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Tesla, Inc. and Salesforce, Inc.: Difference between pages

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[[File:Tesla logo.jpg|150px]]


Helping to accelerate the world's transition to sustainable energy.
Salesforce's mission is to be the world's #1 CRM (Customer Relationship Management) company, focusing on empowering businesses to connect with their customers, partners, and employees in innovative ways. They prioritize customer success, innovation, and social responsibility, guided by core values such as trust, customer obsession, innovation, and equality.


{| class="wikitable"
Salesforce operates in cloud-based CRM solutions, providing a wide range of products and services, including sales, marketing, service, analytics, and more. Their key revenue drivers are Salesforce Cloud, Service Cloud, Sales Cloud, Marketing Cloud, and Salesforce Platform.
|+ Key information
|-
| Risk/return|| High
|-
| Price per share|| $663.90<ref name=":1">https://uk.finance.yahoo.com/quote/TSLA/profile?p=TSLA</ref>
|-
| Asset class|| Equities<ref name=":2">https://sec.report/CIK/0001318605#:~:text=Tesla%2C%20Inc.%20is%20incorporated%20in,motor%20vehicles%20%26%20passenger%20car%20bodies.</ref>
|-
| Industry|| Consumer Cyclical<ref name=":1" />
|-
| Country of incorporation|| United States<ref name=":2" />
|-
| Minimum investment amount|| $10
|-
| Maximum investment amount|| $687.81 billion<ref name=":1" />
|-
| Current valuation|| $687.81 billion<ref name=":1" />
|-
| Investor type|| All
|-
| Bid/ask spread (%)|| 0.0015063%
|-
| Commission amount|| N/A
|-
| Market|| Public<ref name=":1" />
|}
 
==Summary==
 
* 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 designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. It 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. It 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>
* Based on a number of assumptions, the expected return of an investment in the company over the next five years is 72%. In other words, an £1,000 investment in the company is expected to return £1,720 in five years time.
* The degree of risk associated with an investment in Tesla is 'high'.
 
==Operations==
 
=== How did the idea of the company come about? ===
The idea of the company came about when the founding team realised that the current way that humans are meeting their energy needs is unsustainable and bad for the environment.<ref name=":9">https://www.tesla.com/en_GB/blog/secret-tesla-motors-master-plan-just-between-you-and-me</ref>
 
85% of the world's energy needs are met by burning fossil fuels as of 2019<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 as of 2018.<ref>https://www.climatewatchdata.org/ghg-emissions?breakBy=sector&chartType=percentage&end_year=2018&sectors=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" />
 
With the automotive industry accounting for the largest proportion of greenhouse gases emissions and the premium sports car market offering one of the highest gross margins, Tesla decided that its initial product will be an electric sports car.
 
Accordingly, in the team's quest to accelerate the world’s transition to sustainable energy, the Tesla company and its initial product the Tesla Roadster were born.
 
=== What's the mission of the company? ===
 
Tesla is a company that's on a mission to accelerate the world's transition to sustainable energy.<ref name=":3" /> In other words, the company's objective is to accelerate the world's transition to energy that meets the needs of the present without compromising the ability of future generations to meet their own needs.
 
=== What are the main offerings of the company? ===
 
The company's main offerings fall into two main segments: (1) automotive and (2) energy generation and storage.<ref name=":4" />
 
==== Automotive ====
 
The automotive segment includes the design, development, manufacturing, sales and leasing of electric vehicles as well as sales of automotive regulatory credits.<ref name=":4" /> Additionally, the automotive segment is also comprised of other services including non-warranty after-sales vehicle services, sales of used vehicles, retail merchandise, sales by the company's acquired subsidiaries to third party customers and vehicle insurance revenue.<ref name=":4" />
 
===== Current offerings =====
 
====== Automotive sales ======
As of 2nd June 2022, the company offers four main car models: Model S, Model 3, Model X and Model Y.
 
'''Model S'''
 
<u>Target audience</u>
 
The target audience is people who are relatively more innovative in their thinking.
 
<u>What is the offering?</u>
 
Model S is a car.
 
[[File:Model S.jpg|600px]]
 
<u>What’s unique about the offering?</u>
 
Model S is the fastest accelerating and longest ranging car that Tesla provides.<ref>https://www.tesla.com/</ref>
 
{| class="wikitable"
|+Competition comparison
!Category
!Model S<ref name=":8">https://www.tesla.com/models</ref>
!Model 3<ref>https://www.tesla.com/model3</ref>
!Model X<ref>https://www.tesla.com/modelx</ref>
!Model Y<ref>https://www.tesla.com/modely</ref>
|-
|Is the vehicle fully electric?
| style="background: green; color: white;" |Yes
| style="background: green; color: white;" |Yes
| style="background: green; color: white;" |Yes
| style="background: green; color: white;" |Yes
|-
|What's the top acceleration of the vehicle?
| style="background: green; color: white;" |3.1 seconds
| style="background: red; color: white;" |5.8 seconds
| style="background: orange; color: white;" |3.8 seconds
| style="background: orange; color: white;" |4.8 seconds
|-
|What's the maximum distance range of the vehicle on a single battery charge?
| style="background: green; color: white;" |405 miles
| style="background: red; color: white;" |272 miles
| style="background: orange; color: white;" |348 miles
| style="background: orange; color: white;" |330 miles
|-
|What's the top speed of the vehicle?
| style="background: green; color: white;" |155 miles per hour
| style="background: orange; color: white;" |140 miles per hour
| style="background: green; color: white;" |155 miles per hour
| style="background: red; color: white;" |135 miles per hour
|-
|Which design type is the vehicle?
| style="background: green; color: white;" |Sedan (i.e. car)
| style="background: green; color: white;" |Sedan (i.e. car)
| style="background: green; color: white;" |SUV (i.e. car)
| style="background: green; color: white;" |SUV (i.e. car)
|-
|What is the safety rating of the vehicle?
| style="background: green; color: white;" |5 out of 5 stars
| style="background: green; color: white;" |5 out of 5 stars
| style="background: green; color: white;" |5 out of 5 stars
| style="background: green; color: white;" |5 out of 5 stars
|-
|How many seats does the vehicle have?
| style="background: red; color: white;" |5 seats
| style="background: red; color: white;" |5 seats
| style="background: green; color: white;" |7 seats
| style="background: green; color: white;" |7 seats
|-
|What's the cargo capacity of the vehicle?
| style="background: orange; color: white;" |28 cubic feet
| style="background: red; color: white;" |23 cubic feet
| style="background: green; color: white;" |88 cubic feet
| style="background: orange; color: white;" |76 cubic feet
|-
|Which drive wheel does the vehicle have?
| style="background: green; color: white;" |All-wheel drive
| style="background: red; color: white;" |Rear-wheel drive
| style="background: green; color: white;" |All-wheel drive
| style="background: green; color: white;" |All-wheel drive
|-
|What's the price of the vehicle?
| style="background: orange; color: white;" |$99,990
| style="background: green; color: white;" |$46,990
| style="background: red; color: white;" |$114,990
| style="background: orange; color: white;" |$62,990
|-
|What's the vehicle's price per cargo capacity?
| style="background: red; color: white;" |$3,571 per cubic feet
| style="background: orange; color: white;" |$2,043 per cubic feet
| style="background: orange; color: white;" |$1,307 per cubic feet
| style="background: green; color: white;" |$829 per cubic feet
|-
|What's the vehicle's price per passenger?
| style="background: red; color: white;" |$19,998 per passenger
| style="background: orange; color: white;" |$9,398 per passenger
| style="background: orange; color: white;" |$16,427 per passenger
| style="background: green; color: white;" |$8,999 per passenger
|}
 
{| class="wikitable"
|+Which car is the winner in the following categories?
!Category
!Winner
|-
|Which Tesla car has the fastest acceleration?
|Model S
|-
|Which Tesla car has the longest range?
|Model S
|-
|Which Tesla car has the largest cargo capacity?
|Model X
|-
|Which Tesla car is the lowest priced?
|Model 3
|-
|Which Tesla car has the lowest price per cargo capacity?
|Model Y
|-
|Which Tesla car has the lowest price per passenger?
|Model Y
|}
 
<u>What is the price of the offering?</u>
 
The price of the car in the US is $99,990.<ref name=":8" />
 
<u>From which place(s) is the offering able to be purchased?</u>
 
The main places that the offering is able to be purchased is through the company's website (at [https://www.tesla.com www.tesla.com]) and company's stores<ref name=":4" />, which is estimated at around 400 stores in more than 35 countries.
 
<u>From which place(s) is the offering promoted?</u>
 
The main way that Tesla promotes the offering is through media coverage and word of mouth.<ref name=":4" />
 
'''Model 3'''
 
<u>Target audience</u>
 
The target audience is people who are relatively more innovative in their thinking.
 
<u>What is the offering?</u>
 
Model 3 is a car.
 
[[File:Rhd-model-3-social.png|600px]]
 
<u>What’s unique about the offering?</u>
 
Model 3 is the lowest priced car that Tesla provides.
 
<u>What is the price of the offering?</u>
 
The price of the car in the US is $46,990.
 
<u>From which place(s) is the offering able to be purchased?</u>
 
The main places that the offering is able to be purchased is through the company's website (at [https://www.tesla.com www.tesla.com]) and company's stores.<ref name=":4" />
 
<u>From which place(s) is the offering promoted?</u>
 
The main way that Tesla promotes the offering is through media coverage and word of mouth.<ref name=":4" />
 
'''Model X'''
 
<u>Target audience</u>
 
The target audience is people who are relatively more innovative in their thinking.
 
<u>What is the offering?</u>
 
Model X is a car.
 
[[File:MX-Hero-Desktop.jpg|600px]]
 
<u>What’s unique about the offering?</u>
 
Model X is the largest cargo capacity car that Tesla provides.
 
<u>What is the price of the offering?</u>
 
The price of the car in the US is $114,990.
 
<u>From which place(s) is the offering able to be purchased?</u>
 
The main places that the offering is able to be purchased is through the company's website (at [https://www.tesla.com www.tesla.com]) and company's stores.<ref name=":4" />
 
<u>From which place(s) is the offering promoted?</u>
 
The main way that Tesla promotes the offering is through media coverage and word of mouth.<ref name=":4" />
 
'''Model Y'''
 
<u>Target audience</u>
 
The target audience is people who are relatively more innovative in their thinking.
 
<u>What is the offering?</u>
 
Model Y is a car.
 
[[File:Model y red.jpg|600px]]
 
<u>What’s unique about the offering?</u>
 
Model Y is the lowest price per cargo capacity and lowest price per passenger car that Tesla provides.
 
<u>What is the price of the offering?</u>
 
The price of the car in the US is $62,990.
 
<u>From which place(s) is the offering able to be purchased?</u>
 
The main places that the offering is able to be purchased is through the company's website (at [https://www.tesla.com www.tesla.com]) and company's stores.<ref name=":4" />
 
<u>From which place(s) is the offering promoted?</u>
 
The main way that Tesla promotes the offering is through media coverage and word of mouth.<ref name=":4" />
 
====== Automotive leasing ======
Tesla offers leasing and/or loan financing arrangements for its vehicles in certain jurisdictions in North America, Europe and Asia. Under certain programs, the company provides resale value guarantees or buyback guarantees, enabling customers to sell their vehicles back to the company at certain points in time at pre-determined amounts.<ref name=":4" />
 
====== Regulatory credits ======
The company earns tradable credits in the operation of its business under various regulations related to zero-emission vehicles, greenhouse gas, fuel economy and clean fuel. It sells those credits to other regulated entities that can use the credits to comply with emission standards and other regulatory requirements.<ref name=":4" />
 
====== Other current offerings ======
 
'''Service and warranty'''
 
<u>Service</u>
 
Other offerings include the servicing of Tesla vehicles, at company-owned service locations and through Tesla Mobile Service technicians.<ref name=":4" />
 
<u>Extended service plans</u>
 
The company offers extended service plans, which provide coverage beyond the new vehicle limited warranties for certain models in specified regions.<ref name=":4" />
 
'''Financial services'''
 
<u>Purchase financing</u>
 
The company offers loan financing arrangements for its vehicles in certain jurisdictions in North America, Europe and Asia.<ref name=":4" /> In certain situations, Tesla provides resale value guarantees or buyback guarantees, enabling customers to sell their vehicles back to the company at certain points in time at pre-determined amounts.<ref name=":4" />
 
<u>Insurance</u>
 
As part of the company's ongoing effort to decrease the total cost of ownership, it offers insurance products on its vehicles.<ref name=":4" /> The products are currently available in five US states (Arizona, California, Illinois, Ohio and Texas), and the company plans to offer the products into new geographical markets.<ref name=":4" />
 
=====Future offerings=====
 
======Automotive sales======
 
'''Cybertruck'''
 
<u>Target audience</u>
 
The target audience is people who are relatively more innovative in their thinking.
 
<u>What is the offering?</u>
 
Cybertruck is a truck, a motor vehicle designed to transport cargo, carry specialised payloads, or perform other utilitarian work.


[[File:Cybertruck-Hero-Desktop.jpg|600px]]
In the CRM market, Salesforce faces competition from companies like Microsoft, Oracle, and SAP. They also invest in sustainability efforts, pledging to reach net-zero greenhouse gas emissions and investing in renewable energy. Salesforce has a strong leadership team and continues to expand its global footprint through acquisitions and partnerships to maintain its position as a CRM market leader and drive innovation.


<u>What’s unique about the offering?</u>
== '''The Idea''' ==
Salesforce.com was founded by Marc Benioff in 1999. The idea for the company came about when Benioff, a former Oracle executive, recognized the potential of cloud computing and the need for a more customer-centric approach to business software.


Cybertruck will be the safest vehicle that Tesla provides.
In 1999, Benioff left his job at Oracle and started to explore opportunities in cloud-based customer relationship management (CRM) software. He believed that businesses could benefit from a CRM system that was accessible over the internet and didn't require the complex and costly infrastructure of traditional CRM solutions.


<u>What is the price of the offering?</u>
Benioff and his co-founders made a list of potential software solutions, and cloud-based CRM was at the top. They saw the opportunity to revolutionize how businesses manage their customer relationships by making CRM more accessible and user-friendly.


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>
After establishing the company, Benioff and his team developed the software for Salesforce.com. The name "Salesforce" was chosen to reflect the focus on sales and customer relationships.


<u>From which place(s) is the offering able to be purchased?</u>
Salesforce.com was officially launched in February 2000 as a cloud-based CRM platform. In the beginning, it primarily offered CRM solutions, but Benioff had a broader vision for Salesforce to become a leading cloud-based business software provider.


The main places that the offering is likely to be able to be purchased is through the company's website (at [https://www.tesla.com www.tesla.com]) and company's stores.<ref name=":4" />
Today, Salesforce.com offers a wide range of cloud-based solutions beyond CRM, including sales automation, marketing automation, service management, and more. The company's innovative approach to cloud computing has also expanded into artificial intelligence, analytics, and a platform for developing custom applications, making it a major player in the cloud technology industry.


