Tesla makes electric cars and batteries that store power for homes and utilities, and it develops self-driving software and humanoid robots. In 2023, its Model Y became the first electric vehicle to rank as the world's best-selling car. Buyers order the Model 3 sedan, Model Y SUV, or Cybertruck pickup directly from Tesla instead of through dealers, and they charge on its Supercharger fast-charging network. It also sells Megapack and Powerwall batteries, runs a robotaxi service, and charges drivers a monthly fee for self-driving software that still needs their supervision. Tesla was founded in 2003, with Elon Musk as its lead early investor and a recognized co-founder, and it is based in Austin, Texas.
Company Size
10,001+
Company Stage
IPO
Headquarters
Austin, Texas
Founded
2003
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SpaceX's market value has reached approximately $2.27 trillion, nearly $800 billion more than Tesla's $1.49 trillion valuation, despite generating less than a quarter of Tesla's revenue. SpaceX brought in about $23 billion over its past four reported quarters compared to Tesla's $104 billion. The valuation gap reflects different growth trajectories. SpaceX's Starlink satellite internet service has become highly profitable, earning around $5.3 billion in operating income with margins reaching 39%. The segment doubled its subscribers to 12 million over the past year. Tesla's profitability has declined, with operating margins falling from around 6% to just 1.4% in the second quarter. Its valuation relies on future autonomous vehicle and robotics businesses that aren't yet significant revenue sources. SpaceX's AI segment, including Grok and computing services, lost $3.7 billion in the first half of 2026, though losses are narrowing.
Pilot and Tesla have opened their first Megacharger site for heavy-duty electric trucks at a Pilot travel centre in Ellabell, Georgia. The location features six charging stalls, with three additional sites expected to open soon in California, Texas, and Nevada. The companies announced their collaboration in January 2026 to develop a network of Tesla Megachargers at select Pilot locations along major US freight corridors. Each site will feature four to eight high-power charging stalls using Tesla's V4 cabinet technology, capable of delivering up to 1.2 megawatts of power per stall. According to Tesla, a Tesla Semi can recover 60% of charge in 30 minutes at these stations. Twelve locations are currently under construction across California, Georgia, Indiana, Nevada, and Texas.
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.