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Tesla, Inc. ( or ) is an American multinational automotive and
clean energy
Clean may refer to:
* Cleaning, the process of removing unwanted substances, such as dirt, infectious agents, and other impurities, from an object or environment
* Cleanliness, the state of being clean and free from dirt
Arts and media Music Al ...
company headquartered in Austin, Texas
Austin is the capital city of the U.S. state of Texas, as well as the county seat, seat and largest city of Travis County, Texas, Travis County, with portions extending into Hays County, Texas, Hays and Williamson County, Texas, Williamson co ...
. Tesla designs and manufactures electric vehicle
An electric vehicle (EV) is a vehicle that uses one or more electric motors for propulsion. It can be powered by a collector system, with electricity from extravehicular sources, or it can be powered autonomously by a battery (sometimes cha ...
s ( electric cars and trucks
A truck or lorry is a motor vehicle designed to transport cargo, carry specialized payloads, or perform other utilitarian work. Trucks vary greatly in size, power, and configuration, but the vast majority feature body-on-frame construction ...
), battery energy storage
Energy storage is the capture of energy produced at one time for use at a later time to reduce imbalances between energy demand and energy production.
A device that stores energy is generally called an accumulator or battery.
Energy comes in ...
from home to grid-scale, solar panel
A solar cell panel, solar electric panel, photo-voltaic (PV) module, PV panel or solar panel is an assembly of photovoltaic solar cells mounted in a (usually rectangular) frame, and a neatly organised collection of PV panels is called a photo ...
s and solar roof tiles, and related products and services. Tesla is one of the world's most valuable companies and remains the world's most valuable automaker with a market capitalization
Market capitalization, sometimes referred to as market cap, is the total value of a publicly traded company's outstanding common shares owned by stockholders.
Market capitalization is equal to the market price per common share multiplied by t ...
of more than US$550 billion. In 2021, the company had the most worldwide sales of battery electric vehicle
A battery electric vehicle (BEV), pure electric vehicle, only-electric vehicle, fully electric vehicle or all-electric vehicle is a type of electric vehicle (EV) that exclusively uses chemical energy stored in rechargeable battery packs, ...
s and plug-in electric vehicle
A plug-in electric vehicle (PEV) is any road vehicle that can utilize an external source of electricity (such as a wall socket that connects to the power grid) to store electrical power within its onboard rechargeable battery packs, which then ...
s, capturing 21% of the battery-electric (purely electric) market and 14% of the plug-in market (which includes plug-in hybrid
A plug-in hybrid electric vehicle (PHEV) is a hybrid electric vehicle whose battery pack can be recharged by plugging a charging cable into an external electric power source, in addition to internally by its on-board internal combustion engin ...
s). Through its subsidiary Tesla Energy
Tesla Energy is the clean energy subsidiary of Tesla, Inc. that develops, manufactures, sells and installs photovoltaic solar energy generation systems, battery energy storage products, as well as other related products and services to resid ...
, the company develops and is a major installer of photovoltaic system
A photovoltaic system, also PV system or solar power system, is an electric power system designed to supply usable solar power by means of photovoltaics. It consists of an arrangement of several components, including solar panels to absorb and co ...
s in the United States. Tesla Energy is also one of the largest global suppliers of battery energy storage systems, with 3.99 gigawatt-hours (GWh) installed in 2021.
Tesla was incorporated in July 2003 by Martin Eberhard
Martin Eberhard (born ) is an American inventor, engineer and entrepreneur who co-founded Tesla, Inc. (then Tesla Motors) with Marc Tarpenning in 2003. Eberhard served as Tesla's original chairman, and its CEO until late 2007. In 2015, he was in ...
and Marc Tarpenning
Marc Tarpenning (born June 1, 1964) is an American engineer and technology entrepreneur who is the co-founder of Tesla Inc. with Martin Eberhard in 2003. Tarpenning served as the Chief Financial Officer (CFO) and Vice President of Engineering ...
as Tesla Motors. The company's name is a tribute to inventor and electrical engineer Nikola Tesla
Nikola Tesla ( ; ,"Tesla"
''
In May 2010, Tesla purchased what would later become the
The Model S is a five-door
The Tesla Model X is a
The Model 3 is a four-door
The Model Y is a
The Tesla Semi is an all-electric Class 8
In a surprise reveal at the end of the event that introduced the
The Cybertruck is a
The only discontinued Tesla vehicle model is the original Tesla Roadster. The Roadster was a two-seater sports car, evolved from the
Tesla subsidiary Tesla Energy develops, builds, sells and installs solar energy generation systems and battery energy storage products (as well as related products and services) to residential, commercial and industrial customers.
The subsidiary was created by the merger of Tesla's existing battery energy storage products division with SolarCity, a solar energy company that Tesla acquired in 2016.
Tesla Energy's generation products include solar panels (built by other companies for Tesla), the Tesla Solar Roof (a
In 2012, Tesla began building a network of 480-volt fast-charging Supercharger stations. , Tesla operates 36,165 Superchargers in 3,971 stations worldwide (an average of 9 chargers per station). The Supercharger is a proprietary
In 2014, Tesla launched the "Destination Charging location" network by providing chargers to hotels, restaurants, shopping centers and resorts (and other locations where Tesla owners may spend an hour or more) to provide on-site vehicle charging at twice the power of a typical home charging station.
Destination chargers are installed free of charge by Tesla-certified contractors; the locations originally were required to provide the electricity at no cost to their customers. , locations with six or more destination chargers may start charging for electricity. All destination chargers appear in the in-car navigation system.
At the time of Tesla's founding in 2003, electric vehicles were very expensive. In 2006, Elon Musk stated that Tesla's strategy was to first produce high-price, low-volume vehicles, such as sports cars, for which customers are less sensitive to price. This would allow them to progressively bring down the cost of batteries, which in turn would allow them to offer cheaper and higher volume cars. Tesla's first vehicle, the Roadster, was low-volume (fewer than 2,500 were produced) and priced at over $100,000. The next models, the Model S and Model X, are more affordable but still luxury vehicles. The most recent models, the Model 3 and the Model Y, are priced still lower, and aimed at a higher volume market, selling over 100,000 vehicles each quarter. Tesla continuously updates the hardware of its cars rather than waiting for a new model year, as opposed to nearly every other car manufacturer.
Unlike other automakers, Tesla does not rely on franchised auto dealerships to sell vehicles. Instead, the company directly sells vehicles through its website and a network of company-owned stores. The company is the first automaker in the United States to sell cars directly to consumers. Some jurisdictions, particularly in the United States, prohibit auto manufacturers from directly selling vehicles to consumers. In these areas, Tesla has locations that it calls ''galleries'' that the company says "educate and inform customers about our products, but such locations do not actually transact in the sale of vehicles." In total, Tesla operates nearly 400 stores and galleries in more than 35 countries. These locations are typically located in retail shopping districts, inside shopping malls, or other high-traffic areas, instead of near other auto dealerships.
Tesla is notable for spending no money on paid advertising campaigns, unlike other automakers.
Tesla has a high degree of vertical integration, estimated at 80% in 2016. The company produces vehicle components as well as building proprietary stations where customers can charge their vehicles. Vertical integration is rare in the automotive industry, where companies typically ''outsource'' 80% of components to suppliers and focus on engine manufacturing and final assembly. Tesla used low-cost strategy as a business approach, with which they can expand their business into a broader market by offering standard technology items.
Tesla generally allows its competitors to license its technology, stating that it wants to help its competitors accelerate the world's use of sustainable energy. Licensing agreements include provisions whereby the recipient agrees not to file patent suits against Tesla, or to copy its designs directly. Tesla retains control of its other intellectual property, such as trademarks and trade secrets to prevent direct copying of its technology.
Tesla was the first automaker to use batteries containing thousands of small, cylindrical, lithium-ion commodity cells like those used in consumer electronics. Tesla uses a version of these cells that is designed to be cheaper to manufacture and lighter than standard cells by removing some safety features; according to Tesla, these features are redundant because of the advanced thermal management system and an intumescent chemical in the battery to prevent fires.
The batteries are placed under the vehicle floor. This saves interior and trunk (boot) space but increases the risk of battery damage by debris or impact (see #Crashes and fires, crashes and fires). After two vehicle fires in 2013 due to road debris, the Model S was retrofitted with a multi-part aluminum and titanium protection system to reduce the possibility of damage.
In 2016, former Tesla CTO J.B. Straubel expected batteries to last 10–15 years, and discounted using electric cars to charge the grid with vehicle-to-grid because the related battery wear outweighs economic benefit. He also preferred recycling over Battery storage, re-use for grid once they reach the end of their useful life for vehicles. Tesla launched its battery recycling operation at Giga Nevada in 2019. Straubel independently founded battery recycling company Redwood Materials, Inc., Redwood Materials in 2017, which supplies recycled materials to Panasonic.
Panasonic is Tesla's supplier of cells in the United States, and cooperates with Tesla in producing cylindrical 2170 battery, 2170 batteries at Giga Nevada.
In January 2021, Panasonic had the capacity to produce 39 GWh per year of batteries at Giga Nevada. Tesla's battery cells used in Giga Shanghai are supplied by Panasonic and Contemporary Amperex Technology (CATL), and are the more traditional Prism (geometry), prismatic (rectangular) cells used by other automakers.
, nearly half of all Tesla's vehicles produced last quarter are using cobalt-free Lithium iron phosphate battery (LFP) made in China.
Autopilot is an advanced driver-assistance system developed by Tesla. The system requires active driver supervision at all times.
Since September 2014, all Tesla cars are shipped with sensors (initially hardware version 1 or "HW1") and software to support Autopilot. Tesla upgraded its sensors and software in October 2016 ("HW2") to support full self-driving in the future. HW2 includes eight cameras, twelve ultrasonic sensors, and forward-facing radar. HW2.5 was released in mid-2017, and it upgraded HW2 with a second graphics processing unit (GPU) and, for the Model 3 only, a driver-facing camera. HW3 was released in early 2019 with an updated and more powerful computer, employing a custom Tesla-designed system on a chip.
In April 2019, Tesla announced that all of its cars will include Autopilot software (defined as just ''Traffic-Aware Cruise Control'' and ''Autosteer'' (Beta)) as a standard feature moving forward. Full self-driving software (Automatic parking, Autopark, Navigate on Autopilot (Beta), Auto Lane Change (Beta), Tesla Autopilot#Summon (Beta), Summon (Beta), Tesla Autopilot#Smart Summon (Beta), Smart Summon (Beta) and future abilities) is an extra cost option.
In 2020, Tesla released software updates where its cars recognize and automatically stop at stop signs and traffic lights. In May 2021, Tesla removed the radar sensor and radar features from its Model 3 and Model Y vehicles, opting instead to rely on camera vision alone. The ''New York Times'' reported in December 2021 that Musk "repeatedly told members of the Autopilot team that humans could drive with only two eyes and that this meant cars should be able to drive with cameras alone," an analogy some experts and former Tesla engineers described as "deeply flawed." Similarly, a statistical analysis conducted in ''A Methodology for Normalizing Safety Statistics of Partially Automated Vehicles'' debunked a common Tesla claim that Autopilot reduced crash rates by 40 percent by accounting for the relative safety of the given operating domain when using active safety measures.
Tesla was founded in San Carlos, California. In 2010, Tesla moved its corporate headquarters and opened a powertrain development facility in Palo Alto.
Tesla's first retail store was opened in 2008 in Los Angeles, followed by others in major U.S. cities. , Tesla operates 196 stores and galleries in the United States, has stores and galleries in 34 other countries, and has 655 service centers globally.
Tesla's first assembly plant occupies the former NUMMI plant in Fremont, California, known as the Tesla Fremont Factory. The factory was originally opened by General Motors in 1962, and then operated by a joint venture of GM and 
The first major battery production facility was opened in Nevada in 2016. Gigafactory Nevada (originally Gigafactory 1) produces Powerwalls, Powerpacks and Megapacks; battery cells in partnership with Panasonic; and Model 3 battery packs and drivetrains. The factory received substantial subsidies from the local and state government, that, in exchange for opening in their jurisdiction, allowed Tesla to operate essentially tax free for 10 years.
As part of the acquisition of SolarCity in 2016, Tesla acquired Gigafactory New York located in Buffalo, New York, on the site of a former Republic Steel plant. SolarCity had received incentives to locate its factory in Buffalo through the Buffalo Billion program. In 2017, the factory started production of solar shingles for the Tesla Solar Roof. Between 2017 and 2020 Tesla partnered with Panasonic to assemble photovoltaic modules at the plant.
