Editing Tesla, Inc.
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|date=November 11, 2014 | |date=November 11, 2014 | ||
|access-date=October 3, 2018 |website=Business Insider}}</ref><ref>{{cite web |title=Tesla Energy Generation And Storage Business: Q4 2020 Results |url=https://insideevs.com/news/482496/tesla-energy-generation-storage-q4-2020-results/ | date=January 27, 2021}}</ref><ref>{{cite web |title=Elon Musk |url=https://www.forbes.com/profile/elon-musk/ |website=[[Forbes]]}}</ref><ref>{{cite web | url=https://www.sec.gov/Archives/edgar/data/1318605/000156459021044307/tsla-pre14a_20210813.htm | title=Schedule 14A Information | publisher=[[U.S. Securities and Exchange Commission]]}}</ref><ref name="10K_2022">{{cite web |title=Annual report Form 10-K 2022 Tesla Inc. |url=https://www.sec.gov/ix?doc=/Archives/edgar/data/1318605/000095017023001409/tsla-20221231.htm |date=January 31, 2023 |publisher=[[U.S. Securities and Exchange Commission]]}}</ref> | |access-date=October 3, 2018 |website=Business Insider}}</ref><ref>{{cite web |title=Tesla Energy Generation And Storage Business: Q4 2020 Results |url=https://insideevs.com/news/482496/tesla-energy-generation-storage-q4-2020-results/ | date=January 27, 2021}}</ref><ref>{{cite web |title=Elon Musk |url=https://www.forbes.com/profile/elon-musk/ |website=[[Forbes]]}}</ref><ref>{{cite web | url=https://www.sec.gov/Archives/edgar/data/1318605/000156459021044307/tsla-pre14a_20210813.htm | title=Schedule 14A Information | publisher=[[U.S. Securities and Exchange Commission]]}}</ref><ref name="10K_2022">{{cite web |title=Annual report Form 10-K 2022 Tesla Inc. |url=https://www.sec.gov/ix?doc=/Archives/edgar/data/1318605/000095017023001409/tsla-20221231.htm |date=January 31, 2023 |publisher=[[U.S. Securities and Exchange Commission]]}}</ref> | ||
}} | }}Tesla is on a mission to accelerate the world's transition to sustainable energy.<ref name=":3">https://www.tesla.com/about</ref> | ||
The company sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Tesla emphasises performance, attractive styling and the safety of its users in the design and manufacture of its products and is continuing to develop full self-driving technology for improved safety. The company also strives to lower the cost of ownership for its customers through continuous efforts to reduce manufacturing costs and by offering financial and other services tailored to its products.<ref name=":4">https://www.sec.gov/Archives/edgar/data/1318605/000156459021004599/tsla-10k_20201231.htm</ref> | The company sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Tesla is an innovator that emphasises performance, attractive styling and the safety of its users in the design and manufacture of its products and is continuing to develop full self-driving technology for improved safety. The company also strives to lower the cost of ownership for its customers through continuous efforts to reduce manufacturing costs and by offering financial and other services tailored to its products.<ref name=":4">https://www.sec.gov/Archives/edgar/data/1318605/000156459021004599/tsla-10k_20201231.htm</ref> | ||
Assuming that Tesla increases its share of the automotive market to 10% (from 2%) and other assumptions, the expected return of an investment in the company over the next five years is negative 24%, which equates to an annual return of negative 4%. In other words, an £100,000 investment in the company is expected to return £76,000 in five years time. | Assuming that Tesla increases its share of the automotive market to 10% (from 2%) and other assumptions, the expected return of an investment in the company over the next five years is negative 24%, which equates to an annual return of negative 4%. In other words, an £100,000 investment in the company is expected to return £76,000 in five years time. | ||
The degree of risk associated with an investment in Tesla is 'high', with the shares having a beta that is 112% above the market (2.12 vs. 1) | The degree of risk associated with an investment in Tesla is 'high', with the shares having a beta that is 112% above the market (2.12 vs. 1). | ||
==Strategy & outlook== | |||
== | |||
=== How did the idea of the company come about? === | === How did the idea of the company come about? === | ||
The idea of the company came about when the now founding team of the company realised that the current way that humankind is meeting its energy needs is unsustainable and bad for the planet.<ref name=":9">https://www.tesla.com/en_GB/blog/secret-tesla-motors-master-plan-just-between-you-and-me</ref> | The idea of the company came about when the now founding team of the company realised that the current way that humankind is meeting its energy needs is unsustainable and bad for the planet.<ref name=":9">https://www.tesla.com/en_GB/blog/secret-tesla-motors-master-plan-just-between-you-and-me</ref> | ||
Currently, an estimated 85% of the world's energy needs are met by burning fossil fuels<ref>https://wedocs.unep.org/bitstream/handle/20.500.11822/30797/EGR2019.pdf?sequence=1&isAllowed=y</ref>, and energy production and consumption are responsible for 76% of annual human-caused greenhouse gas emissions.<ref | Currently, an estimated 85% of the world's energy needs are met by burning fossil fuels<ref>https://wedocs.unep.org/bitstream/handle/20.500.11822/30797/EGR2019.pdf?sequence=1&isAllowed=y</ref>, and energy production and consumption are responsible for 76% of annual human-caused greenhouse gas emissions.<ref>https://www.climatewatchdata.org/ghg-emissions?breakBy=sector&chartType=percentage&end_year=2018§ors=total-including-lucf&start_year=1990</ref><ref>https://www.wri.org/insights/4-charts-explain-greenhouse-gas-emissions-countries-and-sectors</ref> | ||
Researching into a better way to meet the energy needs, the team concluded that the best way to do so is to move to a solar electric economy, from a mine-and-burn hydrocarbon economy.<ref name=":9" /> | Researching into a better way to meet the energy needs, the team concluded that the best way to do so is to move to a solar electric economy, from a mine-and-burn hydrocarbon economy.<ref name=":9" /> | ||
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=== What's the mission of the company? === | === What's the mission of the company? === | ||
Tesla | Tesla's mission is to accelerate the world's transition to sustainable energy. They aim to achieve this by designing and producing scalable energy generation and storage products, along with electric vehicles that run on clean energy sources like solar power and batteries. Subsequently their vision is that the world will adopt sustainable transport as means to address environmental challenges. | ||
=== What are the company's values? === | |||
'''Sustainability:''' Tesla is committed to building sustainable systems that have a positive impact on the environment. They prioritize the use of renewable energy sources and focus on energy generation, storage, and transportation technologies that reduce carbon emissions. | |||
'''Safety:''' Safety is a core value for Tesla. They design their electric vehicles with advanced safety features and aim to make them among the safest in the world. Additionally, they prioritize the safety of their products' users and the public. | |||
'''Innovation''': Tesla takes a first-principles approach to problem-solving, seeking innovative solutions to global challenges related to engineering, manufacturing, and operations. They regularly introduce new features and improvements through over-the-air software updates. | |||
'''Fun and Enjoyment:''' Beyond safety and sustainability, Tesla wants to make driving an enjoyable experience for their customers. They add features and entertainment options to make being in a Tesla vehicle a fun and engaging experience. | |||
'''Vertical Integration:''' Tesla emphasizes vertical integration in their manufacturing processes, with a focus on in-house design, build, sales, and service. This approach allows them to control various aspects of production and maintain quality standards. | |||
=== What are the main offerings of the company? === | === What are the main offerings of the company? === | ||
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====== Automotive sales ====== | ====== Automotive sales ====== | ||
As of | As of 11th August 2023, the company offers four main car models: Model S, Model 3, Model X and Model Y. | ||
'''Model S''' | '''Model S''' | ||
Model S is the fastest accelerating and longest ranging car that Tesla provides, with a zero-to-60 miles per hour acceleration of 3.1 seconds and a maximum distance range on a single battery charge of 405 miles, respectively.<ref>https://www.tesla.com/</ref> The price of the car in the US is $ | Model S is the fastest accelerating and longest ranging car that Tesla provides, with a zero-to-60 miles per hour acceleration of 3.1 seconds and a maximum distance range on a single battery charge of 405 miles, respectively.<ref>https://www.tesla.com/</ref> The price of the car in the US is $88,490 - $108,490.<ref name=":8" /> | ||
[[File:Model S.jpg]] | [[File:Model S.jpg]] | ||
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'''Model 3''' | '''Model 3''' | ||
Model 3 is the lowest priced car that Tesla provides, selling in the US at $ | Model 3 is the lowest priced car that Tesla provides, selling in the US at $40,240 - $53,240<ref>https://www.tesla.com/model3</ref>. | ||
'''Model X''' | '''Model X''' | ||
Model X is the largest cargo capacity car that Tesla provides, with a cargo capacity of 88 cubic feet. The price of the car in the US is $ | Model X is the largest cargo capacity car that Tesla provides, with a cargo capacity of 88 cubic feet. The price of the car in the US is $98,490- $108,490<ref>https://www.tesla.com/modelx</ref>. | ||
[[File:MX-Hero-Desktop.jpg]] | [[File:MX-Hero-Desktop.jpg]] | ||
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'''Model Y''' | '''Model Y''' | ||
Model Y is the lowest price per cargo capacity and lowest price per seat car that Tesla provides, at $829 per cubic feet and $8,999 per seat, respectively. The price of the car in the US is $ | Model Y is the lowest price per cargo capacity and lowest price per seat car that Tesla provides, at $829 per cubic feet and $8,999 per seat, respectively. The price of the car in the US is $50,490 - $54,490<ref>tesla.com/modely</ref>. | ||
[[File:Model y red.jpg]] | [[File:Model y red.jpg]] | ||
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! colspan="2" |Model X | ! colspan="2" |Model X | ||
! colspan="3" |Model 3 | ! colspan="3" |Model 3 | ||
! colspan=" | ! colspan="3" |Model Y | ||
|- | |- | ||
!Type | !Type | ||
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!Long Range<ref name=":14" /> | !Long Range<ref name=":14" /> | ||
!Performance<ref name=":14" /> | !Performance<ref name=":14" /> | ||
!Standard | |||
!Long Range<ref name=":15">https://www.tesla.com/modely</ref> | !Long Range<ref name=":15">https://www.tesla.com/modely</ref> | ||
!Performance<ref name=":15" /> | !Performance<ref name=":15" /> | ||
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|style="background: orange; color: white;" |Yes | |style="background: orange; color: white;" |Yes | ||
|style="background: orange; color: white;" |Yes | |style="background: orange; color: white;" |Yes | ||
|Yes | |||
| style="background: orange; color: white;" |Yes | | style="background: orange; color: white;" |Yes | ||
|style="background: orange; color: white;" |Yes | |style="background: orange; color: white;" |Yes | ||
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|style="background: orange; color: white;" |4.2 seconds | |style="background: orange; color: white;" |4.2 seconds | ||
|style="background: orange; color: white;" |3.1 seconds | |style="background: orange; color: white;" |3.1 seconds | ||
|5.0 seconds | |||
| style="background: orange; color: white;" |4.8 seconds | | style="background: orange; color: white;" |4.8 seconds | ||
