Tesla

Tesla (NASDAQ: TSLA) designs, builds and sells its cars and batteries itself, direct to customers with no dealers, then leans on three margin levers: regulatory credits, energy storage and software/services. FY2025 revenue was $94.8B (−3%): automotive $69.5B (cars $65.8B, credits $2.0B, leasing $1.7B), services and other $12.5B (+19%) and energy $12.8B (+27%). Gross margin was 18.0%, operating income $4.36B (4.6%) and free cash flow about $6.2B (INFERENCE: $14.7B operating cash flow less $8.5B capex). The levers are lopsided: credits are almost pure margin ($2.0B ≈ 46% of operating income, INFERENCE) but are fading (−28% in FY25, −67% in Q2 2026); energy is 13.5% of revenue but about 22% of gross profit (INFERENCE) at a 29.8% gross margin. Then the bet: Q2 2026 revenue was $28.2B (+26%, 480,126 deliveries) but operating income only $398M (1.4% margin) and free cash flow −$1.1B, because R&D (+49%) and capex ($5.8B in the quarter) are being pushed into AI, cells, chips, Cybercab and Optimus. Tesla says it expects hardware profits to be joined over time by AI, software and fleet-based profits — a goal, not yet a reported result.

Business Model Canvas
Tesla
Research date: Oct 10, 2026
Evidence-backed · sources in companion brief

Key Partners

  • Battery cell suppliers — Panasonic and CATL named in the 10-K; limited number qualified (FACT).
  • Thousands of other suppliers; some single-source components (FACT).
  • Banking partners — buy leases with Tesla resale value guarantees; no credit risk to Tesla in those programs (FACT).
  • Credit buyers — other automakers purchase regulatory credits under standing arrangements (FACT).
  • Charging partners — NACS-adopting automakers; Supercharger for Business hosts who buy and install stalls (FACT).
  • Related parties — SpaceX buys Megapacks; Redwood Materials and The Boring Company also named (FACT, 10-Q).

Key Activities

  • Manufacture vehicles and energy storage — 1.66M vehicles produced and 46.7 GWh deployed in 2025 (FACT).
  • Make cells and materials — 4680 cells (Texas, >40 GWh capacity), LFP (Nevada, 7 GWh early ramp), cathode and lithium refining in Texas (FACT, Q2 update).
  • Build and train AI — FSD (Supervised), Robotaxi in six Texas and Florida metros, Optimus lines being installed (FACT).
  • Operate Superchargers — 8,704 stations, 82,357 connectors at Q2 2026 (FACT).
  • Sell, deliver and service directly — stores, website, service centers, used cars and insurance (FACT).

Key Resources

  • People — 134,785 employees at 31 Dec 2025 (FACT).
  • Factories — California, Shanghai, Berlin, Texas, Nevada; Megafactories in California, Shanghai, Texas (FACT).
  • Fleet and data — 9.7M cumulative deliveries; FSD (Supervised) miles tracked by Tesla (FACT).
  • Compute — Cortex 1 (>90 MW) and Cortex 2 (>115 MW) in Texas; Austin chip fab in early build (FACT).
  • Balance sheet — $43.5B cash and short-term investments at 30 Jun 2026 (FACT).

Value Propositions

  • Electric vehicles — Model 3, Y, S, X, Cybertruck; Semi for commercial use (FACT).
  • Software that improves — OTA updates; FSD (Supervised) active subscriptions 1.48M, +56% YoY (FACT).
  • Charging — 8,704 Supercharger stations open also to non-Tesla EVs in supported markets (FACT).
  • Energy storage — Powerwall for homes, Megapack for utilities and industry; 46.7 GWh in 2025 (FACT).
  • Autonomy bet — Robotaxi service and Cybercab; Optimus robot lines being installed (FACT, outcomes unproven).

Customer Relationships

  • FSD (Supervised) subscriptions — 1.48M active at Q2 2026; record attach in North America (FACT).
  • Over-the-air updates — bundled with the car, deferred revenue $3.9B at end 2025 for connectivity, FSD access and similar items (FACT).
  • Service and collision — Tesla-run, non-warranty maintenance growing (FACT).
  • Insurance — launched 2021 in select states; priced on real-time driving behavior (FACT).
  • Trade-in and used cars — tied to new-vehicle sales (FACT).

Channels

  • Website and Tesla app — order cars, buy paid options and features (FACT).
  • Company-owned stores and galleries — no independent dealer network (FACT).
  • Service centers and Tesla Mobile Service technicians — Tesla-run (FACT).
  • Superchargers and Tesla Diner — charging as a touchpoint (FACT).
  • Energy partners and PPAs — channel partners; some commercial PPAs (FACT).

Customer Segments

  • Car buyers — 1.64M deliveries in 2025; 480,126 in Q2 2026 (+25%) (FACT).
  • Commercial buyers — Tesla Semi, a commercial electric truck (commissioning in Nevada, production planned for 2026) (FACT).
  • Energy customers — homes, small and large commercial, utility and generation (FACT).
  • Other automakers — regulatory credits and Supercharger access (FACT).
  • Robotaxi riders — unsupervised service in Austin, Dallas, Houston, Miami, Orlando, Tampa (FACT, Q2 2026 Update).

Cost Structure

  • Cost of revenues — $77.7B FY25 (about 82% of revenue); total gross margin 18.0% (FACT / INFERENCE).
  • R&D — $6.41B FY25 (+41%); $2.37B Q2 2026 (+49%) (FACT).
  • SG&A — $5.83B FY25; $1.98B Q2 2026, including CEO Performance Award stock comp (FACT).
  • Capex — $8.53B FY25; $5.79B in Q2 2026 alone; $8.28B in H1 2026; 2026 guidance raised from >$20B (10-K) to >$25B (10-Q) (FACT).
  • Warranty, tariffs and inventory write-downs sit inside cost of revenues; Q2 2026 energy margin hit by cell warranty charges (FACT).

Revenue Streams

  • Automotive sales — $65.8B in FY25 (−9%); $20.0B in Q2 2026 (+27%) (FACT).
  • Regulatory credits — $1.99B FY25 (−28%); $146M in Q2 2026 (−67%) (FACT).
  • Automotive leasing — $1.71B FY25 (−6%) (FACT).
  • Services and other — $12.5B FY25 (+19%); $4.58B Q2 2026 (+50%), record 14% gross margin (FACT).
  • Energy generation and storage — $12.8B FY25 (+27%); $3.14B Q2 2026 (+13%) (FACT).
Sources: sec.gov/Archives/edgar · sec.gov/Archives/edgar · ir.tesla.com/_flysystem/s3 · ir.tesla.com · ir.tesla.com/_flysystem/s3
Not affiliated with Tesla.
BMC · Osterwalder 9-block · Oct 10, 2026