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Tesla, Inc.
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2019 Vault Rankings

About Tesla, Inc.

Founded in 2003, the company designs, develops, manufactures, and markets high-performance, technologically advanced electric cars and solar energy generation and energy storage products. Tesla sells more than five fully electric cars, among others, the Model S sedan and the Model X SUV, and the Model 3 sedan, which is among the world's top-selling electric cars. The fuel-efficient, fully electric vehicles recharge their lithium-ion batteries from an outlet. Tesla's Autopilot self-driving technology hardware has been available on all Tesla models since late 2016. US customers generate more than half of Tesla's sales. CEO Elon Musk cofounded PayPal and also runs SpaceX.

Operations

Tesla operates in two repotable segments: Automotive and Energy generation and storage.

The automotive segment generates about 85% of sales. The segment includes sales and leasing of electric vehicles as well as sales of automotive regulatory credits. Its other electric vehicles are: Model Y, Cybertruck, Tesla Roadster and Tesla Semi. Additionally, the segment is also comprised of services and others. It accounts almost 10% of sales and includes non-warranty after-sales vehicle services, sales of used vehicles, retail merchandise, sales by the acquired subsidiaries to third party customers and vehicle insurance revenue.

The company's energy generation and storage segment (just over 5% of revenue) makes and sells stationary energy storage products and solar energy systems to residential and small commercial customers. Its Powerwall lithium-ion battery with integrated inverter system is designed to store energy at a home or small commercial facility. Tesla's commercial, industrial, and utility offering, Powerpack and Megapack, is an energy storage system that can also be combined with renewable energy generation sources to create microgrids. Megapack also offers feature like grouping multiple units to form a larger installations capable of reaching gigawatt hours or greater. Tesla's solar energy systems include solar panels, inverters, and rack systems. The company's Solar Roof gathers solar energy from glass tiles that aim to be more architecturally pleasing than traditional roof-mounted solar panels.

Geographic Reach

Tesla, headquartered in Palo Alto, California, operates manufacturing facilities in Fremont, and Lathrop, California; Tilburg, the Netherlands; and its Gigafactories near Reno, Nevada, Buffalo, New York, Berlin, Germany and Shanghai, China. Energy storage products are manufactured at its Gigafactory Nevada. Solar products are made primarily at Tesla's Gigafactory in Buffalo, New York. The US accounts for more than 50% of sales. Other markets for which the company breaks out sales include China (over 10% of sales), Netherlands (more than 5%) and Norway (about 5%). The remainder is generated by other countries for about 25% of sales.

Sales and Marketing

Tesla markets and sells cars directly to consumers through website and an international network of company-owned stores and galleries. Tesla is notable in that it does not use dealerships (due, in some states, to legal restrictions). The company also offers used vehicle business that supports new vehicle sales by integrating sales of new Tesla vehicle with customer's trade-in needs for their vehicle. The company continuously builds networks of Supercharger and Destination Charging stations in Australia, Canada, China, France, Germany, Italy, Japan, Russia, South Korea, U.A.E., U.K., U.S. and in approximately more than 40 countries that provides fast, convenient charging locations for Tesla owners to recharge their vehicles.

The company's solar energy and storage products are typically sold directly to residential customers through the company's stores and galleries, and through channel partners domestically. An international sales organizations and network of channel partners market and sell Powerwall directly to utilities, Powerpack and Megapack systems to commercial and utility customers.

Tesla's advertising costs were $27 million, $32 million and $37 million for the years 2019, 2018 and 2017, respectively.

Financial Performance

Tesla's revenue growth has accelerated like its first car, the Roadster sportscar (0-60 in 1.9 seconds), driven by the rising number of vehicles sold each year. Between 2015 and 2019 sales have grown a whopping 507%. The company, however, has posted a string of net losses as it pours money into research and development and manufacturing.

Tesla's revenue jumped 15% to $24.6 billion in 2019 driven by an 87% increase in automotive revenue. This was primarily due to the increase of automotive sales revenue by $2.32 billion, or 13%, in the year ended December 31, 2019 as compared to the year ended December 31, 2018.

The company lost about $862 million in 2019, which was an improvement over the $976 million lost in 2018.

