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  • 3 Sep 2022

  • 3 Sep 2022

Tesla Business Model: Accelerating the Electric Vehicles

The market value of Tesla, the manufacturer of high-end electric cars has surpassed that of Ford and General motors. It marks its importance in being the most valuable automobile company in the world.


To accelerate the worlds transition to sustainable energy.


To create the most compelling car company of the 21st century by driving the worlds transition to electric vehicles.


Tesla, founders

Tesla is one of the biggest names in the automotive industry. Elon Musk is the real man behind the company. It was Martin Eberhard who founded Tesla. In the year 1997, while working as an Electrical Engineer, he met his future business partner Marc Tarpenning. They both decided to shift their focus to the electric sports car. In 2003, they began working together on the Roadster, which was the first car of the company. Despite of relying on the traditional combustion engine, both of them had a good idea to utilize lithium ion batteries.

They partnered up with two companies, AC Propulsion, and Lotus, the British car manufacturer. Mr. Martin set a deal with AC Propulsions to use their motor, but he still needed an actual car to place the motor in. Here the model of Lotus came in and their model Lotus Elise came on the floor, which was small and sporty associated with a good speed.

Hence, Mr. Martin and Mr. Marc made their way to the Los Angeles Auto Show, where they kept pestering Lotus until a very polite British man finally gave them the time of day.

To get Roadster into production, Tesla was in need of funds. During that period, Elon Musk had sold PayPal to eBay and he had 7.5 Million Dollars of which he invested into Tesla after meeting Mr. Martin and Mr. Marc, which helped the company to have a great leap forward. Roadster did not actually roll off the production lines until 2008, Tesla was a massive success and was the first successful car startup in decades.


Tesla is associated with four famous models that are - Model S, Model 3, Model X, and Model Y. The Model X is the most expensive model of it, which is worth around 99,900 Dollars, then Model S for 90,000 Dollars, whereas Model Y is worth 55,000 Dollars, and Model 3 is the most sold car of the company which is worth 42,000 Dollars. All of its cars belong to the high-end luxury category.

Business Model: How it is unique from others?

Tesla, business model, uniqueness

The company makes premium electric cars which are luxury and high-quality environment-friendly cars. The range of its electric batteries is also very impressive as compared to most other electric cars, which is a key point. There is the autopilot feature, the fast acceleration, and also the supercharging network which is very important.

The technology associated with the company is innovative. The customers of Tesla are status-oriented and environment-friendly people as well. The company showcases and sells its cars only in its stores. The company completely controls its brand image, which is crucial and it establishes its showrooms in surprising locations to raise awareness about itself and how it works. One can find its store in big shopping malls. Its success lies in the internal operation side, mainly in the key activities.

To reduce the battery cost, the company is building giant battery factories. They are also streamlining as much as production as possible, but the basis of all their cars is almost the same as demonstrated by the so-called skateboard chassis which one can find in their stores just like the interior. Streamlining most of the process allows the company to reduce and increase production capacity which is actually their biggest concern. They do not have sales problems but have delivery problems. Tesla is an extremely innovative company in many ways. It is growing fast and creating a new market. Tesla marks its importance in being the first to bring the eco-friendly car evolution.

Revenue Model

Tesla, revenue model

Tesla shows its earning about 15 million Dollars in 2008, and 112 million Dollars in 2009, whereas it has earned 117 million Dollars in 2010 and 204 million Dollars in 2011. It has earned 413 million Dollars in 2012 and 2,014 million Dollars in 2013. It shows earnings about 3,198 million Dollars in 2014, and 4,046 million Dollars in 2015. The company has earned about 7,000 million Dollars in 2016, and 11,759 million Dollars in 2017, whereas in 2018 it earned about 21,461 million Dollars and 24,578 million Dollars in 2019. The company has earned about 31,536 million Dollars in 2020, and 53,823 million Dollars in 2021.

[The images are being taken from the registered companies and belong to their respective owners only.]