Hello guys,
In today's post, we will discuss Tesla, one of the most valuable and profitable companies in the world. You will get shocked to hear its market cap which is more than 1 trillion dollars. This is owned by the richest person in the world, Elon Musk. He had built this empire very wisely. This company gives an important message to the world which is to use electric cars and make the world pollution-free.
So let's discuss about it in details...
I wanna tell you that it has four models :- Model S= 90,000$
Model 3=42, 000$
Model X=99, 900$
Model Y=55, 000$
In these models, the Model 3 is the cheapest Model and gives most sales to Tesla and the Model X is the most expensive one.
In India the Tesla car is of cost ₹70 Lakhs.
The selling of cars is not the only source of income for Tesla. All sources of Income for Tesla are:-
- Automotive -Sales of cars i.e. 80% of the total revenue.
- Servicing-The servicing of cars is also a source of revenue.
- Energy Business-Tesla is not only a car company but it is also an Energy Company which provides different sources of energy or works on energy-based types of equipment i.e. Solar Roofs, Power Walls, Cyber/Electric Trucks (on working).
The revenue of Tesla is gradually increasing.
Other companies are investing money in advertising while Tesla in investing most of the revenue in Research and Development and not investing a single dollar in advertising.
It doesn't need any advertisement because Elon Musk is a popular person and because of unique features of Tesla it is covered by magzines, newspapers and news channels.
Till 2019 Tesla was a loss making company and in 2020 it become a profit making company and this become profit making company because of Regulatory Credit.
*Regulatory Credit:- In this system credits are given by government to a company which is environment friendly. And if any company that is not environment friendly then the company has to buy these credits from government or other companies.
This system is the revenue source of Tesla, because Tesla is a environment friendly company and credits are given by government and Tesla sell it to other companies. In year 2020 , it makes $500M+ from credit system.
Car Dealership:-Tesla has no dealers or middleman. Customer can buy Tesla car directly from its showroom or it website.
Disadvantage of it:- It increases cost, delivery, staff and maintenance etc.
And due to this it banned in Texas state of US.
Giga Factory:-From settling Giga Factory it increases the production due to this the cost of products decreases. Tesla has 6 Giga Factories in which 4 are functional and 2 are under construction.
In last 2 years Tesla's shares got 2X growth.
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