By 2024, most of Tesla’s shares are still owned by Elon Musk, among the company’s co-founders and the CEO. Elon Musk is the top individual investor, with a 20.6% stake in the company. Musk is followed by Lawrence Ellison (founder of Oracle), with a 1.5% company stake. Ellison used to sit on Tesla’s board of directors. And Antonio Gracias, among the company’s first investors, has over 1.6 million shares. Other institutional investors and mutual funds like The Vanguard Group (6.9%), andBlackrock (5.6%).
Aspect
Description
Analysis
Examples
Products and Services
Tesla offers a range of electric vehicles (EVs) that includes the Model S, Model 3, Model X, Model Y, and the Cybertruck (in development). Additionally, Tesla provides energy products such as solar panels, solar roofs, and energy storage solutions like the Powerwall and Powerpack. The company’s Full Self-Driving (FSD) software and Autopilot features also contribute to its offerings.
Tesla’s core products comprise a lineup of electric vehicles, energy products like solar panels and energy storage solutions, and autonomous driving technology through Full Self-Driving and Autopilot features. Tesla’s integrated approach spans sustainable transportation and energy solutions, aligning with its mission of accelerating the world’s transition to sustainable energy.
Electric vehicles (e.g., Model S, Model 3, Model X, Model Y, Cybertruck), energy products (solar panels, solar roofs, Powerwall, Powerpack), autonomous driving technology (Full Self-Driving, Autopilot), integrated approach for sustainable transportation and energy solutions, mission to accelerate the transition to sustainable energy.
Revenue Streams
Tesla generates revenue primarily from the sale of electric vehicles, which includes the purchase of vehicles by individual customers and fleet sales. Additionally, the company earns income from the sale of energy products, including solar panels and energy storage solutions. Tesla also receives revenue from regulatory credits, which are earned for producing zero-emission vehicles and can be sold to other automakers. Autopilot and Full Self-Driving packages provide an additional source of revenue.
The main sources of revenue for Tesla encompass the sale of electric vehicles to individual customers and fleet buyers, sales of energy products like solar panels and energy storage solutions, earnings from the sale of regulatory credits to other automakers, and revenue generated from Autopilot and Full Self-Driving packages. Tesla diversifies its income streams within the electric vehicle and clean energy sectors.
Revenue from electric vehicle sales, energy product sales (solar panels, energy storage solutions), earnings from selling regulatory credits, revenue from Autopilot and Full Self-Driving packages, diversified income streams within electric vehicles and clean energy sectors.
Customer Segments
Tesla caters to a diverse customer base that includes individual consumers seeking electric vehicles, businesses and fleet operators for commercial vehicle purchases, homeowners and commercial property owners looking for energy solutions, and technology enthusiasts interested in autonomous driving features. Tesla’s appeal spans across different demographics and industries.
Customer segments for Tesla encompass individual consumers in search of electric vehicles, businesses and fleet operators seeking commercial vehicles, homeowners and commercial property owners interested in energy products, and technology enthusiasts intrigued by autonomous driving features. Tesla’s broad appeal extends to various demographics and industries, aligning with its vision of widespread sustainable transportation and energy use.
Individual consumers looking for electric vehicles, businesses and fleet operators for commercial vehicle needs, homeowners and commercial property owners interested in energy products, technology enthusiasts intrigued by autonomous driving features, broad appeal across demographics and industries, vision of widespread sustainable transportation and energy adoption.
Distribution Channels
Tesla primarily sells its products through a network of Tesla-owned stores and galleries, along with its official website, where customers can configure and order vehicles. The company also employs direct sales and delivery methods, often bypassing traditional dealership models. Additionally, Tesla’s energy products are marketed and sold through its online platform and energy consultants.
Distribution channels for Tesla encompass Tesla-owned stores, galleries, and the official website, where customers configure and purchase vehicles directly. The company adopts a direct sales approach, bypassing traditional dealership models. Energy products are marketed and sold through the online platform and consultations with energy experts. Tesla’s direct-to-consumer strategy aligns with its innovative approach in the automotive and energy sectors.
