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Tesla, Inc. Common Stock (TSLA) — WACC Analysis

WACC Breakdown

Tesla, Inc. Common Stock (TSLA) has a weighted average cost of capital (WACC) of 11.7%. The cost of equity is 11.8%, derived from a beta of 2.02 and a risk-free rate of 4.7%. The after-tax cost of debt is 2.9%. The capital structure is 99.4% equity and 0.6% debt.

Interpretation

A WACC of 11.7% is moderate, reflecting the market's balanced risk assessment of Tesla, Inc. Common Stock.

Investors can compare TSLA's WACC of 11.7% against industry peers to gauge its relative financing costs. A beta of 2.02 reflects the stock's volatility relative to the broader market.

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VALUATION

TSLA WACC: 11.71% for Tesla, Inc. Common Stock

Current inputs imply a 11.77% cost of equity and a 3.69% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Tesla, Inc. Common Stock Common Stock (TSLA) WACC Results
Weighted Average Cost of Capital
11.71%
Cost of Equity
11.77%
Risk-Free Rate4.66%
Beta2.02
Market Risk Premium4.23%
Cost of Debt
2.91%
Pre-Tax Cost of Debt3.69%
Tax Rate21.00%
Tax Shield0.77%
Capital Structure
Equity: 99.36%($1401.34B)
Debt: 0.64%($9061.00M)
Equity Component
11.69%
99.36% × 11.77%
Debt Component
0.02%
0.64% × 2.91%

Tesla, Inc. Common Stock (TSLA) WACC in context

Tesla, Inc. Common Stock (TSLA) currently screens with an estimated WACC of 11.71%. That blends a 11.77% cost of equity, a 3.69% pre-tax cost of debt, and a 99.36% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What TSLA WACC implies

A 11.71% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates TSLA

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 2.02 and equity accounts for 99.36% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.