Tesla has become the most valuable car company in the world. It is more valuable than the Tesla products other than cars like Ford, Toyota, General Motors, Daimler, BMW and others combined. Its Share Price has increased exponentially to almost 15 times in the last two years as people Invested more and more in the company. And yet the Market Share of Tesla is only around 2%. How is that possible? What profit margin does Tesla earn while selling the model 3, model X, model S and model Y cars? What are the Revenue Sources and how much money does Tesla actually make and spend on different things? I explain in this video. Also I explain the secret of Elon Musk’s magic behind making Tesla a successful electric car company.
How Big Is Tesla?
At first glance, you'd thing that if Tesla is such a valuable company it must be selling a lot of cars this isn't true friend. Although it is certainly true that the number of Tesla cars sold this year, is much more than last year it has good growth. But if you compare overall the number of Tesla cars sold in 2021 or rather the number of Tesla cars that will be sold by the end of 2021 it will be less than 1 million.
All the cars sold by all the companies worldwide 75 million. It is estimated that around 900,000 Tesla would be sold this year. The overall Market Share of Tesla is inly 1.2%. A meagre market share, but an enormous valuation. Here we have all the cars sold by all the companies.
Tesla Profit Margin On Cars ?
Mainly, there are 4 very popular Model of Tesla. Model S, Model 3, Model X, Model Y.
The most expensive of Tesla car is the Model X, Around $99,900 for this car. Then, Model S at $90,000. Model Y at $55,000. And Model 3 the most sold Tesla car it's also the Cheapest Tesla Car $42,000. It's being expected that Tesla would soon introduce the Model 3 in India, but in India, it will cost of Tesla car in India 70 lakh Rupees In India. That Tesla cats come in the high-end luxury category. If you look at this chart you'd know the volume of sales of each model, generally the Tesla Model X and S are around 10,000 and Tesla Model 3 at 90,000. This chart is for the quarterly deliveries.
Profit margin in selling one car, for Tesla, this is at 30.5% it is believed to be a very high profit margin. In comparison, in the past it used to be around 27% and now it has crossed 30% it has seen good growth too. And if you compare it to the other car companies, it is more than in most companies, Even BMW, and Mercedes don't get such a high profit margin. For more car companies it is in the 15% - 20% range, in fact this margin of more than 30% is only for the high-end extreme luxury brands like Porsche or Ferrari. Selling cars is the main source of revenue for Tesla, most of the revenue earned by Tesla is from the car sales.
Source Of Revenue (Tesla
1. Automotive (Car Sales)
2. Servicing/Others
3. Energy Business
Combine all the revenue of Tesla.
Tesla Stock Market Value
Many people have confidence in Tesla and feel proud to invest in its stocks. They're certain that in the future this company would bring a revolution to the world. Today Share Price of Tesla around $835.50. So many people have invested in Tesla's stock that is the most popular Stock in the US now.
In the last 2 years, Tesla's share price has increased to 15 times, is the reason why Tesla has become the most valuable car company in the world. But there is another aspect of it, many people believe that Tesla's stock is currently overvalued. They thing that it doesn't have any reason to be so valuable if the data and statistics are looked into realistically.
In the last 2 years, Tesla's share price has increased to 15 times, is the reason why Tesla has become the most valuable car company in the world. But there is another aspect of it, many people believe that Tesla's stock is currently overvalued. They thing that it doesn't have any reason to be so valuable if the data and statistics are looked into realistically.