VOL. XCIV, NO. 247

★ WIDE MOAT STOCKS COMPARISON ★

NO ADVICE

Wednesday, January 7, 2026

Stock Comparison

Tesla, Inc. vs Xero Limited

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

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

Xero Limited

XRO · Australian Securities Exchange

Market cap (USD)$18.2B
Gross margin (TTM)85.3%
Operating margin (TTM)17.6%
Net margin (TTM)11.5%
SectorTechnology
IndustrySoftware - Application
CountryNZ
Data as of2026-01-02
Moat score
71/ 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 Xero Limited's moat claims, evidence, and risks.

View XRO analysis

Comparison highlights

  • Moat score gap: Tesla, Inc. leads (75 / 100 vs 71 / 100 for Xero Limited).
  • Segment focus: Tesla, Inc. has 3 segments (78.9% in Automotive (vehicles + software + leasing + regulatory credits)); Xero Limited has 2 segments.
  • Primary market structure: Competitive vs Oligopoly. Pricing power: Moderate vs Moderate.
  • Moat breadth: Tesla, Inc. has 9 moat types across 3 domains; Xero Limited has 7 across 3.

Primary market context

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%

Xero Limited

Core Accounting Subscription Platform

Market

Cloud accounting software for small businesses and their advisors

Geography

Global

Customer

SMB; accountants & bookkeepers

Role

Software platform (SaaS)

Side-by-side metrics

Tesla, Inc.
Xero Limited
Ticker / Exchange
TSLA - NASDAQ
XRO - Australian Securities Exchange
Market cap (USD)
$1.5T
$18.2B
Gross margin (TTM)
17%
85.3%
Operating margin (TTM)
4.7%
17.6%
Net margin (TTM)
5.5%
11.5%
Sector
Consumer
Technology
Industry
Auto - Manufacturers
Software - Application
HQ country
US
NZ
Primary segment
Automotive (vehicles + software + leasing + regulatory credits)
Core Accounting Subscription Platform
Market structure
Competitive
Oligopoly
Market share
56.7% (reported)
n/a
HHI estimate
n/a
n/a
Pricing power
Moderate
Moderate
Moat score
75 / 100
71 / 100
Moat domains
Network, Supply, Demand
Demand, Network, Financial
Last update
2026-01-05
2026-01-02

Moat coverage

Shared moat types

Switching Costs GeneralData Workflow Lockin

Tesla, Inc. strengths

Data Network EffectsCapex Knowhow ScaleBrand TrustPhysical Network DensityService Field NetworkScope EconomiesScale Economies Unit Cost

Xero Limited strengths

Two Sided NetworkBenchmark Pricing PowerInteroperability HubEcosystem ComplementsSuite Bundling

Segment mix

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%

Xero Limited segments

Full profile >

Core Accounting Subscription Platform

Oligopoly

n/a

Platform Services (Payments, Payroll, App Ecosystem)

Competitive

n/a

Want the full wide moat stocks list?

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

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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.