|style="background: orange; color: white;" |3.5 seconds | |style="background: orange; color: white;" |3.5 seconds | ||
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|style="background: orange; color: white;" |333 miles | |style="background: orange; color: white;" |333 miles | ||
| style="background: red; color: white;" |272 miles | | style="background: red; color: white;" |272 miles | ||
|style="background: orange; color: white;" | | |style="background: orange; color: white;" |333 miles | ||
|style="background: orange; color: white;" |315 miles | |style="background: orange; color: white;" |315 miles | ||
|279 miles | |||
| style="background: orange; color: white;" |330 miles | | style="background: orange; color: white;" |330 miles | ||
|style="background: orange; color: white;" |303 miles | |style="background: orange; color: white;" |303 miles | ||
|- | |- | ||
|What's the top speed of the vehicle? | |What's the top speed of the vehicle? | ||
| style="background: orange; color: white;" | | | style="background: orange; color: white;" |149 miles per hour | ||
|style="background: green; color: white;" |200 miles per hour | |style="background: green; color: white;" |200 miles per hour | ||
| style="background: orange; color: white;" | | | style="background: orange; color: white;" |149 miles per hour | ||
|style="background: orange; color: white;" | | |style="background: orange; color: white;" |149 miles per hour | ||
| style="background: orange; color: white;" |140 miles per hour | | style="background: orange; color: white;" |140 miles per hour | ||
|style="background: orange; color: white;" |145 miles per hour | |style="background: orange; color: white;" |145 miles per hour | ||
|style="background: orange; color: white;" |162 miles per hour | |style="background: orange; color: white;" |162 miles per hour | ||
|135 miles per hour | |||
| style="background: red; color: white;" |135 miles per hour | | style="background: red; color: white;" |135 miles per hour | ||
|style="background: orange; color: white;" |155 miles per hour | |style="background: orange; color: white;" |155 miles per hour | ||
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|style="background: orange; color: white;" |Sedan (i.e. car) | |style="background: orange; color: white;" |Sedan (i.e. car) | ||
|style="background: orange; color: white;" |Sedan (i.e. car) | |style="background: orange; color: white;" |Sedan (i.e. car) | ||
|SUV (i.e. car) | |||
| style="background: orange; color: white;" |SUV (i.e. car) | | style="background: orange; color: white;" |SUV (i.e. car) | ||
|style="background: orange; color: white;" |SUV (i.e. car) | |style="background: orange; color: white;" |SUV (i.e. car) | ||
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|style="background: orange; color: white;" |5 out of 5 stars | |style="background: orange; color: white;" |5 out of 5 stars | ||
|style="background: orange; color: white;" |5 out of 5 stars | |style="background: orange; color: white;" |5 out of 5 stars | ||
|5 out of 5 stars | |||
| style="background: orange; color: white;" |5 out of 5 stars | | style="background: orange; color: white;" |5 out of 5 stars | ||
|style="background: orange; color: white;" |5 out of 5 stars | |style="background: orange; color: white;" |5 out of 5 stars | ||
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|style="background: red; color: white;" |5 seats | |style="background: red; color: white;" |5 seats | ||
|style="background: red; color: white;" |5 seats | |style="background: red; color: white;" |5 seats | ||
|5 seats | |||
| style="background: orange; color: white;" |7 seats | | style="background: orange; color: white;" |7 seats | ||
|style="background: red; color: white;" |5 seats | |style="background: red; color: white;" |5 seats | ||
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| style="background: red; color: white;" |28 cubic feet | | style="background: red; color: white;" |28 cubic feet | ||
|style="background: red; color: white;" |28 cubic feet | |style="background: red; color: white;" |28 cubic feet | ||
| style="background: orange; color: white;" | | | style="background: orange; color: white;" |92 cubic feet | ||
|style="background: orange; color: white;" | | |style="background: orange; color: white;" |92 cubic feet | ||
| style="background: red; color: white;" |23 cubic feet | | style="background: red; color: white;" |23 cubic feet | ||
|style="background: red; color: white;" |23 cubic feet | |style="background: red; color: white;" |23 cubic feet | ||
|style="background: red; color: white;" |23 cubic feet | |style="background: red; color: white;" |23 cubic feet | ||
|76 cubic feet | |||
| style="background: red; color: white;" |76 cubic feet | | style="background: red; color: white;" |76 cubic feet | ||
|style="background: red; color: white;" |76 cubic feet | |style="background: red; color: white;" |76 cubic feet | ||
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|style="background: orange; color: white;" |All-wheel drive | |style="background: orange; color: white;" |All-wheel drive | ||
|style="background: orange; color: white;" |All-wheel drive | |style="background: orange; color: white;" |All-wheel drive | ||
|All-wheel drive | |||
| style="background: orange; color: white;" |All-wheel drive | | style="background: orange; color: white;" |All-wheel drive | ||
|style="background: orange; color: white;" |All-wheel drive | |style="background: orange; color: white;" |All-wheel drive | ||
|- | |- | ||
|What's the price of the vehicle? | |What's the price of the vehicle? | ||
| style="background: orange; color: white;" |$ | | style="background: orange; color: white;" |$88,490 | ||
|style="background: orange; color: white;" |$ | |style="background: orange; color: white;" |$108,490 | ||
| style="background: orange; color: white;" |$ | | style="background: orange; color: white;" |$98,490 | ||
|style="background: red; color: white;" |$ | |style="background: red; color: white;" |$108,490 | ||
| style="background: green; color: white;" |$ | | style="background: green; color: white;" |$40,240 | ||
|style="background: orange; color: white;" |$ | |style="background: orange; color: white;" |$47,240 | ||
|style="background: orange; color: white;" |$ | |style="background: orange; color: white;" |$53,240 | ||
| style="background: orange; color: white;" |$ | |$47,740 | ||
|style="background: orange; color: white;" |$ | | style="background: orange; color: white;" |$52,990 | ||
|style="background: orange; color: white;" |$54,490 | |||
|- | |- | ||
|What's the vehicle's price per cargo capacity? | |What's the vehicle's price per cargo capacity? | ||
| style="background: orange; color: white;" |$3, | | style="background: orange; color: white;" |$3,160 per cubic feet | ||
|style="background: red; color: white;" |$ | |style="background: red; color: white;" |$3,875 per cubic feet | ||
| style="background: orange; color: white;" |$1, | | style="background: orange; color: white;" |$1,071 per cubic feet | ||
|style="background: orange; color: white;" |$1, | |style="background: orange; color: white;" |$1,179 per cubic feet | ||
| style="background: orange; color: white;" |$ | | style="background: orange; color: white;" |$1,750 per cubic feet | ||
|style="background: orange; color: white;" |$2, | |style="background: orange; color: white;" |$2,054 per cubic feet | ||
|style="background: orange; color: white;" |$2, | |style="background: orange; color: white;" |$2,315 per cubic feet | ||
| style="background: green; color: white;" |$ | |$628 per cubic feet | ||
|style="background: orange; color: white;" |$ | | style="background: green; color: white;" |$697 per cubic feet | ||
|style="background: orange; color: white;" |$717 per cubic feet | |||
|- | |- | ||
|What's the vehicle's price per seat? | |What's the vehicle's price per seat? | ||
| style="background: orange; color: white;" |$ | | style="background: orange; color: white;" |$17,698 per seat | ||
|style="background: red; color: white;" |$ | |style="background: red; color: white;" |$21,698 per seat | ||
| style="background: orange; color: white;" |$ | | style="background: orange; color: white;" |$14,070 per seat | ||
|style="background: orange; color: white;" |$ | |style="background: orange; color: white;" |$18,082 per seat | ||
| style="background: orange; color: white;" |$ | | style="background: orange; color: white;" |$8,048 per seat | ||
|style="background: orange; color: white;" |$ | |style="background: orange; color: white;" |$9,448 per seat | ||
|style="background: orange; color: white;" |$ | |style="background: orange; color: white;" |$10,648 per seat | ||
| style="background: green; color: white;" |$ | |$9,548 per seat | ||
|style="background: orange; color: white;" |$ | | style="background: green; color: white;" |$7,570 per seat | ||
|style="background: orange; color: white;" |$10,898 per seat | |||
|} | |} | ||
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|Which Tesla car has the largest cargo capacity? | |Which Tesla car has the largest cargo capacity? | ||
|Model X and Model X Plaid | |Model X and Model X Plaid | ||
|The cargo capacity of the car is | |The cargo capacity of the car is 92 cubic feet. | ||
|- | |- | ||
|Which Tesla car has the most seats? | |Which Tesla car has the most seats? | ||
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|Which Tesla car is the lowest priced? | |Which Tesla car is the lowest priced? | ||
|Model 3 Rear-Wheel Drive | |Model 3 Rear-Wheel Drive | ||
|The price of the car is $ | |The price of the car is $40,240. | ||
|- | |- | ||
|Which Tesla car has the lowest price per cargo capacity? | |Which Tesla car has the lowest price per cargo capacity? | ||
|Model Y | |Model Y Standard | ||
|The price per cargo capacity of the car is $ | |The price per cargo capacity of the car is $628 per cubic feet. | ||
|- | |- | ||
|Which Tesla car has the lowest price per seat? | |Which Tesla car has the lowest price per seat? | ||
|Model Y Long Range | |Model Y Long Range | ||
|The price per seat of the car is $ | |The price per seat of the car is $7,570 per seat. | ||
|} | |} | ||
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'''Cybertruck''' | '''Cybertruck''' | ||
Cybertruck is a truck, a motor vehicle designed to transport cargo, carry specialised payloads, or perform other utilitarian work. What will be unique about the offering is that it will be the safest vehicle that Tesla provides. The price of the offering is expected to be $39,900.<ref>https://www.autoexpress.co.uk/tesla/cybertruck/96447/tesla-cybertruck-delayed-until-least-2023#:~:text=Tesla%20Cybertruck%3A%20performance%20and%20range&text=Entry%2Dlevel%2C%20Single%20Motor%2C,a%20top%20speed%20of%20110mph.</ref> | Cybertruck is a truck, a motor vehicle designed to transport cargo, carry specialised payloads, or perform other utilitarian work. What will be unique about the offering is that it will be the safest vehicle that Tesla provides- combining both ultra-hard 30x cold-rolled stainless steel and Tesla Armor Glass. The price of the offering is expected to be $39,900.<ref>https://www.autoexpress.co.uk/tesla/cybertruck/96447/tesla-cybertruck-delayed-until-least-2023#:~:text=Tesla%20Cybertruck%3A%20performance%20and%20range&text=Entry%2Dlevel%2C%20Single%20Motor%2C,a%20top%20speed%20of%20110mph.</ref> | ||
[[File:Cybertruck-Hero-Desktop.jpg]] | [[File:Cybertruck-Hero-Desktop.jpg]] | ||
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'''Tesla Semi''' | '''Tesla Semi''' | ||
Tesla Semi is a semi-trailer truck, a motor vehicle that is designed to transport large cargo, via one or more of its attached trailers. What will be unique about the offering is that it will be the largest cargo capacity vehicle that Tesla provides. The price of the offering is around $150,000. | Tesla Semi is a semi-trailer truck, a motor vehicle that is designed to transport large cargo, via one or more of its attached trailers. What will be unique about the offering is that it will be the largest cargo capacity vehicle that Tesla provides. Moreover, operators will see approximate savings of $200,000 after three years because charging with electricity is cheaper than refueling with diesel. The price of the offering is around $150,000. | ||
