Hailed as one of the world’s most valuable companies, Tesla Inc., is currently the world’s most valuable automaker as well. An American multinational headquartered in Austin, Texas it functions in the automotive, artificial intelligence, and clean energy space. Tesla’s product repertoire boasts of designing and manufacturing electric vehicles (cars & trucks), battery energy storage (home to grid-scale), solar panels and solar roof tiles, and related products and services. In the year 2021, Tesla Inc. recorded the most worldwide sales capturing 21% of the battery-electric market and 14% of the plug-in market. Tesla Energy, a subsidiary of Tesla Inc., develops and installs photovoltaic systems in the US. The company is also one of the largest global suppliers of battery energy storage systems.
The company was incorporated as Tesla Motors, Inc., on July 1, 2003, by Martin Eberhard and Marc Tarpenning, who also served as CEO and CFO respectively. It was Eberhard’s vision to build a car manufacturer that was also a technology company with its core technologies as the battery, computer software, and proprietary motor. Their third employee, Ian Wright, joined the team a few months later. It was in February 2004 when the company raised USD 7.5 million in Series A funding that included USD 6.5 million from the enigmatic Elon Musk. With the highest amount contributed, Musk assumed the position of Chairman of the Board of Directors as he became the largest shareholder of Tesla. A couple of months later, by May 2004, J.B. Straubel joined the company as the Chief Technical Officer.
It was in September 2009 that a lawsuit agreement by Eberhard and Tesla allowed all five – Martin Eberhard, Marc Tarpenning, Ian Wright, Elon Musk, and J.B. Straubel, to call themselves the co-founders of Tesla Motors Inc.
Tesla’s Products and Expansion
The first car that Tesla officially revealed to the public was the Roadster in July 2006 and began its production in 2008. Two years later, the company purchased the Tesla Factory in Fremont from Toyota for USD 42 million. This was to begin the production of their new offering – Model S. In June of the same year, Tesla Inc. also went public through its IPO on NASDAQ. Tesla launched its second car, the Model S luxury sedan in June 2012 which went on to become the first electric car to top the monthly sales ranking within the country.
By the year 2015, Tesla entered the energy storage market and unveiled Tesla Powerwall and Tesla Powerpack battery packs. By September of the same year, the company also began shipping its third vehicle – Tesla Model X, the luxury SUV.
Tesla acquired SolarCity and entered the photovoltaics market in November 2016 and changed its name to Tesla Inc., in February 2017 to reflect on its expanding business. In 2017, the company also began selling its fourth vehicle model called the Model 3 sedan, which became the world’s best-selling plug-in electric car for 2018.
It was in the year 2019 that Tesla opened its first Gigafactory in Shanghai, China marking its first foray into global expansion. By 2020, it also began constructing its new Gigafactory in Berlin, Germany, and one more in Texas, United States. The same year it also began delivering its fifth vehicle model – the Model Y crossover. By July 2020, Tesla Inc. became the world’s most valuable automaker by market capitalization by reaching a valuation of USD 206 billion. The company also became eligible for inclusion in the S&P 500 index after it reported consistent profits for four consecutive quarters between July 2019 and June 2020 and was added in December 2020. By October 2021, Tesla’s market capitalization reached USD 1 trillion and in March 2022 launched its new car factory in Berlin which is the largest for electric vehicles in Europe.
Tesla and India
In the year 2021, Tesla officially incorporated an Indian company in Bengaluru as Indian government officials stated that due consideration was being given to Tesla’s proposal of a sharp reduction in import duties for electric cars. However, even after all this time, the company is yet to move forward with service centers and supercharger stations.
Elon musk took to Twitter and posted – “Tesla will not put a manufacturing plant in any location where we are not allowed to first sell and service cars.”
This tweet came in response to the Indian government’s non-acceptance of Musk’s demand of reducing import duties on Tesla vehicles. Currently, India levies a 100% tax on imported cars costing upwards of USD 40,000 and 60% on cars that are valued at less than USD 40,000. These import taxes are inclusive of insurance and shipping expenses.
Elon Musk blames ‘government challenges’ for Tesla’s India delay
Nitin Gadkari, Minister of Road Transport and Highways of India clarified at the ‘Raisina Dialogue 2022’ held in April 2022 that it cannot be a good proposition for India if Musk wants to manufacture Tesla cars in China and sell in India. He went on to say – “Our request to him is to come to India and manufacture here. We have no problems. The vendors are available, and we offer all kinds of technology and because of that, Musk can reduce the cost. India is a huge market and offers good export opportunities too. Musk can export Tesla cars from India.”
In another interview with a media channel, Gadkari said – “Elon Musk is welcome in India. However, it will not be possible if he only manufactures in China and wants a concession for marketing in India.” He went on to say that Tesla can avail of all concessions and other benefits only if it manufactures its cars in India.
In response to this Musk tweeted – “Tesla isn’t in India yet due to challenges with the government.” He went on to clarify that he is ready to launch cars in India but the country’s import duties on EVs, according to him, are the highest in the world.
Conclusion
Between the years 2015 and 2020, Tesla expanded quickly, successfully acquiring many companies and increasing capabilities in battery technology. The company also increased its global presence within that time frame. However, the Indian government is maintaining a firm position regarding Tesla’s Indian foray. Union Minister Mahendra Nath Pandey, in July 2022, categorically said that Tesla can only come to India if it complies with the Atmanirbhar Bharat policy of the country. Hopefully, both parties can reach a mutually beneficial resolution soon.
FAQs
What are the primary reasons for Tesla’s delayed entry into the Indian market?
The primary reasons for Tesla’s delayed entry into the Indian market are high import duties, lack of charging infrastructure, and regulatory hurdles.
What steps can Tesla take to overcome the challenges of entering the Indian market?
Tesla can take several steps to overcome the challenges of entering the Indian market, including:
With steady growth, the tech industry is growing at an impressive 5.3% rate. The industry occupied around 35% of the total market base. And the count of tech companies is increasing with a high amount. For instance, the highest count of tech companies is based in the United States, with a count of more than 500 thousand.
And it’s true that regardless of their origin industry, the means of technology is acquired by everyone, and so is every industry. Technology covers all sectors, including hardware, software, online services, tools, and cybersecurity solutions.
Speaking of the tech industry, we are here to make you familiar with the top tech companies in the world, with their market capital and total revenue. So, let’s get started with the article!
List of Top Tech Companies in the world
The tech industry comprises many companies, among which are some of the most valuable in the world. And here’s the list of those and the top tech companies worldwide:
Apple iPad, Apple Mac Book, Apple Watch, Apple iPhone Mobile
Website
www.apple.com
Apple Website
With the highest market capitalization of USD 2421 billion, Apple has an enormous presence in the world’s tech market, making it a giant in the industry. Apple specializes in software, electronics, and online services, with an employee account of over 1,608,000.
Apple is an integral part of BIG FIVE, which includes Google, Amazon, Meta, Apple, and Microsoft. These five companies are the most valuable public corporations in the world based on their market capitalization.
This tech giant was founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne. Since then, Apple has been on a progressive growth producing various kinds of tech devices, from computers to wearables.
Moreover, Apple is the largest technology company based on its revenue, USD 387.54 billion in 2022. And ranked the fourth largest personal computer vendor based on its unit sale in 2021. Its popular products are AirPods, iPhone, iPad, and Apple Watch.
2. Microsoft
Company
Microsoft
Founded
1975
Market Cap
$1825 B (2022)
Revenue
$198.27 B (2022)
Top Products
Microsoft Windows, Microsoft Office Suite, Micrsoft Azure, Internet Explorer
Website
www.microsoft.com
Microsoft Website
Being the most prominent tech giant in the world and the largest software company, Microsoft is one of the oldest tech companies mentioned in this list. It was founded in 1976 and released to the public in 1986. It is best known for its Windows operating system, Azure cloud services, LinkedIn social media platform, and Xbox gaming system.
Moreover, Microsoft is ranked first in the list of BIG FIVE tech giants. The company reported a 12.3% revenue growth in 2022, whose main credit goes to Microsoft’s Azure and other cloud services. Also, at the start of 2022, it announced its deal to acquire the video gaming publisher Activision Blizzard Inc. (ATVI).
3. Google Alphabet
Company
Google Alphabet
Founded
1998
Market Cap
$1346 B (2022)
Revenue
$278.13 B (2022)
Top Products
Google Search, Google Maps, Google Assistant, Gmail, Android
Website
www.abc.xyz
Next, with a whopping market capital of 1346 billion dollars, Alphabet Inc. is an American-based multinational company that originated from Google LLC and many other subsidiaries.
Google Inc. is considered a unanimous leader in the search engine sector across the world, whose market share is around 91.9%. Regarding the FIVE GIANTS, Google has always been a genuinely innovative and trustworthy tech giant, founded by Larry Page and Sergey Brin in 1998.
Google Alphabet always has a keen eye for investing in innovative projects such as life extension R&D company Calico, self-driving cars, the smart home project Nest, and many more.
4. META
Company
Meta
Founded
2004
Market Cap
$545.44 B (2022)
Revenue
$117.929B (2021)
Top Products
Facebook, Meta Audience Network, Meta Business Tool
Website
www.about.meta.com
Meta Website
When it comes to top tech companies across the world, META can never be off the table. The company is the parent company of the most powerful social media platforms such as Facebook, Instagram, and Whatsapp.
Mark Zuckerberg founded the company when he was still a student at Harvard University in 2004. META succeeded with an advanced graph, and as of today, the company has reached nearly 3 billion active users monthly.
In competing with Snapchat and Tiktok, META has introduced several innovative features that have made it a leader in online advertising.
The global tech industry is roughly valued at $5.2 trillion. The above graph shows the global tech industry distribution by the market share in percentage.
5. Tesla (TSLA)
Company
Tesla
Founded
2003
Market Cap
$656.57B (2022)
Revenue
$74.863B (2022)
Top Products
Tesla Electric Car, Tesla Model X, Tesla Model 3
Website
www.tesla.com
Tesla Website
Tesla is a true leader in electric vehicle development and production. Even though the prices of vehicles offered by Tesla are too high, and it takes a lot of time to deliver them, consumers prefer them over everything else.
Tesla was founded by Elon Musk who is also the current CEO of the Tesla Company. The unique thing about Tesla is its business model, which does not use the traditional dealership model of selling vehicles.
Initially, the company was limited to online marketing only, but with time, it started developing its technological devices and also offered cloud services to consumers. With such an innovative mindset, Amazon is ranked the 6th largest company by Forbes among the list of top 25 techs and IT companies.
7. Samsung Electronics
Company
Samsung Electronics
Founded
1969
Market Cap
$281.39 B (2022)
Revenue
$250.21 B (2022)
Top Products
Samsung Galaxy Mobile Phones, Samsung Monitors, Samsung Camera
Website
www.samsung.com
Samsung Electronics Website
Samsung Electronics is the largest mobile phone manufacturing company and the biggest competitor to Apple Inc in the production of mobile phones.
