Tesla, Inc.

Tesla, Inc. is an American multinational automotive and clean energy company headquartered in Austin, Texas, that designs, manufactures, sells, and services electric vehicles (EVs), battery energy storage systems, solar energy products, and related software and services. Founded in 2003 and led for most of its existence by chief executive Elon Musk, Tesla grew from a niche startup building low-volume sports cars into one of the world's most valuable automakers by market capitalization, and is widely credited with accelerating the global automotive industry's transition toward vehicle electrification.

History

Founding and Early Development (2003–2008)

Tesla was incorporated on July 1, 2003, in San Carlos, California, by engineers Martin Eberhard and Marc Tarpenning, who served as chief executive officer and chief financial officer, respectively. The company's stated mission was "to accelerate the world's transition to sustainable energy." Its founding strategy followed a "master plan" articulated by Elon Musk in 2006: begin with a high-priced, low-volume sports car, use the proceeds to develop progressively more affordable vehicles, and generate clean energy in the process. Ian Wright and JB Straubel joined shortly after founding, and in April 2004 Musk led a US$7.5 million Series A investment round, became chairman of the board, and took an active role in product design. Following a lawsuit filed by Eberhard in 2009, a settlement permitted all five individuals—Musk, Eberhard, Tarpenning, Wright, and Straubel—to be described as co-founders.

Tesla's first vehicle, the Roadster, was unveiled in 2006 and entered production in March 2008. Built on a chassis derived from the Lotus Elise and incorporating lithium-ion battery technology, it was the first highway-legal production electric car to travel more than 320 kilometers (200 miles) on a single charge. Approximately 2,450 units were sold by the time production ended in 2012. During the 2008 global financial crisis, Tesla approached bankruptcy; Musk assumed the role of chief executive officer in October 2008 and invested substantial personal funds to keep the company solvent.

Recovery and Expansion (2009–2015)

Tesla stabilized with a US$50 million investment from Daimler in 2009 and a US$465 million loan from the United States Department of Energy in January 2010. In June 2010, the company held an initial public offering on the NASDAQ at US$17 per share, becoming the first American automaker to go public since Ford Motor Company in 1956. That year Tesla purchased the former NUMMI plant in Fremont, California, which became its principal vehicle factory.

The Model S sedan entered deliveries in June 2012, earning the 2013 Motor Trend Car of the Year and other industry honors. Tesla recorded its first quarterly GAAP profit in the first quarter of 2013 and repaid its federal loan five years ahead of schedule. The first Supercharger fast-charging stations opened in late 2012, and driver-assistance features branded "Autopilot" began rolling out in October 2015. The Model X sport utility vehicle, notable for its falcon-wing doors, entered deliveries in September 2015.

Mass-Market Push and Corporate Expansion (2016–2020)

In March 2016, Tesla unveiled the Model 3, a lower-priced sedan that attracted roughly 325,000 refundable reservations within a week—one of the largest product launches in consumer history. In November 2016, Tesla acquired solar installer SolarCity in an all-stock transaction valued at approximately US$2.6 billion, integrating energy generation into its portfolio; the deal drew criticism and shareholder litigation over Musk's conflicts of interest as the largest shareholder of both companies.

The Model 3 production ramp of 2017–2018, during which Musk described Tesla as being in "production hell," brought the company to the edge of insolvency before weekly output targets were met in mid-2018. In August 2018, Musk's tweet claiming he had "funding secured" to take Tesla private led to securities fraud charges by the U.S. Securities and Exchange Commission; under a settlement, Musk and Tesla each paid US$20 million in penalties and Musk relinquished the chairmanship to Robyn Denholm.

Tesla's Gigafactory near Reno, Nevada, opened in 2016 to produce battery cells and packs in partnership with Panasonic. The company's Shanghai Gigafactory—China's first wholly foreign-owned passenger car plant—began construction in January 2019 and started Model 3 deliveries in December 2019. The Model Y crossover entered deliveries in March 2020, and the "Full Self-Driving" (FSD) beta program began in October 2020. At its September 2020 "Battery Day," Tesla announced the larger 4680 battery cell format. In December 2020, Tesla was added to the S&P 500 index, and 2020 became its first full year of GAAP profitability, with roughly 500,000 vehicles delivered.

Diversification and Maturation (2021–present)

In October 2021, Tesla's market capitalization exceeded US$1 trillion for the first time, and the company announced the relocation of its headquarters from Palo Alto, California, to Austin, Texas. The Berlin-Brandenburg Gigafactory opened in March 2022 and the Texas Gigafactory in April 2022. Deliveries of the electric Semi truck began in December 2022, initially to PepsiCo. After repeated delays, the angular stainless-steel Cybertruck entered customer deliveries in November 2023.

In 2023, Tesla delivered approximately 1.81 million vehicles, and the Model Y became the world's best-selling passenger car. However, intensifying competition—particularly from Chinese manufacturers such as BYD—prompted successive price cuts that compressed margins. In January 2024, a Delaware court voided Musk's 2018 performance-based compensation package, and in April 2024 Tesla announced layoffs exceeding 10 percent of its workforce. In June 2024, shareholders approved reincorporating the company in Texas and re-ratified Musk's pay award, the subject of continuing