In May 2020, after Alameda County had refused to let the Tesla factory reopen after a COVID-19 lockdown, Elon Musk threatened that he would move the company's headquarters from California to Texas or Nevada.
On July 23, 2020, Tesla picked Austin, Texas, as the site of Gigafactory 5, since then known as Gigafactory Texas Giga Texas is planned to be the main factory for the Tesla Cybertruck and the Tesla Semi; it will also produce Model 3 and Model Y cars for the Eastern United States. On April 7, 2022, Tesla celebrated the public opening of the Giga Texas facility with its Cyber Rodeo event attended by an estimated 15,000 invitees.
On December 1, 2021, Tesla officially relocated its headquarters to the Gigafactory site in Austin, Texas. Because of Texas regulations, the company offers to cover costs for out-of-state healthcare, which include abortion and gender affirmation procedures.
Tesla acquired a former JC Penney distribution center near Lathrop, California, in 2021 to build a Megafactory to manufacture Megapacks. The location opened in 2022 and produces the next-generation Megapacks to use prismatic lithium iron phosphate batteries.
Tesla opened its first European store in June 2009 in London. Tesla's European headquarters are in the Netherlands. Tesla facilities in Tilburg, Tesla operates facilities in Tilburg, including a European Distribution Centre and an final assembly facility that adds drivetrain, battery and software to imported car bodies to reduce import tax, which depends on the location of final assembly.
In late 2016, Tesla acquired German engineering firm Grohmann Engineering as a new division dedicated to helping Tesla increase the automation and effectiveness of its manufacturing process. After winding down existing contracts with other auto manufacturers, the renamed
Tesla opened its first Japanese showroom in Tokyo, Japan, in October 2010. By 2013, showrooms and service centers were operating in Hong Kong, Beijing and Shanghai. Two showrooms opened in South Korea in March 2017 and a service center opened there in late 2017. In August 2017, Taiwan opened its first service center and showroom.
In July 2018, Tesla signed an agreement with Chinese authorities to build a factory in Shanghai, China, which was Tesla's first Gigafactory outside of the United States. The factory building was finished in August 2019, and the initial
In January 2010, Tesla and battery cell maker Panasonic announced that they would together develop nickel-based lithium-ion battery cells for electric vehicles. The partnership was part of Panasonic's $1 billion investment over three years in facilities for lithium-ion cell research, development and production.
Beginning in 2010, Panasonic invested $30 million for a multi-year collaboration on new battery cells designed specifically for electric vehicles. In July 2014, Panasonic reached a basic agreement with Tesla to participate in battery production at Giga Nevada.
Tesla and Panasonic also collaborated on the manufacturing and production of photovoltaic (PV) cells and modules at the Giga New York factory in Buffalo, New York. The partnership started in mid-2017 and ended in early 2020, before Panasonic exited the solar business entirely in January 2021.
In March 2021, the outgoing CEO of Panasonic stated that the company plans to reduce its reliance on Tesla as their battery partnership evolves.
Daimler AG and Tesla began working together in late 2007. On May 19, 2009, Daimler bought a stake of less than 10% in Tesla for a reported $50 million. As part of the collaboration, Herbert Kohler, vice-president of E-Drive and Future Mobility at Daimler, took a Tesla board seat. On July 13, 2009, Daimler AG sold 40% of its acquisition to Aabar. Aabar is an investment company controlled by the International Petroleum Investment Company (IPIC), which is owned by the government of Abu Dhabi. In October 2014, Daimler sold its remaining holdings for a reported $780 million.
Tesla supplied battery packs for Freightliner Trucks' Custom Chassis electric van in 2010. The company also built electric-powertrain components for the Mercedes-Benz A-Class E-Cell, with 500 cars planned to be built for trial in Europe beginning in September 2011.
Tesla produced and co-developed the Mercedes-Benz B-Class Electric Drive, Mercedes-Benz B250e's powertrain, which ended production in 2017. The electric motor was rated and , with a battery. The vehicle had a driving range of with a top speed of . Daimler division Smart (marque), Smart produced the Smart electric drive, Smart ED2 cars from 2009 to 2012 which had a lithium-ion battery from Tesla.
In May 2010, Tesla and
''
Elon Musk
Elon Reeve Musk ( ; born June 28, 1971) is a business magnate and investor. He is the founder, CEO and chief engineer of SpaceX; angel investor, CEO and product architect of Tesla, Inc.; owner and CEO of Twitter, Inc.; founder of The Bori ...
became the largest shareholder of the company. He has served as CEO since 2008. According to Musk, the purpose of Tesla is to help expedite the move to sustainable transport and energy, obtained through electric vehicles and solar power. Tesla began production of its first car model, the Roadster sports car, in 2009. This was followed by the Model S
The Tesla Model S is a battery-powered liftback car serving as the flagship model of Tesla, Inc. The Model S features a dual-motor, all-wheel drive layout, although earlier versions of the Model S featured a rear-motor and rear-wheel drive l ...
sedan in 2012, the Model X SUV in 2015, the Model 3
The Tesla Model 3 is a compact executive sedan that is battery powered and produced by Tesla. Limited production of the Model 3 began in mid-2017, with the first production vehicle rolling off the assembly line on July 7, 2017. The offici ...
sedan in 2017, the Model Y crossover in 2020, and the Semi
SEMI is an industry association comprising companies involved in the electronics design and manufacturing supply chain. They provide equipment, materials and services for the manufacture of semiconductors, photovoltaic panels, LED and flat panel ...
truck in 2022. The Model 3 is the all-time bestselling plug-in electric car worldwide, and, in June 2021, became the first electric car to sell 1 million units globally. Tesla's global sales were 936,222 cars in 2021, an 87% increase over the previous year, and cumulative sales totaled 3 million cars as of August 2022. In October 2021, Tesla's market capitalization reached $1 trillion, the sixth company to do so in U.S. history.
Tesla has been the subject of many lawsuits, increasing government scrutiny, journalistic criticism
Criticism is the construction of a judgement about the negative qualities of someone or something. Criticism can range from impromptu comments to a written detailed response. , ''"the act of giving your opinion or judgment about the good or bad q ...
, and public controversies arising from statements and acts of CEO Elon Musk and from allegations of creative accounting, whistleblower
A whistleblower (also written as whistle-blower or whistle blower) is a person, often an employee, who reveals information about activity within a private or public organization that is deemed illegal, immoral, illicit, unsafe or fraudulent. Whi ...
retaliation, worker rights violations, and unresolved and dangerous technical problems with their products.
History
Founding (2003–2004)
The company was incorporated as Tesla Motors, Inc. on July 1, 2003, byMartin Eberhard
Martin Eberhard (born ) is an American inventor, engineer and entrepreneur who co-founded Tesla, Inc. (then Tesla Motors) with Marc Tarpenning in 2003. Eberhard served as Tesla's original chairman, and its CEO until late 2007. In 2015, he was in ...
and Marc Tarpenning
Marc Tarpenning (born June 1, 1964) is an American engineer and technology entrepreneur who is the co-founder of Tesla Inc. with Martin Eberhard in 2003. Tarpenning served as the Chief Financial Officer (CFO) and Vice President of Engineering ...
. Eberhard and Tarpenning served as CEO and CFO, respectively. Eberhard said he wanted to build "a car manufacturer that is also a technology company", with its core technologies as "the battery, the computer software, and the proprietary motor".
Ian Wright was Tesla's third employee, joining a few months later. In February 2004, the company raised $7.5 million in series A funding
A series A round (also known as series A financing or series A investment) is the name typically given to a company's first significant round of venture capital financing. The name refers to the class of preferred stock sold to investors in exchan ...
, including $6.5 million from Elon Musk, who had received $100 million from the sale of his interest in PayPal
PayPal Holdings, Inc. is an American multinational financial technology company operating an online payments system in the majority of countries that support online money transfers, and serves as an electronic alternative to traditional paper ...
two years earlier. Musk became the chairman of the board of directors and the largest shareholder of Tesla. J. B. Straubel
Jeffrey Brian ("JB") Straubel (born December 20, 1975) is an American businessman. He spent 15 years at Tesla, as chief technical officer until moving to an advisory role in July 2019.
In 2017, Straubel founded and became the CEO of Redwood ...
joined Tesla in May 2004 as chief technical officer.
A lawsuit settlement agreed to by Eberhard and Tesla in September 2009 allows all five – Eberhard, Tarpenning, Wright, Musk, and Straubel – to call themselves co-founders.
Roadster (2005–2009)
Elon Musk took an active role within the company and oversaw Roadster product design at a detailed level, but was not deeply involved in day-to-day business operations. The company's strategy was to start with a premium sports car aimed at early adopters and then move into more mainstream vehicles, including sedans and affordable compacts. In February 2006, Musk led Tesla's Series Bventure capital funding
Venture capital financing is a type of funding by venture capital. It is private equity capital that can be provided at various stages or funding rounds. Common funding rounds include early-stage seed funding in high-potential, growth companies ...
round of $13 million, which added Valor Equity Partners to the funding team. Musk co-led the third, $40 million round in May 2006 which saw investment from prominent entrepreneurs including Google co-founders Sergey Brin
Sergey Mikhailovich Brin (russian: link=no, Сергей Михайлович Брин; born August 21, 1973) is an American business magnate, computer scientist, and internet entrepreneur, who co-founded Google with Larry Page. Brin was th ...
and Larry Page
Lawrence Edward Page (born March 26, 1973) is an American business magnate, computer scientist and internet entrepreneur. He is best known for co-founding Google with Sergey Brin.
Page was the chief executive officer of Google from 1997 unti ...
, and former eBay
eBay Inc. ( ) is an American multinational e-commerce company based in San Jose, California, that facilitates consumer-to-consumer and business-to-consumer sales through its website. eBay was founded by Pierre Omidyar in 1995 and became a ...
President Jeff Skoll
Jeffrey Stuart Skoll, OC (born January 16, 1965) is a Canadian engineer, billionaire internet entrepreneur and film producer. He was the first president of eBay, eventually using the wealth this gave him to become a philanthropist, particularly ...
. A fourth round worth $45 million in May 2007 brought the total private financing investment to over $105 million.
Tesla's first car, the Roadster, was officially revealed to the public on July 19, 2006, in Santa Monica, California
Santa Monica (; Spanish language, Spanish: ''Santa Mónica'') is a city in Los Angeles County, California, Los Angeles County, situated along Santa Monica Bay on California's South Coast (California), South Coast. Santa Monica's 2020 United Sta ...
, at a 350-person invitation-only event held in Barker Hangar at Santa Monica Airport.
In August 2007, Eberhard was asked by the board, led by Elon Musk, to step down as CEO. Eberhard then took the title of "President of Technology" before ultimately leaving the company in January 2008. Co-founder Marc Tarpenning, who served as the Vice President of Electrical Engineering of the company, also left the company in January 2008. In August 2007, Michael Marks was brought in as interim CEO, and in December 2007, Ze'ev Drori
Ze'ev Drori ( he, זאב דרורי; born in Tel Aviv) is an Israeli-born American technology entrepreneur currently residing in California. Drori was the founder and Chief Executive of Monolithic Memories, before the company merged with Advanced ...
became CEO and President. Musk succeeded Drori as CEO in October 2008. In June 2009, Eberhard filed a lawsuit against Musk for allegedly forcing him out.
Tesla began production of the Roadster in 2008.
By January 2009, Tesla had raised $187 million and delivered 147 cars. Musk had contributed $70 million of his own money to the company.
In June 2009, Tesla was approved to receive $465 million in interest-bearing loans from the United States Department of Energy
The United States Department of Energy (DOE) is an executive department of the U.S. federal government that oversees U.S. national energy policy and manages the research and development of nuclear power and nuclear weapons in the United Stat ...
. The funding, part of the $8 billion Advanced Technology Vehicles Manufacturing Loan Program
Advanced Technology Vehicles Manufacturing (ATVM) Loan Program is a $25 billion direct loan program funded by Congress in fall 2008 to provide debt capital to the U.S. automotive industry for the purpose of funding projects that help vehicles ...
, supported engineering and production of the Model S sedan, as well as the development of commercial powertrain technology. Tesla repaid the loan in May 2013, with $12 million interest.
IPO, Model S, and Model X (2010–2015)
In May 2010, Tesla purchased what would later become the Tesla Factory
The Tesla Fremont Factory is an automobile manufacturing plant in Fremont, California, operated by Tesla, Inc. The facility opened as General Motors' Fremont Assembly in 1962, and was later operated by NUMMI, a GM–Toyota joint venture. Tes ...
in Fremont, California
Fremont is a city in Alameda County, California, United States. Located in the East Bay region of the San Francisco Bay Area, Bay Area, Fremont has a population of 230,504 as of 2020, making it the fourth List of cities and towns in the San Fra ...
