VOL. XCIV, NO. 247

★ WIDE MOAT STOCKS COMPARISON ★

NO ADVICE

Wednesday, January 7, 2026

Stock Comparison

Cadence Design Systems, Inc. vs Tesla, Inc.

Compare moat strength, market structure, and segment coverage to understand how each company defends its edge.

Cadence Design Systems, Inc.

CDNS · NASDAQ

Market cap (USD)$82B
Gross margin (TTM)87.8%
Operating margin (TTM)28.5%
Net margin (TTM)20.4%
SectorTechnology
IndustrySoftware - Application
CountryUS
Data as of2025-12-29
Moat score
84/ 100

Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.

Full stock profile

Dive deeper into Cadence Design Systems, Inc.'s moat claims, evidence, and risks.

View CDNS analysis

Tesla, Inc.

TSLA · NASDAQ

Market cap (USD)$1.5T
Gross margin (TTM)17%
Operating margin (TTM)4.7%
Net margin (TTM)5.5%
SectorConsumer
IndustryAuto - Manufacturers
CountryUS
Data as of2026-01-05
Moat score
75/ 100

Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.

Full stock profile

Dive deeper into Tesla, Inc.'s moat claims, evidence, and risks.

View TSLA analysis

Comparison highlights

  • Moat score gap: Cadence Design Systems, Inc. leads (84 / 100 vs 75 / 100 for Tesla, Inc.).
  • Segment focus: Cadence Design Systems, Inc. has 3 segments (71% in Core EDA); Tesla, Inc. has 3 segments (78.9% in Automotive (vehicles + software + leasing + regulatory credits)).
  • Primary market structure: Oligopoly vs Competitive. Pricing power: Strong vs Moderate.
  • Moat breadth: Cadence Design Systems, Inc. has 8 moat types across 3 domains; Tesla, Inc. has 9 across 3.

Primary market context

Cadence Design Systems, Inc.

Core EDA

Market

Electronic design automation tools for semiconductor IC design and verification (digital, custom/analog, signoff, functional verification)

Geography

Global

Customer

Semiconductor designers (fabless and IDMs) and system companies with in-house silicon teams

Role

Tool vendor / workflow platform

Revenue share

71%

Tesla, Inc.

Automotive (vehicles + software + leasing + regulatory credits)

Market

Battery-electric passenger vehicles (BEV) and connected vehicle software

Geography

United States (market share datapoint); global competition

Customer

Consumers and small fleets

Role

OEM (design, manufacture, direct-to-consumer sales)

Revenue share

78.9%

Side-by-side metrics

Cadence Design Systems, Inc.
Tesla, Inc.
Ticker / Exchange
CDNS - NASDAQ
TSLA - NASDAQ
Market cap (USD)
$82B
$1.5T
Gross margin (TTM)
87.8%
17%
Operating margin (TTM)
28.5%
4.7%
Net margin (TTM)
20.4%
5.5%
Sector
Technology
Consumer
Industry
Software - Application
Auto - Manufacturers
HQ country
US
US
Primary segment
Core EDA
Automotive (vehicles + software + leasing + regulatory credits)
Market structure
Oligopoly
Competitive
Market share
29%-31% (estimated)
56.7% (reported)
HHI estimate
n/a
n/a
Pricing power
Strong
Moderate
Moat score
84 / 100
75 / 100
Moat domains
Demand, Legal, Supply
Network, Supply, Demand
Last update
2025-12-29
2026-01-05

Moat coverage

Shared moat types

Data Workflow LockinCapex Knowhow ScaleService Field Network

Cadence Design Systems, Inc. strengths

Suite BundlingLong Term ContractsDesign In QualificationInstalled Base ConsumablesIP Choke Point

Tesla, Inc. strengths

Data Network EffectsBrand TrustPhysical Network DensitySwitching Costs GeneralScope EconomiesScale Economies Unit Cost

Segment mix

Cadence Design Systems, Inc. segments

Full profile >

Core EDA

Oligopoly

71%

Semiconductor IP

Oligopoly

13%

System Design and Analysis

Competitive

16%

Tesla, Inc. segments

Full profile >

Automotive (vehicles + software + leasing + regulatory credits)

Competitive

78.9%

Services and Other (Supercharging + after-sales + used vehicles + insurance)

Quasi-Monopoly

10.8%

Energy Generation and Storage (Megapack + Powerwall + solar)

Oligopoly

10.3%

Want the full wide moat stocks list?

Browse the full ranking of wide moat stocks, updated with moat scores and segment context.

View the moat stocks list

Looking for expansion-stage stocks?

Proven models entering the expansion stage with unit economics that work.

View expansion-stage stocks

Curation & Accuracy

This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).

Details change. Pricing, features, and availability may be incomplete or out of date. Treat listings as a starting point and verify on the provider’s site before making decisions. If you spot an error or a gap, send a quick note and I’ll adjust.