The company is based in Seoul, South Korea. Samsung Electronics isn’t limited to producing electronic devices but also ships, turbines, aircraft engines, and life insurance. Its flagship brands are Galaxy S, Z, and note series. They contribute up to 40% of the company’s growth.
Tencent Holdings, a Chinese technology conglomerate company, is the first-ever Asian tech company that reaches the mark of $500 billion.
The company offers web portals, payment systems, e-commerce platforms, mobile games, and social networks. Along with this, it also owns Tencent Music and Tencent Games companies.
The most successful product of Tencent Holdings is WeChat which has over 1.2 billion monthly active users. The company also provides various marketing solutions and cloud services.
9. Alibaba Group
Company
Alibaba Group
Founded
1999
Market Cap
$191.14B (2022)
Revenue
$134.567 B (2022)
Top Products
Alibaba.com, Aliwangwang, Alibaba Cloud, AliGenie
Website
www.alibabagroup.com
Alibaba Group Website
Another massive Chinese multinational technology company is Alibaba Group. It specializes in retail, e-commerce, the internet, and technology. It offers various profitable services such as web portals, electronic payment services, shopping search engines, and cloud computing.
Alibaba Group was founded in 1999 and established in Hangzhou, Zhejiang. Regarding retailers and e-commerce companies, Alibaba Group is one of the largest groups of companies in the industry.
Moreover, the company is ranked fifth among the largest artificial intelligence companies in the world in 2020.
Semiconductors Used in Mobile Devices, Internet of Things, Automotive Electronics
Website
www.tsmc.com
TSMC Website
Being the largest contract chipmaker in the world, Taiwan Semiconductor Manufacturing produces highly advanced and innovative semiconductors designed by Qualcomm Inc. (QCOM) and Advanced Micro Devices Inc. (AMD).
In recent years, Taiwan Semiconductor Manufacturing has reported a 43.5% growth in its revenue and a net worth of $7.9 billion. The company was founded in the year 1987 and ever since then; it has been leading the global semiconductor foundry, where it generates a 517% return for investors.
Another super famous American tech company is Dell Technologies, which specializes in the market of personal computers. It offers a vast range of tech products, such as data storage devices, servers, SmartTV, network switches, computer accessories, cameras, and many more.
This tech company was founded in 1984 by Michael Dell. Since then, Dell Technologies has been known for its innovative chain supply management and direct sales e-commerce model.
12. Oracle Corporation
Company
Oracle Corporation
Founded
1977
Market Cap
$202.40 B (2022)
Revenue
$44.15 B (2022)
Top Products
Oracle Database, Oracle ERP, MySQL, Oracle E-Business Suite
Website
www.oracle.com
Oracle Corporation Website
Oracle Corporation, a computer software company, was founded in 1977 in California, United States by Larry Ellison, Bob Miner, and Ed Oates with its corporate office headquartered in Austin, Texas.
The company has over 400,000 customers across the globe, such as Siemens Healthineers and FedEx. It provides multiple specific solutions for different types of industries.
Its solutions help manage the modernization of restaurants’ finances, connect HR/product management, secure network infrastructure, and, most importantly, enhance client satisfaction.
Foxconn is spread over to more than 20 countries with its subsidiary count reaching up to 200+ in total. It is also considered the world’s largest electronic manufacturer and a leading science and technology solution provider.
Its top products in the market are iPhone, Kindle, iPad, Blackberry, Redmi phones, PlayStation, and Nintendo. Foxconn ranked 22nd in the 2021 Fortune Global 500.
14. Huawei
Company
Huawei
Founded
1987
Market Cap
$71.2 B (2022)
Revenue
$99.9 B (2021)
Top Products
Huawei MateBook, Huawei Watch, Huawei Mobiles
Website
www.huawei.com
Huawei Website
Another China-based tech company is Huawei Technologies, a consumer electronics manufacturer. Its designs create and sell telecommunication tools to the top telecom companies worldwide, including British Telecom, Bell Canada, and Vodafone.
The company was started as a reselling private branch exchange company, founded in 1987 by Ren Zhejiang. Today, Huawei is a telecom behemoth that develops numerous innovative tech gadgets.
Adobe was founded in 1982 as an American-based software company that provides practical solutions for marketing and document management. Its top products in the market are Adobe Photoshop, Adobe Acrobat, and Adobe Creative Cloud.
Adobe was founded by John Warnock and Charles Geschke in 1982 with its headquarters being placed in San Jose, California (United States). Adobe Inc. also expanded its services in digital marketing software and was considered one of the top global leaders in Customer Experience Management (CXM) in 2021.
The top three services provided by Adobe are Creative Cloud, Experienced Cloud, and Document Cloud.
Conclusion
In conclusion, we can say that the tech industry is increasing and covers some of the most valuable companies in the world. However, it’s essential to know that before investing in any company, you need to do thorough research and, after that, focus on buying an ETF.
As the industry contains a vast number of tech companies, there are many options for you to invest and earn a profit. The above list includes the top 15 tech companies in the world with some of the
FAQs
Which are the top 5 IT companies in the world?
The top 5 IT companies in the world are Microsoft Corporation, IBM, Accenture, Oracle, and TCS.
Which is the oldest tech company?
IBM is considered the oldest tech company in the world. Basically, IBM is counted to be 108 years old company.
What are the top 3 online businesses?
The top 3 online businesses are selling digital marketing services, freelancing, and coaching and consulting.
Who is the market leader in technology?
Apple is considered the market leader in technology with a marketing capital of about $2.448 T.
It was in May 2022 that news began circulating about the world’s largest technology companies that lost over USD 1 trillion in value over just three trading sessions. This was in direct response to the Federal Reserve raising its benchmark interest rates.
The year-over-year inflation rate has remained abnormally and consistently high and peaked in June 2022 at 9.1%, according to the Consumer Price Index Data. It fell to 8.2% in September 2022, which was well above the inflation rate of 2% that is preferred by the central bank.
The Federal Reserve Bank has been struggling to control and bring down the inflation rate, and working towards this had announced a 0.75% interest rate hike. This is the sixth interest hike by the Federal Reserve in the hope that it can cause prices to reduce by slowing down the economy.
Top Companies Valuation (2020-22)
As stocks at large began selling off with the Federal Reserve’s announcement of yet another interest rest hike, the technology sector felt the tremors more than any other sector. The world’s most valuable company, Apple, shed USD 220 billion followed by Microsoft which lost USD 189 billion, Amazon declined by USD 173 billion, Alphabet lost USD 123 billion, and Meta which lost USD 70 billion. Investors are also showing an increasing interest in pushing their money toward the safer market pockets as opposed to stocks that drove business during the strong bull market in recent years.
As much as the numerous interest rate hike by the Federal Reserve Bank have impacted trillion-dollar companies to lose valuation, the entire burden for this decline does not rest on its shoulders alone. There are reasons, external and internal, that hugely impact the fluctuation in a company’s valuation.
External Factors
Many external factors affect the valuation of any company these includes-
Government Policies
Macro-Economic Forces
Industry Life Cycles
Company’s Own Life Cycle
Personal Needs and Desires of the Owner
Capital Markets
Each of these factors is of considerable importance which makes it tough for a company to accurately time any transaction. However, historically, credit markets have proven to be one of the most powerful external forces that decide thevaluation of a company. There are two primary reasons for this.
1. Rate of Return
Economic risks are measured by determining the rate of return required for an equivalent investment facing an equivalent level of risk, known as the ‘discount rate’. Simply explained, it means that as the interest rates go down, current values go up which ensures that the company’s valuation increases. Contrarily, the higher the interest rates, the lower the valuation as borrowing money becomes more and more expensive. This decreases a company’s valuation.
2. Supply of Money
This particular concept heavily influences business valuations. As the economy slows, the Federal Reserve lowers the interest rate driving the capital markets to loosen purse strings by buying stock cheaply. What then happens is that there is more money that competes for a limited number of assets which, then, consequently, drives valuation higher making investors take on more risks due to easy access to debt and lower discount rates. This period of speculation ignores the fundamentals where the growth is high.
Internal Factors
An Enterprise’s value also depends on these critical micro-business valuation factors which are largely internal and within the control of the management team.
Companies that lose valuation do not do so overnight. There are warning signs that come to the fore before the actual valuation drops. These warning signs, if not recognized and corrected at the right time can prove to have devastating effects on businesses.
A sharp drop in revenues
Delayed payments to creditors
Default on statutory payments
Delay in payment of employee salaries
Numerous red flags were raised by auditors, analysts, and fund managers in the annual accounts
Huge churn in the company’s top management
Company stocks being sold off quickly by institutions
Promoters exiting their stake
Deteriorating performance in comparison with competition
Consistently dropping return ratio on ROE, ROCE, ROA, NPM, OPM, etc.
Here are the famous top 3 companies that lost 1 Trillion in Market Cap
Economic downturns are a harsh reality in the global world. However, if companies are consistently losing valuation despite external factors like stable federal reserve interest rates and a bullish capital market, the reasons are more than likely internal. It is, then, to an investor’s advantage to conduct a deep study of the business itself and its internal functions to realistically assess the risks of investing.
FAQs
Did Amazon Lose $ 1 Trillion and What Are the Reasons?
Yes, Amazon becomes the world’s first publicly listed company to lose its $1 trillion market cap. Worldwide economic slowdown, the Ukraine-Russia war, rising inflation, and tightening monetary policy are the key reasons for Amazon’s loss.
Which Company Is Not a Part of The $ 1 Trillion Market Capitalisation Club Anymore?
Amazon, Tesla, and Meta (Facebook) are not part of a trillion-dollar market now.
What Skills Are Required to Predict the Shrinkage of Organizations?
Understanding Macroeconomics, consumer behavior, and socio-political happenings are vital for an understanding of business workings. By applying mentioned knowledge one can forecast to some extent.
The Automobile Industry is one of the giants in the global economy. It has been around forever and has gone through its fair share of changes and innovations over the years, however, one of the most influential and sustainable innovations is that of Electric Vehicles.
And although this concept floated since its invention by Robert Anderson in 1832, it was put into the mainstream spotlight by Tesla in 2008 with its first Electric Car, the Tesla Roadster. No major company thought of taking up this concept before it was in many ways made cool by Tesla despite it being incredibly sustainable and way ahead of its time.
Many experts in the industry have speculated about the EV Concept and as a result, Automobile Industry as a whole would not have been such a hot topic if Tesla was not the driving force behind it.
Although Tesla has not seen a profitable year yet, it has had many profitable quarters and sticks to its vision of making Electric Vehicles affordable for almost everyone.
