Revenue Breakdown | 2023 | Contribution |
Automotive Sales | $78.5B | 81% |
Regulatory Credits | $1.79B | 1.85% |
Leasing | $2.12B | 2.19% |
Services | $8.32B | 8.6% |
Energy generation and storage | $6.03B | 6.24% |
Total | $96.77B |
Compared to a few years back, Tesla is a transformed company, which has passed through the so-called “production hell” and into mass scale!
That has enabled Tesla also to generate substantial profit margins for each car sold!
Of course, market dynamics in the EV industry are changing, and competition is on the rise.
Yet, Tesla is now made of many moving parts.
While its business model is skewed toward the automotive segment, other segments like services and energy storage and generation will play a key role in the future.
The company started as a niche player, launching its EV sports car, which targeted innovators, with its Tesla Roadster.
Only when Tesla finally managed to build a viable sports car and show the world that it was possible to build a performance electric vehicle the company started to move up the market ladder.
Indeed, with the Model S, Tesla built a car that targeted early adopters.
It took Tesla a decade to figure out how to manufacture electric vehicles at scale.
Only with the Model 3 did Tesla start to tackle the early majority.
And currently, Tesla is working toward the market’s early and late majority segments, which is where mass scale happens!
Related to Tesla
Read Also: Tesla Business Model, Elon Musk Companies, Who Owns Tesla, Transitional Business Models, Tesla Competitors.
Read Also: Who Is Elon Musk? The Elon Musk’s Story, How Does Elon Musk Make Money, Elon Musk Companies, Bill Gates Companies, Jeff Bezos Companies, Warren Buffett Companies.
How did Tesla use a transitional business model to thrive?