Sales through Tesla-owned stores, galleries, and official website, direct-to-consumer approach bypassing traditional dealership models, marketing and sales of energy products through online platform and energy consultants, innovative approach in automotive and energy sectors.
Key Partnerships
Tesla collaborates with various partners to expand its offerings and reach. These partnerships may involve agreements with suppliers for vehicle components, collaborations with charging infrastructure providers to enhance EV charging networks, strategic alliances with energy companies for energy storage solutions, and regulatory compliance efforts to meet global standards. Additionally, Tesla partners with other companies to provide technologies like Autopilot and infotainment systems.
Collaborations with suppliers ensure a consistent supply of vehicle components. Partnerships with charging infrastructure providers expand the charging network for Tesla owners. Strategic alliances with energy companies enhance energy storage offerings. Regulatory compliance efforts ensure adherence to global standards. Partnerships for technologies like Autopilot and infotainment systems improve the overall driving experience. Tesla’s partnerships contribute to its product quality and innovation.
Agreements with suppliers for vehicle components, collaborations with charging infrastructure providers to expand charging networks, strategic alliances with energy companies to enhance energy storage solutions, regulatory compliance efforts for global standards, partnerships for technologies like Autopilot and infotainment systems, contributions to product quality and innovation through partnerships.
Key Resources
Tesla’s key resources include its electric vehicle manufacturing facilities (e.g., Gigafactories), research and development capabilities for vehicle and battery technology, a strong brand identity, a loyal customer base, a proprietary Supercharger network for fast EV charging, a team of engineers and designers, and a visionary leader in Elon Musk. These resources enable Tesla to innovate in the EV and clean energy sectors.
Key resources for Tesla encompass its electric vehicle manufacturing facilities, research and development capabilities in vehicle and battery technology, a powerful brand identity, a dedicated and loyal customer base, a proprietary Supercharger network, a talented team of engineers and designers, and visionary leadership by Elon Musk. These resources collectively empower Tesla to drive innovation and lead the way in the electric vehicle and clean energy industries.
Electric vehicle manufacturing facilities (e.g., Gigafactories), research and development capabilities in vehicle and battery technology, strong brand identity, dedicated and loyal customer base, proprietary Supercharger network, talented team of engineers and designers, visionary leadership by Elon Musk, resources for innovation and leadership in electric vehicles and clean energy.
Cost Structure
Tesla incurs costs related to electric vehicle production, including manufacturing, materials, labor, and supply chain management. Additional expenses include research and development, marketing and advertising campaigns, sales and delivery operations, regulatory compliance efforts, employee salaries and benefits, and investments in charging infrastructure. Costs can vary based on production volumes and expansion efforts.
Costs associated with Tesla’s operations include expenses for electric vehicle manufacturing, comprising manufacturing costs, materials, labor, and supply chain management. Other costs encompass research and development expenditures, marketing and advertising initiatives, sales and delivery operations, regulatory compliance efforts, employee compensation, and investments in charging infrastructure. The scale of production and expansion initiatives can impact operational costs. Tesla manages its expenses while pursuing growth and innovation.
Costs related to electric vehicle production (manufacturing, materials, labor, supply chain management), research and development expenses, marketing and advertising campaigns, sales and delivery operations, regulatory compliance efforts, employee salaries and benefits, investments in charging infrastructure, cost management for growth and innovation.
Competitive Advantage
Tesla’s competitive advantage stems from its leadership in electric vehicle innovation, symbolized by its pioneering electric cars, advanced battery technology, and the proprietary Supercharger network. The brand’s strong commitment to sustainability resonates with environmentally conscious consumers. Tesla’s direct sales approach and focus on autonomous driving technology (e.g., Autopilot) set it apart in the automotive industry. The visionary leadership of Elon Musk also contributes to its unique positioning.
Tesla’s competitive advantage is derived from its role as an electric vehicle innovation leader, marked by pioneering electric car models, cutting-edge battery technology, and the exclusive Supercharger network. The company’s commitment to sustainability aligns with the values of environmentally conscious consumers. Tesla’s direct-to-consumer model and emphasis on autonomous driving technology, such as Autopilot, differentiate it in the automotive sector. Visionary leadership by Elon Musk further enhances its unique positioning.
