Tesla (TSLA -1.41%) stock is up 115% this year and has been one of the best-performing stocks of 2023. Over the last 10 years, shares skyrocketed a mind-blowing 3,970%. 

This type of performance wouldn't be possible if the business wasn't posting tremendous growth. Tesla has been a leader in the industry for electric vehicles (EV), and unsurprisingly, it commands a premium valuation today. The stock currently trades at a price-to-earnings ratio of 77. 

If this doesn't discourage you from wanting to become a shareholder, then perhaps it's a good idea to learn more about the company. With that being said, here are three things that smart investors know about Tesla. 

1. Four car models 

Released in 2008, Tesla's first model was the Roadster, a supercar that cost over $100,000 and could go zero to 60 miles per hour in under four seconds. The business stopped producing these cars in 2012, but management has plans to reintroduce an upgraded version. 

The Tesla most people are familiar with currently sells four popular car models. They range from four-door sedans like the high-end Model S and the more affordable Model 3 to the mid-sized sport utility vehicle (SUV) Model X and the compact Model Y SUV. Combined, the company produced 480,000 and delivered 466,000 of these four models during the second quarter of 2023, generating $21.3 billion in revenue in doing so. That sales figure was up 46% year over year. 

Tesla made news recently for completing the production of the first unit of its anticipated Cybertruck, with deliveries expected to begin later this year. The truck could be a meaningful contributor to revenue growth. 

And the business also started production of its powerful semi-trucks, called the Semi, in December last year. In fact, global food and beverage company PepsiCo received the first units. Other major corporations, like Walmart and UPS, have placed orders as well. By selling more semi-trucks over time, Tesla can get greater exposure to the massive commercial market. And this could become a notable driver of sales. 

2. Energy ambitions 

Tesla is known for selling EVs, but the company also has ambitions to become an important energy company. "Our mission is to accelerate the world's transition to sustainable energy," reads Tesla's 2022 annual report. 

Besides its cars, Tesla offers customers solar panels to have installed on the roofs of residential, commercial, and industrial buildings. The business also sells Powerwalls and Megapacks, which are battery packs that can be installed in a customer's home or on a commercial building to store the solar energy from panels for backup use. 

While a much smaller part of the overall Tesla business, these products, included in the energy generation and storage segment, generated revenue of $1.5 billion in the second quarter of 2023, which was a 74% increase compared to the prior-year period. 

Looking ahead, Tesla wants to help drive the world away from fossil fuels and toward clean energy. Of course, getting more EVs on the road, as well as offering sustainable and more cost-effective alternatives for energy usage, can help. Time will tell what other avenues Musk takes as it relates to his energy plans. 

3. Achieving profitability 

In 2022, Tesla produced $13.7 billion in operating income, good for a margin of 17%. This was up from an operating margin of just 12% in 2021 and 6% in 2020. Evidently, we are seeing Tesla benefiting from operating leverage, something shareholders have been hoping for. 

Because Tesla's operations require tons of capital expenditures, mainly for building factories, it can be a while until breakeven is achieved. The company has now reached a certain threshold in terms of vehicle units sold so that it can consistently earn positive net income going forward. 

However, management has decided to implement price cuts this year. And this pressured margins. Tesla's operating margin in the latest quarter of 9.6% was down substantially from 14.6% in the year-ago period. If the company can grow its market share by selling more cars, though, then the leadership team is OK with this decision. 

By now, investors have some background knowledge about Tesla to be able to conduct further research on the stock.