Tesla Inc (TSLA)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	8,891,000	10,728,000	12,652,000	12,717,000	13,656,000	12,368,000	10,684,000	9,532,000	6,523,000	4,485,000	3,290,000	2,305,000	1,994,000	1,778,000	1,230,000	736,000	-69,000	-14,000	141,000	-313,392
Total assets	US$ in thousands	106,618,000	93,941,000	90,591,000	86,833,000	82,338,000	74,426,000	68,513,000	66,038,000	62,131,000	57,834,000	55,146,000	52,972,000	52,148,000	45,691,000	38,135,000	37,250,000	34,309,000	32,795,000	31,872,600	28,912,500
Operating ROA		8.34%	11.42%	13.97%	14.65%	16.59%	16.62%	15.59%	14.43%	10.50%	7.75%	5.97%	4.35%	3.82%	3.89%	3.23%	1.98%	-0.20%	-0.04%	0.44%	-1.08%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $8,891,000K ÷ $106,618,000K
= 8.34%

To analyze Tesla Inc's operating return on assets (operating ROA), we can observe the trend of the operating ROA over the given time period.

As per the data presented, Tesla's operating ROA has displayed a downward trend from 14.64% in December 2022 to 6.66% in December 2023. The operating ROA peaked at 14.64% in December 2022 and has since experienced a gradual decline.

This declining trend indicates that Tesla's operating income generated from its assets has been decreasing relative to the size of its asset base. The decreasing trend in operating ROA could suggest declining operational efficiency or a potential increase in asset base without a corresponding increase in operating income.

It would be essential for Tesla's management to thoroughly evaluate the factors contributing to this trend and consider strategies to improve operational efficiency, asset utilization, or revenue generation to reverse the declining trend in operating ROA.