Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products.
The company sells its products directly to customers, including through its website and retail locations. It also continues to grow its customer-facing infrastructure through a global network of vehicle service centers, Mobile Service technicians, body shops, Supercharger stations and Destination Chargers to improve the adoption of its products. It also engages in offering financial and other services tailored to its products.
The company operates through two segments, Automotive, and Energy Generation and Storage.
The Automotive segment includes the design, development, manufacturing, sales and leasing of electric vehicles, as well as the sales of automotive regulatory credits. Additionally, the Automotive segment also includes services and other, which includes non-warranty after-sales vehicle services, sales of used vehicles, retail merchandise, sales by its acquired subsidiaries to third party customers and vehicle insurance revenue.
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.
Products and Services
Model 3: Model 3 is a four-door mid-size sedan that the company designed for manufacturability with a base price for mass-market appeal. The company manufactures Model 3 at the Fremont Factory and at Gigafactory Shanghai.
Model Y: Model Y is a compact sport utility vehicle (SUV) built on the Model 3 platform with seating for approximately seven adults. The company manufactures Model Y at the Fremont Factory and at Gigafactory Shanghai.
Model S and Model X: Model S is a four-door full-size sedan and Model X is a mid-size SUV with seating for approximately seven adults. Model S and Model X feature the major performance characteristics and longest ranges that the company offers in a sedan and SUV, respectively, and the company manufactures both models at the Fremont Factory. In 2021, the company began delivering new versions of the Model S and Model X, which offer higher performance and range.
Future Consumer and Commercial Electric Vehicles: The company has also announced various planned electric vehicles to address additional vehicle markets, including specialized consumer electric vehicles in Cybertruck and the new Tesla Roadster and a commercial electric vehicle in Tesla Semi. It plans to continue utilizing developments in its proprietary Full Self-Driving (FSD), battery cell and other technologies.
Energy Generation and Storage
Energy Storage Products
Powerwall and Megapack are the company’s lithium-ion battery energy storage products. Powerwall is designed to store energy at a home or small commercial facility. Megapack is an energy storage solution for commercial, industrial, utility and energy generation customers, multiple of which might be grouped together to form larger installations of gigawatt hours or greater capacity.
The company also continues to develop software capabilities for remotely controlling and dispatching its energy storage systems across a range of markets and applications, including through its real-time energy control and optimization platforms.
Solar Energy Offerings
The company sells retrofit solar energy systems to customers and channel partners and also makes them available through power purchase agreement (PPA) arrangements. It purchases majority of the components for its retrofit solar energy systems from various sources. The company also designs and manufactures certain components for its solar energy products.
The company sells its Solar Roof, which combines major glass roof tiles with energy generation, directly to customers, as well as through channel customers.
Battery and Powertrain
The company’s core vehicle technology competencies include powertrain engineering and manufacturing and its ability to design vehicles that utilize the focus of an electric powertrain. It offers dual motor powertrain vehicles, which uses two electric motors to improve traction and performance in an all-wheel drive configuration, as well as vehicle powertrain technology featuring three electric motors for further improved performance in certain versions of Model S and Model X. Among other things, the company maintains testing and research and development capabilities for battery cells, packs and systems, and has built a body of knowledge on lithium-ion cell chemistry types and performance characteristics.
Vehicle Control and Infotainment Software
The performance and safety systems of the company’s vehicles and their battery packs require control software. Control systems in its vehicles optimize performance, customize vehicle behavior, manage charging and control various infotainment functions. It develops this software, including majority of the user interfaces, internally and update its vehicles’ software regularly through over-the-air updates.
The company focus on developing technologies, systems and software to enable self-driving vehicles using primarily vision-based sensors. Its FSD Computer runs its neural networks in its vehicles, and it is also developing additional computer hardware to enable the amounts of field data captured by its vehicles to continually train and improve these neural networks for real-world performance.
The company offers in its vehicles certain advanced driver assist systems under its Autopilot and FSD options. The company intends to establish in the future a Tesla ride-hailing network, which it focuses would also allow it to access a new customer base even as modes of transportation evolve.
Energy Generation and Storage
Energy Storage Products: The company utilizes majority of the component-level technologies from its vehicles in its energy storage products. By taking a modular approach to the design of battery systems, the company could optimize the manufacturing capacity of its energy storage products. Additionally, its focus in power electronics enables its battery systems to interconnect with electricity grids while providing systems for power injection and absorption. The company has also developed software to remotely control and dispatch its energy storage systems.
Solar Energy Systems: The company has engineered Solar Roof over various iterations to combine aesthetic appeal and durability with power generation. It designed both products to integrate with Powerwall.
Design and Engineering
The company has established significant in-house capabilities in the design and test engineering of electric vehicles and their components and systems. Additionally, its team has focus in selecting and working with a range of materials for its vehicles. The company has also used its capabilities to achieve engineering feats in stamping, casting and thermal systems, and is developing designs that integrate batteries directly with vehicle body structures without separate battery packs to optimize manufacturability, weight, range and cost characteristics.
The company is also expanding its manufacturing operations globally, while taking action to localize its vehicle designs and production for particular markets, including country-specific market demands and factory optimizations for local workforces.
Energy Generation and Storage
The company’s focus in electrical, mechanical, civil and software engineering allows it to design and manufacture its energy generation and storage products and components. It also employs its design and engineering focus to customize solutions, including its energy storage products, solar energy systems and/or Solar Roof for customers to meet their specific needs. The company has developed software that expedites the design process, as well as mounting hardware that facilitates solar panel installation.