, from Toyota for $42 million, and opened the facility in October 2010 to start production of the Model S. On June 29, 2010, the company became a public company via an initial public offering
An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investment ...
(IPO) on NASDAQ
The Nasdaq Stock Market () (National Association of Securities Dealers Automated Quotations Stock Market) is an American stock exchange based in New York City. It is the most active stock trading venue in the US by volume, and ranked second ...
, the first American car company to do so since the Ford Motor Company
Ford Motor Company (commonly known as Ford) is an American multinational automobile manufacturer headquartered in Dearborn, Michigan, United States. It was founded by Henry Ford and incorporated on June 16, 1903. The company sells automobi ...
had its IPO in 1956. The company issued 13.3 million shares of common stock at a price of $17.00 per share, raising $226 million.
In January 2012, Tesla ceased production of the Roadster, and in June the company launched its second car, the Model S luxury sedan. The Model S won several automotive awards during 2012 and 2013, including the 2013 Motor Trend Car of the Year
The ''Motor Trend'' Car of the Year (COTY) is an annual '' Car of the Year'' award given by ''Motor Trend'' magazine to recognize the best new or significantly refreshed car in a given model year.
Background
''Motor Trend'', which debuted in ...
, and became the first electric car to top the monthly sales ranking of a country, when it achieved first place in the Norwegian new car sales list in September 2013. The Model S was also the bestselling plug-in electric car worldwide for the years 2015 and 2016.
Tesla announced the Tesla Autopilot
Tesla Autopilot is a suite of advanced driver-assistance system (ADAS) features offered by Tesla that amounts to SAE International Level 2 vehicle automation. Its features are lane centering, traffic-aware cruise control, automatic lane ch ...
, a driver-assistance system, in 2014. In September that year, all Tesla cars started shipping with sensors and software to support the feature, with what would later be called "hardware version 1". In April 2015, Tesla entered the energy storage market, unveiling its Tesla Powerwall
The Tesla Powerwall is a rechargeable lithium-ion battery stationary home energy storage product manufactured by Tesla Energy. The Powerwall stores electricity for solar self-consumption, time of use load shifting, and backup power. The Power ...
(home) and Tesla Powerpack (business) battery packs. The company received orders valued at $800 million within a week of the unveiling.
Tesla began shipping its third vehicle, the luxury SUV Tesla Model X
The Tesla Model X is a Battery electric vehicle, battery electric Mid-size crossover SUV#Luxury, mid-size luxury crossover SUV produced by Tesla, Inc. since 2015. Developed from the full-size car, full-sized sedan platform of the Tesla Model S, ...
, in September 2015, at which time it had 25,000 pre-orders.
SolarCity and Model 3 (2016–2018)
In November 2016, Tesla acquiredSolarCity
SolarCity Corporation was a publicly traded company headquartered in Fremont, California that sold and installed solar energy generation systems as well as other related products and services to residential, commercial, and industrial customers ...
, in an all-stock $2.6 billion deal, and entered the photovoltaics
Photovoltaics (PV) is the conversion of light into electricity using semiconducting materials that exhibit the photovoltaic effect, a phenomenon studied in physics, photochemistry, and electrochemistry. The photovoltaic effect is commercially us ...
market. The solar installation business was merged with Tesla's existing battery energy storage products division to form the Tesla Energy subsidiary. The deal was controversial because at the time of the acquisition, SolarCity was facing liquidity issues of which Tesla's shareholders were not informed.
In February 2017, Tesla Motors changed its name to Tesla, Inc., to better reflect the scope of its expanded business, which now included electric vehicles, battery energy storage systems, and solar power generation.
That year Tesla also started its philanthropic effort. Tesla made multiple contributions of solar power to areas recovering from disasters in 2017, in particular installing a solar plus storage system to restore electricity at a hospital in Puerto Rico
Puerto Rico (; abbreviated PR; tnq, Boriken, ''Borinquen''), officially the Commonwealth of Puerto Rico ( es, link=yes, Estado Libre Asociado de Puerto Rico, lit=Free Associated State of Puerto Rico), is a Caribbean island and Unincorporated ...
, following the destruction from Hurricane Maria
Hurricane Maria was a deadly Saffir–Simpson scale#Category 5, Category 5 Tropical cyclone, hurricane that devastated the northeastern Caribbean in September 2017, particularly Dominica, Saint Croix, and Puerto Rico. It is regarded as the wo ...
. In July 2018, the company donated $37.5 million to kindergarten to 12th grade science, technology, engineering, and mathematics
Science, technology, engineering, and mathematics (STEM) is an umbrella term used to group together the distinct but related technical disciplines of science, technology, engineering, and mathematics. The term is typically used in the context of ...
education in Nevada.
Tesla began selling its fourth vehicle model, the Model 3 sedan, in July 2017. The Model 3 was a cheaper vehicle compared to previous Tesla vehicles, and was intended for the mass market. It was highly anticipated, which prompted the company to try to speed up production. By August 2017, there were 455,000 reservations for the Model 3. The rollout was plagued by delays and production problems. This increased pressure on the company, which at this time was one of the most shorted companies in the market.
In August 2018, CEO Elon Musk briefly considered taking Tesla private. The plan did not materialize, and gave rise to much controversy and many lawsuits including a securities fraud charge from the SEC. By the end of 2018, the production problems had been overcome, and the Model 3 was the world's best selling plug-in electric car for the year. "Global sales totaled 2,018,247 plug-in passenger cars in 2018, with a BEV:PHEV ratio of 69:31, and a market share of 2.1%. The world's top selling plug-in car was the Tesla Model 3, and Tesla was the top selling manufacturer of plug-in passenger cars in 2018, followed by BYD."
Global expansion and Model Y (2019–present)
Tesla opened its first "Gigafactory" outside the United States in Shanghai, China, in 2019. Giga Shanghai was the first automobile factory in China fully owned by a foreign company, and was built in less than six months. The following year Tesla also started construction on a new Gigafactory near Berlin, Germany, and another in Texas, United States. In March 2020, Tesla began deliveries of its fifth vehicle model, the Model Ycrossover
Crossover may refer to:
Entertainment
Albums and songs
* ''Cross Over'' (Dan Peek album)
* ''Crossover'' (Dirty Rotten Imbeciles album), 1987
* ''Crossover'' (Intrigue album)
* ''Crossover'' (Hitomi Shimatani album)
* ''Crossover'' (Yoshino ...
.
On January 10, 2020, Tesla reached a market capitalization
Market capitalization, sometimes referred to as market cap, is the total value of a publicly traded company's outstanding common shares owned by stockholders.
Market capitalization is equal to the market price per common share multiplied by t ...
of $86 billion, breaking the record for highest valuation of any American automaker. On June 10, 2020, Tesla's market capitalization surpassed those of BMW, Daimler and Volkswagen
Volkswagen (),English: , . abbreviated as VW (), is a German Automotive industry, motor vehicle manufacturer headquartered in Wolfsburg, Lower Saxony, Germany. Founded in 1937 by the German Labour Front under the Nazi Party and revived into a ...
combined. The next month, Tesla reached a valuation of $206 billion, surpassing Toyota
is a Japanese multinational automotive manufacturer headquartered in Toyota City, Aichi, Japan. It was founded by Kiichiro Toyoda and incorporated on . Toyota is one of the largest automobile manufacturers in the world, producing about 10 ...
's $202 billion to become the world's most valuable automaker by market capitalization. On August 31, 2020, following this increase in value, Tesla had a 5-for-1 stock split
A stock split or stock divide increases the number of shares in a company. For example, after a 2-for-1 split, each investor will own double the number of shares, and each share will be worth half as much.
A stock split causes a decrease of mark ...
.
From July 2019 to June 2020, Tesla reported four profitable quarters in a row for the first time, which made it eligible for inclusion in the S&P 500
The Standard and Poor's 500, or simply the S&P 500, is a stock market index tracking the stock performance of 500 large companies listed on stock exchanges in the United States. It is one of the most commonly followed equity indices. As of D ...
. Tesla was added to the index on December 21, 2020. It was the largest company ever added, and the sixth-largest company in the index at the time of its inclusion. As investors tried to buy more shares as a result of this inclusion, some analysts, such as J.P. Morgan's Ryan Brinkman, suggested investors exercise caution as Tesla was "dramatically" overvalued. Throughout 2020, the share price of Tesla increased 740%, and on January 26, 2021, its market capitalization reached $848 billion, more than the next nine largest automakers combined and making it the 5th most valuable company in the US.
From 2015 to 2020, Tesla acquired companies including Riviera Tool, Grohmann Engineering, Perbix, Compass Automation, Hibar Systems, and German ATW Automation to advance Tesla's expertise in automation, along with Maxwell Technologies and SilLion to add to Tesla's abilities in battery technology. Grohmann (renamed Tesla Grohmann Automation
Tesla Grohmann Automation GmbH (formerly Grohmann Engineering GmbH) is a German engineering automation company based in Prüm in the state of Rhineland-Palatinate. The company operates a development center in Neutraubling, Bavaria, as well as ...
) and Maxwell would continue to operate as subsidiary companies, while the rest would be merged into Tesla. In July 2021, Musk acknowledged that Tesla had sold Maxwell to the former VP of sales for Maxwell.
In January 2020, Tesla donated ($723,000 in 2020 dollars) to the Chinese Center for Disease Control and Prevention
The Chinese Center for Disease Control and Prevention (CCDC; ) is an institution directly under the National Health Commission, based in Changping District, Beijing, China.
Established in 1983, it works to protect public health and safety ...
to fight the COVID-19 pandemic in mainland China
The COVID-19 pandemic in mainland China is part of the worldwide pandemic of coronavirus disease 2019 (COVID-19) caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). China was the first country to experience an outbreak o ...
.
In October 2020, Tesla told ''Electrek
''Electrek'' is an American news website dedicated to electric transportation and sustainable energy. Electrek is known for its extensive, positive coverage of electric transportation in general and Tesla specifically. Their positive coverage ...
'' that it had dissolved its public relations
Public relations (PR) is the practice of managing and disseminating information from an individual or an organization (such as a business, government agency, or a nonprofit organization) to the public in order to influence their perception. P ...
(PR) department (with the exception of a few PR managers representing Tesla's European and Asian markets), becoming the first automaker to do so.
Tesla hit its goal of building 0.5 million cars in 2020. The company ended the year with over $19 billion of cash, compared to $6.3 billion at the end of 2019.
In February 2021, Tesla revealed that it had invested $1.5 billion in bitcoin
Bitcoin ( abbreviation: BTC; sign: ₿) is a decentralized digital currency that can be transferred on the peer-to-peer bitcoin network. Bitcoin transactions are verified by network nodes through cryptography and recorded in a public distr ...
in 2020 and on March 24 the company started accepting bitcoin as a form of payment for vehicle purchases in the United States and stated that it would introduce bitcoin payment in other countries later that year. At the time, Musk tweeted that "Bitcoin paid to Tesla will be retained as Bitcoin, not converted to fiat currency." It was later revealed in financial documents that between January 1 and March 31, 2021, Tesla had made a $101 million profit on the sale of bitcoin. After 49 days of accepting the digital currency, the company reversed course on May 12, 2021, saying they would no longer take bitcoin due to concerns that "mining" the cryptocurrency
A cryptocurrency, crypto-currency, or crypto is a digital currency designed to work as a medium of exchange through a computer network that is not reliant on any central authority, such as a government or bank, to uphold or maintain it. It i ...
was contributing to the consumption of fossil fuels and climate change. The decision resulted in the price of bitcoin dropping around 12% on May 13. During a July bitcoin conference, Musk suggested Tesla could help bitcoin miners switch to renewable energy in the future and also stated at the same conference that if bitcoin mining reaches, and trends above 50 percent renewable energy usage, that "Tesla would resume accepting bitcoin." The price for bitcoin rose after this announcement. In July 2022 it was reported that Tesla had sold about 75% of its bitcoin holdings. It was worth $936 million.
After earlier disputes with California officials over COVID-19 restrictions, on December 1, 2021, Tesla moved its headquarters from Palo Alto, California
Palo Alto (; Spanish language, Spanish for "tall stick") is a charter city in the northwestern corner of Santa Clara County, California, United States, in the San Francisco Bay Area, named after a Sequoia sempervirens, coastal redwood tree kno ...
