Tesla, Inc. (TSLA): history, ownership, mission, how it works & makes money (2024)

A Brief History of Tesla, Inc. (TSLA)

Tesla, Inc., initially named Tesla Motors, was founded in July 2003 in Palo Alto, California, by engineers Martin Eberhard and Marc Tarpenning. The company was named after the famed inventor and electrical engineer, Nikola Tesla. Tesla's mission is to accelerate the world's transition to sustainable energy.

Early funding for Tesla came from various sources, but the most significant was from Elon Musk, the co-founder of PayPal and CEO of SpaceX. Musk joined Tesla in February 2004, contributing $6.5 million from his own finances, making him the largest stakeholder and Chairman of the Board.

• 2008 - Roadster Launch: Tesla introduced its first car, the Tesla Roadster, which utilized lithium-ion battery cells and had a range of over 200 miles on a single charge. This breakthrough established Tesla as a serious player in the electric vehicle market.
• 2010 - IPO: Tesla became a publicly traded company on June 29, 2010, under the ticker symbol TSLA on the NASDAQ. The initial public offering raised $226 million.
• 2012 - Model S: The launch of the Model S sedan marked a significant milestone for Tesla. The Model S received numerous accolades, including Car of the Year awards from several automotive publications.
• 2015 - Model X: Tesla expanded its lineup with the Model X, an SUV that featured distinctive falcon-wing doors and advanced safety features.
• 2016 - SolarCity Acquisition: To diversify into the solar energy sector, Tesla acquired SolarCity for approximately $2.6 billion. This acquisition aimed to create a vertically integrated sustainable energy company.
• 2017 - Model 3: The launch of the Model 3 sedan was a landmark moment as it represented Tesla's move toward producing more affordable electric cars. The Model 3 quickly became one of the best-selling electric vehicles globally.
• 2020 - S&P 500 Inclusion: After achieving consistent profitability, Tesla was added to the S&P 500 index in December 2020, significantly boosting its stock price and market visibility.
• 2021 - Expansion in China and Europe: Tesla opened Gigafactories in Shanghai and Berlin to meet growing demand in international markets, solidifying its position as a global leader in electric vehicles.

Today, Tesla continues to innovate with new products like the Cybertruck, Semi, and advancements in autonomous driving technology. The company also focuses on energy storage solutions and solar products, aiming to integrate renewable energy into every aspect of life.

Who Owns Tesla, Inc. (TSLA)

Tesla, Inc. (TSLA) is a publicly traded company, which means that its ownership is distributed among the shareholders who own its stock. The largest shareholders are typically institutional investors and company insiders. Understanding who owns Tesla can offer insights into the company’s stability, governance, and market influence.

Here are the major players in Tesla's ownership structure:

• Elon Musk: Elon Musk is the CEO and one of the co-founders of Tesla. He is also the largest individual shareholder. Musk's ownership stake in Tesla has made him one of the wealthiest people in the world. His decisions and statements can significantly impact Tesla's stock price.
• Institutional Investors: Several major institutional investors hold significant shares in Tesla. These include:
  • The Vanguard Group: One of the largest asset management companies globally, Vanguard holds a substantial percentage of Tesla's shares.
  • BlackRock: This global investment management corporation is another major shareholder in Tesla, owning a large number of its shares.
  • Fidelity Investments: Fidelity is another significant institutional investor that owns a considerable amount of Tesla stock.
• Retail Investors: A portion of Tesla's shares is owned by individual retail investors. These investors buy and sell shares through stock exchanges and can range from small-scale investors to high-net-worth individuals.
• Company Insiders: Apart from Elon Musk, other key executives and board members also own shares in the company. This can include CFOs, CTOs, and board members who receive stock as part of their compensation packages.

The ownership landscape of Tesla, Inc. is dynamic and can change with trading activities, new institutional investments, and insider transactions. Staying updated on the major shareholders can provide a better understanding of the company's future direction and strategies.

Tesla, Inc. (TSLA) Mission Statement

Tesla, Inc. (TSLA) is widely known for its vision of shaping the future of transportation and energy. The company's mission statement is:

"To accelerate the world's transition to sustainable energy."

This mission is the cornerstone of Tesla’s strategic approach and underlines its commitment to environmental sustainability and innovative technology. Key points of Tesla’s mission statement are:

• Accelerate: Tesla aims to hasten the global shift toward sustainable energy solutions, recognizing the urgency of climate change and environmental degradation.
• World Transition: The mission encompasses a global perspective, indicating Tesla's intention to impact various markets and regions worldwide.
• Sustainable Energy: Tesla is dedicated to developing and promoting renewable energy sources. This commitment is reflected in their product lines, which include electric vehicles, solar energy systems, and energy storage solutions.