[[File:Tesla-semi.jpg]] | [[File:Tesla-semi.jpg]] | ||
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'''Powerwall''' | '''Powerwall''' | ||
Powerwall is a energy storage system (i.e. a type of battery).<ref name=":4" /> What’s unique about the offering is that it's the lowest priced energy storage system that Tesla provides, selling at $10,500. The energy capacity of the product is 13.5 kilowatt hour (kWh). To help put the capacity into perspective, in 2020, the average household in the United States consumed 29 kWh per day.<ref>https://www.eia.gov/tools/faqs/faq.php?id=97&t=3#:~:text=How%20much%20electricity%20does%20an,about%20893%20kWh%20per%20month.</ref> So, if the average household is powered from Powerwalls only, then it will require around two Powerwalls to power the whole house, at an average annual cost of $2,247. | Powerwall is a energy storage system (i.e. a type of battery).<ref name=":4" /> What’s unique about the offering is that it's the lowest priced energy storage system that Tesla provides, selling at $10,500. The energy capacity of the product is 13.5 kilowatt hour (kWh). To help put the capacity into perspective, in 2020, the average household in the United States consumed 29 kWh per day.<ref>https://www.eia.gov/tools/faqs/faq.php?id=97&t=3#:~:text=How%20much%20electricity%20does%20an,about%20893%20kWh%20per%20month.</ref> So, if the average household is powered from Powerwalls only, then it will require around two Powerwalls to power the whole house, at an average annual cost of $2,247. Furthermore, Tesla offers its Powerwall buyers a $500 rebate for each Powerwall registered between June and October 2023. | ||
[[File:Powerwall2.jpg]] | [[File:Powerwall2.jpg]] | ||
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|} | |} | ||
=== Other current offerings === | |||
'''Service and Warranty''' | '''Service and Warranty''' | ||
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The main places that the offerings are able to be purchased is through the company's website (at www.tesla.com) and company's stores, which is estimated at around 400 stores in more than 35 countries. | The main places that the offerings are able to be purchased is through the company's website (at www.tesla.com) and company's stores, which is estimated at around 400 stores in more than 35 countries. | ||
=== | ===What is Tesla's marketing strategy?=== | ||
# Status-Driven Products: Tesla positions its electric cars as status-driven products, attracting customers who value environmental consciousness and cutting-edge technology. | |||
# Word-of-Mouth Promotion: Tesla focuses on providing an excellent customer experience, leading to positive word-of-mouth marketing and customer referrals. | |||
# Social Media Marketing: Tesla leverages its CEO, Elon Musk's, social media presence to create buzz and engage with its audience. Musk's tweets and interactions serve as a platform for promoting Tesla and its products. | |||
# Authentic Humorous Approach: Tesla adopts an authentic and humorous approach to its products and marketing, which helps connect with the public and creates a strong brand image. | |||
# Engaging with the Audience: Tesla actively engages with its audience through online platforms and launch events, making the brand highly active and visible in the market. | |||
=== What's the current growth strategy of the company? === | |||
Tesla's growth strategy is multifaceted and strategically crafted to secure its position as a dominant force in the automotive industry. Evident in its approach is a relentless commitment to rapidly expanding production capabilities, exemplified by endeavors like the energy storage production capacity expansion at the Megafactory in Lathrop and the recent announcement of another Megafactory in Shanghai. This highlights Tesla's determination to keep up with escalating demand. A global market presence is a focal point, as showcased by the success of the Model Y becoming a top seller in both Europe and the United States. | |||
Additionally, capital expenditures are aligned with its future objectives, directing resources toward production facilities, pioneering vehicle platforms like the Cybertruck, and AI-enabled products, all primed to support long-term expansion. However, Tesla's approach isn't just about scale; it's also about exclusivity. By adopting a limited production model, the company fosters demand by creating exclusiveness around its vehicles, maintaining premium pricing and reinforcing desirability. | |||
This strategy of controlled distribution is complemented by Tesla's direct engagement with customers. Operating its own sales centers and after-sales service hubs, the company retains control over the customer experience, ensuring uniform service quality. This emphasis on good customer support strengthens customer loyalty and drives word-of-mouth. | |||
Moreover, continually pushing the boundaries of technology, such as through its autopilot features, the company remains at the forefront of the industry, continually attracting customers and maintaining its competitive edge. | |||
A significant contributor to Tesla's exponential growth is the dynamic presence of its CEO, Elon Musk. His active engagement on social media generates widespread publicity, amassing a dedicated following and further solidifying the brand's prominence. In essence, Tesla's growth strategy amalgamates innovation, customer-centric practices, and a keen business acumen, facilitating growth. | |||
=== | === Innovation === | ||
#* Autonomy and Vehicle Software: Tesla is investing in autonomy and vehicle software, indicating the company's focus on developing advanced self-driving technology and software updates to enhance the capabilities and user experience of its vehicles. | |||
#* Continuous Product Improvement: Tesla expects ongoing cost reductions for its vehicles, including improved production efficiency and lower logistics costs. This highlights the company's commitment to continuous innovation and product improvements. | |||
=== Main streams of income === | |||
Tesla Inc. has experienced significant growth in its main streams of income, driven by its innovative electric vehicles, energy generation and storage products, and a range of services offered to customers. In the second quarter of 2023, Tesla reported a record quarter with total revenues reaching $24.9 billion, representing a remarkable 47% year-over-year increase. The company's operating income stood at $2.4 billion, with an operating margin of 9.6%. | |||
# | # '''Total Automotive Revenues''': Tesla's automotive segment remains the cornerstone of its income generation. The company's ability to produce and deliver electric vehicles at scale has been key to its financial success. In Q2-2023, total automotive revenues amounted to $21.3 billion, growing 46% year-over-year. The strong demand for Tesla's electric cars, including Model S, Model X, Model 3, and Model Y, has been a significant driver of this revenue stream. | ||
# '''Energy Generation and Storage Revenue''': Tesla's foray into the energy storage market has been met with substantial success. Revenues from energy generation and storage products surged to $1.5 billion in Q2-2023, reflecting a remarkable 74% year-over-year growth. The deployment of products like Powerwall, Powerpack, and Megapack, as well as solar energy solutions, has contributed significantly to this revenue stream. | |||
# | # '''Services and Other Revenue''': Tesla's commitment to providing exceptional customer experiences has led to the growth of its services and other revenue stream. In Q2-2023, this segment's revenues reached $2.2 billion, marking a substantial 47% year-over-year increase. Services such as maintenance, repairs, and the use of the Supercharger network, as well as the licensing of NACS charging standard to other companies, have played a crucial role in bolstering this revenue stream. | ||
# | |||
== Market== | == Market== | ||
Line 484: | Line 511: | ||
Here, the serviceable obtainable market (SOM) is defined as the US car market, and based on a number of assumptions, it is estimated that the size of the market as of today (30th May 2022), in terms of revenue, is $262 billion. | Here, the serviceable obtainable market (SOM) is defined as the US car market, and based on a number of assumptions, it is estimated that the size of the market as of today (30th May 2022), in terms of revenue, is $262 billion. | ||
=== Industry Demand Drivers === | |||
The mayor drivers of industry performance within the electric and hybrid US vehicle manufacturing market are:<ref>https://0-my-ibisworld-com.pugwash.lib.warwick.ac.uk/us/en/industry-specialized/od4516/industry-performance</ref> | |||
# '''Consumer confidence index:''' When consumers have less disposable income, they tend to delay purchases. The consumer confidence index plummeted during 2020 and is expected to further decrease during 2023 due to the expected recession. | |||
# '''Demand from new car dealers:''' The financial crisis has greatly affected dealers as companies have struggled to find enough funds to stock their showrooms. | |||
# '''World price of crude oil:''' Through 2023, the price of gasoline has grown, and consequently consumers have started to consider more purchasing more energy efficient vehicles like hybrid or electric cars. | |||
# '''Trade-weighted index:''' Levels of international trade are affected by the relative strength of the US dollar to other international currencies. The trade-weighted index measures the value of the US dollar against key trading partner currencies. | |||
# '''Tax credits for energy efficiency:''' Tax credits are expected to increase during 2023, which in turn incentivise demand for electric and hybrid cars. Customers have received up to $7,500 in tax credits. | |||
== Competition== | == Competition== | ||
=== | === Main Competitors ( A. Traditional Automakers; B. New EV Players) === | ||
Tesla is BEV-focused and far ahead of its competitors. In terms of BEVs, Tesla is an absolute champion. | |||
These top 5 manufacturers own '''53.3%''' of the market share. | |||
[[File:Tesla main competitors.png]] | |||
==== Ford ==== | |||
Ford Motor Company is a multinational automobile manufacturer founded in 1903.8 It's strongly focused on electric cars, trucks, and SUVs. Ford's Mustang Mach-E model received Car and Driver's first Electric Vehicle of the Year award in 2021. | |||
According to Ford, it's investing $22 billion through 2025 to pursue vehicle electrification. The aforementioned Mustang, the F-150 Lightning pickup and E-Transit van are just three electric vehicles in the lineup to come. What's more, Ford is focused on building EVs that provide the legendary features it's known for: performance, capability and productivity. | |||
One of Ford's target markets is fully electric commercial vans and pickups. It intends to deliver the benefits of electric vehicles via an accessible price point and lower cost of ownership.10 The all-electric F-150 Lightning pickup officially launched in April 2022. Since then, more than 4,400 have been sold. | |||
Ford is headquartered in Dearborn, MI. In August 2022, its market capitalization was $63.31 billion. | |||
==== | ==== General Motors ==== | ||
General Motors (GM) is a U.S.-based automobile manufacturer founded in 1908.13 Responding with urgency to climate change, GM is committed to an all-electric future. | |||
GM plans to design, engineer, and produce EVs for every style and price point, including a Chevrolet Silverado EV with a 400-mile range. Furthermore, it's also building a competitive advantage in batteries, software, vehicle integration, and manufacturing. | |||
