Munger Mode rating: 2 out of 5 — Sell. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
Primary source: Form 10-Q for the quarter ended June 30, 2026 Warren here, with Charlie looking over my shoulder. We have read Tesla's latest 10-Q the way we read every filing — with the enthusiasm of a teenager reading a love letter, looking for what the numbers say rather than what the story promises. Here is what they say: Tesla generated $28.2 billion of revenue in the June quarter and converted it into $398 million of operating income — an operating margin of 1.4%, down from 4.1% a year ago. Nearly all of the quarter's reported net income came from marking up a $2 billion related-party investment in the CEO's other company and from interest on the cash pile. The car business, which is 73% of revenue, earns almost nothing at the operating line after the spending on artificial intelligence is loaded in. The share count grew 22% in twelve months.
Recent filings analysed: 10-Q (2026-07-23), 8-K (2026-07-22), 8-K (2026-07-02), 10-K/A (2026-04-30).
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