equity of 2.34% is 53% below median its 10-year median of 4.98. The Vehicles & Parts industry median Return-on-Tangible-Equity is 7.51. Tesla's value of 2.34% is 68.8% below this industry median. Based on the distribution chart, Tesla ranks #780 out of 1285 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Tesla has a GF Score™ of 86/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tesla's Return-on-Tangible-Equity compare to GM and F?
According to the Vehicles & Parts industry distribution chart, Tesla ranks #780 out of 1285 companies for Return-on-Tangible-Equity. This places Tesla in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.51. Tesla's value of 2.34% is 68.8% below this benchmark. While the company's 10-year median is 4.98 vs. the industry median of 7.51, 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 Return-on-Tangible-Equity for a Vehicles & Parts company?
The median Return-on-Tangible-Equity among Vehicles & Parts companies is 7.51, based on 1,285 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tesla's current Return-on-Tangible-Equity of 2.34% is 68.8% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Tesla and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Equity is 7.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tesla's current Return-on-Tangible-Equity is 2.34%, which is 53% below median its own 10-year median of 4.98. 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 (CHIX:TL0D) is currently considered Significantly Overvalued. The stock's GF Value™ is €257.64, compared to a current price of €380.00 — trading 47.5% above its estimated fair value. The current Return-on-Tangible-Equity is 2.34%, which is 53% below median its 10-year median of 4.98 and 68.8% below the Vehicles & Parts industry median of 7.51. Tesla's overall GF Score™ is 86/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Tesla (CHIX:TL0D), the current Return-on-Tangible-Equity is 2.34% 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 (CHIX:TL0D) Overvalued in 2026?
Based on GuruFocus' analysis, Tesla stock appears to be overvalued.
The current stock price of €380.00 is trading 47.5% above its estimated GF Value™ of €257.64.
GuruFocus considers Tesla to be Significantly Overvalued.
Key valuation signals for CHIX:TL0D:
Return-on-Tangible-Equity: 2.34% (53% below median its 10-year median of 4.98)
GF Value™: €257.64 vs. price of €380.00 (47.5% above fair value)
Industry Position: 68.8% below the Vehicles & Parts median (#780 of 1285)
No single metric tells the full story. See the CHIX:TL0D 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.
86GF Score
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