It will invest $35 billion globally in EV and autonomous vehicles (AVs) through 2025. It projects that it will sell one million EVs annually, in North America and China. GM has sold more than 100,000 Bolt EVs since its launch in 2017. The Bolt has received some of the best satisfaction and loyalty ratings in the industry. Three-quarters of Bolt EV buyers in the U.S. are new to GM. | |||
Batteries are a major part of GM's EV strategy. Its Ultium battery packs cost almost 40 percent less than those in Chevy's Bolt EV. Moreover, the company has estimated that its second generation Ultium packs will cost approximately 60% less than batteries used in cars currently. Its manufacturing platform will handle batteries for all its EVs, based on a single, common cell and interchangeable propulsion components. | |||
General Motors is headquartered in Detroit, MI. EV batteries will be manufactured in Lordstown, OH. In August 2022, it had a market capitalization of $58.39 billion. | |||
==== Nio ==== | |||
NIO Inc. (NIO) is a Chinese holding company that designs, manufactures, and sells premium smart electric vehicles for the international market. These include the EP9, which it asserts is among the fastest electric cars in the world, and its flagship SUV, the ES8. Nio also offers customers power solutions that include access to public charging, access to power mobile charging trucks, and battery swapping. | |||
According to NIO, it stands apart by its "continuous technological breakthroughs and innovations, such as its industry-leading battery swapping technologies, Battery as a Service, or BaaS, as well as its proprietary autonomous driving technologies and Autonomous Driving as a Service, or ADaaS." | |||
In July 2022, NIO delivered 10,052 vehicles. That was an increase of 26.7% year-over-year. For the year through July, it delivered 60,879 electric vehicles, an increase of 22% year-over-year. | |||
The company was founded by Li Bin and Qin Li Hong in November 2014 and is headquartered in Jiading, China. Its research and development center for autonomous driving is located in San Jose, CA.19 In August 2022, NIO had a market capitalization of 32.85 billion. | |||
==== Others: BYD, SGMW, Chery, GAC, Honda, Nissan ==== | |||
=== | === Landscape of different regions === | ||
==== US Market ==== | |||
US market is the biggest market of Tesla. In the US, '''California''' is the leading state with the most Tesla cars on their roads. | |||
* '''Tesla’s best-selling model in the US''': Tesla Model Y | |||
[[File:US market of Tesla.png]] | |||
==== China Market ==== | |||
* Tesla’s steady sales growth means the company is still in high consumer demand all around the globe. | |||
* The country at the top of the list of Tesla sales by country is the United States. | |||
''' | China is the country with the second-most Tesla sale and Tesla’s '''2nd largest market.''' Truly, EV competition in China is very tough. Tesla had to cut prices because of Chinese rivals, mainly BYD. In reality, BYD massively dropped prices to defend its market share amid weakening demand. For comparison, market leader BYD accounted for '''37.4%''' of car sales in the world’s biggest auto market there. | ||
{| class="wikitable" | |||
! colspan="1" rowspan="1" |Name of Company | |||
! colspan="1" rowspan="1" |Tesla | |||
! colspan="1" rowspan="1" |GAC | |||
! colspan="1" rowspan="1" |Geely | |||
! colspan="1" rowspan="1" |BYD | |||
! colspan="1" rowspan="1" |SGMW | |||
|- | |||
| colspan="1" rowspan="1" |Year founded | |||
| colspan="1" rowspan="1" |2013 | |||
| colspan="1" rowspan="1" |1954 | |||
| colspan="1" rowspan="1" |1996 | |||
| colspan="1" rowspan="1" |2003 | |||
| colspan="1" rowspan="1" |2002 | |||
|- | |||
| colspan="1" rowspan="1" |Market share | |||
(2023 Q1+Q2) | |||
| colspan="1" rowspan="1" |9.5% | |||
| colspan="1" rowspan="1" |6.3% | |||
| colspan="1" rowspan="1" |4.9% | |||
| colspan="1" rowspan="1" |37.4% | |||
| colspan="1" rowspan="1" |5.7% | |||
|- | |||
| colspan="1" rowspan="1" |Number of 10k units sold ( EV) | |||
(2023 Q1+Q2) | |||
| colspan="1" rowspan="1" |29.41 | |||
| colspan="1" rowspan="1" |20.93 | |||
| colspan="1" rowspan="1" |15.07 | |||
| colspan="1" rowspan="1" |115.46 | |||
| colspan="1" rowspan="1" |17.71 | |||
|} | |||
==== Europe Market ==== | |||
* '''Germany''' was the biggest Tesla’s market in Europe with '''8,703''' units sold in Q1 2023. | |||
* Mostly, Europeans still love cars with internal combustion engines (ICE). The phenomenon is Norway, where Tesla has impressive sales numbers. Tesla is already '''50%''' '''sales''' there. | |||
* Overall, Tesla sales are going nuts in Europe. | |||
==== UK Market ==== | |||
* EV prices have mostly '''stayed the same''' in the UK in 2023. Meanwhile, BEV adoption in the UK seems to be dropping. At the end of Q1 2023, Tesla recorded 13,355 sales in the UK. | |||
* Market share: In total, '''76,230''' BEVs were sold in the Q1 of 2023 in the UK. Currently, Tesla holds '''17.52%''' of BEV sales share in the UK, and '''2.7%''' of auto sales. | |||
=== '''Basic Comparison of Tesla Cars''' === | |||
{| class="wikitable sortable" | |||
! colspan="1" rowspan="1" |'''Model''' | |||
! colspan="1" rowspan="1" |'''Model S''' | |||
! colspan="1" rowspan="1" |'''Model X ( SUV)''' | |||
! colspan="1" rowspan="1" |'''Model 3''' | |||
! colspan="1" rowspan="1" |'''Model Y''' | |||
|- | |||
| colspan="1" rowspan="1" |'''Release time''' | |||
| colspan="1" rowspan="1" |2012 | |||
| colspan="1" rowspan="1" |2015 | |||
| colspan="1" rowspan="1" |2017 | |||
| colspan="1" rowspan="1" |2020 | |||
|- | |||
| colspan="1" rowspan="1" |'''Sales''' | |||
'''(2023 Q1+Q2)''' | |||
| colspan="2" rowspan="1" |29,920 | |||
| colspan="2" rowspan="1" |879,095 | |||
|- | |||
| colspan="1" rowspan="1" |'''Cost to fully charge''' | |||
| colspan="1" rowspan="1" |18.29 USD | |||
| colspan="1" rowspan="1" |18.30 USD | |||
| colspan="1" rowspan="1" |9.62 USD | |||
| colspan="1" rowspan="1" |13.58 USD | |||
|- | |||
| colspan="1" rowspan="1" |'''Top selling?''' | |||
| colspan="1" rowspan="1" | | |||
| colspan="1" rowspan="1" | | |||
| colspan="1" rowspan="1" | | |||
| colspan="1" rowspan="1" |Yes | |||
|} | |||
=== SWOT Analysis === | |||
==== Strengths ==== | |||
''' | * '''Dominate Market Share:''' Market share is an important competitive advantage to capture and maintain. Tesla has four EVs that own part of the electric vehicle market. As of 2022, the top five selling cars and their market share for Q2 were: | ||
# Tesla Model Y (30.4% market share) | |||
# Tesla Model 3 (27.8%) | |||
# Ford Mustang Mach-E (5.6%) | |||
# Tesla Model S (4.6%) | |||
# Hyundai IONIC 5 (3.8%) | |||
* '''Technological Leadership:''' Tesla is renowned for its innovation in electric vehicle technology. The company has a strong focus on research and development, leading to advancements in battery technology, autonomous driving, and vehicle performance that have often outpaced competitors. | |||
* '''Brand Recognition:''' Tesla's brand is synonymous with electric vehicles and innovation. The company has effectively positioned itself as the leader in the EV market, and its strong brand recognition gives it a significant competitive edge. | |||
* '''Supercharger Network:''' Tesla has developed a comprehensive network of Supercharger stations, making long-distance travel more feasible for Tesla owners. This extensive charging infrastructure is unmatched by any other electric vehicle manufacturer. | |||
* '''Direct Sales Model:''' Unlike traditional automakers who sell through franchised dealerships, Tesla sells its cars directly to consumers. This allows for better control over the sales process, customer service, and pricing. | |||
* '''Software Updates:''' Tesla's over-the-air software updates allow the company to continually improve vehicle functionality and offer new features, even after the car has been purchased. This ongoing improvement helps to enhance customer satisfaction and loyalty. | |||
* '''Integration of Energy Products:''' Tesla’s range of products extends beyond cars to include solar energy products and battery storage solutions. This allows for a unique ecosystem that offers cross-selling opportunities and strengthens customer retention. | |||
* '''Charismatic Leadership:''' Tesla's CEO, Elon Musk, is a highly public figure with a strong personal brand. His charisma, visibility, and reputation as an innovator have helped Tesla gain significant public attention and investment. | |||
''' | ==== '''Weaknesses''' ==== | ||
* '''Price Point:''' The cost of Tesla's vehicles is relatively high compared to some competitors in the EV market. | |||
* '''Quality Control Issues:''' There have been reports of quality control issues, impacting customer satisfaction. | |||
* '''Dependence on Elon Musk:''' The company's association with its CEO is so strong that any negative publicity surrounding him might affect the company's reputation. | |||
* '''Network Extension:''' As a relatively young company, Tesla’s distribution network is not as extensive as other established automakers. | |||
==== Opportunities ==== | |||
''' | * '''Growing EV Market:''' Global concern over climate change and supportive government policies provide growth opportunities. | ||
* '''Energy Products:''' Tesla's energy products, like solar roofs and Powerwalls, could be a significant growth area. | |||
* '''Market Expansion:''' Tesla’s recent expansions into foreign markets like China and Europe, where it is building new Gigafactories and sales centers, should continue to boost sales. | |||
'''Threats''' | |||
* '''Intensifying Competition:''' Many traditional automakers and new entrants are pushing into the EV space. Like Ford and General Motors, along with start-ups like Rivian and Lucid Motors, continue to invest in the development and production of electric vehicles with advanced technology. | |||
* '''Regulatory Challenges:''' Changes in government policies or subsidies might affect sales. Tesla’s vehicles are subject to stringent safety and quality regulations while autonomous driving features of their vehicles come under governmental scrutiny. | |||
* '''Global Economic Factors:''' Economic instability could impact the luxury car market. | |||
=== PEST Analysis === | |||
Tesla has received ample support to expand its global influence. But there are also many challenges and risks at the same time. | |||
==== Political ==== | |||
Governmental policies and regulation facilitate the development of electrical vehicle market, expanding its global influence on the international market. The conventional gasoline powered vehicle relies on the internal combustion of gas to generate power, which creates greenhouse gases that cause environmental pollution. The electric vehicle, however, uses electric motors powered via a supply of electricity from current, decreasing the overall pollution. | |||
* '''Government Policies and Regulations:''' In countries such as the US, China and countries in Europe, governments have implemented laws and regulations to protect environment. Programs such as California Air Resources Board (CARB) or deliver zero-emission vehicles (ZEVs) substantially encourage the adoption of electric vehicles. Tesla receives support from government because its synchronous alignment with the governmental agenda to protect environment; in general, EV can improve air quality and energy security by reducing carbon dioxide emission. At beginning, Tesla started off with a loan funded by the advanced technology vehicle manufacturing program under President Bush administration and later was said to pay back with low interest. Along with federal loan, Tesla also received support from politicians through different state subsidies, in that various states have offered additional income – tax credits for each purchase of Tesla. | |||
* '''Incentives for Electric Vehicles:''' Many governments worldwide are encouraging the use of electric vehicles (EVs) to reduce greenhouse gas emissions. These incentives make EVs more affordable for consumers and thus boost Tesla's sales. | |||
