Tesla, Inc.

Tesla is an integrated electric-vehicle and clean-energy company that designs, manufactures and sells battery electric vehicles, energy storage systems and solar products. It generates revenue mainly from vehicle sales and related services, energy generation and storage sales, regulatory credit sales and vehicle/energy leasing, and complements product sales with direct retail, charging and software offerings.^[1]

Business Segments

• Automotive sales and related services — core revenue from new vehicle sales, used vehicle sales, service, insurance and paid Supercharging (automotive sales represent the largest share of total revenues).^[2]
• Automotive regulatory credits and leasing — tradable regulatory credits and vehicle leasing provide a smaller but recurring revenue stream (regulatory credits and leasing together are a low-single-digit percent of total revenues).^[2]
• Energy generation and storage — sales and leasing of Powerwall, Megapack and solar products; a mid-single-digit share of total revenue but growing as deployments scale.^[2]
• Services, software and other — includes FSD/software features, connectivity, after‑sales services and retail merchandise (represents a notable single-digit share of total revenues).^[2]

Competitive Position

• Brand and scale — Tesla has a strong consumer brand and significant manufacturing and distribution scale in EVs, which supports pricing power and volume production advantages.^[3]
• Integrated ecosystem and network effects — ownership of the vehicle hardware, over‑the‑air software stack, and a proprietary charging network creates vertical integration and customer convenience that raise switching costs.^[4]

Investment Considerations

• Structural growth opportunity — long-term demand drivers include vehicle electrification, grid-scale energy storage and software/recurring revenue from vehicle connectivity and autonomy; these create multiple growth levers.^[2]
• Execution and capital intensity risk — large-scale manufacturing, battery supply and new-product ramps require sustained capital investment and operational execution; failures or delays can materially affect margins.^[2]
• Regulatory and competitive risk — reliance on regulatory credits and intense competition (including lower‑cost makers and regionally advantaged players) can pressure pricing and market share over time.^[2]
• Technology and liability exposure — advances in autonomy, software and energy systems offer upside but carry execution, safety and regulatory-compliance risks that affect long-term value.^[2]