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Tesla ($TSLA) has best-in-class return on invested capital: report Tesla ($TSLA) has best-in-class return on invested capital: report

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Tesla ($TSLA) has best-in-class return on invested capital: report

Credit: Tesla

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Tesla ($TSLA) has a best-in-class return on invested capital, a new report found. The Tesla Research Report, written by Steady Compounding’s Thomas Chua, analyzed the financial profile of Tesla. Chua noted that today’s Tesla is “drastically different from the Tesla before 2019.”

In 2019, Tesla had a positive free cash flow (FCF) when compared with other automotive companies, and appeared to be the most profitable, with operating margins of 16.7% during its latest twelve months’ financials. The company holds a 29% return on invested capital, and following Tesla is BMW at 18% and Mercedes at 14%.

Chua noted that Tesla could possibly sustain the high return on invested capital and maybe increase it further over time.

“Despite being the industry leader in EV, it is still extremely nascent. As of 2021, on a worldwide basis, Tesla has a 0.99% market share of the worldwide passenger cars market. The world is their oyster as we transit from internal combustion engine vehicles into EVs,” Chua wrote.

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Chua then analyzed Tesla’s Master Plan and what he described as its economic moat, which is comprised of its Supercharging network, brand following, direct-to-consumer retail model, management, compensation, and CEO Elon Musk’s skin in the game.

Some of the risks he mentioned included competition in which many legacy automakers have warmed up to the idea of EVs as the future and are now trying to compete with Tesla. Chua noted that Tesla is no longer that young company whose survival depends on Elon Musk’s ability to raise capital, but it is now net cash positive and generating FCF while growing at a 50% rate.

During Tesla’s third-quarter earnings call in October, Elon Musk said that he could see the company becoming more valuable than Apple and Saudi Aramco combined. “Now I’m of the opinion that we can far exceed Apple’s current market cap. I see a path for Tesla to be worth more than Apple and Saudi Aramco combined,” he said.

Disclosure: Johnna is a $TSLA shareholder and believes in Tesla’s mission.  

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Your feedback is welcome. If you have any comments or concerns or see a typo, you can email me at johnna@teslarati.com. You can also reach me on Twitter at @JohnnaCrider1.

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Johnna Crider is a Baton Rouge writer covering Tesla, Elon Musk, EVs, and clean energy & supports Tesla's mission. Johnna also interviewed Elon Musk and you can listen here

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Tesla FSD (Supervised) fleet passes 8.4 billion cumulative miles

The figure appears on Tesla’s official safety page, which tracks performance data for FSD (Supervised) and other safety technologies.

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Credit: Tesla

Tesla’s Full Self-Driving (Supervised) system has now surpassed 8.4 billion cumulative miles.

The figure appears on Tesla’s official safety page, which tracks performance data for FSD (Supervised) and other safety technologies.

Tesla has long emphasized that large-scale real-world data is central to improving its neural network-based approach to autonomy. Each mile driven with FSD (Supervised) engaged contributes additional edge cases and scenario training for the system.

Credit: Tesla

The milestone also brings Tesla closer to a benchmark previously outlined by CEO Elon Musk. Musk has stated that roughly 10 billion miles of training data may be needed to achieve safe unsupervised self-driving at scale, citing the “long tail” of rare but complex driving situations that must be learned through experience.

The growth curve of FSD Supervised’s cumulative miles over the past five years has been notable. 

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As noted in data shared by Tesla watcher Sawyer Merritt, annual FSD (Supervised) miles have increased from roughly 6 million in 2021 to 80 million in 2022, 670 million in 2023, 2.25 billion in 2024, and 4.25 billion in 2025. In just the first 50 days of 2026, Tesla owners logged another 1 billion miles.

At the current pace, the fleet is trending towards hitting about 10 billion FSD Supervised miles this year. The increase has been driven by Tesla’s growing vehicle fleet, periodic free trials, and expanding Robotaxi operations, among others.

With the fleet now past 8.4 billion cumulative miles, Tesla’s supervised system is approaching that threshold, even as regulatory approval for fully unsupervised deployment remains subject to further validation and oversight.

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Elon Musk fires back after Wikipedia co-founder claims neutrality and dubs Grokipedia “ridiculous”

Musk’s response to Wales’ comments, which were posted on social media platform X, was short and direct: “Famous last words.”