, to its Gigafactory in Austin, Texas. However, Musk stated that Tesla would continue to operate its Fremont factory in the San Francisco Bay Area, and will continue to expand in California. In September 2021, Tesla broke ground on a new battery factory in Lathrop, California, and signed a lease in October 2021 for additional office space in Palo Alto.
Also in October 2021, Tesla's market capitalization reached $1 trillion, the sixth company to do so in U.S. history, on news that car rental company Hertz
The hertz (symbol: Hz) is the unit of frequency in the International System of Units (SI), equivalent to one event (or cycle) per second. The hertz is an SI derived unit whose expression in terms of SI base units is s−1, meaning that on ...
had placed an order for 100,000 Tesla vehicles for its fleet.
On March 22, 2022, Tesla launched its new car factory outside Berlin, with Chief Executive Elon Musk handing over the first deliveries to customers. The US carmaker's Giga Berlin plant is the largest for electric vehicles in Europe. On April 7, 2022, Tesla celebrated the public opening of the Giga Texas facility with its Cyber Rodeo event attended by an estimated 15,000 invitees.
Musk said in an email sent to employees that he was reducing salaried headcount by 10 percent because the company had become "overstaffed in many areas", adding that "hourly headcount will increase." He also said in a tweet Tesla's total number of employees would increase over the next year, but said the number of salaried staff would remain "fairly flat".
In August 2022, Musk claimed that Tesla had made more than 3 million cars.
Automotive products
, Tesla offers four car models: Model S, Model 3, Model X and Model Y, and asemi-truck
A semi-trailer truck, also known as a semitruck, (or semi, eighteen-wheeler, big rig, tractor-trailer or, by synecdoche, a semitrailer) is the combination of a tractor unit and one or more semi-trailers to carry freight. A semi-trailer a ...
. Tesla's first vehicle, the first-generation Tesla Roadster, is no longer sold. Tesla has plans for a second-generation Roadster and a pickup called the Cybertruck
The Tesla Cybertruck is an upcoming battery electric light-duty truck announced by Tesla, Inc. in 2019. Three models have been announced, with EPA range estimates of and an estimated time of 2.9–6.5 seconds, depending on the model.
Th ...
.
In production
Model S
The Model S is a five-door liftback
A liftback is a variation of hatchback with a sloping roofline between 45 and 5 degrees. Traditional hatchback designs usually have a 90 to 46 degree slope on the tailgate or rear door. As such the liftback is essentially a hatchback with a more ...
sedan. Deliveries began on June 22, 2012. The car became the first electric vehicle to top the monthly sales ranking in any country, when it achieved first place in the Norwegian new car sales list in September 2013. The Model S won the 2013 Motor Trend Car of the Year
The ''Motor Trend'' Car of the Year (COTY) is an annual '' Car of the Year'' award given by ''Motor Trend'' magazine to recognize the best new or significantly refreshed car in a given model year.
Background
''Motor Trend'', which debuted in ...
, the 2013 " World Green Car", ''Automobile
A car or automobile is a motor vehicle with Wheel, wheels. Most definitions of ''cars'' say that they run primarily on roads, Car seat, seat one to eight people, have four wheels, and mainly transport private transport#Personal transport, pe ...
'' magazine's 2013 "Car of the Year", ''Time
Time is the continued sequence of existence and events that occurs in an apparently irreversible succession from the past, through the present, into the future. It is a component quantity of various measurements used to sequence events, to ...
'' magazine's Best 25 Inventions of the Year 2012 award, as well as the 2019 ''Motor Trend'' "Ultimate Car of the Year".
The Model S was the bestselling plug-in electric car worldwide for the years 2015 and 2016, selling an estimated 50,931 units in 2016. By the end of 2017, it was the world's second best selling plug-in electric car in history (after the Nissan Leaf
The , stylized as LEAF, is a compact five-door hatchback battery electric vehicle (BEV) manufactured by Nissan. It was introduced in Japan and the United States in December 2010, and its second generation was introduced in October 2017. The Lea ...
), with global sales of 200,000 units. "Tesla sold its 200,000 Model S in the fourth quarter of 2017, in October or early November, becoming the second plug-in car to cross this sales threshold after the Nissan Leaf (300,000 units by early 2017). , Tesla reported global sales of 212,874 Model S cars." In June 2020, Tesla announced that the Model S Long Range Plus had an EPA range of , the highest of any battery electric vehicle
A battery electric vehicle (BEV), pure electric vehicle, only-electric vehicle, fully electric vehicle or all-electric vehicle is a type of electric vehicle (EV) that exclusively uses chemical energy stored in rechargeable battery packs, ...
at the time.
Model X
The Tesla Model X is a mid-size
Mid-size—also known as intermediate—is a vehicle size class which originated in the United States and is used for cars larger than compact cars and smaller than full-size cars. "Large family car" is a UK term and a part of the D-segment in t ...
crossover SUV
A crossover, crossover SUV, or crossover utility vehicle (CUV) is a type of automobile with an increased ride height that is built on unibody chassis construction shared with passenger cars, as opposed to traditional sport utility vehicles ( ...
. It is offered in 5-, 6- and 7-passenger configurations. The Model X was developed from the full-sized sedan platform of the Model S. The rear passenger doors open vertically with an articulating "falcon-wing" design.
Deliveries started in September 2015. In 2016, after one full year on the market, the Model X ranked seventh among the world's bestselling plug-in cars. The United States is its main market, with an estimated 57,327 units sold through September 2018.
Model 3
The Model 3 is a four-door fastback
A fastback is an automotive styling feature, defined by the rear of the car having a single slope from the roof to the tail. The kammback is a type of fastback style.
Some models, such as the Ford Mustang, have been specifically marketed as ...
sedan. Tesla unveiled the Model 3 on March 31, 2016. Potential customers began reserving spots earlier that day with a refundable deposit. One week after the unveiling, Tesla reported over 325,000 reservations. Bloomberg News
Bloomberg News (originally Bloomberg Business News) is an international news agency headquartered in New York City and a division of Bloomberg L.P. Content produced by Bloomberg News is disseminated through Bloomberg Terminals, Bloomberg Televi ...
claimed that, due to the number of reservations, "the Model 3's unveiling was unique in the 100-year history of the mass-market automobile." Limited vehicle production began in July 2017. ''Production totaled 24,882 vehicles in 4Q 2016 and vehicle deliveries totaled 22,252 units. No breakdown by model was provided.''
Since March 2020, the Model 3 is the world's best selling electric car in history, and cumulative global sales passed the 1 million milestone in June 2021. "Global sales totaled 3,124,793 plug-in passenger cars in 2020, with a BEV to PHEV ratio of 69:31, and a global market share of 4%. The world's top selling plug-in car was the Tesla Model 3 with 365,240 units delivered, and Tesla was the top selling manufacturer of plug-in passenger cars in 2019 with 499,535 units, followed by VW with 220,220." The Model 3 has ranked as the world's best selling plug-in electric car
A plug-in electric vehicle (PEV) is any road vehicle that can utilize an external source of electricity (such as a wall socket that connects to the power grid) to store electrical power within its onboard rechargeable battery packs, which th ...
for four consecutive years, from 2018 to 2021, "The top 3 global best selling plug-in electric cars in 2021 were the Tesla Model 3 (500,713), the Wuling Hongguang Mini EV (424,138), and the Tesla Model Y (410,517)" and also as the best selling plug-in electric car in the United States since 2018. ''See Graph: "Top 10 U.S. Plug-in cars (cumulative sales)" and "U.S. Plug-in Car Sales (cumulative)"'' ''According to Experian
Experian is an American–Irish multinational data analytics and consumer credit reporting company. Experian collects and aggregates information on over 1 billion people and businesses including 235 million individual U.S. consumers and more t ...
, in 2020 the top U.S. EVs by registrations were the Tesla Model 3 (95,135), Tesla Model Y (71,344), Chevrolet Bolt EV (19,664), the Tesla Model X (19,652), Tesla Model S (14,430) and the Nissan Leaf (8,972). All four Tesla models accounted for 200,561 registrations, up 16% from 2019.'' The Model 3 also set records in Norway and the Netherlands, as the best selling passenger car model in those countries in 2019.'' To access the sales ranking by model choose "Modell" and the tabs for "2019" and "Desember" – The Tesla Model 3 was the best selling passenger car in Norway in 2019 with 15,683 units registered.''
Model Y
The Model Y is a compact
Compact as used in politics may refer broadly to a pact or treaty; in more specific cases it may refer to:
* Interstate compact
* Blood compact, an ancient ritual of the Philippines
* Compact government, a type of colonial rule utilized in British ...
crossover utility vehicle
A crossover, crossover SUV, or crossover utility vehicle (CUV) is a type of automobile with an increased ride height that is built on unibody chassis construction shared with passenger cars, as opposed to traditional sport utility vehicles (S ...
. The Model Y is built on a platform that shares many components with the Model 3. The car has up to three rows of seats (up to 7 people), of cargo space (with the second and third rows folded), and has an EPA range of up to .
The Model Y was unveiled on March 14, 2019. Deliveries for the Model Y started on March 13, 2020. The Tesla Model Y is being manufactured at Tesla Factory in Fremont, California, as well as in Giga Shanghai in China. A version of the Model Y is also expected to be produced at Giga Berlin
Gigafactory Berlin-Brandenburg (also known as Giga Berlin or Gigafactory 4) is a manufacturing plant for Tesla, Inc. in Grünheide (Mark), Grünheide, Brandenburg, Germany.
The campus is located south-east of central Berlin and some southea ...
once the factory is open.
Tesla Semi
The Tesla Semi is an all-electric Class 8 semi-trailer truck
A semi-trailer truck, also known as a semitruck, (or semi, eighteen-wheeler, big rig, tractor-trailer or, by synecdoche, a semitrailer) is the combination of a tractor unit and one or more semi-trailers to carry freight. A semi-trailer ...
announced in November 2017. Musk confirmed that two variants would be available: one with and one with of range. The Semi will be powered by four independent electric motors of the type used in the Tesla Model 3
The Tesla Model 3 is a compact executive sedan that is battery powered and produced by Tesla. Limited production of the Model 3 began in mid-2017, with the first production vehicle rolling off the assembly line on July 7, 2017. The offici ...
and will include an extensive set of hardware sensors to enable it to stay in its own lane, a safe distance away from other vehicles, and later, when software and regulatory conditions allow, provide self-driving
A self-driving car, also known as an autonomous car, driver-less car, or robotic car (robo-car), is a car that is capable of traveling without human input.Xie, S.; Hu, J.; Bhowmick, P.; Ding, Z.; Arvin, F.,Distributed Motion Planning for S ...
operation on highways. Musk also announced that the company would be involved in installing a solar-powered global network of Tesla Megachargers to make the Semi more attractive to potential long-haul customers. A 30-minute charge would provide of range.
Musk initially said in 2017 that Semi deliveries would start in 2019 and be selling 100,000 trucks a year, but deliveries were later delayed to 2021 and then 2022. Part of the reason for the delays, according to Musk, is that the Semi includes five times more battery cells than their passenger cars, and the battery supply is not yet sufficient for both Tesla cars and the Semi.
In October 2022, the company announced it would deliver its first all-electric semitrailer truck for PepsiCo
PepsiCo, Inc. is an American multinational food, snack, and beverage corporation headquartered in Harrison, New York, in the hamlet of Purchase. PepsiCo's business encompasses all aspects of the food and beverage market. It oversees the manuf ...
in December, in what would be the first new model the company would give to consumers since the beginning of 2020, when it started delivering the Model Y crossover. At the time of the announcement, the trucks would support PepsiCo plants in Sacramento
)
, image_map = Sacramento County California Incorporated and Unincorporated areas Sacramento Highlighted.svg
, mapsize = 250x200px
, map_caption = Location within Sacramento ...
and Modesto
Modesto () is the county seat and largest city of Stanislaus County, California, United States. With a population of 218,464 at the 2020 census, it is the 19th largest city in the state of California and forms part of the Sacramento-Stockton ...
, California.
Future products
Roadster (second generation)
In a surprise reveal at the end of the event that introduced the Tesla Semi
The Tesla Semi is a battery electric vehicle, battery electric Truck classification#Class 8, Class 8 Semi-trailer truck, semi-truck by Tesla, Inc. The truck is powered by three motors, and is claimed by Tesla to have approximately three times ...
on November 16, 2017, Tesla unveiled the second generation Roadster. Musk said that the new model will have a range of with the battery pack and will achieve in 1.9 seconds; it also will achieve in 4.2 seconds, and the top speed will be over . The SpaceX
Space Exploration Technologies Corp. (SpaceX) is an American spacecraft manufacturer, launcher, and a satellite communications corporation headquartered in Hawthorne, California. It was founded in 2002 by Elon Musk with the stated goal of ...