* '''International Trade Policies:''' Tesla, with its international operations, is subject to various trade policies, tariffs, and taxes, which could impact its costs. | |||
==== Economic ==== | |||
* '''Bring Employment Opportunities:''' Tesla simulates the economic development of the US, China and Europe by encouraging EV market competition, which brings production projects and employment opportunities. Tesla has provide 50,000 jobs to the US. | |||
* '''Accelerated the development of technology:''' Tesla has also accelerated the development of technology in the US market with the sales of electric vehicles. | |||
* '''Generating Economics:''' According to the report stated by Financial firm HIS Markit, Tesla has made direct impacts on the US economy by generating $5.5 billion. | |||
* '''Reduce cost:''' Electricity is also cheaper than gas. On average, electrical vehicles typically cost '''one third''' the cost of vehicles that rely on gasoline | |||
Also, there are some factors that need to be considered: | |||
* '''Economic Conditions:''' Economic factors such as inflation, interest rates, and economic growth could affect consumer purchasing power and thus impact Tesla's sales. | |||
* '''Cost of Raw Materials:''' The cost of raw materials, especially lithium for batteries, could significantly affect Tesla's profitability. | |||
* '''Subsidies and Tax Incentives:''' Economic policies, including subsidies and tax incentives for EVs, can greatly impact Tesla's pricing and sales. | |||
==== Social ==== | |||
* '''Growing Environmental Consciousness:''' There is increasing societal concern for the environment, leading to a higher demand for “green” products, including EVs. This trend aligns well with Tesla's offerings. The adoption of fully electric batteries in Tesla vehicle production seems to claim to have nearly 0 tailpipe emissions. | |||
The advancement of new technology of the electrical vehicle industry can help '''mitigate environmental issues''' from industrial nations where greenhouse emissions reach a higher level every year. In general, electric vehicles are more efficient in energy conversion as it converts over 50% of electrical energy to power at wheels, whereas the gas-powered vehicle only converts around 17% - 21% of energy stored in gasoline. | |||
* '''Perception of Electric Vehicles:''' The general public's perception of electric cars' reliability, safety, and convenience can also significantly affect Tesla's sales. | |||
* '''Renewable source:''' Electrical vehicle can be powered naturally by electricity, which is a renewable resource. | |||
==== Technological ==== | |||
The development of technology shifts companies' focus from producing traditional vehicle to electric vehicle. | |||
* '''Advancements in Battery Technology:''' Technological advancements in battery technology can significantly improve the range and performance of EVs. Tesla is at the forefront of such advancements. | |||
* '''Autonomous Driving Technology:''' Tesla's Autopilot system and future self-driving capabilities are critical technological factors for the company. | |||
But there are also some risks for EV: | |||
* '''Cybersecurity:''' As vehicles become more connected, the risk of cybersecurity threats increases, and Tesla will need to continually invest in technology to protect its vehicles from such threats. | |||
=== Summary === | |||
In summary, Tesla’s innovative business model is undeniably one of the driving forces behind its phenomenal success in the automotive industry. | |||
Tesla's dominant position in the electric vehicle market doesn't insulate it from competition. The landscape is becoming increasingly competitive with traditional automakers and new entrants. Tesla's dominant market share, innovation in technology, brand recognition, and global expansion strategy are key to maintaining its leadership. However, quality control, reliance on its CEO, and increasing competition in both the EV and autonomous driving spaces may present challenges. | |||
Ultimately, Tesla’s journey serves as a testament to the power of a forward-thinking, customer-centric approach, and the ever-expanding potential that lies within the realms of innovation and sustainability. | |||
==== | ===Automotive=== | ||
Tesla believes that its vehicles compete in the market both based on their traditional segment classification as well as based on their propulsion technology. For example, Model S and Model X compete primarily with premium sedans and premium SUVs, and Model 3 and Model Y compete with small to medium-sized sedans and compact SUVs, which are extremely competitive markets. Competing products typically include internal combustion vehicles from more established automobile manufacturers; however, many established and new automobile manufacturers have entered or have announced plans to enter the market for electric and other alternative fuel vehicles. Many major automobile manufacturers have electric vehicles available today in major markets including the US, China and Europe, and other current and prospective automobile manufacturers are also developing electric vehicles. In addition, several manufacturers offer hybrid vehicles, including plug-in versions. | |||
For | |||
Moreover, Tesla holds a 51.9% market share within the Hybrid and Electric US vehicle manufacturing market in 2023.<ref>https://0-my-ibisworld-com.pugwash.lib.warwick.ac.uk/us/en/industry-specialized/od4516/industry-performance</ref> | |||
Tesla also believes that there is increasing competition for its vehicle offerings as a platform for delivering self-driving technologies, charging offerings and other features and services, and it expects to compete in this developing market through continued progress on its autopilot, full self-driving and neural network capabilities, Supercharger network and its infotainment offerings. | |||
===Energy generation and storage=== | |||
====Energy Storage Systems==== | |||
The market for energy storage products is also highly competitive, and both established and emerging companies have introduced products that are similar to Tesla's product portfolio or that are alternatives to the elements of its systems. Tesla competes with these companies based on price, energy density and efficiency. Tesla believes that the things that give it a competitive advantage in its markets are: the specifications and features of its products, its strong brand and the modular, scalable nature of its energy storage products. | |||
====Solar Energy Systems==== | |||
The primary competitors to its solar energy business are the traditional local utility companies that supply energy to Tesla's potential customers. Tesla competes with these traditional utility companies primarily based on price and the ease by which customers can switch to electricity generated by Tesla's solar energy systems. Tesla also competes with solar energy companies that provide products and services similar to it. Many solar energy companies only install solar energy systems, while others only provide financing for these installations. | |||
==Team == | |||
===Leadership=== | |||
====Chief Executive Officer==== | |||
[[File:Elon Musk Royal Society (crop2).jpg|200px]] | |||
Elon Musk is the Chief Executive Officer of Tesla and has served the position since October 2008 and as a member of the Board since April 2004. Elon has also served as Chief Executive Officer, Chief Technology Officer and Chairman of Space Exploration Technologies Corporation, an advanced rocket and spacecraft manufacturing and services company (“SpaceX ”), since May 2002, and served as Chairman of the Board of SolarCity Corporation, a solar installation company, from July 2006 until its acquisition by Tesla in November 2016 and served as Chief Executive Officer of Twitter, Inc., a social media company, since October 2022. Elon is also a founder of The Boring Company, an infrastructure company, and of Neuralink Corp., a company focused on developing brain-machine interfaces. Prior to SpaceX, Elon co-founded PayPal, an electronic payment system, which was acquired by eBay in October 2002, and Zip2 Corporation, a provider of Internet enterprise software and services, which was acquired by Compaq in March 1999. Elon has also served on the board of directors of Endeavor Group Holdings, Inc. since April 2021. Elon holds a B.A. in physics from the University of Pennsylvania and a B.S. in business from the Wharton School of the University of Pennsylvania. | |||
====Chief Financial Officer==== | |||
[[File:Zachary Kirkhorn.jpg|200px]] | |||
Zachary Kirkhorn is Chief Financial Officer of Tesla and served the position since March 2019. Previously, Zach served in various finance positions continuously since joining Tesla in March 2010, other than between August 2011 and June 2013 during which he attended business school, including most recently as Vice President, Finance, Financial Planning and Business Operations from December 2018 to March 2019. Zach holds dual B.S.E. degrees in economics and mechanical engineering and applied mechanics from the University of Pennsylvania and an M.B.A. from Harvard University. | |||
====Senior Vice President==== | |||
[[File:Drew.jpg|200px]] | |||
Andrew Baglino has served as Tesla's Senior Vice President, Powertrain and Energy Engineering since October 2019. Previously, Drew served in various engineering positions continuously since joining Tesla in March 2006. Drew holds a B.S. in electrical engineering from Stanford University. | |||
'''Senior Vice President''' | |||
Tom Zhu has served as Senior Vice President, Automotive since April 2023. Mr. Zhu joined Tesla in April 2014, and served in various operational roles before being appointed as Vice President, Greater China, where he led the construction and operations of Gigafactory Shanghai. Mr. Zhu holds a bachelor’s degree of commerce in information technology from the Auckland University of Technology and an M.B.A. from Duke University. | |||
===Board of Directors=== | |||
'''Elon Musk''' | |||
For information about Elon Musk, see "Chief Executive Officer" section above. | |||
'''Robyn M. Denholm''' | |||
[[File:894px-2018-05-16-cebit-robyn-m-denholm-portrait.jpg|200px]] | |||
Robyn M. Denholm has served as a director since August 2014 and as Chair since November 2018. Since January 2021, Ms. Denholm has been an operating partner of Blackbird Ventures, a venture capital firm. From January 2017 through June 2019, Ms. Denholm was with Telstra Corporation Limited, a telecommunications company, as Chief Financial Officer and Head of Strategy from October 2018 through June 2019, and Chief Operations Officer from January 2017 to October 2018. Prior to Telstra, from August 2007 to February 2016, Ms. Denholm was with Juniper Networks, Inc., a manufacturer of networking equipment (“Juniper”), serving first as its Executive Vice President and Chief Financial Officer and then as its Executive Vice President and Chief Financial and Operations Officer. Prior to joining Juniper, Ms. Denholm served in various executive roles at Sun Microsystems, Inc. from January 1996 to August 2007. Ms. Denholm also served at Toyota Motor Corporation Australia for seven years and at Arthur Andersen & Company for five years in various finance assignments. Ms. Denholm is a Fellow of the Institute of Chartered Accountants of Australia/New Zealand, a member of the Australian Institute of Company Directors, and holds a Bachelor’s degree in Economics from the University of Sydney and a Master’s degree in Commerce and a Doctor of Business Administration (honoris causa) from the University of New South Wales. | |||
'''Ira Ehrenpreis''' | |||
[[File:1516155738122.jpg|200px]] | |||
Ira Ehrenpreis is Founder and Managing Partner of DBL Partners, a leading impact investing venture capital firm, currently managing more than $1 billion of capital. DBL invests in companies that can deliver top-tier financial returns, while simultaneously driving social or environmental change. | |||
