Tesla Inc (TSLA)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 9,996,000 | 13,688,000 | 6,218,000 | 1,013,000 | -752,000 |
| Revenue | US$ in thousands | 96,773,000 | 81,462,000 | 53,823,000 | 31,536,000 | 24,578,000 |
| Pretax margin | 10.33% | 16.80% | 11.55% | 3.21% | -3.06% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $9,996,000K ÷ $96,773,000K
= 10.33%
The pretax margin of Tesla Inc has experienced fluctuation over the past five years. In 2019, the company reported a negative pretax margin of -2.71%, indicating that their expenses exceeded their revenues before accounting for taxes. Subsequently, there was a significant improvement, with the pretax margin increasing to 3.66% in 2020, reflecting better cost management and operational efficiency.
The trend continued in 2021, as the pretax margin rose to 12.11%, signaling an even stronger performance in managing costs and generating operating income. However, in 2022, there was a slight decline in the pretax margin to 10.50%, indicating a potential increase in costs relative to revenue. Despite this, the company still maintained a double-digit pretax margin.
It is noteworthy that in 2023, the pretax margin further decreased to 10.50%, suggesting a potential challenge in maintaining profitability amid changing market dynamics or cost pressures. Overall, although there has been variation in the pretax margin, Tesla Inc has demonstrated an ability to generate positive operating income relative to net sales over the past five years.
Peer comparison
Dec 31, 2023