Leadership in electric vehicle innovation, pioneering electric car models, advanced battery technology, proprietary Supercharger network, commitment to sustainability resonating with environmentally conscious consumers, direct-to-consumer sales model, focus on autonomous driving technology (e.g., Autopilot), visionary leadership by Elon Musk, distinctive positioning in the automotive industry.
It takes a minute to strategize where you want to get regarding strategy and vision.
And yet, it takes years, or even decades, to realize that vision.
Tesla is proof of that.
Tesla managed to get into what we can call the “mass manufacturing moment” only by 2021-2022.
The demarcation moment of this mass manufacturing era is the fact that by 2022, Tesla had passed a million cars produced!
For some context, a large group like BMW, which owns several brands and produces gas-powered cars, produced over 2.3 million cars in 2022.
BMW has experienced fluctuating sales numbers from 2018 to 2022, with a peak in 2021 at 2,213,790 units.
Mini sales have been on a general decline since 2018, with a slight uptick between 2020 and 2021, but still lower than previous years.
Rolls-Royce sales have shown an overall increasing trend, reaching their highest point in 2022 with 6,239 units sold.
Thus, you can appreciate how Tesla, by passing a million cars produced, got into the top rankings, even compared to large car manufacturers.
Not only that, Tesla managed to reach that point by also reaching a wide profitability per car.
Tesla’s profit margin per car in 2023 was $8,279, compared to $9580 in 2022, over $6000 in 2021, and over $1700 in 2020.
As Tesla was working toward mass manufacturing in 2020, the company’s profitability per car increased massively between 2020 and 2023, though in an attempt to gain market shares, it decreased in 2023 compared to 2022.
Of course, market dynamics in the EV industry are changing, and competition is on the rise.
While its business model is skewed toward the automotive segment, other segments like services, energy storage, and generation will play a key role in the future.
Automotive sales are the most critical segment for Tesla, with over $82.4 billion in revenue from automotive parts; most of the gross profits come from automotive sales, with over $16 billion in gross profits, or a 19.4 % gross margin. However, the “energy platform” (generation & storage) is contributing more and more to it. With revenue of $6 billion, a gross profit of over a billion dollars, and gross margins of 18.9%, this might become a critical component of the business model, thus changing its whole strategy.
Tesla started with its Roadster by targeting innovators. That was in the early 2000s.
It then moved to target early adopters with its Model S.
And it eventually reached early majority adoption status, with its Model 3!
To be sure, while the process above seems linear, in reality, the history of Tesla is all but linear.
Indeed, the company has gone through various near-death experiences. And it has stumbled upon many massive obstacles to get where it is today.
And even in terms of new model launches, which enabled the company to tackle various segments of the market, in reality, that happened in parallel.
While Tesla was still working on the Roadster, the company was already looking into developing a car (which would eventually become the Model S) to tackle more extensive and more significant pockets of the market.
Key Highlights
Gracias, one of the early investors in Tesla, holds a substantial stake in the company with over 1.6 million shares. Additionally, other institutional investors and mutual funds, including The Vanguard Group (6%), Blackrock (5.1%), and Capital Ventures International, also have notable positions in Tesla. This diverse ownership structure indicates significant interest from both individual and institutional investors, reflecting the confidence in Tesla’s potential and growth prospects.
Tesla’s journey to become a major player in the automotive industry has been a remarkable one. By 2021-2022, the company achieved what can be termed as the “mass manufacturing moment,” surpassing the milestone of producing one million cars. This achievement marked Tesla’s transition from a niche electric vehicle (EV) manufacturer to a significant player in the global automotive market. Competing with established giants like BMW, which produced over 2.3 million gas-powered cars in 2022, Tesla’s accomplishment is a testament to its rapid growth and market acceptance.
The success of Tesla’s mass manufacturing strategy is further highlighted by its impressive profitability per car. In 2022, Tesla’s profit margin per car reached $9580, a substantial increase compared to previous years. This growth trajectory is remarkable, considering the challenges Tesla faced during the early stages of its mass manufacturing efforts. The company’s focus on increasing efficiency, scale, and cost optimization has contributed to its ability to generate higher profits per vehicle.