Ira is a recognized leader in the venture capital industry, having served on the Board, Executive Committee, and as Annual Meeting Chairman of the National Venture Capital Association (NVCA). He currently serves as the President of the Western Association of Venture Capitalists (WAVC) and as the Chairman of the VCNetwork, the largest and most active California venture capital organization. | |||
Ira was awarded the 2018 NACD Directorship 100 for being “one of the most influential leaders in the boardroom and corporate governance community.” In 2007, he was named one of the “Top 50 Most Influential Men Under 45" and in 2014 was inducted into the International Green Industry Hall of Fame. | |||
Ira has served for several years as the Chairman of the Silicon Valley Technology Innovation & Entrepreneurship Forum (SVIEF). He is the Founder and Chairman of one of the most prominent annual energy innovation industry events, the World Energy Innovation Forum (WEIF), which has convened the who's-who in the industry to discuss the important energy issues and opportunities of our time. In addition, Ira has served on several industry Boards, including the Department of Energy’s (DOE) Energy Efficiency and Renewable Energy Advisory Committee (ERAC), the National Renewable Energy Laboratory (NREL) Advisory Council, the Clean-Tech Investor Summit (Chairman), the Renewable Energy Finance Forum (REFF) West (Co-Chairman), the Renewable Energy Finance Forum (REFF) Wall Street (Co-Chairman), the Cleantech Venture Network (Past Chairman of Advisory Board), and ACORE (American Council on Renewable Energy). | |||
Ira has served as the Chairman of the Silicon Valley Technology Innovation & Entrepreneurship Forum (SVIEF) for many years. He is also an active leader at Stanford University, where he has served on the Board of Visitors of Stanford Law School and is currently an advisory board member of the Stanford Global Climate and Energy Project (GCEP) and the Stanford Precourt Institute for Energy (PIE) Advisory Council. Ira has also been a guest lecturer, including helping to teach a course on Venture Capital. In addition, Ira served for many years on the Advisory Board of the Forum for Women Entrepreneurs (FWE). | |||
|''' | |||
<noglossary>Ira received his JD/MBA from Stanford Graduate School of Business and Stanford Law School, where he was an Associate Editor of Stanford Law Review. He holds a B.A. from the University of California, Los Angeles, graduating Phi Beta Kappa and Summa Cum Laude.</noglossary> | |||
|''' | |||
| | '''Joe Gebbia''' | ||
Mr. Gebbia has been a member of the Board since 2022. Mr. Gebbia co-founded Airbnb, Inc. in 2008 and has served on Airbnb’s board of directors since 2009. In 2022, Mr. Gebbia launched Samara, which produces fully customized, factory-made homes designed to create rental income, house family, support work from home, or bundled together, to form new types of housing communities. Mr. Gebbia received dual degrees in Graphic Design and Industrial Design from the Rhode Island School of Design, where he currently serves on the institution’s Board of Trustees. Mr. Gebbia is the Chairman of Airbnb.org, and also serves on the Olympic Refuge Foundation and leadership councils for UNHCR, Tent.org and Malala Fund. Mr. Gebbia is a sought-after speaker on design and entrepreneurship, and has been named in Business Week’s Top 20 Best Young Tech Entrepreneurs, Inc. Magazine’s Thirty-under-Thirty, Fortune’s Forty-under-Forty, and one of Fast Company’s Most Creative People. | |||
| | |||
| | '''James Murdoch''' | ||
[[File:James Murdoch 2008- NRKbeta.jpg|200px]] | |||
| | James Murdoch has been a member of the Board since July 2017. Since March 2019, Mr. Murdoch has been the Chief Executive Officer of Lupa Systems, a private investment company that he founded. Previously, Mr. Murdoch held a number of leadership roles at Twenty-First Century Fox, Inc. (“21CF”), a media company, over two decades, including its Chief Executive Officer from 2015 to March 2019, its Co-Chief Operating Officer from 2014 to 2015, its Deputy Chief Operating Officer and Chairman and Chief Executive Officer, International from 2011 to 2014 and its Chairman and Chief Executive, Europe and Asia from 2007 to 2011. Previously, he served as the Chief Executive Officer of Sky plc from 2003 to 2007, and as the Chairman and Chief Executive Officer of STAR Group Limited, a subsidiary of 21CF, from 2000 to 2003. Mr. Murdoch also formerly served on the boards of News Corporation from 2013 to July 2020, of 21CF from 2017 to 2019, of Sky plc from 2016 to 2018, of GlaxoSmithKline plc from 2009 to 2012 and of Sotheby’s from 2010 to 2012. | ||
'''JB Straubel''' | |||
Mr. Straubel is the Founder and Chief Executive Officer of Redwood Materials Inc., a Nevada-based company working to drive down the costs and environmental footprint of lithium-ion batteries by offering large-scale sources of domestic anode and cathode materials produced from recycled batteries. Mr. Straubel also co-founded and served as the Chief Technology Officer of Tesla from May 2005 to July 2019. Mr. Straubel previously served on the board of SolarCity Corporation and as a member of its Nominating and Corporate Governance Committee from August 2006 until its acquisition by Tesla in November 2016. Mr. Straubel has served on the board of directors of QuantumScape since November 2020. Mr. Straubel holds a B.S. in Energy Systems Engineering and a M.S. in Engineering, with an emphasis on energy conversion, from Stanford University. | |||
'''Kimbal Musk''' | |||
[[File:771px-KIMBAL MUSK OFFICIAL HEADSHOT.jpg|200px]] | |||
Kimbal Musk is Co-Founder of The Kitchen, a growing family of businesses that pursues an America where everyone has access to real food. Kimbal is a 2017 Social Entrepreneur by the Schwab Foundation, a sister organization to the World Economic Forum, for his impactful, scalable work to bring Real Food to Everyone. | |||
His family of restaurant concepts serve real food at every price point. They source food from American farmers, stimulating the local farm economy to the tune of millions of dollars a year. His non-profit organization builds permanent, outdoor Learning Garden classrooms in underserved schools around the U.S. reaching over 125,000 students everyday. His urban, indoor vertical farming accelerator, seeks to empower thousands of young entrepreneurs to become real food farmers. | |||
Kimbal is on the board for Chipotle, Tesla, and SpaceX. | |||
'''Kathleen Wilson-Thompson''' | |||
[[File:Kathleen-Wilson-Thompson-Most-Influential-HR-Leader.jpg|200px]] | |||
Kathleen Wilson-Thompson has been a member of the Board since December 2018. Ms. Wilson-Thompson previously served as Executive Vice President and Global Chief Human Resources Officer of Walgreens Boots Alliance, Inc., a global pharmacy and wellbeing company, from December 2014 to January 2021, and as Senior Vice President and Chief Human Resources Officer from January 2010 to December 2014. Prior to Walgreens, Ms. Wilson-Thompson held various legal and operational roles at The Kellogg Company, a food manufacturing company, from July 2005 to December 2009, including most recently as its Senior Vice President, Global Human Resources. Ms. Wilson-Thompson also serves on the boards of directors of Wolverine World Wide, Inc. Ms. Wilson-Thompson holds an A.B. in English Literature from the University of Michigan and a J.D. and L.L.M. (Corporate and Finance Law) from Wayne State University. | |||
==Financials== | |||
{{Tesla's revenue}} | |||
=== Historic === | |||
==== Most recent quarter ==== | |||
During the three months ended 31st March 2022, net income increased to $3.32 billion on revenues of $18.76 billion, representing a respective increase of 7x and 81% compared to the prior year, and equating to a net income margin of 18%. The company ended the quarter with cash of $18.01 billion, representing an increase of 2% from the end of 2021. | |||
==== Most recent year ==== | |||
For the fiscal (and calendar) year 2021, Tesla reported a net income of $5.52 billion.<ref name="Tesla4Q2021final" /> The annual revenue was $53.8 billion, an increase of 71% over the previous fiscal year.<ref name="Tesla4Q2021final" /> | |||
==== All periods ==== | |||
{| class="wikitable mw-collapsible" | |||
|+Historic financials<ref>Source: Stockhub Limited</ref><ref group="Note" name="Note04" /> | |||
|- | |||
!Year | |||
!'''1''' !!'''2'''!!'''3'''!!'''4'''!!'''5''' | |||
!'''6''' | |||
!'''7''' | |||
!'''8''' | |||
!'''9''' | |||
!'''10''' | |||
!'''11''' | |||
!'''12''' | |||
!'''13''' | |||
!'''14''' | |||
!'''15''' | |||
!'''16''' | |||
!'''17''' | |||
!18 | |||
|- | |- | ||
|'''Year end date'''||'''31/12/2005'''||'''31/12/2006<ref name=":12">{{cite web|url=https://www.mercurynews.com/2014/07/14/2006-san-carlos-start-up-tesla-seeks-sexier-electric-car/|title=2006: San Carlos start-up Tesla seeks sexier electric car|date=July 14, 2014}}</ref><ref name="SEC">{{cite web | url=https://www.sec.gov/edgar/browse/?CIK=1318605 | title=Tesla, Inc. TSLA on Nasdaq | publisher=[[U.S. Securities and Exchange Commission]]}}</ref>'''||'''31/12/2007'''||'''31/12/2008'''||'''31/12/2009''' | |||
|''' | |'''31/12/2010<ref name="SEC" />''' | ||
| | |'''31/12/2011<ref name="SEC" />''' | ||
|''' | |'''31/12/2012<ref name="SEC" />''' | ||
| | |'''31/12/2013<ref name="SEC" />''' | ||
|''' | |'''31/12/2014<ref name="SEC" />''' | ||
| | |'''31/12/2015<ref name="SEC" />''' | ||
| | |'''31/12/2016<ref name="SEC" />''' | ||
| | |'''31/12/2017<ref name="SEC" />''' | ||
| | |'''31/12/2018<ref name="SEC" />''' | ||
| | |'''31/12/2019<ref name="SEC" />''' | ||
|''' | |'''31/12/2020<ref name="SEC" />''' | ||
| | |'''31/12/2021<ref name="SEC" />''' | ||
|''' | |'''31/12/2022''' | ||
| | |- | ||
|''' | | colspan="19" |<div style="text-align: center;">'''Income statement'''</div> | ||
| | |- | ||
|''' | |Revenues ($'million)|| 0||0||0.073||15||112 | ||
|''' | |117 | ||
|''' | |204 | ||
|''' | |||
|''' | |||
|''' | |||
|''' | |||
|''' | |||
|''' | |||
|''' | |||
|''' | |||
|''' | |||
|''' | |||
|''' | |||
|- | |||
| colspan=" | |||
|- | |||
|Revenues ($'million)|| 0||0||0.073||15||112 | |||
|117 | |||
|204 | |||
|413 | |413 | ||
|2,013 | |2,013 | ||
Line 795: | Line 904: | ||
|53,823 | |53,823 | ||
|81,462 | |81,462 | ||
|- | |- | ||
| | |Net profits ($'million)||style="color: red;" |-12||style="color: red;" |-30||style="color: red;" |-78||style="color: red;" |-83|| style="color: red;" |−56 | ||
| | |style="color: red;" |−154 | ||
| | |style="color: red;" |−254 | ||
| | |style="color: red;" |−396 | ||
| | |style="color: red;" |−74 | ||
| | |style="color: red;" |−294 | ||
| | |style="color: red;" |−889 | ||
| | |style="color: red;" |−675 | ||
| | |style="color: red;" |−1,962 | ||
| | |style="color: red;" |−976 | ||
| | |style="color: red;" |−862 | ||
| | |721 | ||
| | |5,519 | ||
| | |12,556 | ||
| | |- | ||
| | | colspan="19" |<div style="text-align: center;">'''Balance sheet'''</div> | ||
| | |- | ||
| | |Total assets<br />($'million) | ||
| | |8 | ||
| | |44 | ||
| | |34 | ||
| | |52 | ||
| | |130 | ||
| | |386 | ||
| | |713 | ||
| | |1,114 | ||
| | |2,417 | ||
| | |5,831 | ||
| | |8,068 | ||
| | |22,664 | ||
| | |28,655 | ||
| | |29,740 | ||
| | |34,309 | ||
| | |52,148 | ||
| | |62,131 | ||
| | |82,338 | ||
| | |- | ||
| | | colspan="19" |<div style="text-align: center;">'''Other'''</div> | ||
| | |- | ||
| | |Employees | ||
| | |NA | ||
| | |70 | ||
| | |268 | ||
| | |252 | ||
| | |514 | ||
| | |899 | ||
| | |1,417 | ||
| | |2,914 | ||
| | |5,859 | ||
| | |10,161 | ||
| | |13,058 | ||
| | |17,782 | ||
| | |37,543 | ||
| | |48,817 | ||
| | |48,016 | ||
|70,757 | |||
|99,290 | |||
|127,855 | |||
|} | |||
=== Forward === | |||
====What are the financial forecasts?==== | |||
{| class="wikitable" | |||
|+Forward financials<ref>Source: Stockhub Limited</ref><ref group="Note" name="Note04" /> | |||
|- | |||
!Year | |||
!18 !!19!!20!!21!!22 | |||
!23 | |||
!24 | |||
!25 | |||
!26 | |||
!27 | |||
!28 | |||
!29 | |||
!30 | |||
!31 | |||
!32 | |||
