TSLANEUTRAL

TSLA Gross Margin Analysis

16.8%

Higher than 12% of Consumer Cyclical sector peers

Updated 105h ago·SEC filings & market data

Key Takeaway

Gross margin is the share of revenue left after covering direct production costs, so 16.8% means Tesla keeps $0.168 of each sales dollar before other expenses.

Sector Performance

12th percentile

TSLA

16.8%

Sector Median

34.2%

Sector Avg

27.7%

Prior Period

21.1%(Jul 2026)

↓ Declining

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Deep Analysis

Gross margin is the share of revenue left after covering direct production costs, so 16.8% means Tesla keeps $0.168 of each sales dollar before other expenses.

That is below the sector median of 33.8%, placing Tesla in the 18th percentile among Consumer Cyclical peers. The year-over-year change is not available, but the quarter-over-quarter change is -20.4%, with the metric falling from 21.1% to 16.8% over the last two reported quarters. While a single quarter drop could be temporary, the low absolute level combined with a sharp recent decline raises downside risk for profitability. This contradicts the NEUTRAL verdict somewhat, as the margin pressure points to eroding pricing power or rising costs. Overall, the metric suggests caution and does not support a bullish stance.

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 16.8% compares to a Consumer Cyclical sector median of 34.2%, placing it in the 12th percentile.

Who are TSLA's closest peers by Gross Margin?

The closest Consumer Cyclical peers by Gross Margin include: QSR (33.7%), CHWY (30.1%), W (30.0%), JACK (29.9%), ROST (29.6%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

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.