All things EV: Breaking down Tesla and more

Good Morning,

Welcome to another edition of ChartWiz, where we visualize financial data in bite-sized portions. In today’s newsletter, we’re highlighting the EV industry, where Tesla’s massive lead in the category gets even bigger.

Today’s sponsor is Wall St. Whisper, an insightful free newsletter authored by a private money manager revealing Wall Street secrets — sign up free!

And with that, welcome to ChartWiz!

EV MARKET - INDUSTRY OVERVIEW

Here's a snapshot of the current market capitalization of the top 10 publicly traded EV companies as of March 29, 2024:

Tesla leads by a wide margin, with a market cap nearing the half-trillion mark. The auto segment's market cap suggests a strong investor confidence in Tesla's leadership and future growth potential. However, the relatively smaller increments in market cap among the other players, including Rivian, indicate a more competitive and fragmented market. Rivian's market cap, while significantly lower than Tesla's, underscores its emerging presence and investor interest in the company's potential to carve out a niche within the EV industry.

TESLA - REVENUE SEGMENTS

Tesla's recent financials show a straightforward, almost textbook case of robust growth across the board:

• Auto revenue: Increased from $6.3 billion to $21.6 billion, a growth of 241%.

• Energy revenue: Expanded from $371 million to $1.4 billion, a 287% increase.

• Services revenue: Rose from $531 million to $2.2 billion, which is a 309% increase.

Despite these strong growth figures, there is an indication that the auto revenue segment is beginning to plateau, suggesting that Tesla may be reaching a saturation point in its current market or facing increased competition, and might need to look for new growth strategies or innovations to maintain its impressive growth trajectory.

Revealing Wall Street & Government Secrets

Wall St. Whisper reveals everything Wall Street and the government don’t want you to know.

Authored by a former private money manager that knows the ins and outs of the street, it covers topics like:

• Congress members beating the stock market

• Big corporation tax loop holes

• Government secrets (yep, those kind of secrets)

• And more

Join 8,000+ smart investors and free thinkers reading Wall St. Whisper!

TSLA VS RIVN - SEGMENTS COMPARISON

Tesla's production figures show a tale of two stories: the Model 3's output swelled impressively by 676.6%, from 61.4K to 476.8K units, though this growth has shown signs of leveling off. Production of their other models has decreased by 27.6%, hinting at possible market saturation or strategic shifts. In comparison, Rivian has seen a significant ramp-up, with a 1,600% increase in production, but with 17.5K units produced, they are still in the early stages of scaling up to meet Tesla’s benchmarks. The slowing growth rate of Tesla’s Model 3 could be an early indicator of a maturing EV market, presenting both an opportunity and a challenge for Rivian as it works to gain ground.

TESLA - HOW THEY MAKE MONEY

Breaking down Tesla's financials, we see their engine of profit running on several streams:

• Automotive Sales contribute the lion's share at 85% ($20.63B).

• Energy Generation & Storage provides around 6% ($1.44B).

• Services round up the revenue streams with approximately 9% ($2.17B).

On the flip side of the ledger:

• The cost of revenue accounts for about 85.5% of total revenue ($20.73B).

• This results in a gross profit that constitutes roughly 18.3% of the total revenue ($4.44B).

• Operating expenses take up nearly 9.8% of the total revenue ($2.37B).

• This leaves Tesla with an operating income of about 8.5% of total revenue ($2.06B).

These percentages reveal a robust reliance on automotive sales for revenue, while the costs indicate a high price to produce and deliver their products. The profit margins suggest efficient operations but also highlight the competitiveness and cost pressures in the EV market.

HISTORICAL RETURN

How $10,000 Invested in Tesla (TSLA), Rivian (RIVN), and Fisker (FSR) - Would have returned just 5 years ago.

If you invested $10,000 in Tesla, Rivian, and Fisker five years ago, here's where you'd stand today:

• Tesla (TSLA): Your investment would have grown to $94,663, a whopping 846.63% increase.

• Rivian (RIVN): That $10,000 would now be worth $1,087, reflecting a near 90% decrease.

• Fisker (FSR): The investment would have seen a minimal return, now sitting at $91, which is a 99.09% decrease!

WORD FROM WIZ

That’s all we have for you in today’s edition of ChartWiz. If you found this valuable, please consider forwarding it to a friend.

Want to see a chart style or something we don’t have? Reply and let us know!

Have a fantastic week!

-Wiz

Reading this but not subscribed?