On 1 July 2020, exactly 17 years after its incorporation, Tesla became the world’s most valuable automaker with a market capitalization of $206 Billion, surpassing Toyota. But how did Tesla start? Who was behind it? What makes this futuristic company different from the rest? Where will it be after 10 years? Let us find the answer to these questions.
The founders of Tesla- Martin Eberhard and Marc Tarpenning
Originally known as Tesla Motors, Tesla was co-founded and incorporated on 1 July 2003 by Martin Eberhard and Marc Tarpenning. The influence behind Tesla was GM’s failed attempt at EVs in 2003 despite the vast potential and high efficiency of battery electric cars.
The third employee was Tom Wright and in February 2004, Elon Musk whose name today is almost synonymous with Tesla contributed $6.5 Million and became the chairman of the BOD. Martin Eberhard was appointed as the CEO and JB Straubel joined in May 2004. After a lawsuit settlement in September 2009, all three original employees can call themselves co-founders.
Tesla’s initial goal was to start the production of premium sports cars for early adopters and after securing a respectable customer base, move into the mainstream vehicles like sedans, Trucks, and luxury cars. The first car produced by Tesla was the Roadster in 2008.
Musk’s Four Round Investments
Elon Musk- the current CEO and the largest investor in Tesla
First Round
The Series A Investment in February 2004 included Company Technology partners along with different ventures and private investors.
Second Round
The second round investment was worth $13 Million and it included the addition of Valor Equity Partners to the funding team.
Third Round
The third round investment was co-led by Musk and various technology partners. It consisted of $40 million in May 2006 along with Tech Partners. This round also included investments from Google, and eBay among others.
Fourth Round
The fourth round of investment included another $45 Million in internal investment and the total investment went up to $105 million through private financing.
Marketplace and Stocks of Tesla
Tesla launched its initial public offering (IPO) on NASDAQ, the second American car company after Ford Motor Company to do so.
Tesla became the world’s second most valuable automaker with a market capitalization of $104 Billion and on 1st July 2020 the most valuable by reaching the milestone of $202 Billion.
Despite the above milestones, Tesla has not seen an overall profit in any financial year. At the end of 2019, it posted a loss of $862 Million on revenue of $24.6 Billion.
However, this fact is often overlooked as Tesla leans towards a societal concept rather than a profit-making one.
Different Strategies Implemented by Tesla
Business Strategy
Tesla follows a typical business strategy like the technological sector, i.e, targeting early adopters with a high price and gradually lowering the price as they move on to the bigger markets. For example, Tesla’s First model, Roadster was of a lower volume and higher price compared to Model X and Model Y.
Production Strategy
Like Musk’s other projects, Tesla’s production strategy includes high degrees of Vertical Integration which is rare in the automobile industry, as companies outsource most of the components from their suppliers.
Sales and Marketing Strategy
Instead of a conventional dealer network, Tesla opts to sell its vehicles online through company-owned showrooms. It offers the customers an option to customize their desired vehicle. Tesla does not rely on a heavy advertising policy Elon Musk with his massive Twitter following is an unofficial marketing manager.
Technological Strategies
Tesla relies on heavy electrical technologies to get its production done. As a vertically integrated company, they design batteries, motors, glass, and innovative models like Autopilots.
As of 2020, Tesla sells three car models, Model S, Model X, and Model Y.
The Unveiled models include Roadster 2020 and the highly awaited Cybertruck. These products have different versions to them based on affordability. Musk said that there will be more innovative models down the road which would be more affordable than the current ones.
The Journey of Tesla to Emerge as the World’s Most Successful EV Brand
There are several car manufacturing companies found across different parts of the World. However, when we talk about Tesla, it does stand out from the rest of the companies due to the initiation of something different.
Tesla is quite popular for its EV model cars which have created a path for Tesla to emerge as the World’s most successful brand.
To achieve this tag, Tesla made every step resourceful. Tesla brand was started with a sample model featuring cars with a high cost and few models. This invention was to just ensure that myth revolving around the EV cars can find their dissolving points. For the start, Tesla manufactured just 500 units in a year and was responsible for many revolutionary programs.
The next model introduced by Tesla was about changing the manufacturing units to a greater scale and on contrary, it decreased the price of the model. This model was a great way to give head-on competition to the other luxury brand models.
Tesla also connects directly with its customers rather than depending upon the franchisee network. Tesla sells its products directly to customers and has a web-type global network to get it settled as a global brand.
Tesla mainly focuses on the customer buying experience to get more recognition from people. Several showrooms and galleries are placed at multiple locations by Tesla to have a much-organized system.
Tesla Showroom
Apart from this, Tesla has a good marketing strategy and a well-developed plan to sell its brand. Tesla also has a good financing backup and a few well-known investors. All these things make it possible for Tesla to emerge as the World’s most successful EV brand.
How Tesla Is Dominating the Ev Industry?
We can assume that Tesla is dominating the EV industry based on the fact that the EV sales of Tesla are approximate 2.3 times higher than that of other brands as per Morgan Stanley analyst Adam Jonas. The rate of growth observed by Tesla in the EV industry is almost double that of any rival brand.
If we look at the Tesla market in the US, it is safe to say that the EV market in the US is highly dominated by Tesla for years now. For that instance, the EV cars of Tesla accounted for 79% of the overall rate of new cars registered in the US during 2020 and 69.95% of the newly registered car for the year 2021.
If to believe the available facts and data, it can be estimated that Tesla will still keep on dominating the EV industry for a few more years but with the condition of increasing competition.
US Electric Vehicle Sales
Problems With Tesla Models and the Future Ahead
A 2025 Tesla Model S
Despite having an innovative approach and putting customer satisfaction ahead of profits, Tesla has come up short on various aspects.
The durability, handling, and repairs cost are some of the quality-related problems that come with a Tesla model. The repairs and maintenance costs are very high and as a result, so are the Insurance costs. Apart from this, Tesla repeatedly comes up short in meeting deadlines regarding production, but this can be attributed to their decision on Vertical Integration.
Whatever the case may be, the company fixes some of its flaws with every new model and with its futuristic.
Tesla is the first brand to introduce electric vehicles on the roads. The models designed by Tesla also stand out from others due to their characteristics. Tesla created a safe way for the EV models to run on roads and also made them available at cost-effective prices.
With its uniqueness, Tesla is now dominating the EV industry and has successfully evolved as an EV brand across the world. The above article contains information like the history of Tesla, Investors and stock shares of Tesla, strategies planned by Tesla, the future of Tesla, and a few other basic information.
FAQs
Who are Tesla’s competitors?
Tesla’s competitors are Rivian Automotive Inc. (RIVN), Lucid Group Inc. (LCID), XPeng Inc. (XPEV), Li Auto Inc. (LI), etc.
Why is Tesla so famous?
Tesla is majorly famous because of its cutting-edge technology involving battery technology and electric powertrain.
Is Tesla the biggest car company?
The company is the biggest in the world and can be defined in many aspects. If we talk about the profit, then yes, Tesla is counted among the eight largest car companies across the world.
What is the rank of Tesla in the world?
Tesla falls at the rank of 65 on the “Fortune 500” list for the year 2021.
Today when we talk about the world’s most influential and richest entrepreneurs, Elon Musk comes to our minds for sure. He has always been in the news, let it be his new venture, his way of working, or his net worth.
Elon Musk’s tweets catch the attention of the masses; be it Elon Musk naming his baby X Æ A-12, which created a lot of buzz around the globe, or the “How Strange. Well, back to work…” one after Bloomberg announced him the richest person in the world, but only a few know about his life story.
Elon Reeve Musk was born on June 28, 1971, in Pretoria, Transvaal, South Africa. Elon Musk is an innovative business person, financial specialist, and engineer who is one of the most popular entrepreneurs in the world. He holds South African, Canadian, and U.S. citizenship. Elon Musk is the founder, CEO, and lead planner of SpaceX as well as a fellow benefactor, CEO, and item engineer ofTesla, Inc.
Elon Musk became the Richest Man in the World on January 7, 2021, after Tesla’s share price surged by 7.9%. It helped him to surpass Jeff Bezos. Musk was featured on the top of the Bloomberg Billionaire Index, a list of the top 500 richest people in the world, on 7th January 2021. Musk had added more than $122 billion to his fortune in the year 2021, which pushed his net worth to $292 billion, according to the reports dated October 2021. This made Elon Musk the first person to be the owner of such a huge fortune. Elon Musk’s net worth was then estimated to be $195 billion, which is currently estimated to be over $220 billion. He debuted on the list of the world’s richest persons back in 2012, when his net worth was estimated at $2 billion.
The tech tycoon went ahead with a bid to buy out Twitter by acquiring 100% of the Twitter stakes on April 26, 2022, in a deal worth $44 billion. However, the deal is still pending and the popular social media platform is yet to turn into a privately held entity.
To know more about the entrepreneur Elon Musk, Elon Musk biography, the answers to “what has Elon Musk studied?”, “what companies has Elon Musk founded?”, “what is Elon Musk famous for?” and more, stay glued!
Founder, CEO, and Chief Engineer at SpaceX; CEO and Product Architect of Tesla, Inc.; Founder of The Boring Company; and Co-founder of Neuralink and OpenAI
Elon Musk was born in Pretoria, South Africa, to a White South African electromechanics Engineer, pilot, sailor, consultant and product developer, who was his father and a Canadian Dietitian and model mother. Errol and Maye Musk divorced in 1980. Though Musk initially started to live with his father in Pretoria and elsewhere immediately after the separation of his parents, Elon later regretted his choice and started to be estranged from his father. Elon Musk has been described as an awkward and introverted child throughout his childhood and he has also been a victim of regular bullies in his school days. In one such incident, Musk was pushed by a group of boys down a flight of stairs and he was hospitalised later.
Elon Musk – Career
Elon Musk joined Anglican Sunday school in his youth. He later entered Queen’s University, in Kingston, Ontario in 1990. He was soon transferred to the University of Pennsylvania after 2 years, from where he graduated in 1995 with a Bachelor’s degree in Physics and Economics.
While still enrolled in his course, Musk then held 2 internships in the summer of 1994 in Silicon Valley, at the Pinnacle Research Institute and Rocket Science Games. He then was accepted as a PhD scholar in Materials Science at Stanford University in California in 1995. However, Musk later dropped out of the course and decided to join the internet boom and launch an internet-based startup.
Elon Musk – Personal Life
Elon Musk is the eldest of the three siblings, Kimbal and Toska, who are the younger brother and sisters of Musk. Elon’s adenoids were removed when he was a child because his parents were apprehensive that he was deaf, however, they discovered later on that it wasn’t true. His parents divorced in 1980. After their divorce, though Musk initially gravitated towards his father, he chose his mother later.
