Tesla, Inc.
Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally. The company operates in two segments, Automotive; and Energy Generation and Storage. The company offers electric vehicles, as well as sells automotive regulatory credits; and non-warranty maintenance services and collision, automotive insurance services, as well as part sales and retail merchandise sale. It also provides sedans and sport utility vehicles through direct and used vehicle sales, a network of Tesla Superchargers, and in-app upgrades; purchase financing and leasing services; services for electric vehicles through its company-owned service locations and Tesla mobile service technicians; and vehicle limited warranties and extended service plans. In addition, the company engages in the design, manufacture, installation, sale, and leasing of solar energy generation and energy storage products, and related services to residential, commercial, and industrial customers and utilities through its website, stores, and galleries, as well as through a network of channel partners. Further, it provides services and repairs to its energy product customers, including under warranty and extended service plans; and various financing options to its residential customers; lithium-ion battery energy storage products, such as Powerwall and Megapack; energy generation products, including solar panels and solar roof; self-driving development and artificial intelligence software, vehicle control and infotainment software, and battery and powertrain. The company was formerly known as Tesla Motors, Inc. and changed its name to Tesla, Inc. in February 2017. Tesla, Inc. was incorporated in 2003 and is headquartered in Austin, Texas.
What does it do?
Tesla makes electric cars — think the Model 3 sedan you see everywhere, or the Model Y SUV that became the best-selling car in the world in 2023. But it's not just cars: Tesla also sells giant batteries that store solar energy for homes and power grids. You can order a Tesla online, skip the dealership entirely, and have it delivered to your door. The company was founded in 2003 and is headquartered in Austin, Texas.
Tesla is the most valuable car company on earth by market cap — worth more than Toyota, Ford, and GM combined — which tells you investors aren't just betting on cars, they're betting on a tech company that happens to sell cars. Every move Tesla makes on pricing, production, or new technology sends ripples through the entire electric vehicle industry. Right now, the stock is priced for a future where Tesla dominates autonomous driving and robotics, not just EVs.
How does it make money?
The vast majority of Tesla's $94.8 billion in annual revenue comes from selling cars — Models 3, Y, S, X, and Cybertruck. A smaller but fast-growing chunk comes from its Energy division, which sells Powerwall home batteries and giant Megapack batteries to utilities. Tesla also earns meaningful money selling 'regulatory credits' — essentially selling permission slips to other automakers who don't meet emissions rules. Software upgrades, insurance, and service round out the income.
Why do investors care?
The bull story is that Tesla isn't really a car company — it's a data and AI company that happens to manufacture vehicles. Every Tesla on the road is collecting driving data that could train a fully self-driving system, which Tesla calls Full Self-Driving (FSD). If that technology works at scale, Tesla could sell robotaxi services or license its software, which would be far more profitable than selling cars. Investors also watch CEO Elon Musk's humanoid robot project, Optimus, as a potential future revenue stream worth trillions if it delivers.
Deep Dive
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