How Tesla, Inc. (TSLA) Works

Tesla, Inc. is an American electric vehicle and clean energy company founded by Elon Musk, Martin Eberhard, Marc Tarpenning, JB Straubel, and Ian Wright. It operates in a variety of sectors but is primarily known for its electric vehicles (EVs). The company’s business model integrates multiple aspects of the automotive and energy sectors, which enables it to streamline operations and provide a unique customer experience.

Tesla’s core areas of operation include electric vehicles, energy solutions, and software development. Below is a breakdown of these focal points:

• Electric Vehicles (EVs):

  Tesla designs and manufactures various models of electric cars, including the Roadster, Model S, Model 3, Model X, and Model Y. The company focuses on producing vehicles that offer high performance, cutting-edge features, and zero emissions.

• Energy Solutions:

  Tesla offers a range of energy products, such as solar panels, solar roof tiles, and energy storage solutions like the Powerwall, Powerpack, and Megapack. These products are designed to harness renewable energy and store it for later use, aiming to reduce reliance on fossil fuels.

• Software Development:

  Autonomous driving and vehicle software are significant aspects of Tesla’s innovation strategy. The company is heavily invested in developing and improving its Autopilot and Full Self-Driving (FSD) systems. These software solutions are integrated into Tesla vehicles to enhance driving experience and safety.

Tesla employs a strategy of vertical integration, which involves controlling multiple steps in the supply chain, from production to sales. This approach allows Tesla to develop proprietary technologies and maintain stringent quality control. Key elements include:

• Gigafactories:

  Tesla owns and operates several Gigafactories around the world, which are massive manufacturing facilities designed to produce batteries, electric motors, and vehicle components at scale. Prominent Gigafactories are located in Nevada, Shanghai, Berlin, and Texas.

• Direct Sales Model:

  Unlike traditional automakers that rely on a network of dealerships, Tesla sells its vehicles directly to consumers through its own stores and online platform. This model allows for a more personalized buyer experience and helps Tesla gather direct feedback from customers.

• Service and Supercharging Network:

  Tesla operates its own service centers and maintains a global network of Superchargers, which are high-speed charging stations designed specifically for Tesla vehicles. This infrastructure enables Tesla owners to charge their cars quickly and efficiently.

Research and development (R&D) are central to Tesla’s growth and technological advancement. The company invests heavily in R&D to improve battery technology, vehicle design, and autonomous driving capabilities. The goal is to make EVs more affordable and accessible while pushing the boundaries of what is possible in clean energy and transportation.

Important R&D initiatives include:

• Battery technology advancements focused on increasing energy density and reducing costs.
• Development of full self-driving software and neural networks for autonomous driving.
• Innovations in manufacturing processes to increase efficiency and scalability.

Overall, Tesla, Inc. is not just an automaker but a tech-driven company seeking to transform the transportation and energy sectors through innovation, vertical integration, and a focus on sustainable solutions.

How Tesla, Inc. (TSLA) Makes Money

Tesla, Inc. (TSLA) has established itself as a leader in the electric vehicle and clean energy sectors. The company has diversified revenue streams that encompass multiple segments. Here are the primary ways Tesla makes money:

• Automotive Sales: The majority of Tesla’s revenue comes from the sale of its electric vehicles (EVs). This includes models like the Model S, Model 3, Model X, and Model Y. The company also plans to expand its lineup with future models like the Cybertruck and the Tesla Semi.
• Energy Generation and Storage: Tesla also generates revenue through its energy products, including solar panels and solar roof tiles. Additionally, the company offers energy storage solutions like the Powerwall, Powerpack, and Megapack.
• Regulatory Credits: Tesla earns a significant amount of money by selling regulatory credits to other automotive manufacturers. These credits are required for automakers to meet emissions regulations, and companies that produce fewer emissions can sell their excess credits to those who exceed regulatory limits.
• Service and Other Revenue: Tesla also makes money through services related to its vehicles, including maintenance, repairs, and insurance. The company is continually expanding its network of service centers and mobile service options to meet the growing demand.
• Software and Connectivity: Tesla offers various software-related services, including Autopilot and Full Self-Driving (FSD) packages, which are sold separately from the base vehicle. Additionally, the company generates revenue through its premium connectivity services, which offer enhanced navigation, media streaming, and internet browsing capabilities.
• Supercharging Network: Tesla generates revenue through its global network of Supercharger stations. While initially free for early adopters, most new Tesla owners now pay for the electricity used at these stations, contributing to the company's income.
• Licensing and Patents: Tesla occasionally licenses its technology and patents to other companies, generating additional revenue streams. This is part of the company's broader mission to accelerate the world's transition to sustainable energy.

Through these diverse avenues, Tesla continues to innovate and expand its market presence, solidifying its position as a key player in both the automotive and clean energy industries.