Tesla
Accelerating the world's transition to sustainable energy
Image credit - © Tesla Inc
What does it do?
Tesla is looking to fundamentally re-imagine the concept of auto ownership and, in the longer term, the energy storage and distributions markets.
Why do we invest?
A combination of innovation, brand, vertical integration and first-mover advantage has resulted in a potent cocktail of competitive edges for Tesla. Tesla makes almost all its components in-house which means that it can iterate quickly and withstand supply chain shocks, while its ‘software first’ mindset has the potential to unlock opportunities in new areas such as autonomous driving and personalised insurance. The company is producing vehicles faster than even the most sophisticated incumbent auto-production lines.
If the exponential trend in production that Tesla has enjoyed continues, over the coming decade, they could produce upwards of 10 million cars and trucks a year and command a vast share of the global market. Add to that the integration of their manufacturing expertise into energy storage, plus revenues from autonomous driving software licences, and it’s plain to see the long runway of potential upside for the company.
Who is key?
Elon Musk is undoubtedly an extraordinary leader with a clear vision, notwithstanding his share of media controversies. His success has forced a response on the part of automotive incumbents and accelerated the transition to electric vehicles globally. The success of Tesla from here is not just dependent on Musk, however. The robust board around him and the dynamic individuals on the manufacturing team are also key.
When
Founded in: 2003
Invested in: 2013
Where
Headquartered: U.S.
Important information
The company showcased on this page is part of a diversified portfolio. The commentary should not be taken as advice on an individual stock.
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As at 30 June 2024
Investment trusts are UK public companies and are not authorised and regulated by the Financial Conduct Authority. You may not get back the amount invested and please bear in mind that past performance is not a guide to future performance.