Musk’s marital life started with Justine Wilson, a Canadian author, whom he married in 2000 when he was at Queen’s University. They first had a son, who died of SIDS at 10 weeks. After that, the couple gave birth to a twin and a triplet. Talulah Riley was the second wife of Musk. However, they eventually got divorced and then remarried, and again got divorced for the second time. After ending this marriage, Musk dated Canadian musician Grimes, who later gave birth to a son in May 2020. Their son was named X AE A-XII.
How Elon Musk started his Journey?
Musk developed an interest in computing and video games from a very early age. He acquired Commodore VIC-20 when he was only 10. He started learning computer programming using a manual and successfully sold the code of a BASIC-based video game called Blastar to PC and Office Technology magazine for $500, which he created, at the tender age of 12.
At 17, Elon Musk chose to move to the United States for finishing his auxiliary tutoring. Rather, Musk left for Canada and got selected at Queen’s University in Ontario at 19 years old. His calling came when he got a grant from the University of Pennsylvania. Then, he moved to the United States and acquired a Bachelor of Science degree in Physics. He proceeded with his training further, acquiring himself a Bachelors of Science qualification from the Wharton School at the University of Pennsylvania.
He started with a PhD programme at Stanford University in 1995 yet dropped out just after 2 days to seek an enterprising vocation. As published in the Hitchhiker’s Guide to the Galaxy by Douglas Adams, Elon Musk accepted that the internet, sustainable power sources, and space travel would be the ones having the greatest effect on the lives of individuals in the future.
As chosen, the three noteworthy subjects of worry for giving his life’s central goal, Elon Musk, alongside his brother Kimbal Musk, began an organization named ‘Zip2’. Elon Musk dropped out of the Applied Physics and Material Science program at Stanford University after two days in the wake of beginning this new pursuit known as Zip2.
Elon Musk story
Elon Musk’s Business Ventures
Elon Musk has evolved different and distinct categories in his comprehensive business field. From automobile miracles to secured money handful-application, from artificial intelligence (AI) research organizations to uplifted propagation throughout the space, Musk has achieved huge feats everywhere with his proficient signature and discretion. Those catalysts of his supremacy are listed below-
Zip2
Zip2 logo
In 1995, Musk with his brother Kimbal Musk began a web programming organization – Zip2, with cash raised from a little gathering of holy messenger investors. The organization created and advertised an Internet city control for the newspaper distributing industry with maps, directions, and yellow pages. Zip2 enabled all real print distributions to offer extra business administrations to their clients.
Musk got contracts with The New York Times and the Chicago Tribune. Musk convinced the governing body to devise plans for a merger with CitySearch. While at Zip2, Musk wanted to move toward becoming CEO but the board members opposed it.
In February 1999, Compaq, a noteworthy web crawler at that point, procured this IT organization – Zip2 for $307 million in cash and $34 million in stock options. The deal made it one of the greatest money acquisitions in those days. Musk got $22 million for his 7% share from the sale.
X.com and PayPal
Logo of x.com and PayPal
In March 1999, Musk established X.com, an online budgetary administration and email payment company with $10 million from the closeout of Zip2. One year later, the organization merged with Confinity, which had a payment service application called PayPal.
After merging, they concentrated on the PayPal administration and were renamed PayPalin 2001. PayPal’s initial development was driven essentially by a viral showcasing effort where new clients were selected when they got cash through the service. Musk was removed in October 2000 from his job as CEO because of conflicts with other organization authorities.
Musk wished to move PayPal’s Unix-based foundation to Microsoft Windows, which was opposed by all. In October 2002, eBay acquired PayPal for $1.5 billion in stock, of which Musk got $165 million. Before its deal, Musk, who was the organization’s biggest investor, claimed 11.7% of PayPal’s shares.
In July 2017, Musk bought the domain X.com back from PayPal for an undisclosed sum, expressing that it has sentimental value to him.
SpaceX
In 2001, Musk considered Mars Oasis, an undertaking to send a small test nursery on Mars, in the hopes of revolutionizing the aerospace industry and making affordable spaceflight a reality. In February 2002, Elon Musk came to Russia to search for three ICBMs (missiles), bringing along Mike Griffin. Griffin had worked for the CIA’s investment arm, In-Q-Tel, just as NASA’s Jet Propulsion Laboratory, and was simply leaving Orbital Sciences, a producer of satellites and rockets.
Kosmotras, a Russian Space Company, offered one rocket for $8 million. But Musk found it excessively costly and refused to purchase it. While on the trip back from Moscow, Musk understood that he could begin an organization that could manufacture the moderate rockets he needed. Musk calculated that the raw materials needed to structure a rocket really were just 3% of the commercial cost of a rocket at the time.
In 2002, Musk ultimately established SpaceX with the long-term objective of making a genuine spacefaring civilization. With US$100 million of his initial fortune, Musk established Space Exploration Technologies or SpaceX, in May 2002. Musk is CEO and boss of innovation official (CTO) of the California-based SpaceX organization.
Logo of SpaceX
SpaceX creates and makes space dispatch vehicles with an emphasis on propelling the condition of rocket innovation. The organization’s initial two dispatch vehicles were the Falcon 1 and Falcon 9 rockets (a gesture to Star Wars Millennium Falcon) and its first shuttle is the Dragon (a gesture to Puff the Magic Dragon).
In seven years, SpaceX planned the group of Falcon dispatch vehicles and the Dragon multipurpose spacecraft. In September 2008, SpaceX’s Falcon 1 rocket turned into the main privately financed fluid-powered vehicle to place a satellite into Earth orbit. On May 25, 2012, the SpaceX Dragon vehicle berthed with the International Space Station (ISS), impacting the world forever as the primary business organization to dispatch and compartment a vehicle to the ISS.
In 2006, SpaceX was granted an agreement from NASA to proceed with the improvement and trial of the SpaceX Falcon 9 dispatch vehicle and Dragon spacecraft so as to ship freight to the International Space Station. It was followed by a $1.6 billion NASA Commercial Resupply Services program contract on December 23, 2008, for 12 flights of its Falcon 9 rocket and Dragon shuttle to the Space Station.
On December 22, 2015, SpaceX effectively handled the principal phase of its Falcon rocket back at the platform. This was the first run in history such an accomplishment had been accomplished by an orbital rocket. It became the first step towards rocket reusability, bringing down the expenses of access to space.
In the entire year of 2017, SpaceX launched its eighteen Falcon 9 flights, successfully, which are more than the previous year’s 8 flights. On February 6, 2018, SpaceX effectively launched the Falcon Heavy, the fourth-highest capacity rocket ever built and the most powerful rocket in activity in 2018. The debut mission carried a Musk’s Tesla Roadster as a dummy payload.
Today, SpaceX is both the biggest private maker of rocket motors on the planet and holder of the record for the most noteworthy push-to-weight proportion for a rocket motor (the Merlin 1D). SpaceX has created in excess of 100 operational Merlin 1D motors. Every Merlin 1D motor can vertically lift the heaviness of 40 normal family vehicles.
Tesla Motors
Logo of Tesla, Inc.
Tesla, Inc. (initially Tesla Motors) was established in July 2003 by Martin Eberhard and Marc Tarpenning. They financed the organization until the Series A funding. The two men were actively involved in the company’s development. In February 2004, Musk joined Tesla’s board of directors as its chairman and led the Series A round of investment.
Musk played a functioning job inside the organization and supervised the Roadster item structure at a definite level, yet was not profoundly engaged with everyday business operations. Following the money-related emergency in 2008 and after a progression of raising clashes in 2007, Eberhard was expelled from the firm. Musk expected initiative of the organization as CEO and item engineer, positions which he holds even today.
In 2008, Tesla Motors initially built an electric sports car, the Tesla Roadster, with sales of 2,500 vehicles to 31 nations. On June 22, 2012, Tesla started the conveyance of its four-door Model S car. On February 9, 2012, it uncovered its third item, the Model X for the SUV/minivan market but Model X dispatch was postponed until September 2015.
Tesla’s income in 2018 was $21.46 billion. In 2013, Tesla’s Model S was the first electric vehicle to get the Car of the Year Award by Motor Trend. Over the most recent four months of 2018, Tesla’s US piece of the overall industry was about 2%. It costs $13.66 to completely charge a Tesla Model X at home.
The general Tesla total assets were evaluated to be $2.2 billion in 2018, dependent on its income and benefits. Nearly 75% of every single electric vehicle sold in the US in 2019’s first quarter were Teslas. Tesla saw an income of $21.461 billion in 2018. The total assets of Elon Musk, Tesla’s CEO, were $18.1 billion as of May 2019.
Tesla recently saw a surge of 4.8% in the share price helping Elon Musk surpass Jeff Bezos to become the richest man in the world.
Neuralink Corporation is another company of which Elon Musk is the co-founder. Founded in July 2016, Neuralink is a neurotechnology company that is engaged in developing implantable brain-machine interfaces (BMIs). Headquartered in Pioneer Building, San Francisco, California, Neuralink shares its office with OpenAI.
In an hour-long interview on Joe Rogan’s podcast, SpaceX and Tesla CEO Elon Musk said that his neuro-tech company Neuralink is going to launch the first product that can make any brain function as a superhuman AI. San Francisco-headquartered Neuralink is developing implantable brain-machine interfaces (BMIs) or Cyborg that could improve memory or allow for more direct interfacing with computing devices.
Neuralink Corporation is an American neurotechnology company founded by Elon Musk in 2016. Elon Musk claims that the moto of Neuralink is a human enhancement and the technology, which will be able to merge the computers with the human brain. Thus, it will obtain a symbiotic relationship between the human brain and Artificial Intelligence.
“ If your biological self-dies, you can upload into a new unit. Literally. It will enable anyone who wants to have superhuman reasoning and intelligence.” – Elon Musk
Developing such implantable brain-computer interfaces(BCIs) or cyborg will be quite a challenge and to be on top of the game, Elon Musk needs to stay ahead of Neuralink’s competitors with a heavy focus on applied engineering. BCIs must incorporate features that are a thousand times better than the existing interfaces with no surgery, no aesthetics, and definitely no drilling holes in the skull.
Elon Musk further points out that there has been a significant advancement in the field stating, “I think Neuralink will have something interesting to announce in a few months that’s at least an order of magnitude better than anything else, probably better than anyone thinks is possible.”
You can see the podcast here:
Elon Musk’s Interview with Joe Rogan
In early 2017, he made a jaw-dropping revelation stating that robots will disrupt our job scenario and that there’s nothing much that can be done and the competition between the countries with the most sophisticated AI will be the reason for World War 3. Probably to him, the merging seems like a better option which might give a human a better chance of surviving. “The merge scenario with AI is the one that seems like probably the best. If you can’t beat it, join it,” Musk said.