Sales and Marketing
Direct Sales: The company’s vehicle sales channels include its website and an international network of company-owned stores. In various jurisdictions, it also has galleries to educate and inform customers about its products, but such locations does not actually transact in the sale of vehicles.
Used Vehicle Sales: The company’s used vehicle business supports new vehicle sales by integrating the trade-in of a customer’s existing Tesla or non-Tesla vehicle with the sale of a new or used Tesla vehicle. The Tesla and non-Tesla vehicles, the company acquires as trade-ins are subsequently remarketed, either directly by it or through third parties. The company also remarkets used Tesla vehicles acquired from other sources, including lease returns.
Public Charging: The company has a global network of Tesla Superchargers, which are its industrial grade, high-speed vehicle chargers. Where possible, it co-locates Superchargers with its solar and energy storage systems and promote renewable power.
The company also works with various hospitality, retail and public destinations, as well as businesses with commuting employees, to offer additional charging options for its customers. These Destination Charging and workplace locations deploy Tesla Wall Connectors to provide charging to Tesla vehicle owners who patronize or are employed at their businesses. The company also works with single-family homeowners and multi-family residential entities to deploy home charging solutions.
In-App Upgrades: As the company’s vehicles are capable of being updated remotely over-the-air, its customers might purchase additional paid options and features through the Tesla app or through the in-vehicle user interface. The company focuses that this functionality would also allow it to offer certain options and features on a subscription basis in the future.
Energy Generation and Storage
The company markets and sells its solar and energy storage products to residential, commercial and industrial customers and utilities through various channels.
In the U.S., the company offers residential solar and energy storage products directly through its website, stores and galleries, as well as through its network of channel partners. Outside of the U.S., it uses its international sales organization and a network of channel partners to market and sell these products for the residential market. The company also sells Powerwall directly to utilities. In the case of products sold to utilities or channel partners, such partners sell the product to residential customers and manage the installation in customer homes.
The company sells its commercial and utility-scale energy storage systems to customers through its U.S. and international sales organization and its channel partner network. In certain jurisdictions, it also sells installed solar energy systems (with or without energy storage) to commercial customers through PPA transactions.
Service and Warranty
Service: The company provides service for its electric vehicles at its company-owned service locations and through Tesla Mobile Service technicians who perform work remotely at customers’ homes or other locations. Performing vehicle service itself provides it with the capability to identify problems and implement solutions and improvements, and optimize logistics and inventory, than traditional automobile manufacturers and their dealer networks. The connectivity of its vehicles also allows it to diagnose and remedy various problems remotely.
Vehicle Limited Warranties and Extended Service Plans: The company provides a manufacturer’s limited warranty on all new and used Tesla vehicles it sells, which might include separate limited warranties on certain components, specific types of damage or battery capacity retention. It also offers extended service plans that provide coverage beyond the new vehicle limited warranties for certain models in specified regions.
Energy Generation and Storage
The company provides service and repairs to its energy product customers, including under warranty where applicable. It provides manufacturer’s limited warranties with its energy storage product and offers certain extended limited warranties that are available at the time of purchase of the system. If it installs a system, the company also provides certain limited warranties on its installation workmanship. As part of its energy storage system contracts, the company might provide the customer with performance guarantees that commit that the underlying system would meet or exceed the minimum energy performance requirements specified in the contract.
For retrofit solar energy systems, the company provides separate limited warranties for workmanship and against roof leaks, and for Solar Roof, it also provides limited warranties for defects and weatherization. For components not manufactured by the company, it passes-through the applicable manufacturers’ warranties. As part of its solar energy system contracts, the company might provide the customer with performance guarantees that commit that the underlying system would meet or exceed the minimum energy generation requirements specified in the contract.
Purchase Financing and Leases: The company offers leasing and/or loan financing arrangements for its vehicles in certain jurisdictions in North America, Europe and Asia itself and through various financial institutions.
In 2019, the company launched an insurance product designed for its customers in California. In 2021, the company launched its insurance product using real-time driving behavior in select states. Its insurance products are available in Arizona, California, Illinois, Ohio and Texas and it plans to expand the markets in which it offers insurance products.
Energy Generation and Storage
The company offers certain loan and PPA options to residential or commercial customers who pair energy storage systems with solar energy systems. It 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. 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.
Vehicle Safety and Testing
In the U.S., the company’s vehicles are subject to regulation by the National Highway Traffic Safety Administration (NHTSA), including all applicable Federal Motor Vehicle Safety Standards (FMVSS) and the NHTSA bumper standard. Numerous FMVSS apply to the company’s vehicles, such as crash-worthiness requirements, crash avoidance requirements and EV requirements. As a manufacturer, the company must self-certify that its vehicles meet all applicable FMVSS and the NHTSA bumper standard, or otherwise are exempt, before the vehicles may be imported or sold in the U.S.
The company is required to comply with other federal laws administered by NHTSA, including the CAFE standards, Theft Prevention Act requirements, consumer information labeling requirements, Early Warning Reporting requirements regarding warranty claims, field reports, death and injury reports and foreign recalls, owner’s manual requirements and additional requirements for cooperating with safety investigations and defect and recall reporting.
The company was founded in 2003. It was incorporated in the state of Delaware in 2003. The company was formerly known as Tesla Motors, Inc. and changed its name to Tesla, Inc. in 2017.