How Do They Make Money?

Tesla designs, develops, manufactures and sells high performance fully electric vehicles and energy generations and storage systems and offer other services related to their products.

Unlike most automotive companies, they sell their vehicles direct to consumer.

Tesla has two reportable business segments:

• Automotive

• Energy generation and storage

Automotive accounts for the vast majority of Tesla's revenue. (~85%). Sales of used vehicles, non-warranty after-sales vehicle services, body shop and parts, paid Supercharging, vehicle insurance revenue and retail merchandise are included in the Automotive segment (yes! They have an insurance segment! Also another differentiator... although they do not break out the revenue from it)

Energy generation and storage includes design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. The key products in this segment are their solar panels, solar roof, Powerwall and Megapack.

Gross Margin on both businesses is ~18-19%, so it is relatively low.

I'd like to see FSD (and Optimus, when commercially available) figures broken out as a separate Reportable Segment as Elon is forking it as Tesla's savior