TacticScaleWhat Tesla Does & How It Makes Money (TSLA)
Updated October 2026 · reflects Tesla's latest reported financials
Electric vehicle maker that also sells solar panels and home batteries. Most of its revenue comes from selling and leasing electric vehicles, plus regulatory credits, Supercharging, software upgrades, insurance, financing, and service.
How Tesla makes money
Most of its revenue comes from selling and leasing electric vehicles, plus regulatory credits, Supercharging, software upgrades, insurance, financing, and service. A second segment sells and leases solar and battery storage systems such as Powerwall and Megapack, along with installation and service.
What Tesla does
Tesla, Inc., headquartered in Austin, Texas, and incorporated in 2003, has two business segments. The Automotive segment designs, makes, sells, and leases electric sedans and SUVs, and sells used vehicles. Around the cars it also earns money from regulatory credits, the Supercharger network, in-app upgrades, financing and leasing, insurance, service, parts, and merchandise. Tesla develops its own battery and powertrain technology, vehicle control and infotainment software, and self-driving and AI software. The Energy Generation and Storage segment makes, installs, sells, and leases solar panels, Solar Roof, and lithium-ion storage products such as Powerwall and Megapack. It serves homeowners, businesses, industrial customers, and utilities through its website, stores, galleries, and channel partners, and it also offers service and financing. The company's main markets are the United States and China. It was known as Tesla Motors until 2017.
Products & services
- Tesla electric sedans and SUVs
- Tesla Supercharger network
- Powerwall
- Megapack
- Solar panels and Solar Roof
- Self-driving and AI software
What is Tesla worth?
On an owner-earnings DCF, Tesla's most-likely value is about $44 versus a recent price near $383 (89% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$16) with a margin of safety — so the honest verdict here is “Stretched — richly priced.” Fair value earns its keep only at the extremes, not in the wide middle.
Today's $383 is above even the optimistic Bull case ($140) — the market expects faster, longer growth than modeled here. Expensive unless that extra growth actually shows up.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →