TSLANEUTRAL

Gross Margin

21.1%

Higher than 27% of Consumer Cyclical sector peers

Updated 24h ago

Sector Performance

27th percentile

TSLA

21.1%

Sector Median

36.3%

Sector Avg

30.6%

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Deep Analysis

Gross margin measures the percentage of revenue left after covering the direct costs of producing goods; Tesla's current 21.1% means that for every dollar of sales, about 21 cents remain to cover other expenses and profit.

This is below the sector median of 36.3%, placing Tesla in the 27th percentile among Consumer Cyclical peers, indicating weaker pricing power or higher input costs relative to competitors. No year-over-year or quarter-over-quarter change data is available, so the trend is not defined. The combination of a below-median level with no observable trend suggests a neutral risk profile: the low margin is a concern for profitability, but without a trend, there is no clear deterioration or improvement to act on. This metric supports the overall NEUTRAL verdict – the gross margin is a relative weakness, but the lack of directional data prevents it from shifting the view to bearish or bullish.

Frequently Asked Questions

What does the Gross Margin tell investors about TSLA?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does TSLA's Gross Margin compare to its sector?

TSLA's Gross Margin of 21.1% compares to a Consumer Cyclical sector median of 36.3%, placing it in the 27th percentile.

Who are TSLA's closest peers by Gross Margin?

The closest Consumer Cyclical peers by Gross Margin include: BABA (34.5%), ROST (29.6%), BROS (23.1%), XPEV (20.6%), BWA (19.2%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.