<u>From which place(s) is the offering promoted?</u>
== '''Mission Statement''' ==
Salesforce.com ‘s mission statement is:


The main way that Tesla is expected to promote the offering is through media coverage and word of mouth.<ref name=":4" />
We harness technologies that can revolutionize companies, careers, and, hopefully, our world. Salesforce is built on a set of five core values: Trust, Customer Success, Innovation, Sustainability, and Equality.


'''Tesla Roadster'''
This statement reflects Salesforce's commitment to leveraging technology to drive positive change in organizations, careers, and the world, guided by their core values.


<u>Target audience</u>
== '''Segments''' ==


The target audience is people who are relatively more innovative in their thinking.
=== Sales ===
Salesforce's Sales offering empowers sales teams to streamline and automate their entire sales process, from leads to billing. This comprehensive solution enables sales teams to sell more efficiently, leveraging data storage, lead tracking, opportunity forecasting, analytics, and streamlined quoting and invoicing. It supports flexible working arrangements, aligning with digital-first customer expectations.


<u>What is the offering?</u>
=== Service ===
Salesforce's Service offering facilitates personalized customer service and support at scale. It connects service agents with customers through various channels and includes AI-powered chatbots for issue resolution. Additionally, it offers a field service solution for scheduling and managing jobs in real-time, enhancing customer support efficiency.


The Tesla Roadster is a car.
=== Platform and Other ===
The Platform offering allows businesses of all sizes to build custom apps efficiently, enhancing customer engagement and enabling digital transformation. It provides security, compliance, and automation features, with integrated services like AI and real-time data processing. Salesforce's acquisition of Slack strengthens collaboration and workflow integration within the Customer 360 platform.


[[File:Tesla-roadster.jpg|600px]]
=== Marketing and Commerce ===
The Marketing offering enables one-to-one customer marketing journeys across multiple channels, promoting real-time personalization and integrated analytics. Commerce unifies the shopping experience across various touchpoints, driving customer engagement and loyalty. Click-to-code tools offer flexibility in adapting to changing customer needs.


<u>What’s unique about the offering?</u>
=== Data ===
Salesforce's Analytics offering, including Tableau, empowers users to gain insights from their data, utilizing AI models, trend spotting, and timely recommendations. The Integration offering, powered by MuleSoft, facilitates data connectivity across systems, increasing agility and enabling connected experiences. The Customer Data Cloud, powered by Genie, offers a hyperscale real-time data platform for highly personalized experiences across sales, service, marketing, and commerce.


Roadster will be the fastest accelerating and longest ranging car that Tesla provides.
=== Industry Verticals ===
Salesforce provides industry-specific service offerings, tailored to the needs of sectors like financial services, healthcare, manufacturing, and more. These offerings include out-of-the-box capabilities to accelerate time-to-value and adapt to evolving customer demands.


<u>What is the price of the offering?</u>
=== Salesforce Easy ===
Designed for small and medium-sized businesses, Salesforce Easy offers a purpose-built Customer 360 solution. It simplifies purchase processes, provides out-of-the-box features, and enhances productivity for smaller organizations.


The price of the offering is around $200,000.<ref>https://carbuzz.com/cars/tesla/roadster</ref>
== '''Revenue breakdown by segment''' ==
Salesforce, a global leader in Customer Relationship Management (CRM) solutions, has witnessed significant revenue growth across various segments from 2018 to 2022. The company's diversified revenue streams are a result of strategic initiatives and acquisitions aimed at expanding its product and service offerings. This analysis breaks down Salesforce's segmented revenue and explores the strategies employed to develop these segments.


<u>From which place(s) is the offering able to be purchased?</u>
'''Segmented Revenue Breakdown:'''


The main places that the offering is likely to be able to be purchased is through the company's website (at [https://www.tesla.com www.tesla.com]) and company's stores.<ref name=":4" />
* Sales: Salesforce's sales segment consistently grew from $4.04 billion in 2018 to $6.83 billion in 2022. This segment primarily represents revenue generated from its core CRM sales solutions.
* Service: The service segment also demonstrated robust growth, increasing from $3.62 billion in 2018 to $7.37 billion in 2022. This revenue category encompasses Salesforce's customer service and support offerings, indicating strong demand for enhancing customer experiences.
* Platform and Other: Salesforce's platform and other services revenue grew from $2.85 billion in 2018 to $5.97 billion in 2022. This segment includes platform-related services and other miscellaneous offerings.
* Marketing and Commerce: The marketing and commerce segment expanded from $1.89 billion in 2018 to $4.52 billion in 2022. This growth reflects Salesforce's efforts to provide comprehensive marketing and e-commerce solutions to businesses.
* Data: Although not reported in 2018 and 2019, Salesforce's data segment contributed $4.34 billion in revenue in 2022. This category includes data-related services and solutions, showcasing the increasing importance of data analytics in CRM.
* Professional Services and Other: Salesforce's professional services and other category grew steadily from $869 million in 2018 to $2.33 billion in 2022. This segment encompasses consulting, implementation, and other services that complement Salesforce's product offerings.


<u>From which place(s) is the offering promoted?</u>


The main way that Tesla is expected to promote the offering is through media coverage and word of mouth.<ref name=":4" />
'''Key Strategies:'''


'''Tesla Semi'''
* Salesforce has implemented several strategies to develop and bolster its segmented revenue:
* Acquisitions: Salesforce strategically acquired companies that complement its existing portfolio. Notable acquisitions include Tableau (2019) and Slack (2020), which expanded its data and collaboration capabilities.
* Product Diversification: The company continuously diversified its product offerings to cater to various business needs. For instance, its marketing and e-commerce solutions evolved to meet the growing demand for digital marketing and online sales platforms.
* Customer-Centric Approach: Salesforce prioritizes enhancing customer experiences, evident in the significant growth of its service segment. This customer-centric focus includes improving customer support and engagement.
* Data Analytics: The introduction of the data segment highlights Salesforce's emphasis on leveraging data analytics for business insights and decision-making, a crucial component in today's CRM landscape.
* Professional Services: Salesforce expanded its professional services offerings, providing customers with consulting and implementation support, thus enhancing the overall value proposition.


<u>Target audience</u>
Salesforce's impressive revenue growth across segmented categories from 2018 to 2022 underscores its commitment to innovation and diversification. Through strategic acquisitions, product diversification, a customer-centric approach, data analytics, and professional services, Salesforce has solidified its position as a leading CRM provider and continually adapts to meet evolving market demands. This multi-faceted approach has enabled Salesforce to thrive and maintain its leadership in the CRM industry.
__INDEX__
__NEWSECTIONLINK__


The target audience is people who are relatively more innovative in their thinking.
== '''Leadership''' ==
Marc Benioff is the Chair, CEO, and Co-Founder of Salesforce, a global leader in CRM software. Under his leadership, Salesforce has become a Fortune 150 company with 75,000 employees and is recognized for innovation and equality. Benioff has received numerous accolades for his leadership, including being named "Innovator of the Decade" by Forbes and one of the "World’s 25 Greatest Leaders" by Fortune. He is also known for his philanthropy, creating the 1-1-1 model of philanthropy on day one of Salesforce to improve communities worldwide. Benioff and his wife have donated extensively to healthcare, education, and environmental causes. He is the owner of TIME and author of "Trailblazer: The Power of Business as the Greatest Platform for Change."


<u>What is the offering?</u>
Parker Harris, Co-Founder and CTO of Salesforce, oversees the company's technology vision and has been instrumental in driving its technology strategy, including initiatives like Hyperforce and Lightning Experience. He's passionate about cloud computing's role in digital transformation. Before Salesforce, he co-founded Left Coast Software and worked in sales force automation. Harris holds a B.A. in English literature from Middlebury College.


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.
Amy Weaver serves as President and CFO at Salesforce, leading the global finance organization. Before this, she was Chief Legal Officer, overseeing legal and corporate affairs at Salesforce. Her background includes legal roles at Expedia Group Inc., Cravath, Swaine & Moore, and Perkins Coie, along with work in legislative aid and clerking. She serves on several boards and holds a JD from Harvard Law School.


[[File:Tesla-semi.jpg|600px]]
Ariel Kelman is the President and Chief Marketing Officer at Salesforce, responsible for global marketing efforts. He has a background in economics with a Bachelor of Arts from the University of California, Berkeley. Ariel has previously worked at Salesforce and served as CMO at Oracle and AWS before rejoining Salesforce in 2023.


<u>What’s unique about the offering?</u>
Brian Millham serves as President and COO at Salesforce, overseeing various key functions including sales, customer success, marketing, and more. He has been with Salesforce for over 23 years and has played a significant role in the company's growth and development. Brian's background includes experience at Oracle and Remedy Corporation, and he holds a Bachelor of Arts from the University of California, Berkeley. He also serves on the board of Newsela, an education technology company.


What makes the vehicle unique is that it will be the largest cargo capacity vehicle that Tesla provides.
David Schmaier serves as the President and Chief Product Officer at Salesforce, leading the company's global product strategy and vision. He brings over three decades of experience in enterprise software and CRM. David was previously the CEO of Salesforce Industries, and before that, he co-founded and led Vlocity. He holds a B.A. in mechanical engineering from Rensselaer Polytechnic Institute and an MBA from Harvard Business School.


<u>What is the price of the offering?</u>
Juan Perez is EVP and CIO at Salesforce, responsible for the global IT team and advising customers on digital transformations. Previously CIO at UPS, he's been recognized for his leadership in technology adoption and received awards like the Forbes CIO Innovation Award. Juan holds degrees in industrial and systems engineering.


The price of the offering is around $150,000.
Kendall Collins is the Chief Business Officer and Chief of Staff to Marc Benioff at Salesforce. He oversees strategic initiatives and customer relationships for the Office of the Chair and CEO, as well as the global communications team. Kendall has held various executive roles at Salesforce and other companies, driving innovation and marketing strategies. He holds a B.S. in commerce and has extensive experience in the tech industry.


<u>From which place(s) is the offering able to be purchased?</u>
Miguel Milano is the President and Chief Revenue Officer at Salesforce, responsible for global sales and distribution. He has a successful track record in international sales, previously led sales organizations at Salesforce, and held leadership positions at companies like Oracle, McKinsey, and Telefonica. Miguel has engineering degrees and an MBA from MIT's Sloan School of Management.


The main places that the offering is likely to be able to be purchased is through the company's website (at [https://www.tesla.com www.tesla.com]) and company's stores.<ref name=":4" />
Nathalie Scardino is Salesforce's interim Chief People Officer, responsible for the global people strategy, employee engagement, and business value. She has over a decade of experience at Salesforce, including roles in recruiting, onboarding, and employee learning. Nathalie has a background in sales and executive search, focusing on technology and digital transformation. She serves on the board of San Francisco Youth Theatre and holds a B.A. from Goldsmiths, University of London. She resides in San Francisco with her family.


<u>From which place(s) is the offering promoted?</u>
Sabastian Niles serves as Salesforce's President and Chief Legal Officer, responsible for global legal and government affairs. With a background as a partner at Wachtell, Lipton, Rosen & Katz, he has extensive experience in corporate transformations, governance, mergers, and sustainability. Sabastian is affiliated with various organizations, including the Aspen Institute, and holds a law degree from Harvard Law School, as well as degrees in finance, economics, and decision and information sciences from the University of Maryland.


The main way that Tesla is expected to promote the offering is through media coverage and word of mouth.<ref name=":4" />
Sarah Franklin, President & Chair of the Advisory Board at Salesforce, has over 15 years of experience within the company. She previously served as Chief Marketing Officer and has been dedicated to empowering individuals in technology careers. She played a significant role in launching Trailhead, Salesforce's online learning platform. Sarah has received recognition on Forbes' Most Influential CMO list and holds degrees in chemical engineering and biochemistry from Virginia Polytechnic Institute and State University.


======Ride-hailing service======
Srini Tallapragada, President and Chief Engineering Officer of Salesforce, oversees a global engineering team responsible for developing and securing the Salesforce Customer 360 and Hyperforce. With over a decade at Salesforce, Srini has driven product and platform innovations. Prior to joining Salesforce in 2012, he held roles at Oracle and SAP. Srini holds a PGDM from XLRI and a BTech in Computer Science from NIT, India. He also serves as an independent director on the board of Avalara.
<u>Target audience</u>


The target audience is people who are relatively more innovative in their thinking.
Suzanne DiBianca, EVP & Chief Impact Officer at Salesforce, has been with the company for over 20 years. She co-founded the Salesforce Foundation and leads Salesforce’s stakeholder capitalism strategy, focusing on ESG efforts, climate action, and the Salesforce Ventures Impact Fund. Suzanne pioneered the 1-1-1 model of corporate philanthropy and is involved in various UN and World Economic Forum councils, as well as serving on multiple advisory boards. She is a graduate of the University of Colorado at Boulder.


<u>What is the offering?</u>
== '''Ownership structure''' ==
The provided data offers a glimpse into the ownership structure of Salesforce, a prominent company in the Customer Relationship Management (CRM) market. The ownership structure of Salesforce reflects a substantial presence of institutional investors and mutual funds, which is typical for a large, publicly traded company in the technology sector. Salesforce's appeal to institutional investors may be attributed to its position as a leading CRM software provider and its role in the broader technology industry.


Tesla has said that it intends to establish an autonomous Tesla ride-hailing network, enabling people to hail a ride.<ref name=":4" />
Notably, Vanguard and Blackrock, both giants in the investment management industry, hold significant stakes in Salesforce. This suggests a high level of confidence in the company's growth potential and long-term prospects.


<u>What’s unique about the offering?</u>
The presence of various mutual funds, particularly those tracking major stock indices like the S&P 500, indicates that Salesforce is a component of many diversified investment portfolios. This inclusion underscores Salesforce's prominence within the technology sector and its influence on broader market performance.


What's unique about the ride-hailing service is that it's expected to be faster and cheaper than the alternatives.
Overall, Salesforce's ownership structure reflects a diverse mix of institutional and retail investors, showcasing the company's appeal to a broad range of stakeholders. It's worth noting that while institutions dominate the ownership landscape, individual investors and mutual funds also play pivotal roles in shaping the company's shareholder base.


<u>What is the price of the offering?</u>
{|
 
|'''Top Institutional Holders'''
Information about the expected price of the service has yet to be disclosed.
 
<u>From which place(s) is the offering able to be purchased?</u>
 
Stockhub expects the offering to be purchased via a Tesla ride-hailing app, which Stockhub expects will be downloable from both the App Store and Google Play,
 
<u>From which place(s) is the offering promoted?</u>
 
The main way that Tesla is expected to promote the offering is through media coverage and word of mouth.<ref name=":4" />
====Energy generation and storage ====
 
The energy generation and storage segment includes the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives.<ref name=":4" />
 
=====Current offerings =====
 
======Energy generation and storage sales======
 
'''Powerwall'''
 
<u>Target audience</u>
 
The target audience is people who are relatively more innovative in their thinking.
 
