Website: Tesla
Stock Ticker: TSLA
Founded: July 1, 2003
CEO: Elon Musk
Industry:
- Automotive
- Energy - Renewable
Financials: Tesla Financials
Shares: Shares Outstanding
Headquarters: Austin, TX
Overview
Tesla is the leading manufacturer of Electric Vehicles (EVs). It was the first to mass produce and cross 500,000 made in a year. In 2022, Tesla will become the sole company to produce 1 million electric vehicles in a year.
It is also a leading manufacturer of stationary battery technology. Through the Megapack™ and Powerwall™, the company is looking to reconfigure energy grids. Tesla Energy™ is still an underperforming component of the overall business. Elon Musk, the CEO, believes the size of the energy division could rival the automotive.
Due to the reputation of Musk, Tesla is one of the most divisive companies in the world based upon the view people take. There are proponents, known as Tesla "fanboys", who believe that this will become the largest company in the world by both market capitalization and revenue. At the same time, Tesla has its opponents who believe the company is a farce while being destined for bankruptcy.
Tesla was incorporated in July 2003 by Martin Eberhard and Marc Tarpenning as Tesla Motors. The name was an ode of respect to inventor Nikola Tesla.
Elon Musk, the most recognized person tied to Tesla got involved in 2004 with a $6.5 million investment. Since 2008, he has served as CEO of the company. His view is that Tesla's mission is to help the world transition to renewable, sustainable energy.
The company feels that it is able to achieve 50%+ annual growth for many years going forward. This has served as a point to divide the aforementioned sides regarding the viewpoint of Tesla.
Dissent
Those who opposed Tesla have pointed to the same topics over the years. Here are the topics of dissent:
- competition is coming
- EVs are niche
- accounting scandals
- company only survives on regulatory credits
- failure to deliver on specified timeframes
- worker rights violations
- need government support
- market cap worth more than all other automakers combined
- Musk is too wild to be an effective CEO
- misleading promotion of self driving capability
Musk has feed into this by waging battles against the Securities and Exchange Commissions (SEC), resulting in a $20 million fine for both himself and the company.
Models
- Roadster - Sportscar
- Model S - High end luxury vehicle
- Model X - High end SUV
- Model 3 - Mid level luxury vehicle
- Model Y - Mid level luxury SUV
- Semi
- Cybertruck (Projected for Mid-2023 production)
Plants
- Giga Nevada - Joint venture with Panasonic
- Fremont - Model S/X, 3, and Y
- Giga New York - Solar Panels and Superchargers
- Giga Shanghai (China) - Model 3 and Y
- Giga Berlin - Y (Model 3 expected to be added in future)
- Giga Austin - Y (Semi, Cybertruck, and 3 will be made here)
- Giga Mexico - 3rd Generation Vehicle
Battery manufacturing is going to occur at a number of plants. There is a manufacturing center near Fremont that is, according to Musk, already the 10th largest battery manufacturing plant in the world.
Due to the Inflation Reduction Act of 2022, incentives for battery production are in place starting in 2023. Tesla is adjusting their plans by moving near term battery production to Austin.
Shanghai and Berlin will have battery production in the future.
Tesla Energy
Tesla Energy is a long overlooked sector of the company. Since inception, the company has promoted the sale of EVs. However, Elon Musk has stated the energy division could be larger than the automotive.
There are two major products on the energy storage. The Megapack is a stationary storage battery designed to be integrated into power grids and purchased by utilities. Powerwall is another battery product that is targeted for homeowners.
At the end of 2022, Tesla opened up its plant in Lathrop (CA) which is for Megapack production. This could be a massive shift in the direction of the corporation. Once scaled, the production level is slated for 25 Megapacks per day. Since they carry a price tag of roughly $2 million apiece, this is $50 million daily in revenue.
There is also a solar production facility in Buffalo, NY which does the Tesla Roof which is a solar tile design. So far, this unit has struggled.
3rd Generation Platform
On March 1, 2023, Tesla laid out plans to reach its goal of 20 million vehicles in annual production by 2030. The key to this is the idea of a mass market, reasonably priced automobile. This will compete with the Toyota Corolla among others.
The cost of this vehicle is projected to be half the Model 3. Estimates are this car will sell for around $25,000.
Also announced was the location of a new Giga Factory in Nuevo León, Mexico, just outside Monterrey. This will be built for production of the 3rd generation car and is called Giga Mexico.
Vehicle Production
| Year | Q1 | Q2 | Q3 | Q4 | Total production |
|---|---|---|---|---|---|
| 2012 | 350 | 2750 | 3100 | ||
| 2013 | 5000 | 5880 | 6600 | 6587 | 24067 |
| 2014 | 7535 | 8763 | 7200 | 11627 | 35125 |
| 2015 | 11160 | 12807 | 13091 | 14037 | 51095 |
| 2016 | 15510 | 18345 | 25185 | 24882 | 83922 |
| 2017 | 25418 | 25708 | 25336 | 24565 | 101027 |
| 2018 | 34494 | 53339 | 80142 | 86555 | 254530 |
| 2019 | 77100 | 87048 | 96155 | 104891 | 365194 |
| 2020 | 102672 | 82272 | 145036 | 179757 | 509737 |
| 2021 | 180338 | 206421 | 237823 | 305840 | 930422 |
| 2022 | 305407 | 258580 | 365923 | 439,701 | 1,369,611 |
| 2023 | 422,880 | 466,140 | 435,060 | 484,507 | 1,808,581 |