TSLANEUTRAL

TSLA FCF Yield Analysis

0.5%

Higher than 21% of Consumer Cyclical sector peers

Updated 105h ago·SEC filings & market data

Key Takeaway

A FCF Yield of 0.4% means Tesla generates free cash flow equal to just 0.4% of its market value each year, a measure of how much cash profit investors get relative to the price they pay.

Sector Performance

21th percentile

TSLA

0.5%

Sector Median

5.5%

Sector Avg

-3.3%

Prior Period

0.4%(Aug 2026)

↑ Improving

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Deep Analysis

A FCF Yield of 0.4% means Tesla generates free cash flow equal to just 0.4% of its market value each year, a measure of how much cash profit investors get relative to the price they pay.

That is far below the sector median of 5.5%, placing Tesla in the 21st percentile among Consumer Cyclical peers, so most competitors offer a higher cash return. The trend is stable, with year-over-year change not applicable and a quarter-over-quarter drop of 20.0%, yet historical values of 0.4%, 0.5%, and 0.4% confirm little movement over time. The combination of a very low level and a flat trend implies limited cash-based upside, but also no worsening pressure on valuation from this angle. For an investor, this metric suggests Tesla's price already embeds high growth expectations, not current cash generation. This largely contradicts a bullish stance and aligns with the NEUTRAL verdict, as the weak yield offers no reason to raise conviction.

Frequently Asked Questions

What does the FCF Yield tell investors about TSLA?

One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.

How is the FCF Yield calculated?

FCF Yield is calculated as: Free Cash Flow / Market Cap.

How does TSLA's FCF Yield compare to its sector?

TSLA's FCF Yield of 0.5% compares to a Consumer Cyclical sector median of 5.5%, placing it in the 21th percentile.

Who are TSLA's closest peers by FCF Yield?

The closest Consumer Cyclical peers by FCF Yield include: ABNB (5.6%), AMCR (5.5%), BALL (4.8%), BBY (7.0%), PHM (7.3%).

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Learn More About FCF Yield

Understanding Free Cash Flow

Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.

Free Cash Flow Yield: Why It Matters More Than Earnings Per Share

EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.

The Formula

Free Cash Flow / Market Cap

Why It Matters

One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.