OpenAI
OpenAI is an artificial intelligence research laboratory that consists of OpenAI LP, which is a for-profit organization, and OpenAI Inc, its parent company. OpenAI is another Elon Musk-founded company, which he founded in December 2015, along with Sam Altman, Ilya Sutskever, Greg Brockman, Wojciech Zaremba, and John Schulman. OpenAI was founded with an aim of promoting and developing a friendly AI that will benefit humanity as a whole. The collective pledging of $1 billion by Sam Altman, Elon Musk, and others resulted in the birth of the company. It is important to note that Musk has already resigned from the Board of the company in February 2018, but he still remains a donor.
The Boring Company
Logo of The Boring Company
In December 2016, Elon Musk founded the infrastructure and tunnel construction services company, The Boring Company is also known as TBC. Musk has experienced difficulty with Los Angeles traffic and limitations with the current two-dimensional transportation network. This led to the inspiration for the project.
The Boring Company currently has active construction and is planning future projects in the Los Angeles and Baltimore–Washington areas. They have also been selected to build a downtown-to-airport loop by a government program for high-speed transport in Chicago. There have been three boring tunnel projects proposed in the Los Angeles area out of which one test tunnel was completed in November 2018.
Though The Boring Company was initially formed in December 2016 as a subsidiary of SpaceX, it become a separate and fully independent company in 2018. In this, 90% of the equity was owned by Musk and 6% held by SpaceX in return for the use of SpaceX resources during the initial startup of the company. Outside investments during 2019 have changed the equity split.
Twitter
Twitter Logo – A firm owned by Elon Musk
Elon Musk is one of the most famous tweeps who almost keeps his audience hooked with his Twitter profile. Musk has always been an avid Twitter user and was on the brink of becoming a 100% owner of Twitter, the bid for which he placed on April 26, 2022, where he was looking forward to acquiring 100% stakes in Twitter in an all-cash deal worth around $44 billion. However, he finally turned down the deal, citing multiple breaches of the deal.
Musk first expressed his interest in buying the platform in 2017. In the wake of 2022, Musk started materialising this dream of his by buying significant stakes in Twitter first on January 31, 2022, which reached 5% on March 14, 2022. He became the largest stakeholder in Twitter on April 1, 2022, owning over 9% of its stakes. Musk then agreed to a deal on April 4, 2022, which prohibited his possession of more than 14.9% of the shares of his company and would assert his joining the board of directors of Twitter. However, Musk decided to not join the board before April 9, 2022, when the appointment became effective. Elon Musk then placed a bid to buy 100% of Twitter’s shares on April 13th at $54.20 per share. This bid was granted by the Twitter board and would have made Elon Musk the owner of 100% of Twitter’s shares in a deal worth $44 bn if Musk didn’t walk away from the deal. There was also a breakup fee of $1 bn if the deal falls apart. Elon Musk threatened to blow up the deal over the bot issue on June 10, 2022, and ultimately terminated the deal in the first week of July 2022. In reply to this, Twitter sued Musk on July 12, 2022.
In the case filed at the Court of Chancery, Delaware, the acquisition deal was to be forced to go through, as per the decision by Chief Judge McCormick, thereby being ruled against Elon Musk.
Elon Musk – Investments
Elon Musk has 7 investments to date, all of which are personal investments. Here’s a list of the Elon Musk investments:
Elon Musk is recognised for his fight against global warming and Tesla is one of the examples of it. Some of the awards and recognition that he has received are:
For his advocacy, he has received Global Green Award and National Wildlife Federation’s Connie Award.
He has received the Entrepreneur of the award of Inc Magazine and is also known as the Living Legend of Aviation by Kitty Hawk Foundation.
Musk has also been ranked 1 on Forbes’ Billionaires list. Musk is a receiver of the Axel Springer Award.
In 2010, Musk received FAI Gold Space Medal from the Federation Aronautique Internationale.
Elon Musk – Controversies
The richest person on the planet has some fair share of controversies as well. Elon Musk is said to be quite blunt with the tweets that often surround him with controversies. Some of them are:
Right after he was all set for the Twitter acquisition, Musk said that he will buy Coca-Cola and put cocaine back in the beverage.
Musk named the cars from the Model 3 series of Tesla first as Model S, Model E and Model X. However, when Ford allegedly warned Tesla about a lawsuit for using Model E, Tesla changed its name to Model 3, which still made the models together sound like S.3.X
Elon Musk smoked weed on the Joe Rogan podcast and was surrounded by memes and controversies
Musk joked about sending space dragons with lasers to help Ukraine fight the Russians after an article stated that Musk would send flame-throwing electric tanks to Ukraine
During Canada’s trucker protest, Elon Musk compared Hitler with Canadian President Justin Trudeau.
Musk got Sued by Twitter
Elon Musk was legally sued by Twitter for “hypocrisy”, reported The Verge at Delaware’s Court of Chancery on July 12, 2022, after he decided to terminate the Twitter acquisition deal. This opened another chapter of Musk’s life where he will resist his claim in court against the social media giant Twitter.
Elon Musk – Unknown Facts
The richest man is not only unique but interesting as well. Some of the unknown facts about Elon Musk are:
When Musk was 12 years old, he created a video game called Blaster and sold it to a magazine.
Musk named his son Xavier after the character of Professor Xavier from the movie X-Men.
Musk also had a cameo in The Simpsons, along with those in South Park, The Big Bang Theory, Rick and Morty, and more.
Musk’s first venture was Zip2 which was created in 1995.
Musk doesn’t like Facebook and is concerned about its privacy issues.
Elon Musk gets a $1 salary from Tesla.
Musk is called Thrillionaire. It means an entrepreneur who is turning reality into science fiction.
Elon Musk – Quotes
Some of the most popular quotes from Elon Musk are:
When something is important enough, you do it even if the odds are not in your favour.
Some people don’t like change, but you need to embrace change if the alternative is a disaster.
If something’s important enough, you should try. Even if – the probable outcome is a failure.
People work better when they know what the goal is and why. It is important that people look forward to coming to work in the morning and enjoy working.
If you’re trying to create a company, it’s like baking a cake. You have to have all the ingredients in the right proportion.
Elon Musk – Future Plans
Elon Musk has never made his desire to make people “multi-planetary animal types”. Colonizing Mars would be a decent start as per Musk. In September 2017, at the 68th International Astronautical Congress in Adelaide he unveiled his arrangement to send payload delivers there in the following 5 years. By expansion, he trusts that people will settle the planet when 2024.
Elon’s Hyperloop has been contrasted by him with a “cross between a Concorde, a railgun, and an air hockey table”. The plan is to eventually give a method for a movement that should have the option to surpass 1124 km/h and all underground.
At present two courses are being developed – between Los Angeles and San Francisco and between New York and Washington D.C. When complete these excursions should take close to 30 minutes utilizing Hyperloop.
At the point when 12 youngsters and their football (soccer) mentor were caught in an overwhelmed collapse in Thailand, Elon and his group developed an apparently insane thought. The arrangement, clearly, was to construct a tyke-estimated submarine. The sub was structured and worked in record time utilizing extra rocket parts. Regardless of this, the salvage groups esteemed it unrealistic and finished the mission without it. “Pedo fellow” aftermath aside Thai military authorities accept the submarine could have utility in the future.
Elon Musk was born in Pretoria, South Africa, and was raised in Pretoria and the regions nearby the capital of South Africa.
What did Elon Musk study?
Elon Musk has a Bachelor’s degree in both Physics and Economics.
What’s Elon Musk’s IQ?
Elon Musk’s IQ is estimated to be ranging between 150-155.
What is Elon Reeve Musk famous for?
Elon Musk has founded the electronic payment firm PayPal and spacecraft company SpaceX. He is the CEO of the electric-car maker company Tesla. Musk is also the owner of the social media platform Twitter and the world’s richest person, as of April 2022.
Did Elon Musk acquire Twitter?
Elon Musk was about to acquire 100% stakes in Twitter and become the owner of Twitter. He asserted to buy out all of the stocks of Twitter in a deal worth $44 billion on April 26, 2022, but then he refused, leaving the deal pending.
What companies has Elon Musk founded?
Elon Musk founded many companies to date including SpaceX, The Boring Company, X.com, Neuralink, OpenAI, and Zip2.
Did Elon Musk create Paypal?
No, Elon Musk is not the founder of Paypal, nor did he create it. However, Elon Musk indeed found the company known as X.com. This company later merged with Confinity Inc., which was the creator of the product Paypal.
Is Elon Musk an entrepreneur?
Elon Musk is indeed an entrepreneur. The world’s richest person nourished his entrepreneurial dream right after he graduated from college.
What companies has Elon Musk founded?
SpaceX, SolarCity, and Tesla are some of the prominent companies that Elon Musk founded.
Is Elon Musk a real person? What is Elon Musk’s academic background?
Yes, Elon Musk is a real person. Going by the academic background of Elon Musk, the Tesla CEO has a Bachelor’s degree in Physics and Economics from the University of Pennsylvania.
How did Elon Musk start his career?
Elon Musk started his career by dropping out of Stanford University in just 2 days to start his company Zip2.
Elon Musk is famously known for Tesla, SpaceX, Neuralink and The Boring Company. Who can forget his weird tweets that shake the Bitcoin market? He has a habit of getting into the news.
Recently, Musk was again in the spotlight for buying Twitter worth $44 billion. Musk had a rollercoaster ride in the past before becoming an icon. Although many people don’t know a lot of interesting things about this multi-billionaire. If you are one of them then this article is a must-read for you. Today, we bring the top 10 interesting facts about Elon Musk that you have not heard until now.
Elon Musk is popularly known for Tesla. The company which is producing futuristic electric cars is now making billions of profit. But, could you imagine Tesla being in the hands of Google today?
In 2013, when Tesla was nearly bankrupt Elon Musk tried to sell the electric automobile giant to Google. Musk was an old friend of Google CEO Larry Page. So, he asked his friend to buy Tesla for $6 billion.
Musk also had some other demands like Google would additionally provide $5 billion for factory expenses. He also demanded a guarantee from Google that they won’t shut down the company unless they make a third-generation electric car. Musk also wanted to run the company as its head for eight years.
Although this deal never really happened. If Google had bought Tesla then Musk would have made so much loss that you can’t even imagine.
2. Apple Got an Opportunity to Buy Tesla
Elon Musk also tried to sell Tesla to the tech giant Apple too. In 2018, during the Model 3 program Musk was facing a massive production issue. At that time Musk tried to have a meeting with Apple boss Tim Cook to discuss if they can buy Tesla (for one-tenth of the current value). Although Tim Cook refused to have a meeting.
3. Travelling at the Top Speed of 750 Mph in a Floating Pod
Hyperloop
The concept is known as Hyperloop. In 2013, Musk popularised this concept by publishing it in a white paper. Hyperloop is an ultra-speed ground transportation system which consists of sealed and partially evacuated tubes and passengers travel in pressurized vehicles, popularly called pods. These pods don’t have regular wheels and instead float on air skis.