Package will include cold air thrusters that will increase the speed even more. The vehicle will have three electric motors allowing for all-wheel drive
An all-wheel drive vehicle (AWD vehicle) is one with a powertrain capable of providing power to all its wheels, whether full-time or on-demand.
The most common forms of all-wheel drive are:
;1x1 : All unicycles Reflecting one axle with one w ...
and torque vectoring
Torque vectoring is a technology employed in automobile differentials that has the ability to vary the torque to each half-shaft with an electronic system; or in rail vehicles which achieve the same using individually motored wheels. This method ...
during cornering.
At the time, the base price was set at $200,000, while the first 1,000 units (the Founder's series) will sell for $250,000. Reservations required a deposit of $50,000, and those who ordered the Founder's series paid the $250,000 in full upon ordering. Those who made a reservation at the event were allowed a test drive (with a driver) in the prototype. Deliveries are expected to start in 2023.
Cybertruck
The Cybertruck is a pickup truck
A pickup truck or pickup is a light-duty truck that has an enclosed cabin, and a back end made up of a cargo bed that is enclosed by three low walls with no roof (this cargo bed back end sometimes consists of a tailgate and removable covering) ...
unveiled on November 21, 2019. Production has been delayed past 2022, and is rumored to be early 2023. The truck's design had a mixed reception, and some Wall Street analysts questioned whether American pickup truck buyers will have interest in the Cybertruck. On September 22, 2020, Musk revealed roughly 600,000 Cybertruck preorders. James Goodwin, chief executive of ANCAP ANCAP may refer to:
* ANCAP (commodity standard), based on ammonium nitrate, copper, aluminum and plywood
* Australasian New Car Assessment Program
* ANCAP (Uruguay)
ANCAP (Administración Nacional de Combustibles, Alcoholes y Portland, Engl ...
, said in 2019 that the design of the Cybertruck could pose safety risks, saying that the front "would look like it's not very forgiving". After the Cybertruck's unveiling, Musk announced that the Tesla Cyberquad
The Tesla Cyberquad is an upcoming electric wikt:en:quad bike, quad bike all-terrain vehicle (ATV) concept presented by Tesla, Inc., at the Tesla Cybertruck's November 2019 unveiling. Concluding the presentation at the company's design studio in ...
, an electric four-wheel quad bike
An all-terrain vehicle (ATV), also known as a light utility vehicle (LUV), a quad bike, or simply a quad, as defined by the American National Standards Institute (ANSI); is a vehicle that travels on low-pressure tires, with a seat that is strad ...
revealed alongside the Cybertruck, would be an optional accessory for Cybertruck buyers.
Discontinued
Tesla Roadster
The only discontinued Tesla vehicle model is the original Tesla Roadster. The Roadster was a two-seater sports car, evolved from the Lotus Elise
The Lotus Elise is a two-seat, rear-wheel drive, mid-engined roadster conceived in early 1994 and released in September 1996 by the British manufacturer Lotus Cars. The Elise has a fibreglass body shell atop its bonded extruded aluminium chas ...
chassis, that was produced from 2008 to 2012. The Roadster was the first highway legal serial production all-electric car to use lithium-ion battery cells and the first production all-electric car to travel more than per charge. It is also the first production car to be launched into space; Musk launched his Roadster into a Mars-crossing orbit on a SpaceX Falcon Heavy
Falcon Heavy is a partially reusable heavy-lift launch vehicle that is produced by SpaceX, an American aerospace manufacturer. The rocket consists of two strap-on boosters made from Falcon 9 first stages, a center core also made from a Falc ...
rocket test flight on February 6, 2018.
Other concepts
On July 20, 2016, Musk detailed his new master plan for Tesla. It includes more affordable cars produced in higher volume, solar roofs, mid-size vehicles, SUVs and pickup trucks, as well as the refinement of autonomous vehicles and the creation of a sharing economy, in which cars can be active while the owner is not using them. Tesla's plan also indicated building a minibus on the Model X platform, but in May 2017, Musk indicated that he might favor a 10–12 passenger version of the Model X over a dedicated minibus design. Musk dashed hopes for a Tesla motorcycle, saying in 2018 "we're not going to do motorcycles". Also in 2016, Musk revealed Tesla's intention to produce a car cheaper than the Model 3. In 2018, Musk indicated a plan to enter a new market segment, offering a compact hatchback in "less than five years". In 2020, Musk said Tesla expects to have a $25,000 electric car within 3 years, which "will basically be on-par or slightly better than a comparable gasoline car". In April 2019, Musk announced Tesla's intention to launch an autonomous taxi service by the end of 2020 using more than 1 million Tesla vehicles. A year later, in April 2020, Musk stated Tesla would not make the end of 2020 deadline but said, "we'll have the functionality necessary for full self-driving by the end of the year."Tesla Energy products
Tesla subsidiary Tesla Energy develops, builds, sells and installs solar energy generation systems and battery energy storage products (as well as related products and services) to residential, commercial and industrial customers.
The subsidiary was created by the merger of Tesla's existing battery energy storage products division with SolarCity, a solar energy company that Tesla acquired in 2016.
Tesla Energy's generation products include solar panels (built by other companies for Tesla), the Tesla Solar Roof (a solar shingle
Solar shingles, also called photovoltaic shingles, are solar panels designed to look like and function as conventional roofing materials, such as asphalt shingle or slate, while also producing electricity. Solar shingles are a type of solar energ ...
system) and the Tesla Solar Inverter. Other products include the Powerwall
A powerwall is a large, ultra-high-resolution display that is constructed of a matrix of other displays, which may be either monitors or projectors. It is important to differentiate between powerwalls and displays that are just large, for exam ...
(a home energy storage Home energy storage devices store electricity locally, for later consumption. Electrochemical energy storage products, also known as "Battery Energy Storage System" (or "BESS" for short), at their heart are rechargeable batteries, typically based on ...
device) and the Powerpack and Megapack, which are large-scale energy storage systems. Tesla Energy also develops software to allow customers to monitor and control their systems.
In 2021, the company deployed solar energy systems capable of generating 345 megawatt
The watt (symbol: W) is the unit of Power (physics), power or radiant flux in the International System of Units, International System of Units (SI), equal to 1 joule per second or 1 kg⋅m2⋅s−3. It is used to quantification (science), ...
s, an increase of 68% over 2020, and deployed 3.99 gigawatt-hours of battery energy storage products, an increase of 32% over 2020.
Other services
Tesla receives service revenue from its vehicle customers after their initial purchase; these revenues reached $1.47 billion in 2022 Q2. , those services includevehicle servicing
A vehicle (from la, vehiculum) is a machine that transports people or cargo. Vehicles include wagons, bicycles, motor vehicles (motorcycles, cars, trucks, buses, mobility scooters for disabled people), railed vehicles (trains, trams), water ...
, charging Charging may refer to:
* Charging (ice hockey), when a player takes more than three steps before checking an opposing player
* Battery charger, a device used to put energy into a rechargeable battery
* Charging station, a device used for recharging ...
, insurance
Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge ...
, software upgrades, and improved connectivity. In July 2021, Tesla made Full Self-Driving available as a monthly subscription. Future services which have been discussed include paying for a Wi-Fi hotspot
A hotspot is a physical location where people can obtain Internet access, typically using Wi-Fi technology, via a wireless local-area network (WLAN) using a router connected to an Internet service provider.
Public hotspots may be created b ...
in the car and the Tesla robotaxi network.
Charging
Supercharger network
In 2012, Tesla began building a network of 480-volt fast-charging Supercharger stations. , Tesla operates 36,165 Superchargers in 3,971 stations worldwide (an average of 9 chargers per station). The Supercharger is a proprietary direct current
Direct current (DC) is one-directional flow of electric charge. An electrochemical cell is a prime example of DC power. Direct current may flow through a conductor such as a wire, but can also flow through semiconductors, insulators, or even ...
(DC) technology that provides up to 250 kilowatts (kW) of power. All Tesla cars except the first generation Roadster come standard with hardware to charge at Superchargers. The navigation software in Tesla cars can recommend the fastest route for long-distance travel, incorporating charging stops.
Model S and X cars ordered before January 15, 2017, and between August 3, 2019, and May 26, 2020, received free unlimited supercharging. Model S and X cars ordered between January 15, 2017, and August 3, 2019, got of free Supercharging credits per year, which provides a range of roughly . Subsequent Tesla models never received free unlimited supercharging.
Destination charging location network
In 2014, Tesla launched the "Destination Charging location" network by providing chargers to hotels, restaurants, shopping centers and resorts (and other locations where Tesla owners may spend an hour or more) to provide on-site vehicle charging at twice the power of a typical home charging station.
Destination chargers are installed free of charge by Tesla-certified contractors; the locations originally were required to provide the electricity at no cost to their customers. , locations with six or more destination chargers may start charging for electricity. All destination chargers appear in the in-car navigation system.
North American Charging Standard
In November 2022, Tesla renamed its previously proprietary charging connector to "North American Charging Standard” (NACS), making the specs available to other EV manufacturers as an alternative to the standardCombined Charging System
The Combined Charging System (CCS) is a standard for charging electric vehicles. It can use or connectors to provide power at up to . These two connectors are extensions of the IEC 62196 Type 1 and Type 2 connectors, with two additional di ...
(CCS) connector used by competitors in North America.
Software updates and upgrades
Tesla vehicles' software is regularly updated over-the-air when new software and firmware versions are released. This allows the cars to remain up to date and improve after purchase. Tesla also offers the option to unlock features in the car through over-the-air software upgrades after purchase. Available upgrades include basic Autopilot, Full Self Driving, acceleration boost (for Model 3 owners), and rear-heated seats (for Model 3 owners).Connectivity
All Tesla cars come with "Standard Connectivity" which provides navigation using a cellular connection, and the following only over Wi-Fi or Bluetooth: internet browsing, music streaming (with a paid subscription), and, when parked, video streaming and "caraoke". "Premium Connectivity" adds cellular access to those features and also provides Traffic reporting, live traffic and satellite maps for navigation.Vehicle servicing
Tesla service strategy is to service its vehicles first through remote diagnosis and repair. If it is not possible to resolve a problem remotely, customers are referred to a local Tesla-owned service center, or a mobile technician is dispatched. Tesla has said that it does not want to make a profit on vehicle servicing, which has traditionally been a large profit center for most auto dealerships. In 2016, Tesla recommended having any Tesla car inspected every 12,500 miles or once a year, whichever comes first. In early 2019, the manual was changed to say: "your Tesla does not require annual maintenance and regular fluid changes," and instead it recommends periodic servicing of the brake fluid, air conditioning, tires and air filters.Insurance
On June 4, 2017, the American Automobile Association raised insurance rates for Tesla owners following a report from the Highway Loss Data Institute. The report concluded that the Model S crashes 46% more often and is 50% more expensive to repair than comparable vehicles. Similarly, the Model X was concluded to crash 41% more often and to be 89% more expensive to repair than similar vehicles. As a result, AAA raised insurance rates on Tesla cars by 30%. Tesla said that the analysis is "severely flawed and not reflective of reality", however, Tesla failed to provide any contradictory numbers. Shortly thereafter, Russ Rader, the spokesman for the Insurance Institute for Highway Safety, confirmed the AAA's analysis and that "Teslas get into a lot of crashes and are costly to repair afterward". The following year, an analysis of claim frequency and insurance cost data by the Insurance Institute for Highway Safety conducted by financial research provider 24/7 Wall St. found that the Tesla Model S and Model X were the two most expensive vehicles to insure. Musk stated that he expects these insurance rates will greatly decrease once driver-assist and self-driving technology become commonplace. Starting in October 2017, Tesla partnered with Liberty Mutual Insurance Company to offer US customers an insurance plan designed specifically for Tesla cars. In August 2019, this partnership was superseded by a partnership with State National Insurance, but was initially only available to Tesla owners in California. In July 2020, Musk, relying on data obtained through the partnership with State National Insurance, announced that Tesla was creating its own "major" insurance company. Tesla claims the insurance uses individual vehicle data to offer personalized pricing. As of July 2022, Tesla offers insurance in Arizona, California, Colorado, Illinois, Nevada, Ohio, Oregon, Texas and Virginia.Business strategy
At the time of Tesla's founding in 2003, electric vehicles were very expensive. In 2006, Elon Musk stated that Tesla's strategy was to first produce high-price, low-volume vehicles, such as sports cars, for which customers are less sensitive to price. This would allow them to progressively bring down the cost of batteries, which in turn would allow them to offer cheaper and higher volume cars. Tesla's first vehicle, the Roadster, was low-volume (fewer than 2,500 were produced) and priced at over $100,000. The next models, the Model S and Model X, are more affordable but still luxury vehicles. The most recent models, the Model 3 and the Model Y, are priced still lower, and aimed at a higher volume market, selling over 100,000 vehicles each quarter. Tesla continuously updates the hardware of its cars rather than waiting for a new model year, as opposed to nearly every other car manufacturer.
