Tesla

Tesla designs, develops, manufactures, sells and leases fully electric vehicles and energy generation and storage systems, and increasingly adds software and services to them. It reports two segments, automotive and energy generation and storage, and runs a growing network of Tesla Superchargers. It manufactures in the United States and internationally, including in China and Germany.

Most revenue comes from selling and leasing vehicles, plus sales of regulatory credits to other automakers. Energy generation and storage sells Powerwall and Megapack storage products and solar products. Services and other adds used vehicles, maintenance and collision services, paid Supercharging, insurance, parts and merchandise. In fiscal 2025 revenue was $94.8 billion, of which energy generation and storage was $12.8 billion.

Energy generation and storage is a second large business, with $12.8 billion of revenue in fiscal 2025. The company says it wants to add AI-related software and services to its vehicles, and it builds vehicles in the United States, China and Germany, which it says helps keep vehicles affordable and limits the effect of tariffs. It also held $28.3 billion of short-term investments at the end of the second quarter of 2026.

Revenue fell from $97.7 billion in fiscal 2024 to $94.8 billion in fiscal 2025 and operating income fell from $7.1 billion to $4.4 billion, while research and development rose from $4.5 billion to $6.4 billion. Automotive regulatory credit revenue fell 28% in 2025, a high-margin revenue line that Tesla does not control. Capital spending of $12.9 billion over the last twelve months is about twice depreciation and amortization, so free cash flow to the firm is thin.