Five Businesses That Tesla Owns
The main product of Tesla Inc. (TSLA) is high-performance all-electric automobiles. Along with services associated with its products, the electric car manufacturer also offers energy generating and storage solutions. In 2003, Tesla was established. The objective was to create automobiles that would be as fast and enjoyable to drive as gasoline-powered vehicles while using fewer fossil fuels. 2008 saw the release of the company’s Roadster, which was followed by the Model S, Model X, and Model 3. Over the past few years, Tesla has added two new truck models—the Tesla Semi and the Cybertruck—and an SUV, the Model Y, to its lineup of electric vehicles. Following steady earnings reports, the firm became eligible to be included in the S&P 500 Index in December 2020. With a market valuation of $514 billion as of April 2024, Tesla has subsequently risen to the top of the global automobile rankings. Tesla reported $14.97 million in net profits on $96.77 billion in revenue in 2023.
Although Tesla is still a relatively new company, many significant acquisitions, particularly in recent years, have helped it expand quickly into the most valuable manufacturer. Increasing production capacity, improving operating speed and efficiency, and cutting costs have been the main goals of the purchases.
We examine five of Tesla’s most significant purchases in further detail below. The amount of earnings or revenue that each purchase now provides is not broken out by the corporation.
Elon Musk’s relatives, two brothers, launched SolarCity in 2006. Musk came up with the company’s concept, acted as its chair, and supplied the initial operating capital. SolarCity offers solar-generated power and designs, builds, and installs solar energy systems. Later that year, the merger was finalized when Tesla announced in August 2016 that it had signed a deal to purchase SolarCity. Tesla said that by combining SolarCity’s solar power with Tesla’s energy storage, the two companies will become the first vertically integrated sustainable energy firm in history. Many Tesla investors then sued the firm, even though the merger was approved by the majority of Tesla shareholders. They said that saving SolarCity, which was struggling financially at the time, was the true driving force for the agreement. Since then, the courts have decided in Musk’s favor.
In 1965, the business was established as Maxwell Laboratories Inc. In 1983, it went public, and in 1996, it rebranded itself as Maxwell Technologies Inc. Ultracapacitors, which are devices that can hold many times more energy than conventional capacitors, are the specialty of the maker of energy storage and power transmission systems. Applications for its products are numerous and include grid energy storage, industry, and transportation.
Tesla purchased Maxwell in May 2019. Musk has previously stated that the development of ultracapacitors would revolutionize the manufacturing of electric cars. Additionally, he had high hopes for Maxwell’s effective method of manufacturing electric battery parts, which may significantly lower Tesla’s production costs for its electric vehicles.