Tesla’s business model is primarily centered around the automotive segment, which remains the most critical revenue driver. In 2022, the company generated over $71.4 billion in revenue from automotive sales, making it the cornerstone of its operations. Moreover, a significant portion of Tesla’s gross profits, amounting to over $20 billion, comes from automotive sales, reflecting a healthy gross margin of 28.5%. This underscores the importance of automotive sales to Tesla’s overall financial performance.
Tesla’s journey towards mass adoption of its EVs has followed a progressive approach. It started with its first model, the Roadster, targeting innovators and early adopters who were passionate about cutting-edge electric vehicles. As Tesla refined its technology and expanded its product lineup, it gradually moved into the early majority phase, targeting a broader market with its Model S and eventually achieving widespread adoption with the Model 3. This evolution demonstrates Tesla’s ability to appeal to different consumer segments and adapt to the changing demands of the market.
Tesla’s growth has not been without challenges. The company has faced various near-death experiences and significant obstacles along the way. From financial struggles to production challenges and skepticism from the automotive industry, Tesla’s journey has been marked by resilience and determination. Overcoming these hurdles has been crucial in shaping Tesla into the successful and influential company it is today.
Tesla’s expansion beyond the automotive segment is also notable. While automotive sales remain central to its operations, Tesla has ventured into other areas, such as services, energy storage, and generation. These additional segments are expected to play a key role in Tesla’s future growth and diversification. As the company continues to innovate and expand, its impact on various industries and the transition to sustainable energy solutions are likely to be significant.
By 2024, most of Tesla’s shares are still owned by Elon Musk, among the company’s co-founders and the CEO. Elon Musk is the top individual investor, with a 20.6% stake in the company. Musk is followed by Lawrence Ellison (founder of Oracle), with a 1.5% company stake. Ellison used to sit on Tesla’s board of directors. And Antonio Gracias, among the company’s first investors, has over 1.6 million shares. Other institutional investors and mutual funds like The Vanguard Group (6.9%), andBlackrock (5.6%).
Tesla is vertically integrated. Therefore, the company runs and operates the Tesla’s plants where cars are manufactured and the Gigafactory which produces the battery packs and stationary storage systems for its electric vehicles, which are sold via direct channels like the Tesla online store and the Tesla physical stores.
In 2023, Tesla generated $96.77 Billion in revenues. Tesla’s business model primarily relies on automotive sales, $78.5 billion (over 81% of the total revenues); services/others followed with over $8 billion; energy generation and storage generated over $6 billion in revenues.
Automotive sales are the most critical segment for Tesla, with over $82.4 billion in revenue from automotive parts; most of the gross profits come from automotive sales, with over $16 billion in gross profits, or a 19.4 % gross margin. However, the “energy platform” (generation & storage) is contributing more and more to it. With revenue of $6 billion, a gross profit of over a billion dollars, and gross margins of 18.9%, this might become a critical component of the business model, thus changing its whole strategy.
Tesla didn’t have an official advertising budget until 2023, to spend on advertising, as it has almost been null over the years. Indeed, Tesla leveraged a combination of Elon Musk’s ability to generate significant media coverage and build a product that sold via word of mouth and directly to consumers.
Tesla was profitable in 2023, with a net profit of $14.99B, compared to $12.55 billion in 2022. Tesla has been profitable since 2020. Indeed, Tesla generated $862 million in net profits in 2020. It will further generate $5.6 billion in net profits in 2021.
Telsa’s profit margins moved from negative 3.15% in 2019 to over 15% in 2022. As Tesla scaled up manufacturing and improved its economies of scale (with new facilities) and scope, the company became extremely profitable by 2022.
Tesla’s profit margin per car in 2023 was $8,279, compared to $9580 in 2022, over $6000 in 2021, and over $1700 in 2020. As Tesla was working toward mass manufacturing in 2020, the company’s profitability per car increased massively between 2020 and 2023, though in an attempt to gain market shares, it decreased in 2023 compared to 2022.