4. Turned his House into a NightClub to Pay For Rent
In 1992 Musk was studying at the University of Pennsylvania on scholarship. During that time he and his roommate, Adeo Ressi, rented a house off-campus and turned it into a NightClub and charged $5 per person. They would have 500 people which means that the party was done on a large scale. Ressi said that Musk wasn’t a big drinker and instead used to play games alone in his room.
Elon Musk with his friend Adeo Ressi
5. Elon Musk Dropped out of Stanford
In 1995, when Musk was 24 years old he entered Stanford for PhD program in physics. Although within 2 days he dropped out of Stanford. He felt that the internet has a lot more power and that’s why after dropping out he launched his first company Zip2.
In 1955, Musk with his brother Kimbal launched their first Startup: Zip2, online web software that created online city guides for newspapers. Compaq Computer Corporation bought this company for $350 million.
Zip2 Logo
In 1999 Musk used some of this money to develop X.com, an online bank. In 2001 the company was renamed PayPal. Later, in 2002 eBay bought this company for $1.5 billion. Although in 2015, PayPal became an independent company.
7. Invented a Space-Themed PC Game at the age of 12
Blaster Game by Elon Musk
Elon Musk was obsessed with space from his childhood itself. At the age of just 12, he made a code for a space shooter PC game named ‘Blaster’. He sold the game code for $500 to a PC magazine.
8. Bought a James Bond Submarine Car for $997,000
Lotus Esprit
In 2013, Elon Musk bought James Bond’s classic submarine car, Lotus Esprit for $997,000 at a London auction. This car was featured in the film, ‘The Spy Who Loved Me’. In the movie, the car transforms into a submarine and fires missiles.
When Elon got to know that the car in reality doesn’t turn into a submarine he was disappointed. Musk said that he will integrate a Tesla electric powertrain into the car and make it transform into a submarine for real.
9. Started his Own School in SpaceX for his Children
Musk felt that the regular schools were not training the students in the right way. He feels that students should be taught about problem-solving. In 2014, Musk started his own school in SpaceX named ‘Ad Astra’, Latin for ‘to the stars’. SpaceX employees’ children can also study in this innovative school.
In this school students are not grouped according to their age. Musk said that every student has a different aptitude and abilities and that’s why education should cater to their needs instead of forcing them to learn at the same speed as other students. There is no grading system and everything is taught in a form of games.
10. Robert Downey Jr Met Musk for Inspiration
Elon Musk in Iron Man 2
When Musk made his MCU debut in Iron Man 2 people speculated that Musk was the inspiration for Tony Stark. This is because Robert Downey Jr’s character has a lot of resemblance to Elon Musk. Both of them are multi-billionaires who are freaking geniuses.
Although Iron Man director Jon Favreau cleared these rumours by saying that the character of Iron Man is based on comics. Robert Downey did meet Musk to know how it would feel like to be a real-life Tony Stark. Both of them had a chat and discussed different interesting things. The scene where Tony Stark meets Musk was shot in SpaceX.
We hope that you got to know some unknown interesting facts about Elon Musk. The guy had done so many weird and incredible things before becoming a multi-billionaire. Tell us in the comments which interesting fact about Musk fascinated you the most and did we miss out on any other fact.
FAQs
How did Elon Musk get so rich?
When Elon Musk sold PayPal to eBay he secured a $100 million payout which is used to start SpaceX and then later joined Tesla.
How much money does Elon Musk make?
The net worth of Elon Musk in 2022 is $273 billion which means he earns an average of $432 million per day.
How smart is Elon Musk?
Elon Musk has an IQ of between 150 and 155. To up in this perspective, Albert Einstein had an IQ of 160. This shows that Musk is very intelligent.
What did Elon Musk invent first?
In 1955, Musk with his brother Kimbal founded Zip2, online web software that created online city guides for newspapers. This company was sold for $350 million to Compaq Computer Corporation. Musk then founded X.com, an online bank which later became PayPal. In 2002, eBay bought this company for $1.5 billion. Although in 2015, PayPal became an independent company.
While it’s unsurprising that Covid-19 remains a source of concern for CEOs, other concerns include supply chain disruptions, changing consumer behaviour, labour and employee shortages due to stress and poor mental health, and more To tackle the pandemic’s difficulties, corporate leaders all throughout the World had to act quickly and decisively. Some tried their hardest to keep their businesses afloat, but due to a lack of personnel, resources, demand, or sheer luck, they were unable to manage the difficulties and went to the bottom, while others employed their talents and manpower to perfection and kept themselves and their businesses afloat. Some CEOs could not only overcome obstacles and remain steady in their positions but also advance to the top and flourish. Here are the Top 10 Highest-Paid CEOs in the World right now. These rankings are based on the statistics given by the Fortune 500.
Elon Musk is the founder and CEO of SpaceX and Tesla, the most valuable automaker in the World.
Despite not being paid by Tesla, Musk has been the highest-paid CEO in the US for three years. Instead, when the business achieves specific market capitalization and growth benchmarks, he is awarded stock options. With the help of these options, Musk can buy Tesla stock for a remarkable $70 per share, which at the beginning of January 2022 was trading for close to $1,200 per share. In the first quarter of 2022, Tesla generated $18.76 billion in revenue.
By exercising some Tesla stock options granted in 2018, Musk received income in 2022 totalling roughly $23.5 billion.
As of May 25, Elon Musk’s net worth was estimated to be $193 billion. This indicates that Musk has lost 77.6 billion dollars in fortune from the beginning of the year. By net worth, Musk remains the richest person in the World. He also ranked #2 on the Forbes 400 list of 2022.
Tim Cook, CEO of Apple
Earned Compensation: $770.5 Million
Tim Cook, CEO of Apple
Cook became Apple’s CEO in 2011 following the passing of Steve Jobs. He has consistently appeared on lists of the highest-paid CEOs for a number of years.
Apple’s market value has climbed by $2.2 trillion under Cook, and in 2021, the business made $95 billion in profits. The company encountered difficulties due to the global chip scarcity but was successful in starting internal equipment manufacturing.
Apple outperformed every other American corporation on that front, finishing the year with an enormous $95 billion n earnings. In the first quarter of 2022, Apple generated $97.2 billion in revenue.
The estimated current net worth of Tim Cook is $2 billion. As part of a 10-year issuance of shares worth $1.7 billion, he received an astounding $770.5 million in 2021 alone. Most people would find Cook’s $3 million salary acceptable, but it is nothing compared to his $10.7 million bonus and $250 million in stock awards.
In the Forbes list of billionaires of 2022, Cook ranked #1513.
Jensen Huang, CEO of NVIDIA
Earned Compensation: $561 Million
Jensen Huang, CEO of NVIDIA
NVIDIA Corp., founded in 1993, is a tech corporation best known for its graphics chips, artificial intelligence technology, and Shield gaming consoles. Jensen Huang is the company’s co-founder, current CEO, Director, and President.
Due to the company’s share price increasing by about 60 times over the previous ten years, he realized $561 million in 2022 from the expiration options given in 2011 and 2012. From NVIDIA in the fiscal year ended in 2022, Huang got a total compensation of $23.7 million, out of which $900k was his salary, $18 million was awarded as stock, $4 million was his bonus, and $81k came from other types of compensation.
Nvidia, which went public in 1999, is 3.6% owned by Huang. NVIDIA’s revenue increased by 61% to a record $12.46 billion in 2021, and it was $7.10 billion in the first quarter of 2022.
With a $21.3 billion net worth, he came in at #34 on the Forbes 400 list of billionaires for 2022.
Reed Hastings, CEO of Netflix
Earned Compensation: $453.5 Million
Reed Hastings, CEO of Netflix
The notorious streaming powerhouse Netflix was established in 1997, and Reed Hastings is the company’s co-founder, CEO, and chairman.
In 2021, Netflix generated $24.9 billion in revenue, a 23.8% year-over-year rise, and $5.1 billion in operating profit, an 85% year-over-year increase.
However, as the World reopened after the pandemic, the corporation recently trimmed expenditures due to losing subscribers. Streaming services are another source of rising rivalry for Netflix.
Hastings’ total remuneration for the 2021 fiscal year was $40 million. Of this amount, $442k came from other forms of income, $39 million came from stock options, and $650k came from salary.
Reed Hastings’ net worth was $2.9 billion as of 2022. He also ranked #801 on the Forbes list of billionaires in 2022 and #188 on Forbes 400 (2021).
Leonard Schleifer, CEO of Regeneron Pharmaceuticals
Earned Compensation: $452.9 Million
Leonard Schleifer, CEO of Regeneron Pharmaceuticals
Leonard Schleifer, the current CEO of the company, founded the biotech company Regeneron Pharmaceuticals in 1988, which deals in the research, creation, testing, manufacturing, and distribution of medications to treat cancer, asthma, and chronic pain.
Due to the company’s REGEN-COV antibody medication for the prevention and treatment of COVID-19, revenue increased 89.1% in 2021 to reach $16.07 billion.
The business generated $2.97 billion in revenue in the first quarter of 2022.
Schleifer received a total payout of $6 million. Of this total, $672 thousand came from other forms of income, $4 million came from bonuses, and $1 million came from salaries. Schleifer’s current net worth is $1.1 billion. He also ranked #2324 on the Forbes list of billionaires in 2022 and #339 on Forbes 400 (2020).
Marc Benioff, CEO of Salesforce
Earned Compensation: $439.4 Million
Marc Benioff, CEO of Salesforce
In 1999, Benioff established Salesforce, a company that creates cloud-based enterprise software for customer relationship management with the tagline “The End of Software.” Sales force automation, community management, a salesforce platform, solutions tailored to particular industries, digital commerce, customer service and support, collaboration, and marketing automation are some of its solutions. Additionally, the company offers consulting, counselling, support, and training services.
In 2021, revenue increased by 24.7%, reaching a total of $21.25 billion. Revenue increased by 24% year over year to $7.41 billion in the first quarter of 2022.
His base pay of $1,440,000, cash bonuses of $2,816,640, and benefits of $1,291,541 make up his $39,907,534 in yearly income.
Additionally, he was listed #74 on the Forbes 400 in 2021 and #275 on the Forbes list of billionaires in 2022.
Satya Nadella, CEO of Microsoft
Earned Compensation: $309.4 million
Satya Nadella, CEO of Microsoft
In 2014, billionaire Satya Nadella succeeded billionaire Steve Ballmer as CEO of Microsoft. Nadella formerly held the position of Microsoft EVP for the cloud and enterprise group. Nadella’s peers probably think he merits a large salary. In place of the company’s faltering mobile strategy, he has steered it toward alternative markets like cloud computing and augmented reality.
A chip shortage that affected Xbox game systems was another issue the corporation had to deal with. Microsoft reported $168 billion in total revenue in 2021, an increase of 17.5%, and $7.8 billion in the first quarter of 2022.