!33 | |||
!34 | |||
!35 | |||
!36 | |||
!37 | |||
!38 | |||
!39 | |||
!40 | |||
!41 | |||
!42 | |||
!43 | |||
!44 | |||
!45 | |||
!46 | |||
!47 | |||
!48 | |||
!49 | |||
!50 | |||
!51 | |||
!52 | |||
!53 | |||
!54 | |||
!55 | |||
!56 | |||
!57 | |||
!58 | |||
!59 | |||
|- | |- | ||
| | |'''Year end date'''||'''31/12/2022'''||'''31/12/2023'''||'''31/12/2024'''||'''31/12/2025'''||'''31/12/2026''' | ||
| | |'''31/12/2027''' | ||
| | |'''31/12/2028''' | ||
| | |'''31/12/2029''' | ||
| | |'''31/12/2030''' | ||
| | |'''31/12/2031''' | ||
| | |'''31/12/2032''' | ||
| | |'''31/12/2033''' | ||
| | |'''31/12/2034''' | ||
| | |'''31/12/2035''' | ||
| | |'''31/12/2036''' | ||
| | |'''31/12/2037''' | ||
| | |'''31/12/2038''' | ||
| | |'''31/12/2039''' | ||
| | |'''31/12/2040''' | ||
| | |'''31/12/2041''' | ||
| | |'''31/12/2042''' | ||
| | |'''31/12/2043''' | ||
| | |'''31/12/2044''' | ||
| | |'''31/12/2045''' | ||
| | |'''31/12/2046''' | ||
| | |'''31/12/2047''' | ||
| | |'''31/12/2048''' | ||
| | |'''31/12/2049''' | ||
| | |'''31/12/2050''' | ||
| | |'''31/12/2051''' | ||
| | |'''31/12/2052''' | ||
| | |'''31/12/2053''' | ||
| | |'''31/12/2054''' | ||
| | |'''31/12/2055''' | ||
| | |'''31/12/2056''' | ||
| | |'''31/12/2057''' | ||
| | |'''31/12/2058''' | ||
| | |'''31/12/2059''' | ||
| | |'''31/12/2060''' | ||
| | |'''31/12/2061''' | ||
| | |'''31/12/2062''' | ||
| | |'''31/12/2063''' | ||
| | |- | ||
| | | colspan="43" |<div style="text-align: center;">'''Income statement'''</div> | ||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
|- | |- | ||
| | |Revenues ($'million)|| $78,935||$112,257||$154,816||$207,049||$268,527 | ||
|$337,721 | |||
|$411,894 | |||
|$487,157 | |||
|$558,739 | |||
|$621,448 | |||
|$670,282 | |||
|$701,078 | |||
|$711,102 | |||
| | |$699,445 | ||
|$667,163 | |||
|$617,116 | |||
|$553,551 | |||
| | |$481,510 | ||
|$ | |$406,171 | ||
|$ | |$332,253 | ||
|$ | |$263,564 | ||
|$ | |$202,749 | ||
|$ | |$151,247 | ||
|$ | |$109,414 | ||
|$ | |$76,757 | ||
|$ | |$52,217 | ||
|$ | |$34,448 | ||
|$ | |$22,038 | ||
|$ | |$13,673 | ||
|$ | |$8,226 | ||
|$ | |$4,799 | ||
|$ | |$2,715 | ||
|$ | |$1,490 | ||
|$ | |$793 | ||
|$ | |$409 | ||
|$ | |$205 | ||
|$ | |$99 | ||
|$ | |$47 | ||
|$ | |$21 | ||
|$ | |$9 | ||
|$ | |$4 | ||
|$ | |||
|$ | |||
|$ | |||
|$8, | |||
|$ | |||
|$ | |||
|$1, | |||
|$ | |||
|$ | |||
|$ | |||
|$ | |||
|$ | |||
|$ | |||
|$ | |||
|$ | |||
|$2 | |$2 | ||
|- | |- | ||
| | |Gross profits ($'million)||$23,680||$33,677||$46,445||$62,115||$80,558 | ||
|$101,316 | |||
|$185,352 | |||
| | |$219,221 | ||
| | |$251,432 | ||
| | |$279,652 | ||
| | |$301,627 | ||
| | |$315,485 | ||
| | |$319,996 | ||
| | |$314,750 | ||
| | |$300,223 | ||
| | |$277,702 | ||
| | |$249,098 | ||
| | |$216,679 | ||
| | |$182,777 | ||
| | |$149,514 | ||
| | |$118,604 | ||
| | |$91,237 | ||
| | |$68,061 | ||
| | |$49,236 | ||
| | |$34,541 | ||
|$23,498 | |||
|$15,502 | |||
|$9,917 | |||
|$6,153 | |||
|$3,702 | |||
|$2,160 | |||
|$1,222 | |||
|$670 | |||
|$357 | |||
|$184 | |||
|$92 | |||
|$45 | |||
|$21 | |||
|$10 | |||
| | |$4 | ||
| | |$2 | ||
| | |$1 | ||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
|- | |- | ||
| | |Operating profits ($'million)||$11,840||$16,839||$23,222||$31,057||$40,279 | ||
| | |$50,658 | ||
| | |$123,568 | ||
| | |$146,147 | ||
| | |$167,622 | ||
| | |$186,434 | ||
| | |$201,085 | ||
| | |$210,323 | ||
| | |$213,331 | ||
| | |$209,834 | ||
| | |$200,149 | ||
| | |$185,135 | ||
| | |$166,065 | ||
| | |$144,453 | ||
| | |$121,851 | ||
| | |$99,676 | ||
| | |$79,069 | ||
| | |$60,825 | ||
| | |$45,374 | ||
| | |$32,824 | ||
| | |$23,027 | ||
| | |$15,665 | ||
| | |$10,335 | ||
| | |$6,612 | ||
| | |$4,102 | ||
| | |$2,468 | ||
| | |$1,440 | ||
| | |$815 | ||
| | |$447 | ||
| | |$238 | ||
| | |$123 | ||
| | |$61 | ||
| | |$30 | ||
| | |$14 | ||
| | |$6 | ||
| | |$3 | ||
| | |$1 | ||
| | |$1 | ||
| | |- | ||
| | |Net profits ($'million)||$9,354||$13,302||$18,346||$24,535|| $31,820 | ||
| | |$40,020 | ||
| | |$97,619 | ||
| | |$115,456 | ||
| | |$132,421 | ||
| | |$147,283 | ||
| | |$158,857 | ||
| | |$166,156 | ||
| | |$168,531 | ||
| | |$165,769 | ||
| | |$158,118 | ||
| | |$146,256 | ||
| | |$131,192 | ||
| | |$114,118 | ||
| | |$96,263 | ||
| | |$78,744 | ||
| | |$62,465 | ||
| | |$48,052 | ||
| | |$35,846 | ||
| | |$25,931 | ||
| | |$18,191 | ||
| | |$12,376 | ||
| | |$8,164 | ||
| | |$5,223 | ||
|} | |$3,240 | ||
|$1,949 | |||
=== What are the assumptions used to estimate the financial forecasts? === | |$1,137 | ||
|$643 | |||
{| class="wikitable" | |$353 | ||
|$188 | |||
|$97 | |||
|$48 | |||
|$24 | |||
|$11 | |||
|$5 | |||
|$2 | |||
|$1 | |||
|$0 | |||
|} | |||
==== What are the assumptions used to estimate the financial forecasts?==== | |||
{| class="wikitable" | |||
|+Key inputs | |+Key inputs | ||
!Description | !Description | ||
Line 1,316: | Line 1,377: | ||
==Risks== | ==Risks== | ||
As with any investment, investing in Tesla carries a level of risk. | As with any investment, investing in Tesla carries a level of risk. Overall, based on the key risks highlighted below, the degree of risk associated with an investment in Tesla is high. | ||
===Risks related to the ability to grow the business=== | ===Risks related to the ability to grow the business=== | ||
Line 1,395: | Line 1,452: | ||
| Which valuation model do you want to use? | | Which valuation model do you want to use? | ||
|Discounted cash flow | |Discounted cash flow | ||
| There are two main approaches to | | There are two main approaches to estimating the value of an investment: | ||
# By calculating the present value of the investment's expected future cash flows (i.e. discounted cash flow valuation); and | # By calculating the present value of the investment's expected future cash flows (i.e. discounted cash flow valuation); and | ||
#By comparing the investment to other similar investments (i.e. relative valuation). | #By comparing the investment to other similar investments (i.e. relative valuation). | ||
Research suggests that in terms of estimating the expected return of an investment over a period of 12 | Research suggests that in terms of estimating the expected return of an investment over a period of 12 months or more, the approach that is more accurate is the discounted cash flow approach<ref name=":5">Demirakos et al., 2010; Gleason et al., 2013</ref>; nevertheless, for completeness purposes, separately, the valuation of the company is also estimated using the relative valuation approach (the valuation based on the relative approach can be found in the appendix of this report). | ||
Tesla has never paid cash dividends, and on 7th February 2022, it said that it currently does not anticipate paying any cash dividends in the foreseeable future. Accordingly, | Tesla has never paid cash dividends, and on 7th February 2022, it said that it currently does not anticipate paying any cash dividends in the foreseeable future. Accordingly, the free cash flow valuation method is recommended(rather than the dividend discount model). | ||
|- | |- | ||
|Which financial forecasts to use? | |Which financial forecasts to use? | ||
Line 1,469: | Line 1,526: | ||
|- | |- | ||
|The size of the total addressable market | |The size of the total addressable market | ||
| | |(18%) | ||
|(24%) | |(24%) | ||
| | |(36%) | ||
|- | |- | ||
|Tesla peak market share | |Tesla peak market share | ||
| | |(30%) | ||
| (24%) | | (24%) | ||
| | | (12%) | ||
|- | |- | ||
|The discount rate | |The discount rate | ||
| | |(32%) | ||
|(24%) | |(24%) | ||
| | | (18%) | ||
|} | |} | ||
Line 1,789: | Line 1,846: | ||
|+Balance sheet | |+Balance sheet | ||
!Year end date | !Year end date | ||
!31/12/2022 | |||
!31/12/2021 | !31/12/2021 | ||
!31/12/2020 | !31/12/2020 | ||
Line 1,795: | Line 1,853: | ||
|- | |- | ||
|'''Current Assets''' | |'''Current Assets''' | ||
| | |||
| | | | ||
| | | | ||
Line 1,801: | Line 1,860: | ||
|- | |- | ||
|Cash and Cash Equivalents ($million) | |Cash and Cash Equivalents ($million) | ||
|$16,253 | |||
|$17,576 | |$17,576 | ||
|$19,384 | |$19,384 | ||
Line 1,807: | Line 1,867: | ||
|- | |- | ||
|Short-Term Investments ($million) | |Short-Term Investments ($million) | ||
|$5,932 | |||
|$131 | |$131 | ||
| -- | | -- | ||
Line 1,813: | Line 1,874: | ||
|- | |- | ||
|Net Receivables ($million) | |Net Receivables ($million) | ||
|$2,952 | |||
|$1,913 | |$1,913 | ||
|$1,886 | |$1,886 | ||
Line 1,819: | Line 1,881: | ||
|- | |- | ||
|Inventory ($million) | |Inventory ($million) | ||
|$12,839 | |||
|$5,757 | |$5,757 | ||
|$4,101 | |$4,101 | ||
Line 1,825: | Line 1,888: | ||
|- | |- | ||
|Other Current Assets ($million) | |Other Current Assets ($million) | ||
|$2,941 | |||
|$1,723 | |$1,723 | ||
|$1,346 | |$1,346 | ||
Line 1,831: | Line 1,895: | ||
|- | |- | ||
|Total Current Assets ($million) | |Total Current Assets ($million) | ||
|$40,917 | |||
|$27,100 | |$27,100 | ||
|$26,717 | |$26,717 | ||
Line 1,837: | Line 1,902: | ||
|- | |- | ||
|'''Long-Term Assets''' | |'''Long-Term Assets''' | ||
| | |||
| | | | ||
| | | | ||
Line 1,843: | Line 1,909: | ||
|- | |- | ||
|Long-Term Investments ($million) | |Long-Term Investments ($million) | ||
| -- | |||
| -- | | -- | ||
| -- | | -- | ||
Line 1,849: | Line 1,916: | ||
|- | |- | ||
|Fixed Assets ($million) | |Fixed Assets ($million) | ||
|$31,146 | |||
|$25,411 | |$25,411 | ||
|$17,396 | |$17,396 | ||
Line 1,855: | Line 1,923: | ||
|- | |- | ||
|Goodwill ($million) | |Goodwill ($million) | ||
|$194 | |||
|$200 | |$200 | ||
|$207 | |$207 | ||
Line 1,861: | Line 1,930: | ||
|- | |- | ||
|Intangible Assets ($million) | |Intangible Assets ($million) | ||
|$215 | |||
|$257 | |$257 | ||
|$313 | |$313 | ||
Line 1,867: | Line 1,937: | ||
|- | |- | ||
|Other Assets ($million) | |Other Assets ($million) | ||
|$9,866 | |||
|$9,163 | |$9,163 | ||
|$7,515 | |$7,515 | ||
Line 1,873: | Line 1,944: | ||
|- | |- | ||
|Deferred Asset Charges ($million) | |Deferred Asset Charges ($million) | ||
| -- | |||
| -- | | -- | ||
| -- | | -- | ||
Line 1,879: | Line 1,951: | ||
|- | |- | ||
|Total Assets ($million) | |Total Assets ($million) | ||
|$82,338 | |||
|$62,131 | |$62,131 | ||
|$52,148 | |$52,148 | ||
Line 1,885: | Line 1,958: | ||
|- | |- | ||
|'''Current Liabilities''' | |'''Current Liabilities''' | ||
| | |||
| | | | ||
| | | | ||
Line 1,891: | Line 1,965: | ||
|- | |- | ||
|Accounts Payable ($million) | |Accounts Payable ($million) | ||
|$22,397 | |||
|$15,744 | |$15,744 | ||
|$9,906 | |$9,906 | ||
Line 1,897: | Line 1,972: | ||
|- | |- | ||
|Short-Term Debt / Current Portion of Long-Term Debt ($million) | |Short-Term Debt / Current Portion of Long-Term Debt ($million) | ||
|$1,502 | |||
|$1,589 | |$1,589 | ||
|$2,132 | |$2,132 | ||
Line 1,903: | Line 1,979: | ||
|- | |- | ||
|Other Current Liabilities ($million) | |Other Current Liabilities ($million) | ||
|$2,810 | |||
|$2,372 | |$2,372 | ||
|$2,210 | |$2,210 | ||
Line 1,909: | Line 1,986: | ||
|- | |- | ||
|Total Current Liabilities ($million) | |Total Current Liabilities ($million) | ||
|$26,709 | |||
|$19,705 | |$19,705 | ||
|$14,248 | |$14,248 | ||
Line 1,915: | Line 1,993: | ||
|- | |- | ||
|Long-Term Debt ($million) | |Long-Term Debt ($million) | ||
|$1,597 | |||
|$5,245 | |$5,245 | ||
|$9,556 | |$9,556 | ||
Line 1,921: | Line 2,000: | ||
|- | |- | ||
|Other Liabilities ($million) | |Other Liabilities ($million) | ||
|$5,330 | |||
|$3,546 | |$3,546 | ||
|$3,330 | |$3,330 | ||
Line 1,927: | Line 2,007: | ||
|- | |- | ||
|Deferred Liability Charges ($million) | |Deferred Liability Charges ($million) | ||
|$2,804 | |||
|$2,052 | |$2,052 | ||
|$1,284 | |$1,284 | ||
Line 1,933: | Line 2,014: | ||
|- | |- | ||
|Misc. Stocks ($million) | |Misc. Stocks ($million) | ||
|$785 | |||
|$826 | |$826 | ||
|$850 | |$850 | ||
Line 1,939: | Line 2,021: | ||
|- | |- | ||
|Minority Interest ($million) | |Minority Interest ($million) | ||
|$409 | |||
|$568 | |$568 | ||
|$655 | |$655 | ||
Line 1,945: | Line 2,028: | ||
|- | |- | ||
|Total Liabilities ($million) | |Total Liabilities ($million) | ||
