Tesla's (TSLA) lead in the electric vehicle market may be shrinking as competitors catch up. But there’s one metric where Elon Musk's company still stands alone: free cash flow.
Since its inception, Tesla has generated $16.1 billion in cumulative free cash flow, according to company filings analyzed by market researcher AJ. That makes it the only pure EV maker in the green.
Free cash flow history of pure EV makers: Tesla remains the only pure EV maker with cumulative positive free cash flow. Ford has become the #2 most cash burning after Rivian, replacing Lucid. @jimfarley98 @elonmusk @RJScaringe pic.twitter.com/Ommlfrefhg
undefined AJ (@alojoh) May 16, 2025
The rest of the sector is still deep underwater.
Rivian is the worst performer, with a cumulative free cash flow of negative $22.4 billion. Ford, Lucid, NIO, and even now-bankrupt names like Fisker and Canoo are also in the red.
Meanwhile, Faraday Future has warned it may soon follow.
Free cash flow — the money left over after a company pays for operating expenses and capital investments — is one of the benchmarks of the company’s financial health.
Companies that generate it can fund their own growth, pay off debt, or return value to shareholders without relying on outside funding.
Tesla's most recent quarter underscored that strength. The company reported $664 million in free cash flow, up 126% from a year ago despite a 9% drop in revenue and a 71% plunge in net income.
The rebound followed a wave of criticism over Musk's political involvement in the Trump White House. Facing investor pressure, Musk promised to refocus on Tesla’s core business.
Tesla extends rebound and returns to $1T club
Tesla stock has surged nearly 60% in the past month, climbing from a low near $222 to $350. That move puts Tesla’s market cap back above the $1 trillion mark for the first time this year, reaching $1.1 trillion as of Monday.
The rally is especially notable given the drama around Musk’s compensation.
The board is reportedly exploring “alternative ways” to reward Musk for past work after a court struck down his 2018 pay package. Musk has since threatened to scale back Tesla’s AI ambitions unless he gets a new deal.
"If this proposal went south, a lot of bad things and scenarios could have happened, including Musk beginning a path to not being CEO of Tesla," Wedbush Securities analyst Dan Ives.
Meanwhile, investors welcomed news that Chipotle’s longtime president Jack Hartung will join Tesla’s board on June 1, the same day he retires from the fast-casual chain.
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