Unlike other automakers, Tesla does not rely on franchised auto dealerships to sell vehicles. Instead, the company directly sells vehicles through its website and a network of company-owned stores. The company is the first automaker in the United States to sell cars directly to consumers. Some jurisdictions, particularly in the United States, prohibit auto manufacturers from directly selling vehicles to consumers. In these areas, Tesla has locations that it calls ''galleries'' that the company says "educate and inform customers about our products, but such locations do not actually transact in the sale of vehicles." In total, Tesla operates nearly 400 stores and galleries in more than 35 countries. These locations are typically located in retail shopping districts, inside shopping malls, or other high-traffic areas, instead of near other auto dealerships.
Tesla is notable for spending no money on paid advertising campaigns, unlike other automakers.
Tesla has a high degree of vertical integration, estimated at 80% in 2016. The company produces vehicle components as well as building proprietary stations where customers can charge their vehicles. Vertical integration is rare in the automotive industry, where companies typically ''outsource'' 80% of components to suppliers and focus on engine manufacturing and final assembly. Tesla used low-cost strategy as a business approach, with which they can expand their business into a broader market by offering standard technology items.
Tesla generally allows its competitors to license its technology, stating that it wants to help its competitors accelerate the world's use of sustainable energy. Licensing agreements include provisions whereby the recipient agrees not to file patent suits against Tesla, or to copy its designs directly. Tesla retains control of its other intellectual property, such as trademarks and trade secrets to prevent direct copying of its technology.
Technology
Tesla develops many components in-house, such as batteries, motors, and software.Vehicle batteries
Tesla was the first automaker to use batteries containing thousands of small, cylindrical, lithium-ion commodity cells like those used in consumer electronics. Tesla uses a version of these cells that is designed to be cheaper to manufacture and lighter than standard cells by removing some safety features; according to Tesla, these features are redundant because of the advanced thermal management system and an intumescent chemical in the battery to prevent fires.
The batteries are placed under the vehicle floor. This saves interior and trunk (boot) space but increases the risk of battery damage by debris or impact (see #Crashes and fires, crashes and fires). After two vehicle fires in 2013 due to road debris, the Model S was retrofitted with a multi-part aluminum and titanium protection system to reduce the possibility of damage.
In 2016, former Tesla CTO J.B. Straubel expected batteries to last 10–15 years, and discounted using electric cars to charge the grid with vehicle-to-grid because the related battery wear outweighs economic benefit. He also preferred recycling over Battery storage, re-use for grid once they reach the end of their useful life for vehicles. Tesla launched its battery recycling operation at Giga Nevada in 2019. Straubel independently founded battery recycling company Redwood Materials, Inc., Redwood Materials in 2017, which supplies recycled materials to Panasonic.
Panasonic is Tesla's supplier of cells in the United States, and cooperates with Tesla in producing cylindrical 2170 battery, 2170 batteries at Giga Nevada.
In January 2021, Panasonic had the capacity to produce 39 GWh per year of batteries at Giga Nevada. Tesla's battery cells used in Giga Shanghai are supplied by Panasonic and Contemporary Amperex Technology (CATL), and are the more traditional Prism (geometry), prismatic (rectangular) cells used by other automakers.
, nearly half of all Tesla's vehicles produced last quarter are using cobalt-free Lithium iron phosphate battery (LFP) made in China.
Battery research
Tesla invests in lithium-ion battery research. Starting in 2016, the company established a 5-year battery research and development partnership at Dalhousie University in Nova Scotia, Canada, with lead researcher Jeff Dahn. Tesla acquired two battery companies: Maxwell Technologies, acquired for over $200 million – but sold in 2021 and Hibar Systems. During Tesla's Battery Day event on September 22, 2020, Tesla announced the next generation of batteries, featuring a tab-less battery design to increase the range and decrease the price of Tesla vehicles. The new battery is named the "4680" in reference to its dimensions: wide by tall. Two weeks before Battery Day, Tesla paid a total of $3 to buy several battery manufacturing patent applications from Springpower International, a small Canadian battery company. Tesla predicted the new batteries could be up to 56% cheaper and allow the cars to have a 54% longer range. The company said this would be achieved by a more efficient production process, new battery design, cheaper resources for the anode and cathode, and better integration into the vehicle. Business analysis company BloombergNEF estimated Tesla's battery pack price in 2021 at $112 per kWh, versus an industry average of $132 per kWh. , BloombergNEF estimates the industry as a whole will reach $100 per kWh in 2024. TheUnited States Department of Energy
The United States Department of Energy (DOE) is an executive department of the U.S. federal government that oversees U.S. national energy policy and manages the research and development of nuclear power and nuclear weapons in the United Stat ...
estimated in 2020 that battery prices of about $100 per kWh would cause electric cars to reach cost parity with their gasoline-powered counterparts, which in turn would accelerate sales of new electric cars.
Motors
Tesla makes two kinds of electric motors. Its oldest design in production is a Three-phase electric power, three-phase four-pole alternating current induction motor with a copper Rotor (electric), rotor (which inspired the Tesla logo), which is used as the rear motor in the Model S and Model X. Newer, higher-efficiency permanent magnet motors are used in the Model 3, Model Y, the front motor of 2019-onward versions of the Model S and X, and are expected to be used in the Tesla Semi. The permanent magnet motors increase efficiency, especially in stop-start driving.Autopilot
Autopilot is an advanced driver-assistance system developed by Tesla. The system requires active driver supervision at all times.
Since September 2014, all Tesla cars are shipped with sensors (initially hardware version 1 or "HW1") and software to support Autopilot. Tesla upgraded its sensors and software in October 2016 ("HW2") to support full self-driving in the future. HW2 includes eight cameras, twelve ultrasonic sensors, and forward-facing radar. HW2.5 was released in mid-2017, and it upgraded HW2 with a second graphics processing unit (GPU) and, for the Model 3 only, a driver-facing camera. HW3 was released in early 2019 with an updated and more powerful computer, employing a custom Tesla-designed system on a chip.
In April 2019, Tesla announced that all of its cars will include Autopilot software (defined as just ''Traffic-Aware Cruise Control'' and ''Autosteer'' (Beta)) as a standard feature moving forward. Full self-driving software (Automatic parking, Autopark, Navigate on Autopilot (Beta), Auto Lane Change (Beta), Tesla Autopilot#Summon (Beta), Summon (Beta), Tesla Autopilot#Smart Summon (Beta), Smart Summon (Beta) and future abilities) is an extra cost option.
In 2020, Tesla released software updates where its cars recognize and automatically stop at stop signs and traffic lights. In May 2021, Tesla removed the radar sensor and radar features from its Model 3 and Model Y vehicles, opting instead to rely on camera vision alone. The ''New York Times'' reported in December 2021 that Musk "repeatedly told members of the Autopilot team that humans could drive with only two eyes and that this meant cars should be able to drive with cameras alone," an analogy some experts and former Tesla engineers described as "deeply flawed." Similarly, a statistical analysis conducted in ''A Methodology for Normalizing Safety Statistics of Partially Automated Vehicles'' debunked a common Tesla claim that Autopilot reduced crash rates by 40 percent by accounting for the relative safety of the given operating domain when using active safety measures.
Full Self-Driving
''Full Self-Driving'' (FSD) is an optional extension of Autopilot promoted as eventually being able to perform fully autonomous driving. At the end of 2016, Tesla expected to demonstrate full autonomy by the end of 2017, which has not occurred. The first beta version of the software was released on October 22, 2020, to a small group of testers. The release of the beta has renewed concern regarding whether the technology is ready for testing on public roads. The National Transportation Safety Board (NTSB) has called for "tougher requirements" for any testing of Autopilot on public roads. Tesla's approach to achieve full autonomy is different from that of other companies. Whereas Waymo, Cruise (autonomous vehicle), Cruise, and other companies are relying on highly detailed (centimeter-scale) three-dimensional maps, lidar, and cameras, as well as radar and ultrasonic sensors in their autonomous vehicles, Tesla's approach is to use coarse-grained two-dimensional maps and cameras (no lidar) as well as radar and ultrasonic sensors. Tesla claims that although its approach is much more difficult, it will ultimately be more useful, because its vehicles will be able to self-drive without geofencing concerns. Tesla's self-driving software has been trained on over 20 billion miles driven by Tesla vehicles as of January 2021. Tesla also designed a self-driving computer chip that has been installed in its cars since March 2019. Most experts believe that Tesla's approach of trying to achieve full self-driving by eschewing lidar and high-definition maps is not feasible. In March 2021, according to a letter that Tesla sent to the California Department of Motor Vehicles about FSD's capability – acquired by PlainSite via a public records request – Tesla stated that FSD is not capable of autonomous driving and is only at Society of Automotive Engineers Level 2 automation. In a May 2021 study by Guidehouse Insights, Tesla was ranked last for both strategy and execution in the autonomous driving sector. In October 2021, the National Transportation Safety Board (NTSB) called on Tesla to change the design of its Autopilot to ensure it cannot be misused by drivers, according to a letter sent to Musk. In September 2022, Tesla revealed prototypes of its proposed humanoid robot Optimus (robot), Optimus, which Musk has stated uses the same core software as FSD. During the presentations at Tesla's AI Day 2022, Musk suggested that, among other use cases, the finalized version of Optimus could be used in Tesla's car factories to help with repetitive tasks and relieve labor shortages.Glass
In November 2016, the company announced the Tesla glass technology group. The group produced the roof glass for the Tesla Model 3. It also produces the glass used in the Tesla Solar Roof'ssolar shingle
Solar shingles, also called photovoltaic shingles, are solar panels designed to look like and function as conventional roofing materials, such as asphalt shingle or slate, while also producing electricity. Solar shingles are a type of solar energ ...
s.
Facilities
The company operates six large factories. The company also operates showrooms and galleries around the world.United States
Tesla was founded in San Carlos, California. In 2010, Tesla moved its corporate headquarters and opened a powertrain development facility in Palo Alto.
Tesla's first retail store was opened in 2008 in Los Angeles, followed by others in major U.S. cities. , Tesla operates 196 stores and galleries in the United States, has stores and galleries in 34 other countries, and has 655 service centers globally.
Tesla's first assembly plant occupies the former NUMMI plant in Fremont, California, known as the Tesla Fremont Factory. The factory was originally opened by General Motors in 1962, and then operated by a joint venture of GM and Toyota
is a Japanese multinational automotive manufacturer headquartered in Toyota City, Aichi, Japan. It was founded by Kiichiro Toyoda and incorporated on . Toyota is one of the largest automobile manufacturers in the world, producing about 10 ...
from 1984. The original factory was closed in 2010, and was acquired by Tesla the same year.
The first major battery production facility was opened in Nevada in 2016. Gigafactory Nevada (originally Gigafactory 1) produces Powerwalls, Powerpacks and Megapacks; battery cells in partnership with Panasonic; and Model 3 battery packs and drivetrains. The factory received substantial subsidies from the local and state government, that, in exchange for opening in their jurisdiction, allowed Tesla to operate essentially tax free for 10 years.
As part of the acquisition of SolarCity in 2016, Tesla acquired Gigafactory New York located in Buffalo, New York, on the site of a former Republic Steel plant. SolarCity had received incentives to locate its factory in Buffalo through the Buffalo Billion program. In 2017, the factory started production of solar shingles for the Tesla Solar Roof. Between 2017 and 2020 Tesla partnered with Panasonic to assemble photovoltaic modules at the plant.
In May 2020, after Alameda County had refused to let the Tesla factory reopen after a COVID-19 lockdown, Elon Musk threatened that he would move the company's headquarters from California to Texas or Nevada.
