In: Finance
Please discuss analysis by business segment for Tesla.
Please make the analysis at least two paragraphs long. Thank you.
Business segment analysis of Tesla Inc:
Tesla operates via 2 business segments-
1) Automotive segment focusses on the manufacture, design and sales of electrical vehicles. The models sold include Model X sport utility vehicle, Model S and Model 3. Primarily they are selling the Model S Sedan with a variety of battery pack options : 40 kWh, 60 kWh and 85 kWh. The model is supposed to focus on lower cost of ownership with respect to the other models in the class. The core values and product proposition includes energy efficiency, style, performance and convenience.
2) Energy generation and storage segment encompasses manufacture, installation, design and sale/lease of stationary energy storage products to commercial and residential customers. Tesla also makes energy storage devices and sells them to residential homes, utility sites etc. Few products include the Powerwall and Powerpack which are energy storage products and are operated by rechargeable lithium-ion battery.