Tesla R&D’s costs have doubled in absolute number, from almost $1.5 billion in 2020 to nearly $4 billion in 2024. Yet they have decreased as a percentage of revenue, from 5% in 2020 to 4% in 2022 and 2023. These R&D expenses primarily comprise costs associated with personnel for teams in engineering and research, manufacturing engineering and manufacturing test organizations, prototyping expenses, contracts, and professional services.
In the peak of 2020 and 2021, Tesla reached a market cap revenue multiple of 21x and 18x, respectively. This means that Tesla was valued at 21X over its revenues in 2020 and 18X over its revenue in 2021. By the end of 2022, this multiple decreased to 4.7X. And by February 2024 the multiple increased to 6X.
Elon Musk, seen as one of the most visionary tech entrepreneurs from the Silicon Valley scene, started his “career” as an entrepreneur at an early age. After selling his first startup, Zip2, in 1999, he made $22 million, which he used to found X.com, which would later become PayPal, and sell for over a billion to eBay (Musk made $180 million from the deal). He founded other companies like Tesla (he didn’t start it but became a major investor in the early years) and SpaceX. Tesla started as an electric sports car niche player, eventually turned into a mass manufacturing electric car maker.
Founded in 2003 by Eberhard and Tarpenning, eventually, the initial co-founders left the company, and by 2004, Musk first became the main investor. After that, by 2008, he took over as CEO of the company. Tesla would go through many near-death experiences until 2018. And yet, by 2021, Tesla will become a trillion-dollar company.
Tesla is vertically integrated. Therefore, the company runs and operates the Tesla’s plants where cars are manufactured and the Gigafactory, which produces the battery packs and stationary storage systems for its electric vehicles, which are sold via direct channels like the Tesla online store and the Tesla physical stores.
As an electric automaker and builder of sports cars and now trucks, Tesla’s competitors comprise companies like Ford, Mercedes-Benz, Porsche, Lamborghini, Audi, Rivian Lucid Motors, Toyota, and more. At the same time, Tesla is an electric energy production and storage company (SolarCity); it competes with Sunrun, SunPower, and Vivint Solar. And as an autonomous driving company, it competes with companies like Zoox, Waymo, and Baidu with self-driving software.
A real-time insurance business model enables Tesla to build its insurance arm by dynamically adjusting the premiums based on real-time driving behavior. Reduced insurance premiums hooked with the leasing arm enable Tesla to scale its demand side of the business.
By 2022, most of Tesla’s shares are still owned by Elon Musk, among the company’s co-founders and the CEO. Elon Musk is the top individual investor, with a 23.5% stake in the company, equivalent to over 244 million shares. Musk is followed by Lawrence Ellison (founder of Oracle), with a 1.5% company stake. Ellison also sits on Tesla’s board. And Antonio Gracias, among the company’s first investors, has over 1.6 million shares. Other institutional investors and mutual funds like The Vanguard Group (6%), Blackrock (5.1%), and Capital Ventures International also have a good chunk of the company’s stocks.
Bentley is owned by the Porsche family, which also owns the whole Volkswagen Group, through the Porsche Automobil Holding SE. Indeed, the entire group comprises three types of brands: volume, premium, and sport. Bentley is part of the premium segment of the Volkswagen Group, and it generated over €2.84 billion in revenue in 2021, within the overall €250 billion in revenue from the whole Volkswagen Group.
Formerly part of the Volkswagen Group, which owns iconic brands like Lamborghini, Bentley, and Ducati, Bugatti is part of a new joint venture. Indeed, Porsche (the corporation which controls Volkswagen, owned by the Porsche family) still holds a 24% stake in the holding that controls Bugatti. The brand has been spun out from Volkswagen. A majority stake of 55% is now owned by a joint venture called Rimac Group, controlled by Porsche (24%), Hyundai (12%), Mate Rimac (37%), and Other Investors. The Porsche family also holds a further 45% stake in the Bugatti | Rimac joint venture, thus playing the role of key shareholder.
