TeslaCHIX:TL0D +5.02%86 5-Year ROIIC % is 4.09 as of Dec. 2025. 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 1,199 Vehicles & Parts companies, Tesla ranks worse than 54.55% on this metric.
5-Year Return on Invested Incremental Capital (5-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 5-year.
Tesla's 5-Year ROIIC % for the quarter that ended in Dec. 2025 was 4.09%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Tesla's 5-Year ROIIC % or its related term are showing as below:
CHIX:TL0d's 5-Year ROIIC % is ranked worse than 54.55% of 1199
companies
in the Vehicles & Parts industry
Industry Median: 5.87
vs CHIX:TL0d: 4.09
Tesla (CHIX:TL0d) 5-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Tesla 5-Year ROIIC % Related Terms
Tesla 5-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Tesla's 5-Year ROIIC % 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: 5-Year ROIIC % Comparison
For the Auto Manufacturers subindustry, Tesla's 5-Year ROIIC %, along with its competitors' market caps and 5-Year ROIIC % 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 5-Year ROIIC % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Tesla's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Tesla's 5-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 5-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Tesla (CHIX:TL0D) has a 5-Year ROIIC % of 4.09 as of Dec. 2025. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Tesla and its competitors. According to the industry distribution chart, Tesla ranks #654 out of 1199 companies in the Vehicles & Parts industry, placing it in the top 54.5%.
Is Tesla's 5-Year ROIIC % too high?
Tesla's current 5-Year ROIIC % is 4.09. The Vehicles & Parts industry median 5-Year ROIIC % is 5.87. Tesla's value of 4.09 is 30.3% below this industry median. Based on the distribution chart, Tesla ranks #654 out of 1199 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 5-Year ROIIC % compare to GM and F?
According to the Vehicles & Parts industry distribution chart, Tesla ranks #654 out of 1199 companies for 5-Year ROIIC %. This places Tesla in the lower half of its industry. The industry median 5-Year ROIIC % is 5.87. Tesla's value of 4.09 is 30.3% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year ROIIC % for a Vehicles & Parts company?
The median 5-Year ROIIC % among Vehicles & Parts companies is 5.87, based on 1,199 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tesla's current 5-Year ROIIC % of 4.09 is 30.3% 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 5-Year ROIIC % mean?
A high 5-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Tesla and its competitors. For the Vehicles & Parts industry, the median 5-Year ROIIC % is 5.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tesla's current 5-Year ROIIC % is 4.09. 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 5-Year ROIIC % is 4.09 and 30.3% below the Vehicles & Parts industry median of 5.87. 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 5-Year ROIIC % calculated?
5-Year ROIIC % is calculated from a company's financial statements. For Tesla (CHIX:TL0D), the current 5-Year ROIIC % is 4.09 as of Dec. 2025. 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:
5-Year ROIIC %: 4.09
GF Value™: €257.64 vs. price of €380.00 (47.5% above fair value)
Industry Position: 30.3% below the Vehicles & Parts median (#654 of 1199)
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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