Tesla designs and sells electric vehicles and renewable energy products. Its cars (Model S, 3, X, Y, and Roadster) run on battery power, with a semi-autonomous Autopilot driving system and a global network of fast-charging stations called Superchargers. The company also provides solar panels, Solar Roof, and energy storage products (Powerwall, Powerpack, Megapack) to generate and store clean energy for homes and businesses. Tesla operates with a vertically integrated model, manufacturing key components (batteries, drivetrains) and selling directly to customers via its website and stores, while earning revenue from vehicle and energy product sales and regulatory credits. Its goal is to speed up the world’s transition to sustainable energy by combining mobility and energy solutions in one ecosystem.
Company Size
10,001+
Company Stage
IPO
Headquarters
Austin, Texas
Founded
2003
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Apple monetises AI through its high-margin Services business, whilst Tesla's heavy AI spending compressed earnings. Apple reported revenue of $109.42 billion, up 16.4%, with earnings per share of $2.02 beating estimates. Services runs at a 75.6% gross margin. Tesla's active full self-driving subscriptions rose 56% to 1.48 million, but earnings per share of $0.33 missed the $0.54 estimate. Operating margin shrank to 1.4%, and free cash flow fell to negative $1.09 billion. Capital expenditure is expected to exceed $25 billion. Apple bought back $25.8 billion of stock last quarter whilst increasing AI spending. Tesla pays no dividend and buys no stock. Apple shares are up 23% year to date, whilst Tesla fell 18%. Tesla trades at 346 times trailing earnings versus Apple's 38 times.
Tesla has redesigned its AI5 chip to use 96GB of RAM instead of the originally planned 144GB, a reduction of one-third. Elon Musk stated this was "the only way to get enough volume for Optimus production" and reduces costs. The redesign indicates the memory shortage has spread beyond data centres into robotics. Micron Technology's chief financial officer Mark Murphy said he has "no line of sight" for when the current memory shortage will ease. Micron's gross margin increased from 2.7% in fiscal 2023 to 80.7% in fiscal 2026. Consensus from 35 analysts expects Micron's revenue to reach approximately $275 billion in fiscal 2027, up from $133 billion in fiscal 2026. The main risk is that other chip designers may follow Tesla's example and find they need less memory than anticipated.
Tesla has rescheduled its long-awaited Roadster reveal to 15 October, moving from the original 1 October date due to weather concerns. The event must be held outdoors, likely to accommodate SpaceX thruster demonstrations. The supercar was first announced in 2017 with a promised launch "a few years away". Tesla collected $50,000 deposits from buyers, with the vehicle priced at around $200,000. Production could take a year or longer after the reveal. The Roadster is unlikely to significantly impact Tesla's revenue. The company delivered 480,126 vehicles in Q2, up 25% year-over-year, generating $28.2 billion in revenue. However, operating income fell 57% to $398 million. Tesla is investing heavily in AI and other projects, with capital expenditures more than doubling to $5.8 billion in Q2.
Tesla shares climbed 4.65% to $370.59 after reporting third-quarter deliveries of 486,532 vehicles, beating Wall Street estimates by approximately 25,000 units. Trading volume reached 53.9 million shares, 39% above the three-month average. The Model 3 and Y accounted for 478,237 deliveries. The strong performance came despite federal EV tax credits expiring in September 2025. The S&P 500 rose 0.74% whilst the Nasdaq Composite gained 1.19%. Rivals Rivian and Lucid declined 3.12% and 1.43% respectively, though Rivian also reported record quarterly deliveries. Investors are now focused on Tesla's upcoming October earnings report and whether the delivery momentum translates into strong revenue guidance.
Tesla has won approval from the US Securities and Exchange Commission for a new retail voting plan that allows investors to automatically cast their proxy votes in line with management recommendations. The SEC approved Tesla's proposal on 29 September, the same day the company submitted its letter. Tesla says the plan addresses low retail investor turnout, which stands at around 30% compared with 77% for institutional investors. The company spent more than $2 million pursuing small shareholder votes at its last two annual meetings. The approval applies to any company wishing to implement similar measures. Critics, including shareholder activists, argue the change will reduce their influence over corporate decisions. The plan builds on a similar programme introduced by Exxon last year.