Tesla (NASDAQ: TSLA) shares have delivered a 39.4% average annual return over the past decade. A hypothetical $1,000 investment made 10 years ago would now be valued at $27,279.06.

The electric vehicle maker has outperformed the broader market by 25.84% on an annualized basis during this period. As of the time of writing, Tesla’s market capitalization stands at $1.50 trillion, with the share price recorded at $380.07.

Long-term performance metrics

The significant growth in shareholder value highlights the impact of compounded returns over a ten-year horizon. The table below summarizes the key financial metrics disclosed in the report:

What the numbers show

The data indicates that the absolute dollar gain of $26,279.06 is a direct result of the sustained high average annual return of 39.4%. This return rate significantly exceeds the market benchmark by 25.84% annually, demonstrating that the outperformance was consistent enough to compound into a nearly 27-fold increase in initial capital.

Fitch Ratings assigned Space Exploration Technologies Corp. a BBB+ rating with a stable outlook, placing it one notch above Tesla, Inc.'s BBB rating. The divergence reflects SpaceX's growing recurring revenue from connectivity versus Tesla's substantial capital expenditure commitments.

Tesla's capital expenditure pressure

Tesla holds $43.5 billion in cash and marketable securities as of June 30. However, the company faces significant near-term liquidity demands. Fitch projects Tesla's 2026 capital expenditures to exceed $25 billion, roughly three times its 2025 spending levels.

This spending supports expansion into AI compute, Robotaxi, Optimus robotics, and semiconductor manufacturing. Tesla also indicated it could secure up to $30 billion in debt facilities to accelerate these investments. Consequently, Fitch expects Tesla to remain in negative free cash flow territory for several years, despite EBITDA margins remaining in the low-to-mid teens.

SpaceX's recurring revenue engine

SpaceX's higher rating is underpinned by its leading position in commercial launches and rapidly scaling recurring revenue. The agency noted more than $90 billion in pro forma liquidity and expects EBITDA growth to keep leverage at or below management's 2x-3x target range.

Starlink serves as a critical differentiator for creditors. At the end of the second quarter, SpaceX reported 12 million subscribers. Connectivity revenue reached $4.3 billion, up 66% year over year, generating $2.6 billion in adjusted EBITDA during the quarter.

What the numbers show

The rating gap highlights a structural difference in how each company funds innovation. Tesla is financing a transition into physical AI and autonomy while its core auto business faces margin pressure, leading to negative free cash flow projections. In contrast, SpaceX leverages an established, high-growth connectivity business that generates significant cash earnings to support ambitious projects like Starship. While Tesla possesses scale and profitability, SpaceX demonstrates a clearer path to self-funding its next investment cycle through recurring subscription income.