<u>What is the offering?</u>
 
Powerwall is a energy storage system (i.e. a type of battery).<ref name=":4" />
 
[[File:Powerwall2.jpg|600px]]
 
<u>What’s unique about the offering?</u>
 
Powerwall is the lowest priced energy storage system that Tesla provides.
 
{| class="wikitable"
|+Competition comparison
|-
! !!Powerwall!!'''Megapack'''
|-
|Is the source of energy solar?||style="background: green; color: white;" |Yes||style="background: green; color: white;" |Yes
|-
|Is it designed for houses (i.e. smaller electricity demand)?||style="background: green; color: white;" |Yes||style="background: red; color: white;" |No
|-
|Is it designed for commercial buildings (i.e. greater electricity demand)?||style="background: red; color: white;" |No|| style="background: green; color: white;" |Yes
|}
 
<u>What is the price of the offering?</u>
 
A single Powerwall sells for $10,500.
 
<u>From which place(s) is the offering able to be purchased?</u>
 
In the US, the main places that the offering is able to be purchased is through the company's website (at [https://www.tesla.com www.tesla.com]), stores and galleries, as well as through its network of channel partners, such as public utility companies.<ref name=":4" /> Outside of the US, the product is able to be purchased via its international sales organisation and a network of channel partners.<ref name=":4" />
 
<u>From which place(s) is the offering promoted?</u>
 
The main way that Tesla is expected to promote the offering is through media coverage and word of mouth.<ref name=":4" />
 
'''Megapack'''
 
<u>Target audience</u>
 
The target audience is people who are relatively more innovative in their thinking.
 
<u>What is the offering?</u>
 
Megapack is an energy storage system.<ref name=":4" />
 
[[File:Megapack-CleanerGrid-D.jpg|600px]]
 
<u>What’s unique about the offering?</u>
 
Megapack is the largest energy storage system that Tesla provides.
 
<u>What is the price of the offering?</u>
 
A single Megapack sells for $1,000,000.
 
<u>From which place(s) is the offering able to be purchased?</u>
 
In the US, the main places that the offering is able to be purchased is through the company's website (at [https://www.tesla.com www.tesla.com]), stores and galleries, as well as through its network of channel partners.<ref name=":4" /> Outside of the US, the product is able to be purchased via its international sales organisation and a network of channel partners.<ref name=":4" />
 
<u>From which place(s) is the offering promoted?</u>
 
Based on the promotional methods used with its current offerings, the main way that Tesla is expected to promote the Megapack offering is through media coverage and word of mouth.<ref name=":4" />
 
'''Solar Roof'''
 
<u>Target audience</u>
 
The target audience of the offering is people who are relatively more innovative in their thinking.
 
<u>What is the offering?</u>
 
Solar Roof is a roof tile.<ref name=":4" />
 
[[File:5c603e0d86d2c7c005d1df44a jVVOsV8.jpg|600px]]
 
<u>What’s unique about the offering?</u>
 
What makes the tile unique is that it's the most aesthetically-beautiful, energy generation roof tile. In other words, it's the most beautiful roof tile that generates electricity.
 
{| class="wikitable"
|+Competition comparison
|-
! !!Solar Roof!!Traditional roof tile
!Other solar-energy generation roof tile
|-
|Does it generate electricity?|| style="background: green; color: white;" |Yes|| style="background: red; color: white;" |No
| style="background: green; color: white;" |Yes
|-
|Is it aesthetically beautiful?|| style="background: green; color: white;" |Yes|| style="background: green; color: white;" |Yes
| style="background: red; color: white;" |No
|}
 
<u>What is the price of the offering?</u>
 
There is no information on the price of the offering within the public domain.
 
<u>From which place(s) is the offering able to be purchased?</u>
 
In the US, the main places that the offering is able to be purchased is through the company's website (at [https://www.tesla.com www.tesla.com]), stores and galleries, as well as through its network of channel partners.<ref name=":4" /> Outside of the US, the product is able to be purchased via its international sales organisation and a network of channel partners.<ref name=":4" />
 
<u>From which place(s) is the offering promoted?</u>
 
The main way that Tesla is expected to promote the offering is through media coverage and word of mouth.
 
====== Other current offerings ======
'''Service and Warranty'''
 
Other offerings include servicing and repairs, and extended limited warranties in certain regions.<ref name=":4" />
 
'''Financial services'''
 
Tesla offers certain loan and power purchase agreement (PPA) options to residential or commercial customers who pair energy storage systems with solar energy systems.<ref name=":4" /> The company offers certain financing options to its solar customers, which enable the customer to purchase and own a solar energy system, Solar Roof or integrated solar and Powerwall system.<ref name=":4" /> Its solar PPAs, offered to commercial customers, charges a fee per kilowatt-hour based on the amount of electricity produced by its solar energy systems.<ref name=":4" />
 
Note: a PPA is a contract between two parties, one which generates electricity (the seller) and one which is looking to purchase electricity (the buyer). The agreement defines all of the commercial terms for the sale of electricity between the two parties, including when the project will begin commercial operation, schedule for delivery of electricity, penalties for under delivery, payment terms, and termination.
 
=== What's the strategy of the company? ===
 
According to a blog post in which the CEO of Tesla detailed the company's updated master plan, the strategy of Tesla consists of four main milestones:
 
# Create stunning solar roofs with seamlessly integrated battery storage;
# Expand the electric vehicle product line to address all major segments;
# Develop a self-driving capability that is 10X safer than manual via massive fleet learning; and
# Enable your car to make money for you when you aren't using it.
 
== Market==
 
===Total Addressable Market ===
 
Here, the total addressable market (TAM) is defined as the global automotive 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 $3.0 trillion.
 
===Serviceable Available Market===
 
Here, the serviceable available market (SAM) is defined as the global 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 $1.0 trillion.
 
===Serviceable Obtainable Market===
 
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.
 
== Competition==
 
===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.
 
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. 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.
 
===Board of Directors===
 
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).
 
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.
 
'''Larry Ellison'''
 
[[File:1029px-Larry Ellison picture.png|200px]]
 
Lawrence J. Ellison has been a member of the Board since December 2018. Mr. Ellison is the founder of Oracle Corporation, a software and technology company, has served as its Chief Technical Officer since September 2014 and previously served as its Chief Executive Officer from June 1977 to September 2014. Mr. Ellison has also served on Oracle’s board of directors since June 1977, including as its Chairman since September 2014 and previously from May 1995 to January 2004.
 
'''Hiro Mizuno'''
 
[[File:9H 8h7tW40QNtdH1Y ZsVOj-lnmRMD4R2MAuxy1ajM.jpg|200px]]
 
Hiromichi Mizuno has been a member of Board since April 2020. Since January 2021, Mr. Mizuno has served as the United Nations Special Envoy on Innovative Finance and Sustainable Investments. From January 2015 to March 2020, Mr. Mizuno served as Executive Managing Director and Chief Investment Officer of Japan’s Government Pension Investment Fund, the largest pension fund in the world. Previously, Mr. Mizuno was a partner at Coller Capital, a private equity firm, from 2003. In addition to being a career-long finance and investment professional, Mr. Mizuno has served as a board member of numerous business, government and other organizations, currently including the Mission Committee of Danone S.A., a global food products company, and the World Economic Forum’s Global Future Council. Mr. Mizuno is also involved in academia, having been named to leadership or advisory roles at Harvard University, Oxford University, University of Cambridge, Northwestern University and Osaka University. Mr. Mizuno holds a B.A. in Law from Osaka City University and an M.B.A. from the Kellogg Graduate School of Management at Northwestern University.
 
'''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.
 
'''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==
 
=== Historic ===
 
=== Forward ===
 
====What are the financial forecasts?====
In keeping in-line with industry standards, the number of years of financial forecasts shown below is five years.
 
=====Income statement=====
 
{| class="wikitable"
|+Income statement<ref>Source: Stockhub Limited</ref><ref group="Note" name="Note04" />
|-
!Year/Item !!Year 1 !!Year 2!!Year 3!!Year 4!!Year 5
|-
|Year end date||31/12/2022||31/12/2023||31/12/2024||31/12/2025 ||31/12/2026
|-
|Revenues ($million)|| $78,935||$112,257||$154,816||$207,049||$268,527
|-
|Gross profits ($million)||$23,680||$33,677||$46,445||$62,115||$80,558
|-
|Operating profits ($million)||$11,840||$16,839||$23,222||$31,057||$40,279
|-
|Net profits ($million)||$9,354||$13,302||$18,346||$24,535|| $31,820
|}
 
===== Balance sheet=====
 
=====Cash flow statement=====
 
====What are the assumptions used to estimate the financial forecasts?====
 
{| class="wikitable"
|+Key inputs
!Description
!Value
!Commentary
|-
| colspan="3" | <div style="text-align: center;">'''Revenue'''</div>
|-
|What's the estimated current size of the total addressable market?
|$2,975,000,000
|Here, the total addressable market (TAM) is defined as the global automotive market, and based on a number of assumptions<ref group="Note" name="Note01" />, it is estimated that the size of the market as of today (30th May 2022), in terms of revenue, is $2.975 billion.
|-
|What's the estimated terminal annual growth rate of the total addressable market?
|3%
|Research shows that the growth rate of the global automotive market (i.e. the total addressable market) is similar to the growth rate of global gross domestic product<ref>http://www.robertpicard.net/files/econgrowthandadvertising.pdf</ref>, which has averaged (medium) around 3% per year in the last 20 years (2001 to 2022)<ref>https://www.macrotrends.net/countries/WLD/world/gdp-growth-rate</ref>.
|-
|What's the estimated company peak market share?
|10%
|Stockhub estimates that the peak market share of Tesla is around 10%, and, therefore, suggests using the share amount here. As of 31st December 2021, Tesla's share of the market is around 1.8%.
|-
|Which distribution function do you want to use to estimate company revenue?
|Gaussian
|Research suggests that the revenue pattern of companies is similar to the pattern produced by the Gaussian distribution function  (i.e. the revenue distribution is bell shaped)<ref>http://escml.umd.edu/Papers/ObsCPMT.pdf</ref>, so Stockhub suggests using that function here.
|-
|What is the estimated company lifespan?
|60 years
| Tesla employs around 110,000, making the company a large organisation (more than 10,000 employees), and research shows that the average lifespan of a large corporation is around 50 years.<ref>Stadler, Enduring Success, 3–5.</ref>
|-
|What's the estimated standard deviation of company revenue?
| 6 years
|Another way of asking this question is this way: within how many years either side of the mean does 68% of revenue occur? Based on Tesla's current revenue amount (i.e. $54 billion) and Tesla's estimated lifespan (i.e. 60 years) and Tesla's estimated current stage of its lifecycle (i.e. growth stage), the Stockhub company suggests using 6 years (i.e. 68% of all sales happen within 6 years either side of the mean year), so that's what's used here.
|-
| colspan="3" |'''<div style="text-align: center;">Growth stages</div>'''
|-
|How many main stages of growth is the company expected to go through?
| 4 stages
|Research suggests that a company typically goes through four distinct stages of cash flow growth.<ref>Levie J, Lichtenstein BB (2010) A terminal assessment of stages theory: Introducing a dynamic approach to entrepreneurship. Entrepreneurship: Theory & Practice 34(2): 317–350. <nowiki>https://doi.org/10.1111/j.1540-6520.2010.00377.x</nowiki></ref> Research also shows that incorporating those stages into the discounted cash flow model improves the quality of the model and, ultimately, the quality of the value estimation.<ref>Stef Hinfelaar et al.:, 2019.</ref>
 
 
 
In addition, research shows that a key way to determine the stage which a company is in is by examining the cash flow patterns of the company.<ref>Dickinson, 2010.</ref> A summary of the economic links to cash flow patterns can be found in the appendix of this report. Stockhub estimates that with Tesla's operating cash flows positive (+), investing cash flows negative (-) and its financing cash flows positive (+), the company is in the second stage of growth (i.e. the 'growth' stage), and, therefore, it has a total of three main stages of growth.
 
On 7th February 2022, Tesla said it currently expects: to continue to generate net positive operating cash flow as it has done in the last four fiscal years; its capital expenditures to be between $5.00 to $7.00 billion in 2022 and each of the next two fiscal years; and its ability to be self-funding to continue as long as macroeconomic factors support current trends in its sales. Accordingly, based on forward looking statements, it appears that the company is in stage two of the business lifecycle  (i.e. the 'growth' stage), and, therefore, it has a total of three main stages of growth remaining.
|-
|What proportion of the company lifecycle is represented by growth stage 1?
|30%
|Research suggests 30%.<ref name=":6">http://escml.umd.edu/Papers/ObsCPMT.pdf</ref>
|-
|What proportion of the company lifecycle is represented by growth stage 2?
|10%
|Research suggests 10%.<ref name=":6" />
|-
| What proportion of the company lifecycle is represented by growth stage 3?
|20%
| Research suggests 20%.<ref name=":6" />
|-
|What proportion of the company lifecycle is represented by growth stage 4?
|40%
|Research suggests 40%.<ref name=":6" />
|-
| colspan="3" |'''<div style="text-align: center;">Growth stage 2</div>'''
|-
|Cost of goods sold as a proportion of revenue (%)
|70%
|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7">http://people.stern.nyu.edu/adamodar/pdfiles/papers/younggrowth.pdf</ref>, and the margin for its peers is 70%.
|-
|Operating expenses as a proportion of revenue (%)
|15%
|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />, and the margin for its peers is 15%.
|-
|Tax rate (%)
|21%
|Research suggests that it's best to use the marginal tax rate of the country in which the company mainly operates. Tesla mainly operates in the United States, and the marginal tax rate there is 21%.
|-
|Depreciation and amortisation as a proportion of revenue (%)
|5%
|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />, and the margin for its peers is 5%.
|-
|Fixed capital as a proportion of revenue (%)
|15%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />, and the amount for its peers is 15%.
|-
|Working capital as a proportion of revenue (%)
|15%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />, and the amount for its peers is 15%.
|-
|Net borrowing ($000)
|Zero
|Stockhub suggests that for simplicity, the net borrowing figure is zero.
|-
|Interest amount ($000)
|Zero
|Stockhub suggests that for simplicity, the interest amount figure is zero.
|-
| colspan="3" |'''<div style="text-align: center;">Growth stage 3</div>'''
|-
|Cost of goods sold as a proportion of revenue (%)
|55%
|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />, and the margin for its peers is 55%.
|-
|Operating expenses as a proportion of revenue (%)
|15%
|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />, and the margin for its peers is 15%.
|-
|Tax rate (%)
|21%
|Research suggests that it's best to use the marginal tax rate of the country in which the company mainly operates. Tesla mainly operates in the United States, and the marginal tax rate there is 21%.
|-
|Depreciation and amortisation as a proportion of revenue (%)
|5%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />, and the amount for its peers is 5%.
|-
|Fixed capital as a proportion of revenue (%)
|3%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />, and the amount for its peers is 3%.
|-
|Working capital as a proportion of revenue (%)
|10%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />, and the amount for its peers is 10%.
|-
|Net borrowing ($000)
|Zero
|Stockhub suggests that for simplicity, the net borrowing figure is zero.
|-
|Interest amount ($000)
|Zero
|Stockhub suggests that for simplicity, the interest amount figure is zero.
|-
| colspan="3" |'''<div style="text-align: center;">Growth stage 4</div>'''
|-
|Cost of goods sold as a proportion of revenue (%)
|55%
|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />, and the margin for its peers is 55%.
|-
|Operating expenses as a proportion of revenue (%)
|15%
|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />, and the margin for its peers is 15%.
|-
|Tax rate (%)
|21%
|Research suggests that it's best to use the marginal tax rate of the country in which the company mainly operates. Tesla mainly operates in the United States, and the marginal tax rate there is 21%.
|-
|Depreciation and amortisation as a proportion of revenue (%)
|5%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />, and the amount for its peers is 5%.
|-
|Fixed capital as a proportion of revenue (%)
| 3%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />, and the amount for its peers is 3%.
|-
|Working capital as a proportion of revenue (%)
| 10%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />, and the amount for its peers is 10%.
|-
|Net borrowing ($000)
|Zero
|Stockhub suggests that for simplicity, the net borrowing figure is zero.
|-
|Interest amount ($000)
|Zero
|Stockhub suggests that for simplicity, the interest amount figure is zero.
|}
 