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UK Government, CC BY 2.0 , via Wikimedia Commons

Elon Musk fired back at Wikipedia co-founder Jimmy Wales after the longtime online encyclopedia leader dismissed xAI’s new AI-powered alternative, Grokipedia, as a “ridiculous” idea that is bound to fail.

Musk’s response to Wales’ comments, which were posted on social media platform X, was short and direct: “Famous last words.”

Wales made the comments while answering questions about Wikipedia’s neutrality. According to Wales, Wikipedia prides itself on neutrality. 

“One of our core values at Wikipedia is neutrality. A neutral point of view is non-negotiable. It’s in the community, unquestioned… The idea that we’ve become somehow ‘Wokepidea’ is just not true,” Wales said.

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When asked about potential competition from Grokipedia, Wales downplayed the situation. “There is no competition. I don’t know if anyone uses Grokipedia. I think it is a ridiculous idea that will never work,” Wales wrote.

After Grokipedia went live, Larry Sanger, also a co-founder of Wikipedia, wrote on X that his initial impression of the AI-powered Wikipedia alternative was “very OK.”

“My initial impression, looking at my own article and poking around here and there, is that Grokipedia is very OK. The jury’s still out as to whether it’s actually better than Wikipedia. But at this point I would have to say ‘maybe!’” Sanger stated.

Musk responded to Sanger’s assessment by saying it was “accurate.” In a separate post, he added that even in its V0.1 form, Grokipedia was already better than Wikipedia.

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During a past appearance on the Tucker Carlson Show, Sanger argued that Wikipedia has drifted from its original vision, citing concerns about how its “Reliable sources/Perennial sources” framework categorizes publications by perceived credibility. As per Sanger, Wikipedia’s “Reliable sources/Perennial sources” list leans heavily left, with conservative publications getting effectively blacklisted in favor of their more liberal counterparts.

As of writing, Grokipedia has reportedly surpassed 80% of English Wikipedia’s article count.

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Tesla Sweden appeals after grid company refuses to restore existing Supercharger due to union strike

The charging site was previously functioning before it was temporarily disconnected in April last year for electrical safety reasons.

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Credit: Tesla Charging

Tesla Sweden is seeking regulatory intervention after a Swedish power grid company refused to reconnect an already operational Supercharger station in Åre due to ongoing union sympathy actions.

The charging site was previously functioning before it was temporarily disconnected in April last year for electrical safety reasons. A temporary construction power cabinet supplying the station had fallen over, described by Tesla as occurring “under unclear circumstances.” The power was then cut at the request of Tesla’s installation contractor to allow safe repair work.

While the safety issue was resolved, the station has not been brought back online. Stefan Sedin, CEO of Jämtkraft elnät, told Dagens Arbete (DA) that power will not be restored to the existing Supercharger station as long as the electric vehicle maker’s union issues are ongoing. 

“One of our installers noticed that the construction power had been backed up and was on the ground. We asked Tesla to fix the system, and their installation company in turn asked us to cut the power so that they could do the work safely. 

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“When everything was restored, the question arose: ‘Wait a minute, can we reconnect the station to the electricity grid? Or what does the notice actually say?’ We consulted with our employer organization, who were clear that as long as sympathy measures are in place, we cannot reconnect this facility,” Sedin said. 

The union’s sympathy actions, which began in March 2024, apply to work involving “planning, preparation, new connections, grid expansion, service, maintenance and repairs” of Tesla’s charging infrastructure in Sweden.

Tesla Sweden has argued that reconnecting an existing facility is not equivalent to establishing a new grid connection. In a filing to the Swedish Energy Market Inspectorate, the company stated that reconnecting the installation “is therefore not covered by the sympathy measures and cannot therefore constitute a reason for not reconnecting the facility to the electricity grid.”

Sedin, for his part, noted that Tesla’s issue with the Supercharger is quite unique. And while Jämtkraft elnät itself has no issue with Tesla, its actions are based on the unions’ sympathy measures against the electric vehicle maker. 

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“This is absolutely the first time that I have been involved in matters relating to union conflicts or sympathy measures. That is why we have relied entirely on the assessment of our employer organization. This is not something that we have made any decisions about ourselves at all. 

“It is not that Jämtkraft elnät has a conflict with Tesla, but our actions are based on these sympathy measures. Should it turn out that we have made an incorrect assessment, we will correct ourselves. It is no more difficult than that for us,” the executive said. 

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