Camilla Jessen
While Tesla remains a titan in market value, a fresh analysis shows it ranks last in profitability among tech’s elite.
Tesla’s reputation as a disruptive force in both the tech and automotive worlds isn’t enough to shield it from financial scrutiny.
Last Of the “Magnificent 7”
A new report from BestBrokers reveals that Elon Musk’s company has the lowest profit margin of all firms in the so-called ‘Magnificent 7’ — a group that includes the most influential tech companies in the world.
According to the analysis, Tesla’s profit margin sits at just 8.68%, placing it well behind other members of the elite club: Nvidia, Meta, Microsoft, Amazon, Apple, and Alphabet.
Nvidia Leads
At the top of the ranking is Nvidia, the AI chipmaker powering much of the current tech boom, with an eye-watering profit margin of 59.86%.
Meta, the parent company of Facebook and Instagram, follows with 44.42%, while Microsoft, recently valued at $4 trillion, secures third place.
Tesla Lags
Tesla, by contrast, finds itself in last place.
The electric vehicle giant’s 8.68% profit margin underscores recent headwinds, including falling sales figures and intensified competition, particularly from Chinese EV powerhouse BYD.
Ferrari and Toyota Outpace Tesla
Tesla’s financial standing looks even more challenged when compared to traditional carmakers. In a broader comparison with 28 global automotive companies, Tesla ranks 11th in operating profit margin — behind Ferrari, Toyota, and Kia.
Ferrari, for example, posts a 28.73% margin, thanks to its ability to command ultra-premium pricing and cultivate brand exclusivity.
Toyota and Kia report 15.44% and 14.51% margins, respectively — nearly double Tesla’s.
Despite its $980 billion market cap and status as the most valuable carmaker globally, Tesla’s efficiency in converting sales into profit lags behind several legacy automakers.
What Does Profit Margin Really Measure?
Paul Hoffman, the analyst behind the BestBrokers report, explains that profit margin is an indicator for companies operating in competitive, capital-heavy industries.
“A high profit margin indicates effective cost management, pricing power, and the ability to create value,” says Hoffman.
That ability to generate strong returns becomes even more important in fast-moving sectors like tech and AI, where growth is fueled by innovation.
Nvidia’s towering margin, he adds, reflects its dominance in this space.
By contrast, Amazon and Tesla, with profit margins of 10.75% and 8.68%, “highlight the challenges of capital-intensive industries such as retail and automotive.”
Tesla’s Nordic Struggles
This isn’t the first red flag for Tesla. As previously reported by Boosted, Tesla’s sales figures have slumped significantly in parts of the Nordic market, raising concerns over regional demand.