On July 23, 2020, Tesla picked Austin, Texas, as the site of Gigafactory 5, since then known as Gigafactory Texas Giga Texas is planned to be the main factory for the Tesla Cybertruck and the Tesla Semi; it will also produce Model 3 and Model Y cars for the Eastern United States. On April 7, 2022, Tesla celebrated the public opening of the Giga Texas facility with its Cyber Rodeo event attended by an estimated 15,000 invitees.
On December 1, 2021, Tesla officially relocated its headquarters to the Gigafactory site in Austin, Texas. Because of Texas regulations, the company offers to cover costs for out-of-state healthcare, which include abortion and gender affirmation procedures.
Tesla acquired a former JC Penney distribution center near Lathrop, California, in 2021 to build a Megafactory to manufacture Megapacks. The location opened in 2022 and produces the next-generation Megapacks to use prismatic lithium iron phosphate batteries.
Europe
Tesla opened its first European store in June 2009 in London. Tesla's European headquarters are in the Netherlands. Tesla facilities in Tilburg, Tesla operates facilities in Tilburg, including a European Distribution Centre and an final assembly facility that adds drivetrain, battery and software to imported car bodies to reduce import tax, which depends on the location of final assembly.
In late 2016, Tesla acquired German engineering firm Grohmann Engineering as a new division dedicated to helping Tesla increase the automation and effectiveness of its manufacturing process. After winding down existing contracts with other auto manufacturers, the renamed Tesla Grohmann Automation
Tesla Grohmann Automation GmbH (formerly Grohmann Engineering GmbH) is a German engineering automation company based in Prüm in the state of Rhineland-Palatinate. The company operates a development center in Neutraubling, Bavaria, as well as ...
now works exclusively on Tesla projects.
Tesla announced its plans to build a car and battery factory in Europe in 2016. Several countries campaigned to be the host, and eventually Germany was chosen in November 2019. On March 22, 2022, Tesla's first European Gigafactory named Gigafactory Berlin-Brandenburg opened with planned capacity to produce 500,000 electric vehicles annually as well as batteries for the cars.
Asia
Tesla opened its first Japanese showroom in Tokyo, Japan, in October 2010. By 2013, showrooms and service centers were operating in Hong Kong, Beijing and Shanghai. Two showrooms opened in South Korea in March 2017 and a service center opened there in late 2017. In August 2017, Taiwan opened its first service center and showroom.
In July 2018, Tesla signed an agreement with Chinese authorities to build a factory in Shanghai, China, which was Tesla's first Gigafactory outside of the United States. The factory building was finished in August 2019, and the initial Tesla Model 3
The Tesla Model 3 is a compact executive sedan that is battery powered and produced by Tesla. Limited production of the Model 3 began in mid-2017, with the first production vehicle rolling off the assembly line on July 7, 2017. The offici ...
s were in production from Giga Shanghai in October 2019.
In response to the Chinese military banning Tesla cars from entering military housing complexes, Elon Musk stated during the China Development Forum in March 2021 that the company would stop producing cars in the country if cars were being used to spy. The comment came shortly after a meeting of Chinese and U.S. diplomats in Alaska, in part over concerns of U.S. intervention in China's internal affairs.
In 2021, China accounted for 26% of Tesla sales revenue, and was the second largest market for Tesla after the United States, which accounted for 45% of its sales.
Rest of the world
Tesla opened the first Australian showroom in Sydney in 2010, followed by a showroom and service center in Melbourne in 2015. By 2019, Tesla had opened 4 service centers in Australia. In 2012, Tesla opened its first store in Canada in Toronto. The first expansion of Tesla in the Middle East was with the opening of a showroom and a service center in Dubai, United Arab Emirates (UAE), in 2017. Five ultra-fast superchargers were also built between cities in the UAE, with a planned 50 destination chargers by the end of 2017. One of the first Tesla customers was Roads and Transport Authority (Dubai), Dubai's Roads and Transport Authority which ordered 200 Tesla Model S and Model X vehicles that were added to Dubai Taxi Corporation's fleet. In May 2017, a service center and store in Amman, Jordan was opened. In January 2020 a "pop-up" store in Tel Aviv, Israel was opened as well as a research and development center.Partners
Panasonic
In January 2010, Tesla and battery cell maker Panasonic announced that they would together develop nickel-based lithium-ion battery cells for electric vehicles. The partnership was part of Panasonic's $1 billion investment over three years in facilities for lithium-ion cell research, development and production.
Beginning in 2010, Panasonic invested $30 million for a multi-year collaboration on new battery cells designed specifically for electric vehicles. In July 2014, Panasonic reached a basic agreement with Tesla to participate in battery production at Giga Nevada.
Tesla and Panasonic also collaborated on the manufacturing and production of photovoltaic (PV) cells and modules at the Giga New York factory in Buffalo, New York. The partnership started in mid-2017 and ended in early 2020, before Panasonic exited the solar business entirely in January 2021.
In March 2021, the outgoing CEO of Panasonic stated that the company plans to reduce its reliance on Tesla as their battery partnership evolves.
Other current partners
Tesla has long-term contracts in place for lithium supply. In September 2020, Tesla signed a sales agreement with Piedmont Lithium to buy high-purity lithium ore for up to ten years, specifically to supply "spodumene concentrate from Piedmont's North Carolina mineral deposit". In 2022, Tesla contracted for 110,000 tonnes of spodumene concentrate over four years from the Core Lithium's lithium mine in the Northern Territory of Australia. Tesla also has a range of minor partnerships, for instance working with Airbnb and hotel chains to install destination chargers at selected locations.Former partners
Daimler AG
Daimler AG and Tesla began working together in late 2007. On May 19, 2009, Daimler bought a stake of less than 10% in Tesla for a reported $50 million. As part of the collaboration, Herbert Kohler, vice-president of E-Drive and Future Mobility at Daimler, took a Tesla board seat. On July 13, 2009, Daimler AG sold 40% of its acquisition to Aabar. Aabar is an investment company controlled by the International Petroleum Investment Company (IPIC), which is owned by the government of Abu Dhabi. In October 2014, Daimler sold its remaining holdings for a reported $780 million.
Tesla supplied battery packs for Freightliner Trucks' Custom Chassis electric van in 2010. The company also built electric-powertrain components for the Mercedes-Benz A-Class E-Cell, with 500 cars planned to be built for trial in Europe beginning in September 2011.
Tesla produced and co-developed the Mercedes-Benz B-Class Electric Drive, Mercedes-Benz B250e's powertrain, which ended production in 2017. The electric motor was rated and , with a battery. The vehicle had a driving range of with a top speed of . Daimler division Smart (marque), Smart produced the Smart electric drive, Smart ED2 cars from 2009 to 2012 which had a lithium-ion battery from Tesla.
Toyota
In May 2010, Tesla and Toyota
is a Japanese multinational automotive manufacturer headquartered in Toyota City, Aichi, Japan. It was founded by Kiichiro Toyoda and incorporated on . Toyota is one of the largest automobile manufacturers in the world, producing about 10 ...
announced a deal in which Tesla purchased the former NUMMI factory from Toyota for $42 million, Toyota purchased $50 million in Tesla stock, and the two companies collaborated on an electric vehicle.
In July 2010, the companies announced they would work together on a second generation Toyota RAV4 EV. The vehicle was unveiled at the October 2010 Los Angeles Auto Show and 35 pilot vehicles were built for a demonstration and evaluation program that ran through 2011. Tesla supplied the lithium metal-oxide battery and other powertrain components based on components from the Roadster.
The production version was unveiled in August 2012, using battery pack, electronics and powertrain components from the Tesla Model S sedan (also launched in 2012). The RAV4 EV had a limited production run which resulted in just under 3,000 vehicles being produced, before it was discontinued in 2014.
According to Bloomberg News, the partnership between Tesla and Toyota was "marred by clashes between engineers". Toyota engineers rejected designs that Tesla had proposed for an enclosure to protect the RAV4 EV's battery pack. Toyota took over responsibility for the enclosure's design and strengthened it. In 2014, Tesla ended up adding a titanium plate to protect the Model S sedan's battery after some debris-related crashes lead to cars catching fire. On June 5, 2017, Toyota announced that it had sold all of its shares in Tesla and halted the partnership.
Mobileye
Initial versions of Autopilot were developed in partnership with Mobileye beginning in 2014. Mobileye ended the partnership on July 26, 2016, citing "disagreements about how the technology was deployed."Lawsuits and controversies
Sexual harassment
In 2021, seven women came forward with claims of having faced sexual harassment and discrimination while working at Tesla's Fremont factory. They accused the company of facilitating a culture of rampant sexual harassment. The women said they were consistently subjected to catcalling, unwanted advances, unwanted touching, and discrimination while at work. "I was so tired of the unwanted attention and the males gawking at me I proceeded to create barriers around me just so I could get some relief," Brooks told ''The Washington Post''. "That was something I felt necessary just so I can do my job." Stories range from intimate groping to being called out to the parking lot for sex. Women feared calling HR for help as their supervisors were often participants. Musk himself is not indicted, but most of the women pressing charges believe their abuse is connected to the behavior of CEO Elon Musk. They cite his crude remarks about women's bodies, wisecracks about starting a university that abbreviated to "T.IT.S", and his generally dismissive attitude towards reporting sexual harassment. "What we're addressing for each of the lawsuits is just a shocking pattern of rampant harassment that exists at Tesla," said attorney David A. Lowe. In 2017, another woman had accused Tesla of very similar behavior and was subsequently fired. In a statement to the Guardian, Tesla confirmed the company had fired her, saying it had thoroughly investigated the employee's allegations with the help of "a neutral, third-party expert" and concluded her complaints were unmerited. In May 2022, a California judge ruled that the sexual harassment lawsuit could move to court, rejecting Tesla's request for closed-door arbitration.Labor disputes
In June 2016, the National Highway Traffic Safety Administration (NHTSA) took issue with Tesla's use of Non-disclosure agreement, nondisclosure agreements (NDAs) regarding customer repairs and, in October 2021, the NHTSA formally asked Tesla to explain its NDA policy regarding customers invited into the FSD Beta. Tesla has used NDAs on multiple occasions with both employees and customers to allegedly prevent possible negative coverage. From 2014 to 2018, Tesla's Fremont Factory had three times as many Occupational Safety and Health Administration (OSHA) violations as the ten largest U.S. auto plants combined. An investigation by the Reveal (podcast), Reveal podcast alleged that Tesla "failed to report some of its serious injuries on legally mandated reports" in order to downplay the extent of injuries. In January 2019, former Tesla security manager Sean Gouthro filed a whistleblower complaint alleging that the company had hacked employees' phones and spied on them, while also failing to report illegal activities to the authorities and shareholders. Several legal cases have revolved around alleged whistleblower retaliation by Tesla. These include the dismissal of Tesla safety official Carlos Ramirez and Tesla security employee Karl Hansen. In 2020, the court ordered Hansen's case to Arbitration in the United States, arbitration. In June 2022, the arbitrator filed an Motion (legal), unopposed motion with the court stating Hansen "has failed to establish the claims...Accordingly his claims are denied, and he shall take nothing". In September 2019, a California judge ruled that 12 actions in 2017 and 2018 by Musk and other Tesla executives violated labor laws because they sabotaged Tesla union, employee attempts to unionize. In March 2021, the US National Labor Relations Board ordered Musk to remove a tweet and reinstate a fired employee over Tesla union, union organization activities.Fraud