Cash at the end of 2019 was $6.8 billion, an increase of about $2.5 billion from the prior year. Cash from operations contributed $2.4 billion to the coffers, while investing activities used $1.4 billion, mainly for capital expenditures. Financing activities generated $1.5 billion, primarily in the form proceeds from issuances of convertible and other debt.

Strategy

To help meet that goal and ramp up sales in overseas markets, Tesla's Gigafactory 3 in Shanghai, China began building cars in late 2019. Model 3s rolling out of Gigafactory 3 is pivotal to Tesla's play in the world's largest electric car market and will help it gain ground in China while avoiding import tariffs. Shortly after the opening of Gigafactory 3, Tesla announced it would build its next Gigafactory in Germany outside Berlin. A manufacturing base in Germany is expected to avoid the complications of exporting cars to Europe.

Tesla is also busy advancing its autonomous car technology. The company's Autopilot driver assist system includes auto-steering, traffic-aware cruise control, automated lane changing and other features that together offer a complete self-driving experience while keeping the driver in ultimate control of the car.

Mergers and Acquisitions

In late 2019, Tesla acquired Canada-based Hibar Systems Ltd., a manufacturer of battery systems for electric automobiles, laptops, and other products. Industry watchers believe the deal is part of Tesla's strategy to establish its own battery cell manufacturing capacity.

In late 2019, Tesla bought computer vision start-up DeepScale based in Mount View, California. DeepScale's technology helps automakers use low-wattage processors to power very accurate computer vision.The purchase of DeepScale is expected to accelerate Tesla's autonomous driving technology efforts.

In early 2019, Tesla acquired energy technology company Maxwell Technologies, Inc. in an all-stock deal valued at more than $200 million. Maxwell, based in San Diego, California, develops and makes ultracapacitors, devices that can store and quickly deliver surges of energy. Tesla would use Maxwell's dry electrode technology that will have a very big impact to the company.

 

Company Background

Tesla Motors is named for Nikola Tesla (1856-1943), the renowned Serbian-American engineer and inventor. Tesla Motors was incorporated in July 2003.

Tesla, Inc.

3500 Deer Creek Rd
Palo Alto, CA 94304-1317
Phone: 1 (650) 681-5000

Firm Stats

Employer Type: Publicly Owned
Stock Symbol: TSLA
Stock Exchange: , NASDAQ
CFO: Deepak Ahuja
Chairman, CEO, and Product Architect: Elon Musk
CTO: Jeffrey B. Straubel
Employees (This Location): 225
Employees (All Locations): 48,016

Major Office Locations

Palo Alto, CA

Other Locations

Phoenix, AZ
Brea, CA
Brooklyn Park, CA
Buena Park, CA
Burbank, CA
Burlingame, CA
Canoga Park, CA
Cathedral City, CA
Fremont, CA
Fresno, CA
Hawthorne, CA
Hercules, CA
Lathrop, CA
Los Angeles, CA
Mission Viejo, CA
Newark, CA
Newport Beach, CA
Palm Desert, CA
Palo Alto, CA
Riverside, CA
Rocklin, CA
Sacramento, CA
San Diego, CA
San Rafael, CA
Santa Clara, CA
Seaside, CA
Sunnyvale, CA
Torrance, CA
Van Nuys, CA
Walnut Creek, CA
Denver, CO
Littleton, CO
Parker, CO
Washington, DC
Newark, DE
Boca Raton, FL
Dania Beach, FL
Miami Beach, FL
Riviera Beach, FL
Honolulu, HI
Chicago, IL
Highland Park, IL
Oak Brook, IL
Villa Park, IL
Hingham, MA
Watertown, MA
Beltsville, MD
Rockville, MD
Grand Rapids, MI
Troy, MI
Independence, MO
Kansas City, MO
Matthews, NC
Raleigh, NC
Rocky Mount, NC
Cranbury, NJ
Paramus, NJ
Pine Brook, NJ
Albuquerque, NM
Las Vegas, NV
Sparks, NV
Brooklyn, NY
New York, NY
Syosset, NY
White Plains, NY
Blue Ash, OH
Cleveland, OH
Columbus, OH
Portland, OR
King Of Prussia, PA
Brentwood, TN
Austin, TX
Houston, TX
The Woodlands, TX
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Salt Lake City, UT
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Seattle, WA
Ciudad De Mexico, Mexico