Tesla's Business Has Become Much More Diversified in Just the Past Five Years. Does That Make Its Stock a Better Buy Today?
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Tesla's business has become more diversified over the past five years, with non-automotive revenue now making up 27% of its top line. However, this diversification may not necessarily make its stock a better buy, as it remains expensive and faces intense competition in the EV market.
Tesla has evolved its operations in recent years, with non-automotive revenue now accounting for 27% of its top line. In 2025, the company generated $94.8 billion in total revenue, including $69.5 billion from automotive revenue and $25.3 billion from other segments. This diversification has helped offset a slowdown in its core automotive business. Tesla's services segment grew by 19%, and its energy generation and storage business unit increased sales by 27%. Despite this, the company's stock remains expensive, with a price-to-earnings multiple of over 300 times earnings. With margins remaining low and competition intensifying, it's hard to see a path for its financials to significantly improve in the near future.
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