Company Summary
Over the years, electric vehicle (EV) maker Tesla has evolved into a dynamic technology innovator. It has transformed the EV space like Amazon changed the retail landscape and Netflix revolutionized entertainment. However, with growing competition, Tesla's market share in battery-powered electric car sales in the United States dropped to 56% in Q4’23 from roughly 63% in 2022. Tesla, which has managed to garner a gold-standard reputation over the years, is now a far bigger entity than it was at the time of its IPO in 2010. The EV king’s market capitalization is more than the combined value of legacy automakers, including Toyota, Volkswagen, Sellantis, General Motors and Ford.
Over the years, Tesla has shifted from developing niche products for affluent buyers to making more affordable EVs for the masses. The firm’s three-pronged business model approach of direct sales, servicing and charging its EVs sets it apart from other carmakers. Tesla, touted as the clean energy revolutionary automaker, is much more than just a car manufacturer. The firm also makes different kinds of technology like self-driving software, charging stations and battery development, et al. The technology titan has also made inroads into solar and energy storage business.
Tesla operates under three segments: Automotive, Energy Generation/ Storage and Services/Others. While Automotive operations accounted for 85.2% of the total sales in 2023, revenues from Energy Generation/Storage and Services/Others constituted 6.2% and 8.6% of the total sales, respectively.
Presently, this Texas-based company produces and sells five fully electric vehicles: The Model S sedan, the Model X sport utility vehicle (“SUV”), the Model 3 sedan and the Model Y SUV and Cybertruck. Tesla’s future product lineup includes a $25K electric car, Semi truck and Roadster.
Tesla’s first, second and third Gigafactory are located in Nevada, New York and Shanghai, respectively. Its fourth and fifth Gigafactory are located in Berlin and Austin, respectively, and commenced production in the fourth quarter of 2021.