The major shareholder of Volkswagen is Porsche Automobil Holding SE, a company investing in various automakers. This is the holding of the Porsche family, the primary shareholder of Volkswagen, with a 31.4% ownership stake in the company and a 53.3% voting power. Volkswagen is an automaker empire with brands that comprise Audi, Skoda, Seat, Lamborghini, Bugatti, Porsche, Bentley, and Ducati.
Lamborghini is an Italian luxury sports car manufacturer founded in 1963 by manufacturing magnate Ferruccio Lamborghini. Since that time, ownership of the firm has changed several times. Another financial crisis in the late 1990s saw Lamborghini sold to Volkswagen through its subsidiary Audi AG. The subsidiary remains the owner of Lamborghini today. And it’s part of the Volkswagen Group.
Tata Motors is the largest Indian automotive manufacturing company, which also owns the Jaguar Land Rover group. The Tata Family primarily owns Tata through Tata Sons Pvt Limited—a corporation that controls 46.33% of the company.
Range Rover has been part of the Jaguar Land Rover Group, a wholly-owned subsidiary of Tata Motors, since 2008, when Tata acquired the Jaguar Land Rover businesses from Ford Motor Company for $2.3 billion. Thus, Range Rover is owned by Tata Motors, primarily by the Tata family, which controls the company via its holding (Tata Sons Pvt Limited), the largest shareholder, with 46.33% ownership.
Rivian’s main shareholder is Amazon NV Investment Holdings, Amazon’s investment arm, with 18.1% in common stocks, followed by T. Rowe Price Associates with 18.2% and Global Oryx Company with 12.7% ownership. Other significant investors comprise Ford Motor Company, with 11.4% of the company’s ownership. At the same time, major individual investors comprise Robert J. Scaringe, founder, and CEO of Rivian.
Rolls-Royce is part of the BMW Group, a group, which generated over €142 billion in revenue in 2022. Rolls-Royce’s top models comprise the Phantom, Ghost, Wraith/Dawn, Cullinan.
In the provided data, the shareholder ownership of the company is distributed among various entities and individuals.
AQTON SE, Bad Homburg v.d. Höhe holds 9% of the company’s shares.
AQTON GmbH & Co. KG für Automobilwerte, Bad Homburg v.d. Höhe has a 16.6% ownership stake.
Susanne Klatten Beteiligungs GmbH, Bad Homburg v.d. Höhe owns 20.7% of the company’s shares.
Susanne Klatten and Stefan Quandt each hold a 0.2% ownership stake in the company.
Treasury shares account for 0.2% of the company’s shares.
The majority of the company’s shares, 50.7%, are free-floating, meaning they are publicly traded and available for purchase by various investors.
Overall, the data reveals a diverse shareholder structure, with a mix of individual and institutional investors, as well as a significant portion of free-floating shares.
Top shareholders include institutional investors, named executive officers, and sure other beneficial owners. The top five shareholders are BlackRock, Inc., The Vanguard Group, Capital Research Global Investors, Capital World Investors, and Mary T. Barra, who is a named executive officer of the company. BlackRock, Inc. is the largest shareholder with over 117 million shares or 8.1% of outstanding shares, followed closely by The Vanguard Group with over 102 million or 7.0% of outstanding shares. These two asset management companies collectively own a significant portion of the company.
IBM is primarily owned by institutional investors like Vanguard Group (8.86%), BlackRock (8%), and State Street (5.93%). Top individual investors comprise Arvind Krishna, CEO of IBM; senior vice president Michelle H. Browdy; James J. Kavanaugh, responsible for the company’s financial operations, and Alex Gorsky (board member) and Gary Cohn (former vice chairman).
In June 2009, Crysler emerged from bankruptcy proceedings and became owned by the U.S. and Canadian governments, the United Auto Workers (UAW) pension fund, and the Italian holding company FIAT S.p.A. Later FIAT took over a majority stake, thus creating an holding company called FIAT Chrysler Automobiles. In 2021, Fiat Chrysler Automobiles and PSA Group merged to form Stellantis. Therefore, today, Crysler is part of Stellantis, which generated nearly €180 billion in revenue in 2022, with a net profit of €16.78 billion.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
