Tesla Profit Per Employee Significantly Plunges

Employees. Pexels Image.

This article presents Tesla’s profit per employee.

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Definitions

To help readers understand the content better, the following terms and glossaries have been provided.

Profit Per Employee Calculation: Tesla’s profit per employee is defined as the company’s profitability metrics, which consist of gross profit, operating profit, profit before tax, and net profit, divided by the number of full-time employees worldwide.

Here is the formula:

Profit Per Employee = { Profitability Metrics } / Total Number Of Full-Time Employees Worldwide

* Profitability Metrics = Gross Profit | Operating Profit | Pre-Tax Profit | Net Profit

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Total Employees Worldwide

Tesla-total-employees-worldwide

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Let’s first look at Tesla’s total employees worldwide.

As of the end of fiscal year 2023, Tesla had approximately 140,500 full-time employees around the world.

Tesla’s total workforce of 140k in 2023 represents an increase of 10% from 2022, or an addition of 12,600 workers from a year ago.

Since fiscal yeare 2018, Tesla’s total number of employees has risen by 180%, from approximately 50k workers to a staggering number of 140k as of 2023.

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Gross Profit, Operating Profit, Pre-Tax Profit, And Net Profit

Tesla-profitability-metrics

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Tesla has been mostly profitable over the last three years, as depicted in the chart above.

As seen, most of Tesla’s profitability metrics, which include gross profit, operating profit, pre-tax income, and net income, topped record figures in fiscal year 2022.

However, in fiscal year 2023, Tesla’s profitability metrics significantly declined. For example, Tesla’s gross profit decreased from $20,900 in 2022 to $17,700 in 2023, while the operating profit decreased by over 40% to $8,900. Pre-tax income was down by 27% from $13,700 to $10,000.

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Profit Per Employee

Tesla-profit-per-employee

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The definition of Tesla’s profit per employee is available here: profit per employee.

Since most of Tesla’s profitability metrics significantly declined in 2023, the respective profit per employeee also plummeted in the same year.

As shown in the chart above, Tesla’s gross profit per employee tumbled to just $125,700 in fiscal year 2023 versus $163,000 in fiscal year 2022.

Tesla’s operating profit per employee reached only $63,300 in fiscal year 2023 compared to $106,800 in the previous year.

Tesla pre-tax profit per employee follow a similar pattern where it declined to $71,000 in fiscal year 2023 from $107,300 in 2022.

The only Tesla’s profit per employee that increased was the net profit per employee whose number rose to $106,800 in fiscal year 2023 from $98,200 in 2022.

In general, Tesla’s employee on average produced a gross profit of $125,700 per person in fiscal year 2023. However, Tesla’s employee only managed to produce an operating profit of $63,300 per person in fiscal year 2023, roughly half of the gross profit per person generated in the same year.

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Summary

Tesla’s profit per employee significantly plunged in 2023, reaching just $125,700 per person for gross profit and $63,300 per person for operating profit.

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References and Credits

1. All financial figures presented in this article were obtained and referenced from the company’s SEC filings, earnings releases, investors presentations, update letters, quarterly and annual reports, etc., which are available in Tesla Annual and Quarterly Results.

2. Pexels Images.

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Disclosure

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