The total remuneration received by Satya Nadella was $49.8 million. A salary of $2.5 million was paid out of this amount, along with bonuses of $14.2 million, stock awards of $33 million, and other forms of compensation of $109 thousand.
In 1991, Kotick was appointed Activision’s CEO. The gaming behemoth creates and publishes interactive entertainment, and its most well-known titles include Call of Duty and World of Warcraft.
Kotick made $296.7 million from the value of vested restricted shares last year. In spite of Kotick’s personal handling of assault claims at the game producer and several lawsuits alleging harassment, and sexism, Microsoft decided to purchase Activision in January for $68.7 billion, making it the company’s largest acquisition to date.
Kotick received total compensation of $826.5k, of which $108.5k came from different sources of compensation, and $718k was salary.
Hock E. Tan, CEO of Broadcom
Earned Compensation: $288 Million
Hock E. Tan, CEO of Broadcom
Tan, raised in Malaysia, received a scholarship to attend MIT before starting his career. Since Avago purchased the semiconductor business in 2015 for $37 billion, he has served as CEO of Broadcom.
A leading provider of infrastructure software and semiconductors, Broadcom is a multinational technology business. It uses infrastructure software, semiconductor products, and IP licensing to operate.
In 2021, the company’s revenue increased 14.9% to $27.4 billion.
Tan received total pay of $60 million, including a salary of $1.2 million, a bonus of $5.4 million, $54 million in stock, and $46,000 in other forms of compensation.
Safra A. Catz, CEO of Oracle
Earned Compensation: $239.5 Million
Safra A. Catz, CEO of Oracle
Safra A. Catz has travelled a long but rewarding path. Prior to joining Oracle as a Senior Vice President in 1999, she worked as a banker. She then joined Mark Hurd as Co-CEO of Oracle in 2014. Hurd retired in 2019, citing health concerns, and Catz took over as CEO.
Oracle has seen slow revenue growth in recent years despite offering products and services that address many facets of corporate information technology settings. It is best recognized for its database software. As of May 2022, the regulatory approval process for Oracle’s $28 billion acquisition of Cerner, a provider of electronic health records, was still ongoing in the United States and Europe.
Catz received a total payout of $10 million. $950 thousand of this total was earned as a salary, $9 million as a bonus, and $96 thousand from other forms of compensation.
Catz has a net worth of $1.4 billion. Additionally, she was listed #19 on the Forbes list of America’s Self-Made Women in 2022 and #1922 on the Forbes list of billionaires in 2022.
Conclusion
While these CEOs are on the top, others are climbing this stairwell, like Eric Yuan, Ann-Marie Campbell, Amrita Ahuja, Satya Nadella, Lisa Barton, and many more. Some of them are doing it at a very fast pace, while others are playing it steady. It won’t be long before these names are among the highest-paid CEOs in the World.
FAQs
Who are the highest-paid CEOs in the world?
Top 10 Highest-Paid CEOs in the world are:
Elon Musk, CEO of Tesla
Tim Cook, CEO of Apple
Jensen Huang, CEO of NVIDIA
Reed Hastings, CEO of Netflix
Leonard Schleifer, CEO of Regeneron Pharmaceuticals
Marc Benioff, CEO of Salesforce
Satya Nadella, CEO of Microsoft
Robert A. Kotick, CEO of Activision Blizzard
Hock E. Tan, CEO of Broadcom
Safra A. Catz, CEO of Oracle
Who is the highest-paid CEO in the world?
Elon Musk is the highest-paid CEO in the world with an annual compensation of $23.5 billion.
Who is the highest-paid female CEO?
Safra A. Catz, CEO of Oracle is the highest-paid female CEO. She got an annual compensation of $239.5 million in 2021.
What is the revenue of Tesla?
Tesla brought a revenue of $53.8 billion in 2021.
What is Elon Musk’s salary at Tesla?
Elon Musk got annual compensation of $23.5 billion from Tesla in 2021.
Who is the richest CEO in the world?
Elon Musk is the richest CEO in the world with a net worth of $227 billion.
Business leaders everywhere are struggling to adapt to the demands of the digital age, but they all can agree on one thing: remote work has been an unqualified success. However, on Wednesday, Tesla CEO Elon Musk announced on Twitter that he would be reversing his decision to allow employees to work remotely as often as they like. He reasoned that the company’s vehicle needs are more time-sensitive than before due to their ambitious Model and production goals. Elon Musk’s end of Tesla’s remote working policy has experts everywhere wondering if this heralds the end of the remote working revolution.
Elon Musk Tweet: “Come to office or Leave Tesla” took over the internet
Elon Musk Email To Tesla Employees about stopping WFH
However, Musk’s remote work revolution has finally come to an end. After Musk tweeted on June 1 that he had exciting plans for Tesla, that led to a full stop on remote work. To be precise, it’s come to the office or leave Tesla.
As reported by Electrek:
“Anyone who wishes to do remote work must be in the office for a minimum (and I mean *minimum*) of 40 hours per week or depart Tesla. This is less than we ask of factory workers.” – Elon Musk, CEO, Tesla.
There are many ways we can improve working remotely, but there is one overriding theme: constant communication and frequent in-person interaction are critical to success.
He said in a statement issued by Tesla on Tuesday:
To become world-class manufacturers, we must operate as a world-class manufacturing company. The move comes after months of pressure from Wall Street investors who were frustrated with production delays at Tesla’s Fremont factory in California. – Elon Musk.
How remote work started at Tesla?
It all started with a simple tweet from Elon Musk.
On May 23, 2019, Musk tweeted that Tesla employees could work remotely if they wanted to. The next day, the company announced its new Remote Work Program-and it’s been a success.
This was an unprecedented move, and it was quite a shock to many who had worked with Tesla for years before the outbreak.
The flip side
Remote work is celebrated as a cornerstone of a 21st-century company’s culture. Elon Musk, however, suggests that not only is it time to end remote work — but it may have never worked in the first place. Come to office or leave, he tweeted on Tuesday. Musk believes collaboration among Tesla employees helps break down hierarchical barriers between departments and that fostering teamwork across teams would better serve his company in future exciting endeavours.
Whether or not Musk’s statements were met with praise or scepticism from other leaders who also endorse remote work remains unclear — but one thing is certain: If Anyone has enough influence to spark change, it’s him.
What is going on with Tesla right now?
The electric car company—which has had no shortage of headlines lately, thanks in part to some disastrous crashes and Musk’s Twitter battle with Vern Unsworth, a British diver who helped rescue stranded boys from a Thai cave – is just one of many companies experimenting with new ways of getting work done. Although remote work is still in its infancy, according to some reports, nearly half of all U.S. workers do some form of it now.
But Tesla is taking things further than most: In an email sent out Tuesday, Musk told employees that there would be a dedicated team at HQ for those who absolutely cannot adjust to [an] absence of chaos. He also said he would be too busy manufacturing cars and building future products to hold regular meetings in person. As Wired points out, Musk has previously expressed scepticism about working remotely; he reportedly once said that he thinks people are more productive when they can see each other face-to-face.
With over ten thousand employees (and counting), it’s easier for management and workers to build relationships when they’re all working together under one roof. While remote work may have its benefits for bigger companies like Google or Walmart, having everybody together in person may ultimately lead to better results at Tesla. We’ll have to wait and see what happens!
How leaders are reacting to Elon Musk’s end of remote work move?
Elon Musk Email to Tesla employees to end Remote Working
Some leaders praise him for his leadership, but others are shocked and worried about how he will accomplish such a change. Many companies struggle with motivating their employees and making them feel like they’re making a difference when they work remotely. Is it possible that Musk will be able to solve these issues as well? What do you think? Don’t forget to share your thoughts in the comment box!
The latest Elon Musk tweet made a big splash when he announced that he was ending remote working at Tesla. That’s right, in what is certainly a controversial move, Musk declared that only people onsite were permitted to work on projects and develop new products. To be clear, it’s not clear how far Musk will carry his new policy. In fact, many of his employees said they expect it will be temporary or confined to high-level workers rather than rank-and-file employees and managers. Whatever happens with Tesla, managers, and employers everywhere in corporate America need to take note of what happened here.
FAQs
When was WFH started at Tesla?
Elon Musk allowed Tesla Employees to work remotely in May 2019.
What did Elon Musk tell his employees?
Elon Musk makes it mandatory to work from the office for at least 40 hours a week.
What does Elon Musk think about working from home?
Elon Musk considers employees to be less productive when working remotely.
How many hours do Tesla employees need to work from office?
Elon Musk said Tesla employees to work for a minimum of 40 hours a week from the office.
Whether you like Tesla or not, you can’t deny that it’s changing the automobile industry. A few years ago, people would have thought of electric cars as toy cars. However, thanks to Tesla, electric cars are not a dream anymore. The awareness about electric cars has increased around the world. Many car manufacturers are also planning to step into the production of electric cars.
Through this article, we will come to know about the essential strategies of Tesla and how it makes money. We will also know what differentiates Tesla from other car dealers around the world.
Tesla is an American automobile company that specializes in Electric Vehicles (EVs). Martin Eberhard and Marc Tarpenning founded Tesla Motors in July of 2003. It was named after the inventor of electricity, Nikola Tesla. Later in 2004, Elon Musk invested $6.5 million in Tesla. He became the largest shareholder and the chairman of the company. Musk has been the CEO of Tesla since 2008.
The aim of Tesla, according to Elon Musk, is to accelerate the advent of sustainable eco-friendly transport through electric vehicles and solar power.
Areas of Operations
Tesla, the American electric and clean vehicle company, is headquartered in Austin, Texas, United States. Currently, Tesla has almost 438 stores all around the world with 100 service centers. As of mid-2021, Tesla has around 160 stores in the USA, 38 in Germany, 31 in China, 29, etc. Soon, Tesla is also expected to launch its cars in India in 2022.
Main Products and Services:
Tesla primarily sells Electric vehicles.
There are four models of Tesla EVs, namely:
Model 3
Model Y
Model X
Model S
Besides cars, Tesla also manufactures and sells various energy solutions like
Batteries for energy storage
Solar Panels
Solar Roof Tiles
Target Audience:
Tesla has manufactured vehicles for every type of customer starting from mid-range products with affordable pricing to highly developed luxury and sports cars. The target audience of Tesla includes eco-friendly car enthusiasts and of course, Elon Musk’s followers.
Business Lessons by Elon Musk
Business Model of Tesla
The Tesla business model works as a Direct-To-Consumer (D2C) model as it cuts off middlemen and sells its products directly.
This allows Tesla to foster customer relationships and improve its product simultaneously. The company has service centers all over the world through which it sends technicians to customers’ houses for the service. It actively seeks to decrease CO2 emissions into the environment and thus, has the support of the government too.