==Risks==
 
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===
 
*Tesla may be impacted by macroeconomic conditions resulting from the global COVID-19 pandemic.
*Tesla may experience delays in launching and ramping the production of its products and features, or Tesla may be unable to control its manufacturing costs.
*Tesla may be unable to grow its global product sales, delivery and installation capabilities and its servicing and vehicle charging networks, or Tesla may be unable to accurately project and effectively manage its growth.
*Tesla's future growth and success is dependent upon consumers’ demand for electric vehicles and specifically its vehicles in an automotive industry that is generally competitive, cyclical and volatile.
*Tesla's suppliers may fail to deliver components according to schedules, prices, quality and volumes that are acceptable to us, or Tesla may be unable to manage these components effectively.
*Tesla may be unable to meet its projected construction timelines, costs and production ramps at new factories, or Tesla may experience difficulties in generating and maintaining demand for products manufactured there.
* Tesla will need to maintain and significantly grow its access to battery cells, including through the development and manufacture of its own cells, and control its related costs.
*Tesla faces strong competition for its products and services from a growing list of established and new competitors.
 
===Risks related to the company's operations===
 
*Tesla may experience issues with lithium-ion cells or other components manufactured at Gigafactory Nevada and Gigafactory Shanghai, which may harm the production and profitability of its vehicle and energy storage products.
*Tesla faces risks associated with maintaining and expanding its international operations, including unfavourable and uncertain regulatory, political, economic, tax and labour conditions.
*Tesla's business may suffer if its products or features contain defects, fail to perform as expected or take longer than expected to become fully functional.
*Tesla may be required to defend or insure against product liability claims.
*Tesla will need to maintain public credibility and confidence in its long-term business prospects in order to succeed.
*Tesla may be unable to effectively grow, or manage the compliance, residual value, financing and credit risks related to, its various financing programs.
*Tesla must manage ongoing obligations under its agreement with the Research Foundation for the State University of New York relating to its Gigafactory New York.
*If Tesla is unable to attract, hire and retain key employees and qualified personnel, its ability to compete may be harmed.
*Tesla is highly dependent on the services of Elon Musk, its Chief Executive Officer.
*Tesla's information technology systems or data, or those of its service providers or customers or users could be subject to cyber-attacks or other security incidents, which could result in data breaches, intellectual property theft, claims, litigation, regulatory investigations, significant liability, reputational damage and other adverse consequences.
*Any unauthorized control or manipulation of Tesla's products’ systems could result in loss of confidence in it and its products.
*Tesla's business may be adversely affected by any disruptions caused by union activities.
*Tesla may choose to or be compelled to undertake product recalls or take other similar actions.
*Tesla's current and future warranty reserves may be insufficient to cover future warranty claims.
*Tesla's insurance coverage strategy may not be adequate to protect it from all business risks.
*Tesla's debt agreements contain covenant restrictions that may limit its ability to operate its business.
*Additional funds may not be available to Tesla when it needs or want them.
*Tesla may be negatively impacted by any early obsolescence of its manufacturing equipment.
*Tesla holds and may acquire digital assets that may be subject to volatile market prices, impairment and unique risks of loss.
*There is no guarantee that Tesla will have sufficient cash flow from its business to pay its indebtedness or that it will not incur additional indebtedness.
*Tesla is exposed to fluctuations in currency exchange rates.
*Tesla may need to defend itself against intellectual property infringement claims, which may be time-consuming and expensive.
*Increased scrutiny and changing expectations from stakeholders with respect to the company's ESG practices may result in additional costs or risks.
* Tesla's operations could be adversely affected by events outside of its control, such as natural disasters, wars or health epidemics.
 
===Risks related to government laws and regulations=== 
 
* Demand for Tesla's products and services may be impacted by the status of government and economic incentives supporting the development and adoption of such products.
*Tesla is subject to evolving laws and regulations that could impose substantial costs, legal prohibitions or unfavourable changes upon its operations or products.
*Any failure by Tesla to comply with a variety of United States and international privacy and consumer protection laws may harm the company.
*Tesla could be subject to liability, penalties and other restrictive sanctions and adverse consequences arising out of certain governmental investigations and proceedings.
*Tesla may face regulatory challenges to or limitations on its ability to sell vehicles directly.
 
===Risks related to the ownership of the company's common stock=== 
 
*The trading price of Tesla's common stock is likely to continue to be volatile.
* Tesla's financial results may vary significantly from period to period due to fluctuations in its operating costs and other factors.
*Tesla may fail to meet its publicly announced guidance or other expectations about its business, which could cause its stock price to decline.
*Transactions relating to Tesla's convertible senior notes may dilute the ownership interest of existing stockholders, or may otherwise depress the price of its common stock.
*If Elon Musk were forced to sell shares of Tesla's common stock that he has pledged to secure certain personal loan obligations, such sales could cause its stock price to decline.
* Anti-takeover provisions contained in Tesla's governing documents, applicable laws and its convertible senior notes could impair a takeover attempt.
 
==Valuation==
 
===What's the expected return of an investment in the company?===
 
Stockhub estimates that the expected return of an investment in the company over the next five years is 72%. In other words, an £1,000 investment in the company is expected to return £1,720 in five years time. The assumptions used to estimate the return figure can be found in the table below.
 
Assuming that a suitable return level over five years is 10% per year and Tesla achieves its expected return level (of 72%), then an investment in the company is considered to be a 'suitable' one.
 
===What are the assumptions used to estimate the return?===
 
{| class="wikitable"
|+ Key inputs
!Description
!Value
!Commentary
|-
| Which valuation model do you want to use?
|Discounted cash flow
| There are two main approaches to estimate 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 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-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>, so that's the approach that Stockhub suggests to use here; nevertheless, for completeness purposes, separately, the valuation of the company is also estimated using the 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, Stockhub suggests using the free cash flow valuation method (rather than the dividend discount model).
|-
|Which financial forecasts to use?
| Stockhub
|The only available long-term forecasts (i.e. >15 years) are the ones that are supplied by the Stockhub company (the forecasts can be found in the financials section of this report), so Stockhub suggests using those.
|-
| colspan="3" |'''<div style="text-align: center;">Growth stage 2</div>'''
|-
|Discount rate (%)
| 8%
|There are two key risk parameters for a firm that need to be estimated: its cost of equity and its cost of debt. A key way to estimate the cost of equity by looking at the beta (or betas) of the company in question, the cost of debt from a measure of default risk (an actual or synthetic rating) and apply the market value weights for debt and equity to come up with the cost of capital.
|-
|Probability of success (%)
| 100%
| Research suggests that a suitable rate for a company in this growth stage (i.e. stage 2) is 100%.
 
|-
| colspan="3" |'''<div style="text-align: center;">Growth stage 3</div>'''
|-
|Discount rate (%)
| 8%
|There are two key risk parameters for a firm that need to be estimated: its cost of equity and its cost of debt. A key way to estimate the cost of equity by looking at the beta (or betas) of the company in question, the cost of debt from a measure of default risk (an actual or synthetic rating) and apply the market value weights for debt and equity to come up with the cost of capital.
|-
|Probability of success (%)
|100%
|Research suggests that a suitable rate for a company in this growth stage (i.e. stage 3) is 100%.
 
|-
| colspan="3" |'''<div style="text-align: center;">Growth stage 4</div>'''
|-
|Discount rate (%)
| 8%
|There are two key risk parameters for a firm that need to be estimated: its cost of equity and its cost of debt. A key way to estimate the cost of equity by looking at the beta (or betas) of the company in question, the cost of debt from a measure of default risk (an actual or synthetic rating) and apply the market value weights for debt and equity to come up with the cost of capital.
|-
|Probability of success (%)
| 100%
|Research suggests that a suitable rate for a company in this growth stage (i.e. stage 4) is 100%.
 
|-
| colspan="3" |'''<div style="text-align: center;">Other key inputs</div>'''
|-
|What's the current value of the company?
|$688 billion
|As at 30th May 2022, the Stockhub company estimates the current value of its company at $688 billion.
|-
|Which time period do you want to use to estimate the expected return?
| Between now and five years time
|Stockhub suggests that to account for general market cyclicity, it's best to estimate the expected return of the company between now and five years time.
|}
 
===Sensitive analysis===
 
The main inputs that result in the greatest change in the expected return of the Tesla investment are, in order of importance (from highest to lowest): 
 
#The size of the total addressable market (the default time-weighted average rate is $3.0 trillion);
#Tesla peak market share (the default share is 10%); and
#The discount rate (the default time-weighted average rate is 8%).
 
The impact of a 50% change in those main inputs to the expected return of the Tesla investment is shown in the table below.
 
{| class="wikitable sortable"
|+Tesla investment expected return sensitive analysis
!Main input
!50% worse
!Unchanged
!50% better
|-
|The size of the total addressable market
|(14%)
|72%
|158%
|-
|Tesla peak market share
|(14%)
| 72%
| 158%
|-
|The discount rate
 
|30%
|72%
| 136%
 
|}
 
==Appendix==
 
=== Financial statements ===
{| class="wikitable"
|+Balance sheet
!Year end date
!31/12/2021
!31/12/2020
!31/12/2019
!31/12/2018
|-
|'''Current Assets'''
|
|
|
|
|-
|Cash and Cash Equivalents ($million)
|$17,576
|$19,384
|$6,268
|$3,879
|-
|Short-Term Investments ($million)
|$131
| --
| --
| --
|-
|Net Receivables ($million)
|$1,913
|$1,886
|$1,324
|$949
|-
|Inventory ($million)
|$5,757
|$4,101
|$3,552
|$3,113
|-
|Other Current Assets ($million)
|$1,723
|$1,346
|$959
|$366
|-
|Total Current Assets ($million)
|$27,100
|$26,717
|$12,103
|$8,307
|-
|'''Long-Term Assets'''
|
|
|
|
|-
|Long-Term Investments ($million)
| --
| --
| --
|$422
|-
|Fixed Assets ($million)
|$25,411
|$17,396
|$14,061
|$13,420
|-
|Goodwill ($million)
|$200
|$207
|$198
|$68
|-
|Intangible Assets ($million)
|$257
|$313
|$339
|$282
|-
|Other Assets ($million)
|$9,163
|$7,515
|$7,608
|$7,241
|-
|Deferred Asset Charges ($million)
| --
| --
| --
| --
|-
|Total Assets ($million)
|$62,131
|$52,148
|$34,309
|$29,740
|-
|'''Current Liabilities'''
|
|
|
|
|-
|Accounts Payable ($million)
|$15,744
|$9,906
|$6,993
|$5,499
|-
|Short-Term Debt / Current Portion of Long-Term Debt ($million)
|$1,589
|$2,132
|$1,785
|$2,568
|-
|Other Current Liabilities ($million)
|$2,372
|$2,210
|$1,889
|$1,926
|-
|Total Current Liabilities ($million)
|$19,705
|$14,248
|$10,667
|$9,993
|-
|Long-Term Debt ($million)
|$5,245
|$9,556
|$11,634
|$9,404
|-
|Other Liabilities ($million)
|$3,546
|$3,330
|$2,691
|$3,039
|-
|Deferred Liability Charges ($million)
|$2,052
|$1,284
|$1,207
|$991
|-
|Misc. Stocks ($million)
|$826
|$850
|$849
|$834
|-
|Minority Interest ($million)
|$568
|$655
|$643
|$556
|-
|Total Liabilities ($million)
|$31,374
|$29,268
|$27,048
|$24,261
|-
|'''Stock Holders Equity'''  
|
|
|
|
|
|
|
|-
|-
|Common Stocks ($million)
|'''Holder'''
|$1
|'''Shares (millions)'''
|$1
|'''% of Total'''
|$1
|'''Value (million USD)'''
| --
|-
|-
|Capital Surplus ($million)
|Vanguard Group Inc
|$331
|83.2
| style="color: red;" |-$5,399
|8.5%
| style="color: red;" |-$6,083
|17,041.6
| style="color: red;" |-$5,318
|-
|-
|Retained Earnings
|Blackrock Inc.
| --
|70.6
| --
|7.3%
| --
|14,467.3
| --
|-
|-
|Treasury Stock ($million)
|State Street Corporation
|$29,803
|45.7
|$27,260
|4.7%
|$12,736
|9,351.2
|$10,249
|-
|-
|Other Equity ($million)
|FMR, LLC
|$54
|37.9
|$363
|3.9%
| style="color: red;" |-$36
|7,757.9
| style="color: red;" |-$8
|-
|-
|Total Equity ($million)
|Morgan Stanley
|$30,189
|19.6
|$22,225
|2.0%
|$6,618
|4,006.3
|$4,923
|-
|-
|Total Liabilities & Equity ($million)
|Capital World Investors
|$62,131
|19.2
|$52,148
|2.0%
|$34,309
|3,941.4
|$29,740
|}
 
