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- Tesla brought in $96.7 billion in revenue in 2023, putting it in 40th place on the Fortune 500.
- The vast majority of its revenues come from sales of its EVs, like the Model Y.
- But 8.5% of its revenues stemmed from selling regulatory credits and energy products.
Tesla, the EV manufacturer led by tech mogul Elon Musk, has seen its revenues boom over the past decade as its battery-powered cars have defined the growing electric vehicle segment.
While Musk's car company is still far ahead of the competition in profitability for electric vehicles, a slowdown in EV segment growth has finally started to affect the company's business.
The company doesn't just make money through EV sales, though, a fact Musk often points to during this period when it's harder to squeeze revenue out of the automotive segment. Other revenue streams include the sale of regulatory credits, software subscriptions, and energy generation and storage products.
What is the annual revenue of Tesla?
Tesla's revenues have risen steadily over the past decade, peaking at $28.5 billion in the fourth quarter of 2023 before dipping to $21.3 billion the next quarter, as financial filings show.
Tesla's gross profit margin also shrank to 17.4% in the first quarter of 2024—off from 19.3% in the same quarter a year before—after a year of slashing prices cut deep into the automaker's bottom line.
The automaker generated around $96.7 billion in total revenues in 2023, putting it in 40th place on the Fortune 500, which ranks US companies by revenue. Though Tesla's 2023 revenues increased nearly 19% from 2022, it still trails legacy rivals Ford and General Motors in revenue generation. Ford ranked 17th on the Fortune 500 with $176.1 billion in revenue in 2023, while GM ranked 19th with $171.8 billion.
Is Tesla profitable in 2024?
Tesla made a gross profit of $17.4 billion in 2023, giving it a gross profit margin of 18.2%. A decade after going public, it recorded its first full-year profit in 2020.
The vast majority of Tesla's revenue comes from sales of its vehicles and accompanying features like full self-driving upgrades. Tesla got nearly 15% of its 2023 revenues, or about $14.3 billion, from other sources.
How much does Tesla make from selling cars?
Tesla made $82.4 billion from automotive sales in 2023, which included sales of its Model S, Model X, Semi, Model 3, and Model Y vehicles, as well as access to its FSD features, internet connectivity, and over-the-air software updates.
Tesla prices vary massively by vehicle and specs. The Model 3, the cheapest, starts at $38,990 in the US, whereas its Model S Plaid and Model X Plaid both retail around $90,000.
Revenues from this stream jumped 15% from 2022 to 2023, a much more modest increase than the company recorded in 2022, when Tesla ramped up production of the Model Y and started production at Tesla Gigafactory facilities in Berlin-Brandenburg and Texas. Continued price cuts have also hampered Tesla's revenue growth.
How does Tesla generate revenue?
Tesla's second-biggest revenue segment in 2023 after vehicle sales was what it classes as "services and other revenue," which brought in $8.3 billion, a 36.5% increase from 2022. This category includes non-warranty after-sales vehicle services and parts, paid Supercharging, used vehicle sales, retail merchandise, and vehicle insurance.
Tesla recently announced it was opening up its EV charging network to Ford and GM, meaning that customers of both automakers would have access to around 12,000 Superchargers across North America. Wedbush Securities analyst Dan Ives estimated that these partnerships could generate an additional $3 billion for Tesla's services revenues by 2025.
Another major source of revenue for Tesla is the sale of regulatory credits to other automotive manufacturers, which brought in $1.7 billion in revenues in 2023. Tesla earns tradable credits under regulations related to zero-emission vehicles, greenhouse gases, fuel economy, and clean fuel.
The company made $2.1 billion in 2023 from automotive leasing revenues, including direct-operating lease agreements in the US, Canada, and Europe.
In 2023, Tesla recorded $6 billion in revenues from its energy generation and storage segment, up more than 50% from the previous year. This business segment includes sales and leasing of solar energy generation and energy storage products, like its Powerwall, Megapack, and Solar Roof.