tesla s expanding business model

While Tesla’s car sales dropped in early 2025, the company’s pushing hard into new areas that could alter its future. The electric vehicle maker delivered 13% fewer cars in the first quarter of 2025 compared to last year, and sales fell 27% from the previous quarter.

Tesla’s making up for slower car sales by growing its energy business. Tesla Energy brought in $10.1 billion in 2024, jumping 67% from the year before. The company installed 30% more Solar Roofs last year as homeowners wanted cleaner energy options. Its giant battery systems now help power grids around the world, including a massive 730-megawatt-hour project in California. Tesla’s energy storage deployments hit 5 GWh globally in 2024, marking a 50% year-over-year increase.

Tesla Energy revenue soared 67% to $10.1 billion as battery storage projects expanded globally.

The company’s also betting big on self-driving technology. Over 1.8 million Tesla vehicles now have Full Self-Driving hardware. Tesla’s testing the system in more countries and plans to start using it in China by early 2025. The company’s even working on a robotaxi that could drive itself without any human input. Tesla began pilot-testing robotaxis in Austin, Texas, using Model Y vehicles equipped with its FSD software.

Beyond cars and energy, Tesla’s building robots. The company showed off its Optimus robots in 2025, designed to work in factories and warehouses. These machines could replace human workers doing dangerous or boring jobs. Tesla wants to mass-produce these robots using the same technology that powers its cars.

The shift away from just making cars isn’t smooth. Tesla had to recall all 46,096 Cybertrucks it made, though it still sold nearly 39,000 in 2024. The company’s also planning cheaper vehicles, including a car under $25,000 by 2026 and possibly a “Robovan” for businesses. In addition to expanding its vehicle lineup, Tesla is also focusing on enhancing its accessories, such as the new tesla juniper mud flaps review, which has received positive feedback for its durability and design. As the company works to improve its manufacturing processes, it aims to avoid future recalls and maintain consumer confidence. The launch of these new products reflects Tesla’s commitment to innovation and sustainability within the automotive industry. Additionally, Tesla aims to expand its market reach by introducing more accessible options for consumers. With advancements in technology and production efficiency, buyers may wonder why choose the 2026 Tesla Model X over traditional vehicles. The blend of innovative features, sustainability, and competitive pricing positions Tesla as a leader in the electric vehicle market.

For drivers, Tesla’s changing focus could mean less attention on improving current vehicles. As the company spreads its resources across energy storage, robots, and self-driving technology, traditional car buyers might find fewer updates and innovations in the vehicles they can actually purchase today. This shift in priorities could also signal a pivot towards lifestyle products, as seen with the emerging tesla dining accessory trend. Potential buyers may wonder if their investment in a Tesla will be overshadowed by the company’s forays into new markets. Ultimately, this could lead to a disconnect between consumer expectations and the company’s evolving vision.

While Elon Musk believes battery storage could eventually make as much money as car sales, current Tesla owners might worry about whether their needs will still come first as the company evolves into something much bigger than an automaker.