|$37,634 | |||
|$31,374 | |$31,374 | ||
|$29,268 | |$29,268 | ||
Line 1,951: | Line 2,035: | ||
|- | |- | ||
|'''Stock Holders Equity''' | |'''Stock Holders Equity''' | ||
| | |||
| | | | ||
| | | | ||
Line 1,957: | Line 2,042: | ||
|- | |- | ||
|Common Stocks ($million) | |Common Stocks ($million) | ||
|$1 | |||
|$1 | |$1 | ||
|$1 | |$1 | ||
Line 1,963: | Line 2,049: | ||
|- | |- | ||
|Capital Surplus ($million) | |Capital Surplus ($million) | ||
|$12,887 | |||
|$331 | |$331 | ||
| style="color: red;" |-$5,399 | | style="color: red;" |-$5,399 | ||
Line 1,969: | Line 2,056: | ||
|- | |- | ||
|Retained Earnings | |Retained Earnings | ||
| --- | |||
| -- | | -- | ||
| -- | | -- | ||
Line 1,975: | Line 2,063: | ||
|- | |- | ||
|Treasury Stock ($million) | |Treasury Stock ($million) | ||
|$32,177 | |||
|$29,803 | |$29,803 | ||
|$27,260 | |$27,260 | ||
Line 1,981: | Line 2,070: | ||
|- | |- | ||
|Other Equity ($million) | |Other Equity ($million) | ||
| -$361 | |||
|$54 | |$54 | ||
|$363 | |$363 | ||
Line 1,987: | Line 2,077: | ||
|- | |- | ||
|Total Equity ($million) | |Total Equity ($million) | ||
|$44,704 | |||
|$30,189 | |$30,189 | ||
|$22,225 | |$22,225 | ||
Line 1,993: | Line 2,084: | ||
|- | |- | ||
|Total Liabilities & Equity ($million) | |Total Liabilities & Equity ($million) | ||
|$82,338 | |||
|$62,131 | |$62,131 | ||
|$52,148 | |$52,148 | ||
Line 2,002: | Line 2,094: | ||
|+Cash flow | |+Cash flow | ||
!Year end date | !Year end date | ||
!31/12/2022 | |||
!31/12/2021 | !31/12/2021 | ||
!31/12/2020 | !31/12/2020 | ||
Line 2,008: | Line 2,101: | ||
|- | |- | ||
|Net Income ($million) | |Net Income ($million) | ||
|$12,587 | |||
|$5,519 | |$5,519 | ||
|$721 | |$721 | ||
Line 2,014: | Line 2,108: | ||
|- | |- | ||
|'''Cash Flows-Operating Activities''' | |'''Cash Flows-Operating Activities''' | ||
| | |||
| | | | ||
| | | | ||
Line 2,020: | Line 2,115: | ||
|- | |- | ||
|Depreciation ($million) | |Depreciation ($million) | ||
|$3,747 | |||
|$2,911 | |$2,911 | ||
|$2,322 | |$2,322 | ||
Line 2,026: | Line 2,122: | ||
|- | |- | ||
|Net Income Adjustments ($million) | |Net Income Adjustments ($million) | ||
|? | |||
|$2,424 | |$2,424 | ||
| $2,575 | | $2,575 | ||
Line 2,032: | Line 2,129: | ||
|- | |- | ||
|'''Changes in Operating Activities''' | |'''Changes in Operating Activities''' | ||
| | |||
| | | | ||
| | | | ||
Line 2,038: | Line 2,136: | ||
|- | |- | ||
|Accounts Receivable ($million) | |Accounts Receivable ($million) | ||
| -$1,124 | |||
| style="color: red;" |-$130 | | style="color: red;" |-$130 | ||
| style="color: red;" |-$652 | | style="color: red;" |-$652 | ||
Line 2,044: | Line 2,143: | ||
|- | |- | ||
|Changes in Inventories ($million) | |Changes in Inventories ($million) | ||
| -$6,465 | |||
| style="color: red;" |-$1,709 | | style="color: red;" |-$1,709 | ||
| style="color: red;" |-$422 | | style="color: red;" |-$422 | ||
Line 2,050: | Line 2,150: | ||
|- | |- | ||
|Other Operating Activities ($million) | |Other Operating Activities ($million) | ||
|? | |||
| style="color: red;" |-$3,676 | | style="color: red;" |-$3,676 | ||
| style="color: red;" |-$1,667 | | style="color: red;" |-$1,667 | ||
Line 2,056: | Line 2,157: | ||
|- | |- | ||
|Liabilities ($million) | |Liabilities ($million) | ||
|? | |||
|$6,033 | |$6,033 | ||
|$2,925 | |$2,925 | ||
Line 2,062: | Line 2,164: | ||
|- | |- | ||
|Net Cash Flow-Operating ($million) | |Net Cash Flow-Operating ($million) | ||
|$14,724 | |||
| $11,497 | | $11,497 | ||
| $5,943 | | $5,943 | ||
Line 2,068: | Line 2,171: | ||
|- | |- | ||
|'''Cash Flows-Investing Activities''' | |'''Cash Flows-Investing Activities''' | ||
| | |||
| | | | ||
| | | | ||
Line 2,074: | Line 2,178: | ||
|- | |- | ||
|Capital Expenditures ($million) | |Capital Expenditures ($million) | ||
|$7,163 | |||
| style="color: red;" |-$6,514 | | style="color: red;" |-$6,514 | ||
| style="color: red;" |-$3,232 | | style="color: red;" |-$3,232 | ||
Line 2,080: | Line 2,185: | ||
|- | |- | ||
|Investments ($million) | |Investments ($million) | ||
| -$5,835 | |||
| style="color: red;" |-$132 | | style="color: red;" |-$132 | ||
| -- | | -- | ||
Line 2,086: | Line 2,192: | ||
|- | |- | ||
|Other Investing Activities ($million) | |Other Investing Activities ($million) | ||
|$1012 | |||
| style="color: red;" |-$1,222 | | style="color: red;" |-$1,222 | ||
|$100 | |$100 | ||
Line 2,092: | Line 2,199: | ||
|- | |- | ||
|Net Cash Flows-Investing ($million) | |Net Cash Flows-Investing ($million) | ||
| -$11,973 | |||
| style="color: red;" |-$7,868 | | style="color: red;" |-$7,868 | ||
| style="color: red;" |-$3,132 | | style="color: red;" |-$3,132 | ||
Line 2,098: | Line 2,206: | ||
|- | |- | ||
|'''Cash Flows-Financing Activities''' | |'''Cash Flows-Financing Activities''' | ||
| | |||
| | | | ||
| | | | ||
Line 2,104: | Line 2,213: | ||
|- | |- | ||
|Sale and Purchase of Stock ($million) | |Sale and Purchase of Stock ($million) | ||
| -- | |||
|$699 | |$699 | ||
|$12,675 | |$12,675 | ||
Line 2,110: | Line 2,220: | ||
|- | |- | ||
|Net Borrowings ($million) | |Net Borrowings ($million) | ||
| -- | |||
| style="color: red;" |-$5,732 | | style="color: red;" |-$5,732 | ||
| style="color: red;" |-$2,488 | | style="color: red;" |-$2,488 | ||
Line 2,116: | Line 2,227: | ||
|- | |- | ||
|Other Financing Activities ($million) | |Other Financing Activities ($million) | ||
| | |||
| -- | | -- | ||
| -- | | -- | ||
Line 2,122: | Line 2,234: | ||
|- | |- | ||
|Net Cash Flows-Financing ($million) | |Net Cash Flows-Financing ($million) | ||
| -$3,527 | |||
| style="color: red;" |-$5,203 | | style="color: red;" |-$5,203 | ||
|$9,973 | |$9,973 | ||
Line 2,128: | Line 2,241: | ||
|- | |- | ||
|Effect of Exchange Rate ($million) | |Effect of Exchange Rate ($million) | ||
| -$444 | |||
| style="color: red;" |-$183 | | style="color: red;" |-$183 | ||
|$334 | |$334 | ||
Line 2,134: | Line 2,248: | ||
|- | |- | ||
|Net Cash Flow ($million) | |Net Cash Flow ($million) | ||
| -$1,220 | |||
| style="color: red;" |-$1,757 | | style="color: red;" |-$1,757 | ||
|$13,118 | |$13,118 | ||
Line 2,404: | Line 2,519: | ||
In the typical case in which the equity risk premium is based on a national equity market index and estimated beta is based on sensitivity to that index, the assumption is being made implicitly that equity prices are largely determined by local investors. When equities markets are segmented in that sense (i.e., local market prices are largely determined by local investors rather than by investors worldwide), two issues with the same risk characteristics can have different required returns if they trade in different markets. | In the typical case in which the equity risk premium is based on a national equity market index and estimated beta is based on sensitivity to that index, the assumption is being made implicitly that equity prices are largely determined by local investors. When equities markets are segmented in that sense (i.e., local market prices are largely determined by local investors rather than by investors worldwide), two issues with the same risk characteristics can have different required returns if they trade in different markets. | ||
The opposite assumption is that all investors worldwide participate equally in | The opposite assumption is that all investors worldwide participate equally in setting prices (perfectly integrated markets). That assumption results in the international CAPM (or world CAPM) in which the risk premium is relative to a world market portfolio. In practice, the international CAPM is not commonly relied on for required return on equity estimation. | ||
For estimating the required return on the equity using the Capital Asset Pricing Model, in terms of time period, and frequency of observations, the most common choice is five years of monthly data, yielding 60 observations. One study of U.S. stocks found support for five years of monthly data over alternatives. An argument can be made that the 2 years, weekly data can be especially appropriate in fast growing markets. | For estimating the required return on the equity using the Capital Asset Pricing Model, in terms of time period, and frequency of observations, the most common choice is five years of monthly data, yielding 60 observations. One study of U.S. stocks found support for five years of monthly data over alternatives. An argument can be made that the 2 years, weekly data can be especially appropriate in fast growing markets. | ||
Line 2,410: | Line 2,525: | ||
The beta value in a future period has been found to be on average closer to the mean value of 1.0, the beta of an average-systematic-risk security, than to the value of the raw beta. Because valuation is forward looking, it is logical to adjust the raw beta so it more accurately predicts a future beta. | The beta value in a future period has been found to be on average closer to the mean value of 1.0, the beta of an average-systematic-risk security, than to the value of the raw beta. Because valuation is forward looking, it is logical to adjust the raw beta so it more accurately predicts a future beta. | ||
The figure here is taken from Yahoo Finance | The figure here is taken from Yahoo Finance on 16th September 2022<ref>https://uk.finance.yahoo.com/quote/AAPL?p=AAPL&.tsrc=fin-srch</ref>. | ||
|- | |- | ||
|Equity risk premium (%) | |Equity risk premium (%) | ||
Line 2,427: | Line 2,542: | ||
'''Forward-looking estimates''' | '''Forward-looking estimates''' | ||
Because the equity risk premium is based only on expectations for economic and financial variables from the present going forward, it is logical to estimate the premium directly based on current information and expectations concerning such variables. Such estimates are often called forward-looking or ex ante estimates. In principle, such estimates may agree with, be higher, or be lower than historical equity risk premium estimates. Ex ante estimates are likely to be less subject to an issue such as non-stationarity or data biases than historical estimates. However, such estimates are often subject to other potential errors related to financial and economic models and potential behavioural biases in forecasting. | Because the equity risk premium is based only on expectations for economic and financial variables from the present going forward, it is logical to estimate the premium directly based on current information and expectations concerning such variables. Such estimates are often called forward-looking or ex ante estimates. In principle, such estimates may agree with, be higher, or be lower than historical equity risk premium estimates. Ex ante estimates are likely to be less subject to an issue such as non-stationarity or data biases than historical estimates. However, such estimates are often subject to other potential errors related to financial and economic models and potential behavioural biases in forecasting. Here, the equity risk premium is in relation to the global region, and is calculated as at 1st January 2022 <ref>https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/ctryprem.html</ref>. | ||
Here, the equity risk premium is in relation to the global region, and is calculated as at 1st January 2022 | |||
|- | |- | ||
|Cost of equity (%) | |Cost of equity (%) | ||
Line 2,673: | Line 2,786: | ||
|Agriculture, Forestry and Land Use | |Agriculture, Forestry and Land Use | ||
|} | |} | ||
== Notes== | == Notes== | ||
Line 3,032: | Line 2,836: | ||
The kilowatt-hour (kWh) is a unit of energy equal to one kilowatt of power sustained for one hour and is commonly used as a measure of electrical energy. One kilowatt-hour is equal to 3600 kilojoules (3.6 megajoules). | The kilowatt-hour (kWh) is a unit of energy equal to one kilowatt of power sustained for one hour and is commonly used as a measure of electrical energy. One kilowatt-hour is equal to 3600 kilojoules (3.6 megajoules). | ||
{| class="wikitable" | {| class="wikitable" | ||
|+'''Powerwall annual cost calculation''' | |+'''Powerwall annual cost calculation''' |