{| class="wikitable"
|+Cash flow
!Year end date
!31/12/2021
!31/12/2020
!31/12/2019
!31/12/2018
|-
|-
|Net Income ($million)
|Geode Capital Management, LLC
|$5,519
|17.8
|$721
|1.8%
| style="color: red;" |-$862
|3,643.2
| style="color: red;" |-$976
|-
|-
|'''Cash Flows-Operating Activities'''
|Price (T.Rowe) Associates Inc
|
|15.2
|
|1.6%
|
|3,107.3
|
|-
|-
|Depreciation ($million)
|Fisher Asset Management, LLC
|$2,911
|13.9
|$2,322
|1.4%
|$2,154
|2,845.5
|$2,060
|-
|-
|Net Income Adjustments ($million)
|JP Morgan Chase & Company
|$2,424
|13.6
| $2,575
|1.4%
| $1,375
|2,776.3
| $1,043
|-
|-
|'''Changes in Operating Activities'''
|
|
|
|
Line 1,294: Line 179:
|
|
|-
|-
|Accounts Receivable ($million)
| style="color: red;" |-$130
| style="color: red;" |-$652
| style="color: red;" |-$367
| style="color: red;" |-$497
|-
|Changes in Inventories ($million)
| style="color: red;" |-$1,709
| style="color: red;" |-$422
| style="color: red;" |-$429
| style="color: red;" |-$1,023
|-
|Other Operating Activities ($million)
| style="color: red;" |-$3,676
| style="color: red;" |-$1,667
| style="color: red;" |-$937
| style="color: red;" |-$504
|-
|Liabilities ($million)
|$6,033
|$2,925
|$1,384
|$2,082
|-
|Net Cash Flow-Operating ($million)
| $11,497
| $5,943
| $2,405
|$2,098
|-
|'''Cash Flows-Investing Activities'''
|
|
|
|
Line 1,330: Line 184:
|
|
|-
|-
|Capital Expenditures ($million)
| style="color: red;" |-$6,514
| style="color: red;" |-$3,232
| style="color: red;" |-$1,432
| style="color: red;" |-$2,319
|-
|Investments ($million)
| style="color: red;" |-$132
| --
| --
| --
|-
|Other Investing Activities ($million)
| style="color: red;" |-$1,222
|$100
| style="color: red;" |-$4
| style="color: red;" |-$18
|-
|Net Cash Flows-Investing ($million)
| style="color: red;" |-$7,868
| style="color: red;" |-$3,132
| style="color: red;" |-$1,436
| style="color: red;" |-$2,337
|-
|'''Cash Flows-Financing Activities'''
|
|
|
|
Line 1,360: Line 189:
|
|
|-
|-
|Sale and Purchase of Stock ($million)
|'''Top Mutual Fund Holders'''
|$699
|$12,675
|$1,555
|$727
|-
|Net Borrowings ($million)
| style="color: red;" |-$5,732
| style="color: red;" |-$2,488
|$798
|$89
|-
|Other Financing Activities ($million)
| --
| --
| --
| --
|-
|Net Cash Flows-Financing ($million)
| style="color: red;" |-$5,203
|$9,973
|$1,529
|$574
|-
|Effect of Exchange Rate ($million)
| style="color: red;" |-$183
|$334
|$8
| style="color: red;" |-$23
|-
|Net Cash Flow ($million)
| style="color: red;" |-$1,757
|$13,118
|$2,506
|$312
|}
 
