Tesla Inc (TSLA)

Return on equity (ROE)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Net income (ttm)	US$ in thousands	7,091,000	12,702,000	12,388,000	13,613,000	14,997,000	10,756,000	12,195,000	11,751,000	12,556,000	11,190,000	9,516,000	8,399,000	5,519,000	3,468,000	2,181,000	1,143,000	721,000	556,000	368,000	-144,000
Total stockholders’ equity	US$ in thousands	72,913,000	69,931,000	66,468,000	64,378,000	62,634,000	53,466,000	51,130,000	48,054,000	44,704,000	39,851,000	36,376,000	34,085,000	30,189,000	27,053,000	24,804,000	23,017,000	22,225,000	16,031,000	9,855,000	9,173,000
ROE		9.73%	18.16%	18.64%	21.15%	23.94%	20.12%	23.85%	24.45%	28.09%	28.08%	26.16%	24.64%	18.28%	12.82%	8.79%	4.97%	3.24%	3.47%	3.73%	-1.57%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $7,091,000K ÷ $72,913,000K
= 9.73%

The return on equity (ROE) of Tesla Inc has shown a fluctuating trend over the past few years.

From March 31, 2020, to June 30, 2022, the ROE exhibited a steady increase from -1.57% to 26.16%, indicating an improvement in the company's profitability in relation to its equity base. This suggests that Tesla was effectively utilizing its shareholders' investment to generate returns during this period.

However, starting from September 30, 2022, there was a slight decline in the ROE, which continued through December 31, 2024, when it dropped to 9.73%. This downward trend could imply a decrease in the company's profitability relative to its shareholders' equity, possibly due to changes in the company's financial structure or operational efficiency during this period.

Overall, Tesla's ROE performance reflects a mix of positive growth and a subsequent decline, showcasing the dynamic nature of the company's profitability in generating returns for its equity holders.