Tesla provides a sustainable transport option. The cars of Tesla are sleek in design, smarter in functionality, and provide low-cost charging.
The key activities of Tesla are manufacturing cars, research, and development, design, maintenance, software development, sales, and marketing.
Tesla generates revenue from three main sources: Car sales, Energy Solutions, and Servicing. These are discussed as follows:
Car Sales
Tesla is well-known for the electric vehicles they manufacture and sell. It had recorded a revenue of $17.7 billion in Q4 2021, a 65% increase year over year. It delivered 936,222 cars in 2021, which is an 87% increase from 499,647 cars in 2020. Tesla generates the most revenue from Model 3 and Model Y. Model 3 was the best-selling car in Europe in September 2021. Tesla’s revenue also has a tremendous upside potential because of the expected arrival of Cybertruck.
Services
Tesla generates around 8.6% of its revenue from the services it provides. Tesla technicians are the only people who are trained and allowed to work on Tesla vehicles. They have access to the important and proprietary parts that are needed even for basic repairs. It uses its proprietary system to control the maintenance and repair of its cars. This allows Tesla to claim most of the revenue generated by repairs.
Energy Generation and Storage
Besides cars, Tesla manufactures and sells batteries used for grid power storage. They can be used for both large-scale and small-scale purposes. They are also used for energy generation in Solar Panels or Solar Roof Tiles. This amounts to around 4.8% of Tesla’s total revenue.
These are the three streams through which Tesla generates revenue. The services and the energy generation aspects are some of the lesser-known revenue streams as compared to car sales. Tesla recorded a profit of $5.5 billion after its deliveries soared in 2021.
Advertising: While other car manufacturers spend big bucks on advertising, Tesla spends none. Tesla doesn’t need to spend even a single penny on advertising because of the massive popularity of its CEO, Elon Musk.
CarDealers: Tesla sells its product directly to the customers and thus, cuts off any third person or middlemen in between. People have to visit their website or the company showrooms to buy Tesla’s products.
Giga Factories: The Giga factories established by Tesla follow the principle of Economies of Scale. According to the principle, the larger the scale of production of something, the lower the cost of production of it. In the past, it was difficult to produce electric cars as the cost of batteries was very high. So, Tesla has established these giant factories for manufacturing the batteries of their cars and thus, reducing its cost of production.
Technology: The most unique factor about Tesla is the type of technology they use in their cars. The self-driving technology or the autopilot mode used in their cars has never been seen in another car before. Moreover, the safety features in their cars are one of the best in the entire world.
Conclusion
Tesla is one of the most successful automobile companies and it is certain that Elon Musk and his peers are working hard to provide newer means of transportation. It not only invented electric cars but also made sure to shed light on the fact that they are very much possible. It implemented a unique business model by leveraging direct sales to foster customer relationships. It is bringing innovation to the world and producing sustainable transportation through electric vehicles and solar power.
FAQ
Who is the CEO of Tesla?
Elon Musk is the CEO and co-founder of Tesla.
What is Elon Musk’s Net Worth?
Elon Musk’s net worth stands at 26,460 crores USD as of April 2022.
How much did Elon Musk pay to buy Twitter?
Elon Musk bought Twitter for an amount of 44 billion USD.
What is Tesla’s business model?
Tesla operates as a Direct-to-Consumer business model as it sells directly without any middlemen.
What are Tesla’s major business segments?
Tesla’s major business segments involve automotive, energy generation, and storage.
All the businesses and jobs make for the economy. A major factor that plays a huge role in shaping and influencing the global economy is the cream of people in the world.
This cream constitutes the richest people in the world. Anyone who is able to earn well and live a luxurious life is said to be rich. But there are few who have made a mark of richness in the entire world.
There are certain people who are born rich and work hard to make themselves richer. There are also people who start from scratch and create a place of their own.
The most wealthy persons in the world include Jeff Bezos, Elon Musk, and more. These people occupy a huge place and importance in the whole world.
The factor that determines how rich a person is their net worth. This worth is calculated in terms of monetary values. Higher the net worth, the richer the person is.
What does Net Worth Mean?
In simple economic terms, it is the value of all assets minus all liabilities. It is a difference between what one has and what one owes to others. It is the amount by which the value of a person’s assets exceeds the liabilities.
It is a quantifiable concept. It measures the value of a person, organization, or country. High net worth means good financial strength and a good credit rating of a person or organization. Low net worth means weaker financial strength and lower credit rating.
Most Richest People in The Whole World
The rich are a huge contributor to the global economy. They not only contribute but also are great influencers of the economy and people’s perceptions. Most of these people have used technology for the betterment and enhancement of regular people’s life.
Here are the top five richest people in the world:
Elon Reeve Musk (Elon Musk)
Elon Musk | Richest People in the world
This 50-year-old man, popularly known as the CEO of Tesla Motors, is the richest person in the world. He was born in South Africa and is now an American entrepreneur. He is the co-founder of PayPal (PYPL), Neuralink, and OpenAI.
Elon Musk is the founder, CEO, Chief engineer, and designer of the famous (Space exploration technologies) SpaceX. He is also the founder of the Boring Company. He started his entrepreneurial journey with the startup, Zip2.
Since then, this man has not stopped exploring the field of technology and has made himself the richest in the world. At present, he has a net worth of 24,930 crores USD.
He is an entrepreneur, computer engineer, investor, and commercial astronaut, born in New Mexico in the year 1964. Jeff Bezos is the founder of our beloved Amazon. The name that brought a revolution in the electronic commerce industry.
Jeff Bezos has been the CEO of Amazon from the beginning to the year 2021. Now, he is the executive chairman of Amazon. He also possesses his space company, Blue Origin. He made news all around the world for his trip to space in his company-built rocket.
He enjoyed the first rank in the list for around three years and was put back by Musk last year. He has a current net worth of 18,400 crores USD.
He has a major ownership share in Christian Dior that makes for most of his net worth. Other assets that contribute to his wealth include equity in Hermes, Moelis & Company, and cash.
The French tycoon has gained great popularity and earned a big place on the list. He has a current net worth of 18,960 crores USD.
He is a software developer, businessman, and author. He was born in the year 1955 in Seattle. He is the co-founder of Microsoft. It is the biggest software company in the world.
The company makes personal computers, phones, servers, software development tools, intelligent devices, and more. Bill apart from his business achievements, is a great philanthropist. He has helped a lot in the fight against Ebola, malaria, polio, and covid-19.
Besides his ownership share in Microsoft, his other huge net-worthy asset is Cascade Investment LLC. At present, Bill Gates has a net worth of 13,140 crores USD.
Lawrence Edward Page (Larry Page)
Larry Page | Richest People in the world
A person who has made people’s lives so convenient is Larry Page. He is a computer scientist and internet entrepreneur born in the year 1973 in Michigan, USA. He is popular for being the co-founder of Google.
Google is like a household name for the entire world. Over the years, it has acquired YouTube and Android. Last year it saw a fifty percent rise in its shares.
Larry became a multi-billionaire at the mere age of twenty-seven years. He has a keen interest in space and flying cars. Larry Page has invested in the related companies. Currently, he has a net worth of 11,670 crores USD.
Warren Edward Buffett (Warren Buffett)
Warren Buffett | Richest People in the world
He is a businessman and a keen investor born in Nebraska, the USA in 1930. Warren Buffett is the CEO of Berkshire Hathaway, a company that has its subsidiaries in insurance, energy generation, manufacturing, and many more.
Warren is famous for being a buy-and-hold investor who has made his huge wealth by gaining undervalued companies. Many books, movies, and documentaries have been made inspired by Buffett.
He is one of the best and most renowned investors of all time in the world. His current net worth stands at 11,380 crores USD.
Sergey Mikhaylovich Brin (Sergey Brin)
Sergey Brin | Richest People in the world
He is a computer scientist, businessman, and popular internet entrepreneur. He was born in Moscow, Russia in 1973. Sergey Brin is the man who co-founded Google with Larry.
Brin is no longer the president of Alphabet, the parent company of Google. But he continues to be a controlling shareholder and board member.
He stands two steps down his co-founder in the list with a net worth of 10,700 crores USD.
Lawrence Joseph Ellison (Larry Ellison)
Larry Ellison | Richest People in the world
He is a businessman, entrepreneur, and investor born in New York, the USA in 1944. Larry Ellison is popularly known as the co-founder and former CEO of the renowned software company, Oracle corporations.
The businessman serves as the chairman and Chief Technology Officer at Oracle. The company is the second-largest software company in the world. With time, they acquired many other companies in different fields.
Larry is also an equity holder in Tesla and has a net worth of 10,300 crores USD.
Steve Anthony Ballmer (Steve Ballmer)
He is a businessman and investor born in the year 1956, hailing from Michigan, USA. At present, he owns National Basketball Association’s Los Angeles Clippers. Steve Ballmer is also known to be famous for being the CEO of Microsoft for fourteen years.
He still is the biggest individual shareholder in Microsoft of 4%. He and Gates studied together at Harvard University.
This American businessman has made great progress over the year and has a net worth of 9,260 crores USD.
Mukesh Dhirubhai Ambani (Mukesh Ambani)
Mukesh Ambani | Richest People in the world
He is a popular billionaire businessman in India. He was born in Aden, Yemen in 1957 but was brought up in Mumbai, India. Mukesh Ambani is the Chairman and Managing Director of Reliance Industries, the company with the largest market value in India.
He dropped out of Stanford University to come back to India and work towards the expansion of Reliance. The company has indeed expanded to its great potential especially in retail and telecommunications under his direction.
Mukesh is the only Indian who stands among the top ten richest people in the world with a net worth of 9,160 crores USD.
Why does the Position of These People changes?
The position of these people on the list does not stay intact forever. It keeps on changing. The net worth of these people is not only because of themselves but also has the contribution of regular people.
A large amount of their wealth is in publicly traded stocks. The stock market as we know has its fair share of highs and lows. So, the changes in market valuations, and assets & liabilities lead to changes in the net worth of the richest people in the world.
Elon for example made it to the top because of the massive rise in share prices of Tesla. So, the share market plays a huge role in determining the position that a rich person holds.
Conclusion
The richest cream of people in the world plays a huge role in building the economy. These also act as role models for many people who wish to be like them one day. Their journeys consist of hard work, execution, an eye for opportunities, overcoming obstacles, and a non-give-up attitude.
The above-mentioned are the top 5 richest persons in the world. These men have created revolutions in their fields and made it to where they are today.
FAQs
Who are the top 5 richest people in the world?
The top 5 richest people in the world are:
Elon Musk
Jeff Bezos
Bernard Arnault
Bill Gates
Larry Page
What is the net worth of Elon Musk?
Elon Musk has a net worth of 249 Billion.
What is the net worth of Jeff Bezos?
Jeff Bezos has an estimated net worth of $184 billion.
Shantanu Sengupta
