Tesla’s mission extends far beyond cars. From EVs and solar to AI and robotics, see why it’s one of the most influential players in energy transition.
TESLA Introduction
Chapter 1. What Does This Company Do?
- Tesla is a global company best known for building electric vehicles (EVs) such as the Model 3, Model Y, and Model S, but its mission goes far beyond just making cars. Tesla’s business model combines electric mobility, clean energy, and cutting-edge software to accelerate the world’s transition to sustainable energy.
- In addition to EVs, Tesla develops solar panels and energy storage solutions like Powerwall and Megapack, and operates the Supercharger network to support EV adoption worldwide. The company is also heavily investing in Full Self-Driving (FSD) technology, artificial intelligence, and robotics, aiming to create a future where transportation is autonomous, safer, and more efficient.
- In 2025, Tesla continues to focus on expanding into new markets, lowering vehicle costs with next-generation manufacturing, and launching new products that could reshape mobility and the global energy industry.
Chapter 2. How They Make Money
1. Electric Vehicle Sales (≈ 85% of Revenue)
- Main driver of Tesla’s business
- Popular models: Model 3, Model Y, Model S, Model X
- Global EV market leader, with over 1.8M vehicles delivered annually
- Focus on lowering production costs and increasing volume with next-gen manufacturing (Giga Press)
2. Energy Products & Storage Solutio
- Products: Solar Panels, Solar Roof, Powerwall, Megapack
- Customers: homeowners, businesses, and utilities
- Growing demand for renewable energy storage and grid solutions
- Revenue share still small, but expected to expand significantly
3. Supercharger Network & Services
- Thousands of fast-charging stations worldwide
- Revenue from Tesla owners + now open to other EV brands
- Adds recurring service income and strengthens Tesla’s ecosystem
4. Software & Full Self-Driving (FSD) Subscription
- High-margin recurring revenue similar to SaaS
- Customers pay monthly or one-time fee for autonomous driving features
- Tesla aims to launch robotaxi network once FSD reaches full autonomy
- Potential to become a major profit driver in the future
5. Future Growth Areas
- Insurance & Other Services: Expanding into auto insurance and software-based add-ons
- AI & Robotics: Optimus humanoid robot in development
- Dojo Supercomputer: Training AI models, could be offered as a cloud service
Chapter 3. Why It’s in the News
- Q2 2025 Earnings: Reported revenue of $25B (+7% YoY), but profit dipped due to ongoing vehicle price cuts and production ramp-up costs.
- Optimus Robot Trials: Tesla has begun deploying its Optimus humanoid robot for simple tasks in its own factories, a key step toward automation, though mass production has not been announced.
Chapter 4. What Looks Good
- A Top Global EV Leader: Still one of the world’s largest EV sellers by volume.
- Powerful Infrastructure: Its proprietary charging network and brand loyalty are significant advantages.
- Future Growth: Expanding into AI, energy storage, and high-margin software subscriptions.
Chapter 5. What to Watch Out For 👎
- Margin Pressure: Ongoing price cuts to boost volume are squeezing profit margins.
- Intense Competition: Faces fierce competition from BYD (especially in Asia) and legacy automakers entering the EV space.
- Regulatory Hurdles: The timeline for widespread regulatory approval of Full Self-Driving remains uncertain.
Expert Deep-Dive Analysis
Company Overview
- Founded: 2003
- Headquarters: Austin, Texas
- Ticker: TSLA (NASDAQ)
- Market Cap: ~$850B+ (as of Sept 2025)
- Industry: Electric Vehicles, Energy Storage, AI/Robotics
Business Model Tesla’s model vertically integrates hardware, software, and services:
- 🚘 Vehicles: ~85% of revenue, with Model 3/Y as the primary volume drivers.
- 💻 Software: Full Self-Driving (FSD) subscription is a key long-term play with potentially very high margins.
- ⚡ Energy & Charging: Solar, battery storage, and Superchargers represent a rapidly growing segment.
Revenue Mix (TTM):
- Automotive: ~85%
- Energy Generation & Storage: ~6%
- Services & Other: ~9%
Recent Developments (Based on Q2 2025 Results)
- Revenue: $25B (+7% YoY), showing continued but slowing growth.
- Net Income: $2.6B (–12% YoY), impacted by strategic price reductions.
- Automotive Gross Margin: 18%, down from 22% in the prior year, a critical metric for investors.
- Optimus Progress: Moved from lab development to pilot programs on the factory floor, demonstrating real-world application.
Strengths (SWOT – S & O)
- Brand Power: The Tesla brand is synonymous with EV innovation and commands strong loyalty.
- Vertical Integration: In-house control over battery tech, software, and manufacturing allows for rapid innovation.
- Software Potential: The ability to monetize FSD and other software services could significantly boost future profitability.
Risks (SWOT – W & T)
- Margin Erosion: Continued price cuts to maintain market share are the biggest near-term risk to profitability.
- Fierce Competition: BYD has surpassed Tesla in sales in certain quarters, and traditional automakers are launching competitive EV models.
- Regulatory Uncertainty: Delays in FSD approval could postpone a major source of high-margin revenue.
Analyst’s Insight 💡
Long-term, Tesla’s potential to become the “Apple + AWS of Mobility” by licensing its software and AI is the core of the bull thesis. But until margins stabilize and recover, the stock may face continued pressure.
Key Metrics (Q2 2025):
- Revenue: $25B (+7%)
- Net Income: $2.6B (–12%)
- Gross Margin (Automotive): 18%
- Deliveries: 445K (+6%)
Discussion & CTA
- What do you think about Tesla’s strategy of sacrificing margin for volume?
- Would you buy, hold, or wait? Comment below!