{| class="wikitable"
|+Income statement
!Year end date
!31/12/2021
!31/12/2020
!31/12/2019
!31/12/2018
|-
|Total Revenue
|$53,823
|$31,536
|$24,578
|$21,461
|-
|Cost of Revenue
|$40,217
|$24,906
|$20,509
|$17,419
|-
|'''Gross Profit'''
|'''$13,606'''
|'''$6,630'''
|'''$4,069'''
|'''$4,042'''
|-
|'''Operating Expenses'''
|
|
|
|
|
|
|
|-
|-
|Research and Development
|'''Holder'''
|$2,593
|'''Shares (millions)'''
|$1,491
|'''% of Total'''
|$1,343
|'''Value (million USD)'''
|$1,460
|-
|Sales, General and Admin.
|$4,517
|$3,145
|$2,646
|$2,835
|-
|Non-Recurring Items
| style="color: red;" |-$27
| --
|$149
|$135
|-
|Other Operating Items
| --
| --
| --
| --
|-
|'''Operating Income'''
|'''$6,523'''
|'''$1,994'''
|style="color: red;" |'''-$69'''
|style="color: red;" |'''-$388'''
|-
|-
|Add'l income/expense items
|Vanguard Total Stock Market Index Fund
| $191
|28.9
| style="color: red;" |-$92
|2.9%
| $89
|5,915.5
|$46
|-
|-
|Earnings Before Interest and Tax
|Vanguard 500 Index Fund
|$6,714
|23.1
|$1,902
|2.3%
|$20
|4,735.1
| style="color: red;" |-$342
|-
|-
|Interest Expense
|Fidelity 500 Index Fund
|$371
|11.0
|$748
|1.1%
|$685
|2,245.5
|$663
|-
|-
|Earnings Before Tax
|SPDR S&P 500 ETF Trust
|$6,343
|10.8
|$1,154
|1.1%
| style="color: red;" |-$665
|2,217.6
| style="color: red;" |-$1,005
|-
|-
|Income Tax
|iShares Core S&P 500 ETF
|$699
|8.9
|$292
|0.9%
|$110
|1,828.1
|$58
|-
|-
|Minority Interest
|Vanguard Growth Index Fund
| --
|8.0
| --
|0.8%
| --
|1,642.4
| --
|-
|-
|Equity Earnings/Loss Unconsolidated Subsidiary
|Vanguard Institutional Index  Fund-Institutional Index Fund
| style="color: red;" |-$125
|7.0
| style="color: red;" |-$141
|0.7%
| style="color: red;" |-$87
|1,435.4
|$87
|-
|-
|Net Income-Cont. Operations
|Growth Fund Of America Inc
|$5,519
|6.4
|$721
|0.6%
| style="color: red;" |-$862
|1,318.2
| style="color: red;" |-$976
|-
|-
|'''Net Income'''
|SPDR Dow Jones Industrial Average ETF
|'''$5,519'''
|5.6
|'''$721'''
|0.6%
| style="color: red;" |'''-$862'''
|1,146.3
| style="color: red;" |'''-$976'''
|-
|-
|'''Net Income Applicable to Common Shareholders'''
|Fundamental Investors Inc
|'''$5,519'''
|5.3
|'''$721'''
|0.5%
| style="color: red;" |'''-$862'''
|1,080.5
| style="color: red;" |'''-$976'''
|}
|}
{| class="wikitable"
|+Financial ratios
!Year end date
!31/12/2021
!31/12/2020
!31/12/2019
!31/12/2018
|-
| colspan="5" |'''Liquidity Ratios'''
|-
|Current Ratio
|138%
| 188%
| 113%
| 83%
|-
|Quick Ratio
|108%
|159%
|80%
|52%
|-
|Cash Ratio
|90%
|136%
|59%
|39%
|-
| colspan="5" |'''Profitability Ratios'''
|-
|Gross Margin
|25%
|21%
|17%
|19%
|-
|Operating Margin
|12%
|6%
|0%
|0%
|-
|Pre-Tax Margin
| 12%
| 4%
| 0%
|0%
|-
|Profit Margin
|10%
|2%
|0%
|0%
|-
|Pre-Tax ROE
|21%
|5%
|0%
|0%
|-
|After Tax ROE
|18%
|3%
|0%
|0%
|}
===Relative valuation approach===
====What's the expected return of an investment in Tesla?====
Accordingly, Stockhub estimates that the expected return of an investment in Tesla Inc over the next five years is 4.4x. In other words, an £1,000 investment in the company is expected to return £4,400 in five years time.  The assumptions used to estimate the return figure can be found in the table below.
Assuming that a suitable return level over five years is 10% per year and Tesla achieves its expected return level (of 4.4x), then an investment in the company is considered to be a 'suitable' one.
====What are the assumptions used to estimate the return figure?====
{| class="wikitable"
|+Key inputs
!Description
!Value
!Commentary
|-
| Which type of multiple do you want to use?
| Growth-adjusted EV/sales
| For the numerator, Stockhub believes that to account for the different financial leverage levels of its peers, it's best to use enterprise value (EV), rather than price. For the denominator, Stockhub believes that because it expects Tesla to reinvest almost all of its revenue back into the business  over the five year forecast period and therefore its earnings are expected to be abnormally low over the period, it's best to use sales. Accordingly, Stockhub suggests valuing its company using the EV/sales ratio. However, Stockhub feels that to take into account the different business lifecycle stages of its peers, the most suitable valuation multiple to use is the growth-adjusted EV/sales multiple<ref group="Note" name="Note15" />, rather than the EV/sales multiple.
|-
|In regards to the growth-adjusted EV/sales multiple, for the sales figure, which year to you want to use?
|Year 5
|Stockhub suggests that with sales forecast to grow exponential over the five year forecast period, it's best to use forward-looking data, rather than historic data.
In regards to the growth-adjusted EV/sales multiple, for the sales figure, Stockhub suggests that in order to account for the forecasted exponential growth of the business, it's best to use one at the end of the forecast period (i.e. Year 5).
|-
|In regards to the growth-adjusted EV/sales multiple, for the sales growth figure, which year(s) do you want to use?
|Year 6 to 8, from now
|Stockhub suggests that for the sales growth figure, it's best to use Year 6 to 8.
|-
|In regards to the growth-adjusted EV/sales multiple, what multiple figure do you want to use?
|89x
|In Stockhub's view, Tesla closest peer is [[Apple]]. [[Apple]] trades on a multiple of 89x.
|-
|Which financial forecasts to use?
|Stockhub
|The only available forecasts are the ones that are supplied by the Stockhub company (the forecasts can be found in the financials section of this report), so Stockhub suggests using those.
|-
| What's the current value of the Stockhub company?
|$688 billion
|As at 21st May 2022, the current value of its company at $688 billion.
|-
|Which time period do you want to use to estimate the expected return?
|Between now and five years time
|Stockhub suggests that to account for general market cyclicity, it's best to estimate the expected return of the company between now and five years time.
|}
===Tesla peer(s)===
{| class="wikitable sortable"
|+Valuation table
|-
!Investments!! Industry !!Enterprise value/sales!!1-year forward revenue growth rates (%)!!Growth-adjusted enterprise value/sales ratio
|-
| [[Apple]]||Internet content & communication||7.27x<ref name=":0">Morningstar, Inc.</ref>||8.20%<ref name=":0" />|| style="background: blue; color: white;" |89x
|}
===Economic links to cash flow patterns ===
{| class="wikitable"
|+Economic links to cash flow patterns
|-
!Cash flow type!!Introduction!!Growth!!Shake out!!Mature!!Decline
|-
|Operating|| style="background: red; color: white;" |-|| style="background: green; color: white;" |+
| style="background: orange; color: white;" | +/-|| style="background: green; color: white;" |+|| style="background: red; color: white;" |-
|-
|Investing|| style="background: red; color: white;" |-|| style="background: red; color: white;" |-|| style="background: orange; color: white;" |+/-|| style="background: red; color: white;" |-
| style="background: green; color: white;" | +
|-
|Financing|| style="background: green; color: white;" |+|| style="background: green; color: white;" |+|| style="background: orange; color: white;" |+/-|| style="background: red; color: white;" |-|| style="background: orange; color: white;" |+/-
|}
=== Timeline of production and sales ===
In 2020, Tesla ranked as the world's best-selling plug-in and battery electric passenger car manufacturer, with a market share of 16% of the plug-in segment and 23% of the battery electric segment 2020 sales.<ref>{{cite web|last=Kane|first=Mark |date=February 6, 2020|title=World's Top 5 EV Automotive Groups Ranked By Sales: Q1-Q4 2020|url=https://insideevs.com/news/486325/world-top-ev-automotive-groups-2020/|access-date=February 7, 2021|website=InsideEVs|language=en}}</ref> Tesla reported 2021 vehicle deliveries of 936,222 units, up 87% from 2020.<ref name=Tesla4Q2021final>{{cite web| title=Tesla Fourth Quarter & Full Year 2021 Update | url=https://tesla-cdn.thron.com/static/WIIG2L_TSLA_Q4_2021_Update_O7MYNE.pdf?xseo=&response-content-disposition=inline%3Bfilename%3D%22tsla-q4-and-fy-2021-update.pdf%22 |publisher=Tesla |location=[[Palo Alto]] | date=January 26, 2022 | access-date=January 27, 2022}} See table "Operational Summary" pp. 7 and 8 for revised and final production and sales numbers.</ref>  At the end of 2021, Tesla's global sales since 2012 totalled 2.3&nbsp;million units.<ref name=Tesla2021>{{cite web|url=https://insideevs.com/news/563407/tesla-2021q4-final-delivery-numbers/ |title=Tesla Q4 2021 Final EV Delivery Numbers And Outlook |first=Mark |last=Kane |work=InsideEVs |date=January 27, 2022 |access-date=January 27, 2022 |quote=Cumulatively, Tesla sold over 2.3 million electric cars.}}</ref>
{| class="wikitable"<!-- display data as diagram too -->
|- style="text-align:center;"
! Quarter !! Cumulative<br />production !! Total<br />production !! Model S<br />sales !! Model X<br />sales !! Model 3<br />sales
! Model Y<br />sales!! Total<br />sales !! In transit || Source
|- style="text-align:center;"
| Q3 2012 || N/A || 350 || 250+ || style="background:#f1f5fa;" | || style="background:#f1f5fa;" | || style="background:#f1f5fa;" | || 250+ || ||<ref>{{cite web |url=https://tesla-cdn.thron.com/static/ZRLLWN_Q2_2012_Shareholder_Letter_Final_FN3CKV.pdf |title=Tesla Motors, Inc. – Third Quarter 2012 Shareholder Letter  |author=Tesla Motors |publisher=Tesla Motors |date=November 5, 2012 |access-date=November 21, 2020}} ''Over 250 Model S deliveries in Q3, exceeding target upper bound ''</ref>
|- style="text-align:center;"
| Q4 2012 || N/A || 2,750+ || 2,400 || style="background:#f1f5fa;" | || style="background:#f1f5fa;" | || style="background:#f1f5fa;" | || 2,400 || ||<ref>{{cite web |url=https://tesla-cdn.thron.com/static/P8DUMV_Q4_12_SHL_022013_final_QUVRKE.pdf|title=Tesla Motors, Inc. – Fourth Quarter & Full Year 2012 Shareholder Letter |author=Tesla Motors |publisher=Tesla Motors |date=February 20, 2013 |access-date=November 21, 2020}} ''Achieved 20,000 annualized production rate''</ref>
|- style="text-align:center;"
| Q1 2013 || N/A || 5,000+ || 4,900 || style="background:#f1f5fa;" | || style="background:#f1f5fa;" | || style="background:#f1f5fa;" | || 4,900 || ||<ref>{{cite web |url=https://ir.tesla.com/static-files/26b677b6-a22c-4222-a3c6-4bb516bfdac8 |title=Tesla Motors – First Quarter 2013 Shareholder Letter |author=Tesla Motors |publisher=Tesla Motors |date=May 8, 2013 |access-date=September 23, 2019}} ''Record sales of $562 million, up 83% from last quarter''</ref>
|- style="text-align:center;"
| Q2 2013 || N/A || N/A || 5,150 || style="background:#f1f5fa;" | || style="background:#f1f5fa;" | || style="background:#f1f5fa;" | || 5,150 || ||<ref>{{cite web |url=https://ir.tesla.com/static-files/8a80aee7-ca20-4ff2-9d5b-e25aae776331 |title=Tesla Motors – Second Quarter 2013 Shareholder Letter |author=Tesla Motors |publisher=Tesla Motors |date=August 7, 2013 |access-date=September 23, 2019}} ''Record Q2 Model S deliveries of 7,579 vehicles.''</ref>
|- style="text-align:center;"
| Q3 2013 || N/A || N/A || 5,500+ || style="background:#f1f5fa;" | || style="background:#f1f5fa;" | || style="background:#f1f5fa;" | || 5,500+ || ||<ref>{{cite web |url=https://ir.tesla.com/static-files/6496fc94-630f-41c7-96c6-94d4cafe4e86 |title=Tesla Motors – Third Quarter 2013 Shareholder Letter |author=Tesla Motors |publisher=Tesla Motors |location=Palo Alto, California |date=November 5, 2013 |access-date=September 23, 2019}} ''Record 5,500 Model S deliveries''</ref>
|- style="text-align:center;"
| Q4 2013 || ~34,851 || 6,587 || 6,892 || style="background:#f1f5fa;" | || style="background:#f1f5fa;" | || style="background:#f1f5fa;" | || 6,892 || ||<ref>{{cite web |url=https://ir.tesla.com/static-files/dcbd65a8-c7aa-4538-8a81-49b1b1971a14 |title=Tesla Motors - Fourth Quarter & Full Year 2013 Shareholder Letter |date=February 19, 2014 |publisher=Tesla Motors |access-date=September 23, 2019}} ''Record 6,892 Model S vehicles sold and delivered in Q4''</ref>
|- style="text-align:center;"
| Q1 2014 || ~41,438 || 7,535 || 6,457 || style="background:#f1f5fa;" | || style="background:#f1f5fa;" | || style="background:#f1f5fa;" | || 6,457 || ||<ref>{{cite web |url=https://ir.tesla.com/static-files/a6276682-8422-4150-bb10-c9d701220537 |title=Tesla Motors – First Quarter 2014 Shareholder Letter |author=Tesla Motors |publisher=Tesla Motors |date=May 7, 2014 |access-date=September 20, 2019}} ''Record Q1 Model S production of 7,535 vehicles.''</ref>
|- style="text-align:center;"
| Q2 2014 || ~48,973 || 8,763 || 7,579 || style="background:#f1f5fa;" | || style="background:#f1f5fa;" | || style="background:#f1f5fa;" | || 7,579 || ||<ref>{{cite web |url=https://ir.tesla.com/static-files/b818e6ca-a8ba-4189-8b5d-a64b90307917 |title=Tesla Motors – Second Quarter 2014 Shareholder Letter |author=Tesla Motors |publisher=Tesla Motors |date=July 31, 2014 |access-date=September 20, 2019}} ''Record Q2 Model S deliveries of 7,579 vehicles.''</ref>
|- style="text-align:center;"
| Q3 2014 || ~57,736 || ~7,075 || 7,785 || style="background:#f1f5fa;" | || style="background:#f1f5fa;" | || style="background:#f1f5fa;" | || 7,785 || ||<ref>{{cite web |url=https://ir.tesla.com/static-files/53e161cf-e04f-495c-9fa5-60dcd79231fd |title=Tesla Motors – Third Quarter 2014 Shareholder Letter |author=Tesla Motors |publisher=Tesla Motors |location=Palo Alto, California |date=November 5, 2014 |access-date=September 20, 2019}} ''Highest ever quarterly deliveries at 7,785 vehicles, despite factory shutdown in July''</ref>
|- style="text-align:center;"
| Q4 2014 || 64,811 || 11,627 || 9,834 || style="background:#f1f5fa;" | || style="background:#f1f5fa;" | || style="background:#f1f5fa;" | || 9,834 || ||<ref>{{cite web |url=https://ir.tesla.com/static-files/be63b49e-c7ff-4c02-a5ea-2545f60e5b79 |title=Tesla Motors - Fourth Quarter & Full Year 2014 Shareholder Letter |date=February 11, 2015 |publisher=Tesla Motors |access-date=September 20, 2019}}</ref>
|- style="text-align:center;"
| Q1 2015 || 76,438 || 11,160 || 10,045 || style="background:#f1f5fa;" | || style="background:#f1f5fa;" | || style="background:#f1f5fa;" | || 10,045 || ||<ref>{{cite web |url=http://files.shareholder.com/downloads/ABEA-4CW8X0/202903254x0x827135/90332B15-F6AE-4F44-B634-624BE548291E/Tesla_Motors_Q1_15_Shareholder_Letter.pdf |title=Tesla Motors – First Quarter 2015 Shareholder Letter |author=Tesla Motors |publisher=Tesla Motors |date=May 6, 2015 |access-date=August 4, 2016}} ''A total of 10,045 Model S cars were delivered globaly during the first quarter of 2015.''</ref>
|- style="text-align:center;"
| Q2 2015 || 89,245 || 12,807 || 11,532 || style="background:#f1f5fa;" | || style="background:#f1f5fa;" | || style="background:#f1f5fa;" | || 11,532 || ||<ref>{{cite web |url=http://files.shareholder.com/downloads/ABEA-4CW8X0/380261427x0x843991/DCDCCFDA-0709-405B-931A-B2F48A224CE8/Tesla_Q2_2015_Shareholder_Letter.pdf |title=Tesla Motors – Second Quarter 2015 Shareholder Letter |author=Tesla Motors |publisher=Tesla Motors |date=August 5, 2015 |access-date=August 4, 2016}} ''A total of 11,532 Model S cars were delivered globally during the second quarter of 2015.''</ref>
|- style="text-align:center;"
| Q3 2015 || 102,336 || 13,091 || 11,597 || 6 || style="background:#f1f5fa;" | || style="background:#f1f5fa;" | || 11,603 || ||<ref>{{cite press release |url=http://files.shareholder.com/downloads/ABEA-4CW8X0/380261427x0x858516/F50A9FAF-BA73-4263-8E16-DE1FAC0BABDF/Q3_15_Shareholder_Letter.pdf |title=Tesla Motors – Third Quarter 2015 Shareholder Letter |author=Tesla Motors |publisher=Tesla Motors |location=Palo Alto, California |date=August 4, 2016 |access-date=November 3, 2015}} ''Tesla global electric car sales totaled 11,603 units during the third quarter of 2015, including six Tesla Model X units.''</ref>
|- style="text-align:center;"
| Q4 2015 || 116,373 || 14,037 || 17,272 || 206 || style="background:#f1f5fa;" | || style="background:#f1f5fa;" | || 17,478 || ||<ref>{{cite web |url=http://files.shareholder.com/downloads/ABEA-4CW8X0/456867397x0x874449/945B9CF5-86DA-4C35-B03C-4892824F058D/Q4_15_Tesla_Update_Letter.pdf |title=Tesla Fourth Quarter & Full Year 2015 Update |date=February 10, 2016 |publisher=Tesla Motors |access-date=February 10, 2016}}</ref>
|- style="text-align:center;"
| Q1 2016 || 131,883 || 15,510 || 12,420 || 2,400 || style="background:#f1f5fa;" | || style="background:#f1f5fa;" | || 14,820 || 2,615 ||<ref name="Tesla1Q2016">{{cite web |url=http://files.shareholder.com/downloads/ABEA-4CW8X0/2007076272x0x889927/27EE2FDA-9C77-4D6A-8CEE-E8DFE45227BA/Q1_2016_Tesla_Shareholder_Letter.pdf |title=Tesla shareholders letter:Tesla First Quarter 2016 Update |author=Tesla Motors |publisher=Tesla Motors |date=May 4, 2016 |access-date=August 4, 2016 |archive-url= https://web.archive.org/web/20160601053039/http://files.shareholder.com/downloads/ABEA-4CW8X0/2007076272x0x889927/27EE2FDA-9C77-4D6A-8CEE-E8DFE45227BA/Q1_2016_Tesla_Shareholder_Letter.pdf |archive-date=June 1, 2016 |url-status=dead}}</ref>
|- style="text-align:center;"
