Ten years ago, Tesla was just a dwarf in the automotive industry.
The ambitions of Elon Musk's group to transform the automotive industry into a less polluting sector were met with ridicule. Tesla wasn't even producing a vehicle for the masses.
In contrast, the heart of the U.S. automobile industry was still beating in Michigan, specifically in Detroit, where General Motors is based, and in Dearborn, the headquarters of Ford.
General Motors (GM) had recovered well from its 2009 bankruptcy and once again dominated the U.S. auto industry. Ford (F), the only member of Detroit's Big Three not to file for Chapter 11 bankruptcy during the 2008 financial crisis, was firmly in second place.
The picture at the end of 2012 was clear: GM and Ford had an iron grip on the industry. The figures confirmed this: Consumers flocked to their cars. General Motors' revenue was $152.3 billion, while Ford's was $133.6 billion.
Tesla Earned $12.6 Billion in 2022
Tesla, which had started production of the Model S luxury sedan a few months earlier -- in June 2012 -- had reported revenue of $413 million. The company was losing money.
In 2012, Tesla, whose headquarters was still in California, had recorded a net loss of $396 million. On the other hand, GM and Ford were highly profitable, posting net income of $4.9 billion and $5.7 billion, respectively.
Ten years later, the situation is much different.
The one that 10 years ago was last has become the winner, speeding past its two rivals. Indeed, Tesla's rise has been exceptional.
The company now markets five vehicles: the entry-level Model 3 sedan, the Model S luxury sedan, the Model Y SUV/crossover and the Model X luxury SUV/crossover, and finally the Tesla Semi.
And in a few months, a long-awaited and much-anticipated vehicle will join the list: the Cybertruck, Tesla's first pickup. It is expected to become the locomotive of Tesla's profits in the coming years.
What's more, electric vehicles have established themselves as the future of the automobile. GM and Ford and all the other legacy carmakers are now investing billions of dollars to develop EVs. The goal is to reduce the gap with Tesla, their main target. Basically, Tesla, the hunter yesterday has become the hunted today.
The changing of the guard is reflected in the numbers and especially in profitability. Tesla has become the most profitable American automobile group. In 2022, Musk's firm earned $12.6 billion. Its revenue jumped to $81.5 billion.
'How Times Have Changed' - Musk
The company boasts profit margins that are the envy of any car manufacturer: The automotive gross margin widened to 28.5%.
GM, for its part, posted net income of $9.9 billion on revenue of $157 billion for the year. Ford was in the red last year, posting a net loss of $2 billion on revenue of $158.1 billion.
The margins of the two former giants are thin compared with their disruptor Tesla. Ford has an adjusted margin before interest and taxes of 6.6%, while GM says its adjusted Ebit margin in North America was 10.1% in 2022.
Their costs are huge compared to those of Tesla. Ford's total costs rose 15% last year, while GM's rose 24.4%. Tesla's operating expenses edged up 1.6%.
This big shift in the top tier of the U.S. auto industry was observed by the investor Charlie Bilello on Twitter on Feb. 6. He posted a chart showing Tesla's rise compared to GM and Ford. Two days later Musk used it to indicate that Tesla was now America's premier auto center.
"How times have changed," the billionaire tweeted on Feb.8
He didn't add anything else, but Twitter users were quick to sing Tesla's praises.
"A SIMPLE graph EVERYONE should see! (I've got my deposit for my roadster & truck! PUMPED!!!)," commented angel investor Paul Gravette.
"It’s not the end of this chart yet either," added another Twitter user.
"Congrats to the Tesla team," said one Twitter user.