| Q2 2016 || 150,228 || 18,345 || 9,764 || 4,638|| style="background:#f1f5fa;" | || style="background:#f1f5fa;" | || 14,402 || 5,150 ||<ref>{{cite press release |url=http://files.shareholder.com/downloads/ABEA-4CW8X0/2563692152x0x903036/562D56A1-5426-4D79-8B99-3408D1B60226/Q2_16_Update_Letter_-_final.pdf |title=Tesla Second Quarter 2016 Update |publisher=Tesla Motors |location=[[Palo Alto]] |date=August 3, 2016 |access-date=August 3, 2016}} ''During the second quarter of 2016 Tesla Motors delivered 14,402 new vehicles consisting of 9,764 Model S and 4,638 Model X. Production during 2Q 2016 totaled 18,345 vehicles.''</ref><ref>{{cite press release |url=http://ir.tesla.com/releasedetail.cfm?ReleaseID=978031 |title=Tesla Q2 2016 Vehicle Production and Deliveries |publisher=Tesla Motors |location=[[Palo Alto]] |date=July 3, 2016 |access-date=August 3, 2016}}</ref>
|- style="text-align:center;"
| Q3 2016 || 175,413 || 25,185 || 16,047 || 8,774 || style="background:#f1f5fa;" | || style="background:#f1f5fa;" | || 24,821 || 5,065 ||<ref>{{cite web |url=http://files.shareholder.com/downloads/ABEA-4CW8X0/3100729770x0x913801/F9E5C36A-AFDD-4FF2-A375-ED9B0F912622/Q3_16_Update_Letter_-_final.pdf |title=Tesla Third Quarter 2016 Update |work=Tesla Motors |location=[[Palo Alto]] |date=October 26, 2016 |access-date=October 27, 2016}}</ref>
|- style="text-align:center;"
| Q4 2016 || 200,295 || 24,882 || 12,700 || 9,500 || style="background:#f1f5fa;" | || style="background:#f1f5fa;" | || 22,254 || 6,450 ||<ref>{{cite web |url=http://ir.tesla.com/releasedetail.cfm?ReleaseID=1006161 |title=Tesla Q4 2016 Production and Deliveries |work=Tesla Motors |location=[[Palo Alto]] |date=January 3, 2017 |access-date=January 3, 2017}}</ref><ref name="Tesla4Q2016final">{{cite web |url=http://files.shareholder.com/downloads/ABEA-4CW8X0/3853068125x0x929284/22C29259-6C19-41AC-9CAB-899D148F323D/TSLA_Update_Letter_2016_4Q.pdf |title=Tesla Fourth Quarter & Full Year 2016 Update |work=Tesla Inc. |location=[[Palo Alto]] |date=February 22, 2017 |access-date=February 22, 2017 |archive-url= https://web.archive.org/web/20170223212145/http://files.shareholder.com/downloads/ABEA-4CW8X0/3853068125x0x929284/22C29259-6C19-41AC-9CAB-899D148F323D/TSLA_Update_Letter_2016_4Q.pdf |archive-date=February 23, 2017 |url-status=dead |df=mdy-all}} ''Production totaled 24,882 vehicles in 4Q 2016 and vehicle deliveries totaled 22,252 units. No breakdown by model was provided.''</ref>
|- style="text-align:center;"
| Q1 2017 || 225,713 || 25,418 || ~13,450 || ~11,550 || style="background:#f1f5fa;" | || style="background:#f1f5fa;" | || 25,051 || ~4,650 ||<ref name="Tesla1Q2017">{{cite press release |title=Tesla Q1 2017 Vehicle Production and Deliveries |date=April 2, 2017 |publisher=Market Wired |location=[[Palo Alto]] |url=http://ir.tesla.com/releasedetail.cfm?ReleaseID=1019685 |quote=Tesla (NASDAQ: TSLA) delivered just over 25,000 vehicles in Q1, of which approx 13,450 were Model S and approx 11,550 were Model X. |access-date=April 4, 2017 |work=Tesla Motors}}</ref>
|- style="text-align:center;"
| Q2 2017 || 251,421 || 25,708 || ~12,000 || ~10,000 || style="background:#f1f5fa;" | || style="background:#f1f5fa;" | || 22,026 || ~3,500 ||<ref name="Tesla2Q2017">{{cite web |url=http://ir.tesla.com/releasedetail.cfm?ReleaseID=1032479 |title=UPDATE – Tesla Q2 2017 Vehicle Production and Deliveries |publisher=Tesla |date=July 7, 2017 |access-date=July 10, 2017}}</ref><ref>{{cite web |url=http://files.shareholder.com/downloads/ABEA-4CW8X0/4934165653x0x952053/F302D22F-FC9B-41A3-9534-60D0032673CC/TSLA_Update_Letter_2017-2Q.pdf |title=Tesla Second Quarter 2017 Update (Letter to shareholders) |publisher=Tesla |date=August 2, 2017 |access-date=August 5, 2017 |quote=We delivered 22,026 Model S and Model X vehicles in Q2, for a total of 47,077 in the first half of the year. |archive-url= https://web.archive.org/web/20170805101731/http://files.shareholder.com/downloads/ABEA-4CW8X0/4934165653x0x952053/F302D22F-FC9B-41A3-9534-60D0032673CC/TSLA_Update_Letter_2017-2Q.pdf |archive-date=August 5, 2017 |url-status=dead}}</ref>
|- style="text-align:center;"
| Q3 2017 || 276,757 || 25,336 || 14,065 || 11,865 || 222 || style="background:#f1f5fa;" | || 26,137 || 4,820 ||<ref name="Tesla3Q2017">{{cite web |url=http://ir.tesla.com/releasedetail.cfm?ReleaseID=1042449 |title=Tesla Q3 2017 Vehicle Deliveries and Production |publisher=Tesla |date=October 2, 2017}}</ref><ref name="3Q2017Tesla250K">{{cite web |url=http://files.shareholder.com/downloads/ABEA-4CW8X0/5846881552x0x962149/00F6EB90-2695-44E6-8C03-7EC4E06DF840/TSLA |title=_Update_Letter_2017-3Q.pdf Tesla Third Quarter 2017 Update |publisher=Tesla |date=November 1, 2017 |access-date=January 10, 2018 |archive-url= https://web.archive.org/web/20180111165022/http://files.shareholder.com/downloads/ABEA-4CW8X0/5846881552x0x962149/00F6EB90-2695-44E6-8C03-7EC4E06DF840/TSLA |archive-date=January 11, 2018 |url-status=dead}}</ref>
|- style="text-align:center;"
| Q4 2017 || 301,322 || 24,565 || ~15,200 || ~13,120|| 1,542 || style="background:#f1f5fa;" | || 29,967 || 3,380 ||<ref name="Tesla4Q2017">{{cite web |url=http://ir.tesla.com/releasedetail.cfm?ReleaseID=1053245 |title=Tesla Q4 2017 Vehicle Production and Deliveries |publisher=Tesla |date=January 3, 2018}}</ref><ref name="Tesla4Q2017_AggProduction">{{cite web |url=https://electrek.co/2018/02/14/tesla-delivered-300000th-vehicle/ |title=Tesla confirms having produced its 300,000th electric car |publisher=Tesla |date=February 14, 2018}}</ref><ref name="Tesla4Q2017final">{{cite press release |url=http://files.shareholder.com/downloads/ABEA-4CW8X0/4934165653x0x970775/34923C55-6853-4223-ADDA-CB3CDC1B919F/TSLA_Update_Letter_2017-4Q.pdf |title=Tesla Fourth Quarter & Full Year 2017 Update |publisher=Tesla |work=Tesla |location=[[Palo Alto]] |date=February 7, 2017 |access-date=February 7, 2018 |quote=In Q4, we delivered 28,425 Model S and Model X vehicles and 1,542 Model 3 vehicles, totaling 29,967 deliveries. |archive-url= https://web.archive.org/web/20180208182745/http://files.shareholder.com/downloads/ABEA-4CW8X0/4934165653x0x970775/34923C55-6853-4223-ADDA-CB3CDC1B919F/TSLA_Update_Letter_2017-4Q.pdf |archive-date=February 8, 2018 |url-status=dead}}</ref>
|- style="text-align:center;"
| Q1 2018 || 335,816 || 34,494 || 11,730 || 10,070|| 8,182 || style="background:#f1f5fa;" | || 29,997 || 6,100 ||<ref name="Tesla1Q2018">{{cite web |url=http://files.shareholder.com/downloads/ABEA-4CW8X0/3853068125x0x979026/44C49236-1FC2-4FD9-80B1-495ED74E4194/TSLA_Update_Letter_2018-1Q.pdf |title=Tesla First Quarter 2018 Update |publisher=Tesla |access-date=May 27, 2018 |archive-url= https://web.archive.org/web/20180527202413/http://files.shareholder.com/downloads/ABEA-4CW8X0/3853068125x0x979026/44C49236-1FC2-4FD9-80B1-495ED74E4194/TSLA_Update_Letter_2018-1Q.pdf |archive-date=May 27, 2018 |url-status=dead}}</ref>
|- style="text-align:center;"
| Q2 2018 || 389,155 || 53,339 || 10,930 || 11,370|| 18,440 || style="background:#f1f5fa;" | || 40,740 || 15,058 || <ref name="Tesla2Q2018">{{cite web |url=http://ir.tesla.com/news-releases/news-release-details/tesla-q2-2018-vehicle-production-and-deliveries |title=Tesla Second Quarter 2018 Delivery |publisher=Tesla |access-date=July 22, 2018}}</ref><ref name="Tesla2Q2018final">{{cite report|url=http://ir.tesla.com/static-files/7235e525-db16-470c-8dce-9ecac0ad7712 |page=2|title=Automotive Products|work=Tesla Second Quarter 2018 Update|date=August 1, 2018|access-date=August 2, 2018|first=RR|last1=Donnelley|quote=We produced 53,339 vehicles in Q2 and delivered 22,319 Model S and Model X vehicles and 18,449 Model 3 vehicles, totaling 40,768 deliveries.}}</ref>
|- style="text-align:center;"
| Q3 2018 || 469,297 || 80,142 || 14,470 || 13,190|| 56,065 || style="background:#f1f5fa;" | || 83,725 || 11,824 || <ref name="Tesla3Q2018">{{cite web |url=http://ir.tesla.com/news-releases/news-release-details/tesla-q3-2018-vehicle-production-and-deliveries |title=Tesla Third Quarter 2018 Delivery |publisher=Tesla |access-date=October 2, 2018}}</ref><ref name="Tesla3Q2018final">{{cite web| title=Tesla Third Quarter 2018 Update | url=http://ir.tesla.com/static-files/725970e6-eda5-47ab-96e1-422d4045f799 |publisher=Tesla |location=[[Palo Alto]] | date=October 24, 2018 |access-date=October 24, 2018}}
</ref>
|- style="text-align:center;"
| Q4 2018 || 555,852 || 86,555 || 13,500 || 14,050 || 63,359 || style="background:#f1f5fa;" | || 90,700 || 2,907 || <ref name="Tesla4Q2018">{{cite web |url=http://ir.tesla.com/news-releases/news-release-details/tesla-q4-2018-vehicle-production-deliveries-also-announcing-2000 |title=Tesla Fourth Quarter 2018 Delivery |publisher=Tesla |access-date=January 2, 2019}}</ref><ref name="Tesla4Q2018final">{{cite web| title=Tesla Fourth Quarter & Full Year 2018 Update | url=http://ir.tesla.com/static-files/0b913415-467d-4c0d-be4c-9225c2cb0ae0 |publisher=Tesla |location=[[Palo Alto]] | date=January 30, 2019| access-date=January 30, 2019|quote=In Q4, we delivered 63,359 Model 3 vehicles to customers in North America. }}</ref>
|- style="text-align:center;"
| Q1 2019 || 632,952 || 77,100 || colspan="2" | 12,100 || 50,900 || style="background:#f1f5fa;" | || 63,000 || 10,600 || <ref name="Tesla1Q2019">{{cite press release|publisher=Tesla |url=http://ir.tesla.com/news-releases/news-release-details/tesla-q1-2019-vehicle-production-deliveries |title=Tesla Q1 2019 Vehicle Production & Deliveries |location=Palo Alto |date=April 4, 2019 |access-date=April 4, 2019}}</ref>
|- style="text-align:center;"
| Q2 2019 || 720,000 || 87,048 || colspan="2" | 17,650 || 77,550 || style="background:#f1f5fa;" | || 95,200 || 7,400 || <ref name="Tesla2Q2019">{{cite press release|publisher=Tesla |url=https://ir.tesla.com/news-releases/news-release-details/tesla-q2-2019-vehicle-production-deliveries |title=Tesla Q2 2019 Vehicle Production & Deliveries |location=Palo Alto |date=July 2, 2019 |access-date=July 2, 2019}}</ref><ref name="wired20190703">{{cite magazine |url=https://www.wired.com/story/tesla-model-3-can-survive-crash-avoid-one-too/ |title=Tesla Model 3 Can Survive a Crash—and Avoid One, Too |first=Alex |last=Davies |magazine=Wired |location=US |date=July 3, 2019 |access-date=July 9, 2019}}</ref>
|- style="text-align:center;"
| Q3 2019 || 816,155 || 96,155 || colspan="2" | 17,483 || 79,703 || style="background:#f1f5fa;" | || 97,186 || || <ref name="Tesla3Q2019">{{cite press release|publisher=Tesla |url=https://ir.tesla.com/static-files/47313d21-3cac-4f69-9497-d161bce15da4 |title=Q3 2019 Update|location=Palo Alto |date=Oct 23, 2019 |access-date=Jan 7, 2020}}</ref>
|- style="text-align:center;"
| Q4 2019 || 921,046 || 104,891 || colspan="2" | 19,475 || 92,620 || style="background:#f1f5fa;" | || 112,095 || || <ref name="Tesla4Q2020" />
|- style="text-align:center;"
|Q1 2020 || 1,023,718 || 102,672 || colspan="2" | 12,230 || colspan="2" | 76,266 || 88,496 || || |<ref name="Tesla4Q2020" />
|- style="text-align:center;"
|Q2 2020 || 1,105,990 || 82,272 || colspan="2" | 10,614 || colspan="2" | 80,277 || 90,891 || || <ref name="Tesla4Q2020" />
|- style="text-align:center;"
|Q3 2020 || 1,251,026 || 145,036 || colspan="2" | 15,275 || colspan="2" | 124,318 || 139,593 || || <ref name="Tesla4Q2020" />
|- style="text-align:center;"
|Q4 2020 || 1,430,783 || 179,757 || colspan="2" | 18,966 || colspan="2" | 161,701 || 180,667 || || <ref name="Tesla4Q2020">{{cite web| title=Tesla Fourth Quarter & Full Year 2020 Update | url=https://tesla-cdn.thron.com/static/1LRLZK_2020_Q4_Quarterly_Update_Deck_-_Searchable_LVA2GL.pdf |publisher=Tesla |location=[[Palo Alto]] | date=2021-01-27 | access-date=2021-02-07}}</ref>
|- style="text-align:center;"
|Q1 2021 || 1,611,121 || 180,338 || colspan="2" | 2,030  || colspan="2" | 182,847 || 184,877 || || <ref name="Tesla1Q2021">{{cite web| title=Tesla Q1 2021 Quarterly Update | url=https://tesla-cdn.thron.com/delivery/public/document/tesla/a1ab64e7-7c18-421c-a898-9b60397b017b/S1dbei4/WEB/TSLA-Q1-2021-Update |publisher=Tesla |location=[[Palo Alto]] | date=2021-04-26 | access-date=2021-04-26}}</ref>
|- style="text-align:center;"
|Q2 2021 || 1,817,542 || 206,421 || colspan="2" | 1,895 || colspan="2" | 199,409 || 201,304 || || <ref name="Tesla2Q2021">{{cite web| title=Tesla Q2 2021 Quarterly Update | url=https://tesla-cdn.thron.com/delivery/public/document/tesla/915a0dab-11c4-4d81-9526-52995afb67ee/S1dbei4/WEB/q2_2021 |publisher=Tesla |location=[[Palo Alto]] | date=2021-07-26 | access-date=2021-07-26}}</ref>
|- style="text-align:center;"
|Q3 2021 || 2,055,365 || 237,823 || colspan="2" | 9,289 || colspan="2" | 232,102 || 241,391 || || <ref name="Tesla3Q2021">{{cite web| title=Tesla Q3 2021 Quarterly Update | url=https://tesla-cdn.thron.com/delivery/public/document/tesla/c7f38479-c161-4ddb-8e09-31211aa8078d/S1dbei4/WEB/TSLA-Q3-2021-Quarterly-Update |publisher=Tesla |location= [[Austin]] | date=2021-10-20 | access-date=2021-10-21}}</ref>
|- style="text-align:center;"
|Q4 2021 || 2,361,205 || 305,840 || colspan="2" | 11,766 || colspan="2" | 296,884 || 308,650 || || <ref name="Tesla4Q2021">{{cite web| title=Tesla Fourth Quarter & Full Year 2021 Update | url=https://tesla-cdn.thron.com/delivery/public/document/tesla/99573663-409d-442d-b1f6-50bfc75cb41c/S1dbei4/WEB/tsla-q4-and-fy-2021-update |publisher=Tesla |location= [[Austin]] | date=2022-01-27 | access-date=2022-01-27}}</ref>
|- style="text-align:center;"
|Q1 2022 || 2,666,612 || 305,407 || colspan="2" | 14,724 || colspan="2" | 295,324 || 310,048 || || <ref name="Tesla1Q2022">{{cite web| title=Tesla Vehicle Production & Deliveries for First Quarter 2022 | url=https://ir.tesla.com/press-release/tesla-vehicle-production-deliveries-and-date-financial-results-webcast-first-quarter |publisher=Tesla |location= [[Austin]] | date=2022-04-02 | access-date=2022-04-03}}</ref>
|}
== Notes==
'''Bid-ask spread'''
The bid–ask spread is the difference between the prices quoted for an immediate sale (ask) and an immediate purchase (bid) for the investment.
For example, if the price to buy an investment is $663.90 and the price to sell the investment is $663.89, the bid-ask spread of the investment is $0.01 (i.e.$663.90 minus $663.89). Converting the figure into percentage, the bid-ask spread is 0.0015063% (i.e. $0.01 divided by $663.90).
'''Investment risk'''
Research shows that an investment has two main types of risks: 1) non-systematic and 2) systematic. Systematic risk is the risk related to the overall market, and non-systematic risk is the risk that's specific to an individual investment. Evidence shows that taking on non-systematic risk is inefficient, and it's, therefore, best to eliminate it; and in most cases, elimination is fairy easy to do [by holding a diversified portfolio of investments (i.e. around 15 investments)]. Accordingly, when assessing the riskiness of an investment, it’s best to look at the systematic risk only (i.e. ignore the non-systematic risk). A key measure of systematic risk is beta, and a main way to determine the riskiness of an investment is to compare the beta of the investment with the beta of the market, which is 1. For example, Tesla's beta is 2.12, and is, accordingly, 112% above the market beta (of 1); assuming that a 'high' level of riskiness is 50% or more above the market beta, then the riskiness of investing in Tesla is considered to be 'high' (112%>50%).
'''Current Ratio'''
The current ratio is a liquidity ratio that measures whether a firm has enough resources to meet its short-term obligations. It compares a firm's current assets to its current liabilities, and is expressed as follows:-
Current ratio = Current assets divided by current liabilities
Acceptable current ratios vary from industry to industry and from business lifecycle stage.
'''Quick Ratio'''
The quick ratio, also known as the acid-test ratio, is a type of liquidity ratio, which measures the ability of a company to use its near cash or quick assets to extinguish or retire its current liabilities immediately. It is defined as the ratio between quickly available or liquid assets and current liabilities. Quick assets are current assets that can presumably be quickly converted to cash at close to their book values.
A normal liquid ratio is considered to be 1:1. A company with a quick ratio of less than 1 cannot currently fully pay back its current liabilities.
The quick ratio is similar to the current ratio, but provides a more conservative assessment of the liquidity position of firms as it excludes inventory, which it does not consider as sufficiently liquid.
'''Cash Ratio'''
The cash ratio is a liquidity measure that shows a company's ability to cover its short-term obligations using only cash and cash equivalents.
The cash ratio is derived by adding a company's total reserves of cash and near-cash securities and dividing that sum by its total current liabilities.
The cash ratio is more conservative than other liquidity ratios because it only considers a company's most liquid resources.
A calculation greater than 1 means a company has more cash on hand than current debts, while a calculation less than 1 means a company has more short-term debt than cash.
{| class="wikitable"
|+ Risk rating
|-
! Rating !! Beta
|-
| style="background: green; color: white;" |Low || style="background: green; color: white;" |Equal to or below 0.5
|-
| style="background: orange; color: white;" |Medium || style="background: orange; color: white;" |Between 0.5 and 1.5
|-
| style="background: red; color: white;" |High || style="background: red; color: white;" |Equal to or above 1.5
|}
==Actions==
To invest in Tesla, click [https://www.hl.co.uk/shares/shares-search-results/t/tesla-inc-usd0.001/buy-and-sell-shares here].
To contact Tesla, click [mailto:ir@tesla.com here].
==References==
<references />

Revision as of 07:02, 25 August 2023

Salesforce's mission is to be the world's #1 CRM (Customer Relationship Management) company, focusing on empowering businesses to connect with their customers, partners, and employees in innovative ways. They prioritize customer success, innovation, and social responsibility, guided by core values such as trust, customer obsession, innovation, and equality.

Salesforce operates in cloud-based CRM solutions, providing a wide range of products and services, including sales, marketing, service, analytics, and more. Their key revenue drivers are Salesforce Cloud, Service Cloud, Sales Cloud, Marketing Cloud, and Salesforce Platform.

In the CRM market, Salesforce faces competition from companies like Microsoft, Oracle, and SAP. They also invest in sustainability efforts, pledging to reach net-zero greenhouse gas emissions and investing in renewable energy. Salesforce has a strong leadership team and continues to expand its global footprint through acquisitions and partnerships to maintain its position as a CRM market leader and drive innovation.

The Idea

Salesforce.com was founded by Marc Benioff in 1999. The idea for the company came about when Benioff, a former Oracle executive, recognized the potential of cloud computing and the need for a more customer-centric approach to business software.

In 1999, Benioff left his job at Oracle and started to explore opportunities in cloud-based customer relationship management (CRM) software. He believed that businesses could benefit from a CRM system that was accessible over the internet and didn't require the complex and costly infrastructure of traditional CRM solutions.

Benioff and his co-founders made a list of potential software solutions, and cloud-based CRM was at the top. They saw the opportunity to revolutionize how businesses manage their customer relationships by making CRM more accessible and user-friendly.

After establishing the company, Benioff and his team developed the software for Salesforce.com. The name "Salesforce" was chosen to reflect the focus on sales and customer relationships.

Salesforce.com was officially launched in February 2000 as a cloud-based CRM platform. In the beginning, it primarily offered CRM solutions, but Benioff had a broader vision for Salesforce to become a leading cloud-based business software provider.

Today, Salesforce.com offers a wide range of cloud-based solutions beyond CRM, including sales automation, marketing automation, service management, and more. The company's innovative approach to cloud computing has also expanded into artificial intelligence, analytics, and a platform for developing custom applications, making it a major player in the cloud technology industry.

Mission Statement

Salesforce.com ‘s mission statement is:

We harness technologies that can revolutionize companies, careers, and, hopefully, our world. Salesforce is built on a set of five core values: Trust, Customer Success, Innovation, Sustainability, and Equality.

This statement reflects Salesforce's commitment to leveraging technology to drive positive change in organizations, careers, and the world, guided by their core values.

Segments

Sales

Salesforce's Sales offering empowers sales teams to streamline and automate their entire sales process, from leads to billing. This comprehensive solution enables sales teams to sell more efficiently, leveraging data storage, lead tracking, opportunity forecasting, analytics, and streamlined quoting and invoicing. It supports flexible working arrangements, aligning with digital-first customer expectations.

Service

Salesforce's Service offering facilitates personalized customer service and support at scale. It connects service agents with customers through various channels and includes AI-powered chatbots for issue resolution. Additionally, it offers a field service solution for scheduling and managing jobs in real-time, enhancing customer support efficiency.

Platform and Other

The Platform offering allows businesses of all sizes to build custom apps efficiently, enhancing customer engagement and enabling digital transformation. It provides security, compliance, and automation features, with integrated services like AI and real-time data processing. Salesforce's acquisition of Slack strengthens collaboration and workflow integration within the Customer 360 platform.

Marketing and Commerce

The Marketing offering enables one-to-one customer marketing journeys across multiple channels, promoting real-time personalization and integrated analytics. Commerce unifies the shopping experience across various touchpoints, driving customer engagement and loyalty. Click-to-code tools offer flexibility in adapting to changing customer needs.

Data

Salesforce's Analytics offering, including Tableau, empowers users to gain insights from their data, utilizing AI models, trend spotting, and timely recommendations. The Integration offering, powered by MuleSoft, facilitates data connectivity across systems, increasing agility and enabling connected experiences. The Customer Data Cloud, powered by Genie, offers a hyperscale real-time data platform for highly personalized experiences across sales, service, marketing, and commerce.

Industry Verticals

Salesforce provides industry-specific service offerings, tailored to the needs of sectors like financial services, healthcare, manufacturing, and more. These offerings include out-of-the-box capabilities to accelerate time-to-value and adapt to evolving customer demands.

Salesforce Easy

Designed for small and medium-sized businesses, Salesforce Easy offers a purpose-built Customer 360 solution. It simplifies purchase processes, provides out-of-the-box features, and enhances productivity for smaller organizations.

Revenue breakdown by segment

Salesforce, a global leader in Customer Relationship Management (CRM) solutions, has witnessed significant revenue growth across various segments from 2018 to 2022. The company's diversified revenue streams are a result of strategic initiatives and acquisitions aimed at expanding its product and service offerings. This analysis breaks down Salesforce's segmented revenue and explores the strategies employed to develop these segments.

Segmented Revenue Breakdown:

  • Sales: Salesforce's sales segment consistently grew from $4.04 billion in 2018 to $6.83 billion in 2022. This segment primarily represents revenue generated from its core CRM sales solutions.
  • Service: The service segment also demonstrated robust growth, increasing from $3.62 billion in 2018 to $7.37 billion in 2022. This revenue category encompasses Salesforce's customer service and support offerings, indicating strong demand for enhancing customer experiences.
  • Platform and Other: Salesforce's platform and other services revenue grew from $2.85 billion in 2018 to $5.97 billion in 2022. This segment includes platform-related services and other miscellaneous offerings.
  • Marketing and Commerce: The marketing and commerce segment expanded from $1.89 billion in 2018 to $4.52 billion in 2022. This growth reflects Salesforce's efforts to provide comprehensive marketing and e-commerce solutions to businesses.
  • Data: Although not reported in 2018 and 2019, Salesforce's data segment contributed $4.34 billion in revenue in 2022. This category includes data-related services and solutions, showcasing the increasing importance of data analytics in CRM.
  • Professional Services and Other: Salesforce's professional services and other category grew steadily from $869 million in 2018 to $2.33 billion in 2022. This segment encompasses consulting, implementation, and other services that complement Salesforce's product offerings.


Key Strategies:

  • Salesforce has implemented several strategies to develop and bolster its segmented revenue:
  • Acquisitions: Salesforce strategically acquired companies that complement its existing portfolio. Notable acquisitions include Tableau (2019) and Slack (2020), which expanded its data and collaboration capabilities.
  • Product Diversification: The company continuously diversified its product offerings to cater to various business needs. For instance, its marketing and e-commerce solutions evolved to meet the growing demand for digital marketing and online sales platforms.
  • Customer-Centric Approach: Salesforce prioritizes enhancing customer experiences, evident in the significant growth of its service segment. This customer-centric focus includes improving customer support and engagement.
  • Data Analytics: The introduction of the data segment highlights Salesforce's emphasis on leveraging data analytics for business insights and decision-making, a crucial component in today's CRM landscape.
  • Professional Services: Salesforce expanded its professional services offerings, providing customers with consulting and implementation support, thus enhancing the overall value proposition.

Salesforce's impressive revenue growth across segmented categories from 2018 to 2022 underscores its commitment to innovation and diversification. Through strategic acquisitions, product diversification, a customer-centric approach, data analytics, and professional services, Salesforce has solidified its position as a leading CRM provider and continually adapts to meet evolving market demands. This multi-faceted approach has enabled Salesforce to thrive and maintain its leadership in the CRM industry.


Leadership

Marc Benioff is the Chair, CEO, and Co-Founder of Salesforce, a global leader in CRM software. Under his leadership, Salesforce has become a Fortune 150 company with 75,000 employees and is recognized for innovation and equality. Benioff has received numerous accolades for his leadership, including being named "Innovator of the Decade" by Forbes and one of the "World’s 25 Greatest Leaders" by Fortune. He is also known for his philanthropy, creating the 1-1-1 model of philanthropy on day one of Salesforce to improve communities worldwide. Benioff and his wife have donated extensively to healthcare, education, and environmental causes. He is the owner of TIME and author of "Trailblazer: The Power of Business as the Greatest Platform for Change."

Parker Harris, Co-Founder and CTO of Salesforce, oversees the company's technology vision and has been instrumental in driving its technology strategy, including initiatives like Hyperforce and Lightning Experience. He's passionate about cloud computing's role in digital transformation. Before Salesforce, he co-founded Left Coast Software and worked in sales force automation. Harris holds a B.A. in English literature from Middlebury College.

Amy Weaver serves as President and CFO at Salesforce, leading the global finance organization. Before this, she was Chief Legal Officer, overseeing legal and corporate affairs at Salesforce. Her background includes legal roles at Expedia Group Inc., Cravath, Swaine & Moore, and Perkins Coie, along with work in legislative aid and clerking. She serves on several boards and holds a JD from Harvard Law School.

Ariel Kelman is the President and Chief Marketing Officer at Salesforce, responsible for global marketing efforts. He has a background in economics with a Bachelor of Arts from the University of California, Berkeley. Ariel has previously worked at Salesforce and served as CMO at Oracle and AWS before rejoining Salesforce in 2023.

Brian Millham serves as President and COO at Salesforce, overseeing various key functions including sales, customer success, marketing, and more. He has been with Salesforce for over 23 years and has played a significant role in the company's growth and development. Brian's background includes experience at Oracle and Remedy Corporation, and he holds a Bachelor of Arts from the University of California, Berkeley. He also serves on the board of Newsela, an education technology company.

David Schmaier serves as the President and Chief Product Officer at Salesforce, leading the company's global product strategy and vision. He brings over three decades of experience in enterprise software and CRM. David was previously the CEO of Salesforce Industries, and before that, he co-founded and led Vlocity. He holds a B.A. in mechanical engineering from Rensselaer Polytechnic Institute and an MBA from Harvard Business School.

Juan Perez is EVP and CIO at Salesforce, responsible for the global IT team and advising customers on digital transformations. Previously CIO at UPS, he's been recognized for his leadership in technology adoption and received awards like the Forbes CIO Innovation Award. Juan holds degrees in industrial and systems engineering.

Kendall Collins is the Chief Business Officer and Chief of Staff to Marc Benioff at Salesforce. He oversees strategic initiatives and customer relationships for the Office of the Chair and CEO, as well as the global communications team. Kendall has held various executive roles at Salesforce and other companies, driving innovation and marketing strategies. He holds a B.S. in commerce and has extensive experience in the tech industry.

Miguel Milano is the President and Chief Revenue Officer at Salesforce, responsible for global sales and distribution. He has a successful track record in international sales, previously led sales organizations at Salesforce, and held leadership positions at companies like Oracle, McKinsey, and Telefonica. Miguel has engineering degrees and an MBA from MIT's Sloan School of Management.

Nathalie Scardino is Salesforce's interim Chief People Officer, responsible for the global people strategy, employee engagement, and business value. She has over a decade of experience at Salesforce, including roles in recruiting, onboarding, and employee learning. Nathalie has a background in sales and executive search, focusing on technology and digital transformation. She serves on the board of San Francisco Youth Theatre and holds a B.A. from Goldsmiths, University of London. She resides in San Francisco with her family.

Sabastian Niles serves as Salesforce's President and Chief Legal Officer, responsible for global legal and government affairs. With a background as a partner at Wachtell, Lipton, Rosen & Katz, he has extensive experience in corporate transformations, governance, mergers, and sustainability. Sabastian is affiliated with various organizations, including the Aspen Institute, and holds a law degree from Harvard Law School, as well as degrees in finance, economics, and decision and information sciences from the University of Maryland.

Sarah Franklin, President & Chair of the Advisory Board at Salesforce, has over 15 years of experience within the company. She previously served as Chief Marketing Officer and has been dedicated to empowering individuals in technology careers. She played a significant role in launching Trailhead, Salesforce's online learning platform. Sarah has received recognition on Forbes' Most Influential CMO list and holds degrees in chemical engineering and biochemistry from Virginia Polytechnic Institute and State University.

Srini Tallapragada, President and Chief Engineering Officer of Salesforce, oversees a global engineering team responsible for developing and securing the Salesforce Customer 360 and Hyperforce. With over a decade at Salesforce, Srini has driven product and platform innovations. Prior to joining Salesforce in 2012, he held roles at Oracle and SAP. Srini holds a PGDM from XLRI and a BTech in Computer Science from NIT, India. He also serves as an independent director on the board of Avalara.

Suzanne DiBianca, EVP & Chief Impact Officer at Salesforce, has been with the company for over 20 years. She co-founded the Salesforce Foundation and leads Salesforce’s stakeholder capitalism strategy, focusing on ESG efforts, climate action, and the Salesforce Ventures Impact Fund. Suzanne pioneered the 1-1-1 model of corporate philanthropy and is involved in various UN and World Economic Forum councils, as well as serving on multiple advisory boards. She is a graduate of the University of Colorado at Boulder.

Ownership structure

The provided data offers a glimpse into the ownership structure of Salesforce, a prominent company in the Customer Relationship Management (CRM) market. The ownership structure of Salesforce reflects a substantial presence of institutional investors and mutual funds, which is typical for a large, publicly traded company in the technology sector. Salesforce's appeal to institutional investors may be attributed to its position as a leading CRM software provider and its role in the broader technology industry.

Notably, Vanguard and Blackrock, both giants in the investment management industry, hold significant stakes in Salesforce. This suggests a high level of confidence in the company's growth potential and long-term prospects.

The presence of various mutual funds, particularly those tracking major stock indices like the S&P 500, indicates that Salesforce is a component of many diversified investment portfolios. This inclusion underscores Salesforce's prominence within the technology sector and its influence on broader market performance.

Overall, Salesforce's ownership structure reflects a diverse mix of institutional and retail investors, showcasing the company's appeal to a broad range of stakeholders. It's worth noting that while institutions dominate the ownership landscape, individual investors and mutual funds also play pivotal roles in shaping the company's shareholder base.

Top Institutional Holders
Holder Shares (millions) % of Total Value (million USD)
Vanguard Group Inc 83.2 8.5% 17,041.6
Blackrock Inc. 70.6 7.3% 14,467.3
State Street Corporation 45.7 4.7% 9,351.2
FMR, LLC 37.9 3.9% 7,757.9
Morgan Stanley 19.6 2.0% 4,006.3
Capital World Investors 19.2 2.0% 3,941.4
Geode Capital Management, LLC 17.8 1.8% 3,643.2
Price (T.Rowe) Associates Inc 15.2 1.6% 3,107.3
Fisher Asset Management, LLC 13.9 1.4% 2,845.5
JP Morgan Chase & Company 13.6 1.4% 2,776.3
Top Mutual Fund Holders
Holder Shares (millions) % of Total Value (million USD)
Vanguard Total Stock Market Index Fund 28.9 2.9% 5,915.5
Vanguard 500 Index Fund 23.1 2.3% 4,735.1
Fidelity 500 Index Fund 11.0 1.1% 2,245.5
SPDR S&P 500 ETF Trust 10.8 1.1% 2,217.6
iShares Core S&P 500 ETF 8.9 0.9% 1,828.1
Vanguard Growth Index Fund 8.0 0.8% 1,642.4
Vanguard Institutional Index Fund-Institutional Index Fund 7.0 0.7% 1,435.4
Growth Fund Of America Inc 6.4 0.6% 1,318.2
SPDR Dow Jones Industrial Average ETF 5.6 0.6% 1,146.3
Fundamental Investors Inc 5.3 0.5% 1,080.5
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