There have been numerous concerns about Tesla's financial reporting. In 2013, ''Bloomberg News'' questioned whether Tesla's financial reporting violated Generally Accepted Accounting Principles (United States), Generally Accepted Accounting Principles (GAAP) reporting standards. ''Fortune (magazine), Fortune'' accused Tesla in 2016 of using creative accounting to show positive cash flow and quarterly profits. In 2018, analysts expressed concerns over Tesla's accounts receivable balance. In September 2019, the SEC questioned Tesla CFO Zach Kirkhorn about Tesla's warranty reserves and lease accounting. Hedge fund manager David Einhorn accused Elon Musk in November 2019 of "significant fraud", and publicly questioned Tesla's accounting practices, telling Musk that he was "beginning to wonder whether your accounts receivable exist." From 2012 to 2014, Tesla earned more than $295 million in Zero-emissions vehicle, Zero Emission Vehicle credits for a battery-swapping technology that was never made available to customers. Staff at California Air Resources Board were concerned that Tesla was "gaming" the battery swap subsidies and in 2013 recommended eliminating the credits. A consolidated shareholders lawsuit alleges that Musk knew SolarCity was going broke before the acquisition, that he and the Tesla board overpaid for SolarCity, ignored their conflicts of interest and breached their fiduciary duties in connection with the deal, and failed to disclose "troubling facts" essential to an analysis of the proposed acquisition. The members of the board settled in 2020, leaving Musk as the only defendant. In April 2022, a Delaware court ruled in favor of defendant Elon Musk in a shareholder lawsuit over Tesla's $2.6 billion acquisition of SolarCity. "[The] Tesla Board meaningfully vetted the Acquisition, and Elon did not stand in its way," read the opinion by Vice Chancellor Joseph Slights. "Equally if not more important, the preponderance of the evidence reveals that Tesla paid a fair priceSolarCity was, at a minimum, worth what Tesla paid for it," Slights added. On August 7, 2018, Elon Musk tweeted, "Am considering taking Tesla private at $420. Funding secured." The tweet caused the stock to initially rise but then drop when it was revealed to be false. Musk settled fraud charges with the Securities and Exchange Commission, U.S. Securities and Exchange Commission (SEC) over his false statements in September 2018. According to the terms of the settlement, Musk agreed to have his tweets reviewed by Tesla's in-house counsel, he was removed from his chairman role at Tesla temporarily, and two new independent directors were appointed to the company's board. Tesla and Musk also paid civil penalties of $20 million each. A civil class-action shareholder lawsuit over Musk's statements and other derivative lawsuits were also filed against Musk and the members of Tesla's board of directors, as then constituted, in regard to claims and actions made that were associated with potentially going private. In September 2018, Tesla disclosed that it was under investigation by the U.S. Federal Bureau of Investigation (FBI) regarding its Model 3 production figures. Authorities were investigating whether the company misled investors and made projections about its Model 3 production that it knew would be impossible to meet. A stockholder class action lawsuit related to Model 3 production numbers (unrelated to the FBI investigation) was dismissed in Tesla's favor in March 2019.Tesla US dealership disputes
Unlike other automakers, Tesla does not rely on franchised auto dealerships to sell vehicles and instead directly sells vehicles through its website and a network of company-owned stores. In some areas, Tesla operates locations called "galleries" which "educate and inform customers about our products, but such locations do not actually transact in the sale of vehicles." This is because some jurisdictions, particularly in the United States, prohibit auto manufacturers from directly selling vehicles to consumers. Dealership associations have filed lawsuits to prevent direct sales. These associations argued that the franchise system protects consumers by encouraging dealers to compete with each other, lowering the price a customer pays. They also claimed that direct sales would allow manufacturers to undersell their own dealers. The United States Federal Trade Commission ultimately disproved the associations' claims and recommended allowing direct manufacturer sale, which they concluded would save consumers 8% in average vehicle price. Tesla has also lobbied state governments for the right to directly sell cars. The company has argued that directly operating stores improves consumer education about electric vehicles, because dealerships would sell both Tesla and gas-powered vehicles. Doing this, according to the company, would then set up a conflict of interest for the dealers since properly advertising the benefits of an electric car would disparage the gas-powered vehicles, creating a disincentive to dealership EV sales. Musk himself further contended that dealers would have a disincentive to sell electric vehicles because they require less maintenance and therefore would reduce after-sales service revenue, a large profit center for most dealerships.Intellectual property
In January 2021, Tesla filed a lawsuit against Alex Khatilov alleging that the former employee stole company information by downloading files related to its Warp Drive software to his personal Dropbox (service), Dropbox account. Khatilov denies the allegation that he was acting as a "willful and malicious thief" and attributes his actions to an accidental data transfer. The case was settled in August 2021 through mediation. Tesla has sued former employees in the past for similar actions; for example, Guangzhi Cao, a Tesla engineer, was accused of uploadingTesla Autopilot
Tesla Autopilot is a suite of advanced driver-assistance system (ADAS) features offered by Tesla that amounts to SAE International Level 2 vehicle automation. Its features are lane centering, traffic-aware cruise control, automatic lane ch ...
source code to his iCloud account; Tesla and Cao settled in April 2021.
Defamation
In January 2022, Tesla's China division announced that it was taking legal action against Xiaogang Xuezhang (), a Douyin (TikTok) user with over 14 million followers on the platform. The lawsuit arose after Xiaogang posted two videos on Douyin in April 2021, in which he tested the automated emergency braking (AEB) systems of a Tesla Model 3 and an XPeng P7. In the videos, Xiaogang said the Model 3's AEB system failed to activate two out of three times, leading to collisions. Tesla claimed the data was fabricated and tarnishesmd the brand's reputation among consumers.Misappropriation
In 2018, a class action was filed against Musk and the members of Tesla's board alleging they breached their fiduciary duties by approving Musk's stock-based compensation plan. Musk received the first portion of his stock options payout, worth more than $700 million in May 2020.Environmental violations
In 2019, The United States Environmental Protection Agency fined Tesla for hazardous waste violations that occurred in 2017. In June 2019, Tesla began negotiating penalties for 19 environmental violations from the Bay Area Air Quality Management District; the violations took place around Tesla Fremont's paint shop, where there had been at least four fires between 2014 and 2019. Environmental violations and permit deviations at Tesla's Fremont Factory increased from 2018 to 2019 with the production ramp of the Model 3. In June 2018, Tesla employee Martin Tripp leaked information that Tesla was scrapping or reworking up to 40% of its raw materials at the Nevada Gigafactory. After Tesla fired him for the leak, Tripp filed a lawsuit and claimed Tesla's security team gave police a false tip that he was planning a mass shooting at the Nevada factory. The court ruled in Tesla's favor on September 17, 2020.Property damage
In August 2019, Walmart filed a multi-million dollar lawsuit against Tesla, claiming that Tesla's "negligent installation and maintenance" of solar panels caused roof fires at seven Walmart stores dating back to 2012. Walmart reached a settlement with Tesla in November 2019; the terms of the settlement were not disclosed. In May 2021, a Norwegian judge found Tesla guilty of throttling charging speed through a 2019 over-the-air software update, awarding each of the 30 customers who were part of the lawsuit 136,000 Norwegian kroner ($16,000). Approximately 10,000 other Norwegian Tesla owners may be granted a similar award.Racism
Tesla has faced numerous complaints regarding workplace harassment and racial discrimination, with one former Tesla worker who attempted to sue the employer describing it as "a hotbed of racist behavior". As of December 2021, three percent of leadership at the company are African American. A former black worker described the work environment at Tesla's Buffalo plant as a "very racist place". Tesla and SpaceX's treatment of Juneteenth in 2020 also came under fire. Approximately 100 former employees have submitted signed statements alleging that Tesla discriminates specifically against African Americans and "allows a racist environment in its factories." According to the state's Department of Fair Employment and Housing, the Fremont factory is a racially segregated place where Black employees claim they are given the most menial and physically demanding work. The accusations of racism culminated in February 2022 with the California Department of Fair Employment and Housing suing Tesla for "discriminating against its Black workers." In July 2021, former employee Melvin Berry received $1 million in his discrimination case in arbitration against Tesla after he claimed he was referred to by the n-word and forced to work longer hours at the Fremont plant. In October 2021, a jury verdict in the ''Owen Diaz vs. Tesla'' trial awarded the plaintiff $137 million in damages after he had faced racial harassment at Tesla's Fremont facility during 2015–2016. In a blog, Tesla stressed that Diaz was never "really" a Tesla worker, and that most utterings of the n-word were expressed in a friendly manner. In April 2022, federal judge William Orrick III, William Orrick upheld the jury finding of Tesla's liability but reduced the total damage down to $15 million. Diaz was given a two-week deadline to decide if he would collect the damages. In June 2022, Diaz announced that he would be rejecting the $15 million award, opening the door for a new trial. Few of these cases against Tesla ever make it to trial as most employees are made to sign arbitration agreements. Employees are afterwards required to resolve such disputes out of court, and behind closed doors.Conduct during the COVID-19 pandemic
Tesla's initial response to the COVID-19 pandemic in the United States has been the subject of considerable criticism. Musk had sought to exempt the Tesla Fremont factory in Alameda County, California from the government's stay-at-home orders. In an earnings call in April, he was heard calling the public health orders "fascist". He had also called the public's response to the pandemic "dumb" and had said online that there would be zero cases by April. In May 2020, while Alameda County, California, Alameda County officials were negotiating with the company to reopen the Tesla Fremont Factory, Fremont Factory on the 18th, Musk defied local government orders by restarting production on the 11th. Tesla also sued Alameda County, questioning the legality of the orders, but backed down after the Fremont Factory was given approval to reopen. Tesla published a detailed plan for bringing employees back to work and keeping them safe, however some employees continued to express concern for their health. In May 2020, Musk told workers that they could stay home if they felt uncomfortable coming back to work. But in June, Tesla fired an employee who criticized the company for taking inadequate safety measures to protect workers from the coronavirus at the Fremont Factory. Three more employees at Tesla's Fremont Factory claimed they were fired for staying home out of fear of catching COVID-19. This was subsequently denied by Tesla, which even stated that the employees were still on the payroll. COVID-19 cases at the factory grew from 10 in May 2020 to 125 in December 2020, with about 450 total cases in that time period out of the approximately 10,000 workers at the plant (4.5%). In China, Tesla had what one Tesla executive described as "not a green light from the government to get back to workbut a flashing-sirens police escort." Tesla enjoyed special treatment and strong government support in China, including tax breaks, cheap financing, and assistance in building its Giga Shanghai factory at breakneck speeds. Musk has praised China's way of doing things, a controversial stance due to deteriorating U.S.–Chinese relations, China's ongoing persecution of Uyghur genocide, Uyghurs, and alleged human rights abuses in Hong Kong.Criticism
Delays
Musk has been criticized for repeated pushing out both production and release dates of products. By one count in 2016, Musk had missed 20 projections. In October 2017, Musk predicted that Model 3 production would be 5,000 units per week by December. A month later, he revised that target to "sometime in March" 2018. Delivery dates for the Model 3 were delayed as well. Other projects like converting supercharger stations to be solar-powered have also lagged projections. Musk responded in late 2018: "punctuality is not my strong suit...I never made a mass-produced car. How am I supposed to know with precision when it's gonna get done?"Giga New York audit
In 2020, the New York State Comptroller released an audit of the Giga New York factory project, concluding that it presented many red flags, including lack of basic due diligence and that the factory itself produced only $0.54 in economic benefits for every $1 spent by the state.Tesla's mission
According to automotive journalist Jamie Kitman, when multiple CEOs of major automotive manufacturers approached Tesla for EV technology that Musk had claimed the company was willing to share, they instead were offered the opportunity to buy regulatory credits from Tesla. This suggested, according to Kitman, that "the company may not be as eager for the electric revolution to occur as it claims."Short-sellers and TSLAQ
TSLAQ is a collective of Tesla critics and short sellers who aim to "shape [the] perception [of Tesla] and move its stock." In January 2020, 20% of Tesla stock was shorted, the highest at that time of any stock in the U.S. equity markets. By early 2021, according to CNN, short sellers had lost $40 billion during 2020 as the stock price climbed much higher. Michael Burry, a short seller portrayed in ''The Big Short (film), The Big Short'', had shorted Tesla previously via his firm Scion Asset Management, but removed his position in October 2021.Vehicle product issues
Recalls
On April 20, 2017, Tesla issued a worldwide recall of 53,000 (~70%) of the 76,000 vehicles it sold in 2016 due to faulty parking brakes which could become stuck and "prevent the vehicles from moving". On March 29, 2018, Tesla issued a worldwide recall of 123,000 Model S cars built before April 2016 due to corrosion-susceptible power steering bolts, which could fail and require the driver to use "increased force" to control the vehicle. In October 2020, Tesla initiated a recall of nearly 50,000 Model X and Y vehicles throughout China for suspension issues. Soon after in November, the NHTSA announced it had opened its own investigation into 115,000 Tesla cars regarding "front suspension safety issues", citing specifically 2015–2017 Model S and 2016–2017 Model X years. Cases of the "whompy wheel" phenomenon, which also included Model X and the occasional Model 3 cars, have been documented through 2020. In February 2021, Tesla was required by the NHTSA to recall 135,000 Model S and Model X vehicles built from 2012 to 2018 due to using a flash memory device that was rated to last only 5 to 6 years. The problem was related to touchscreen failures that could possibly affect the rear-view camera, safety systems, Autopilot and other features. The underlying technical reason is that the car writes a large amount of syslog content to the device, wearing it out prematurely. Also in February 2021, the German Federal Motor Transport Authority (KBA) ordered Tesla to recall 12,300 Model X cars because of "body mouldings problems". In June 2021, Tesla recalled 5,974 electric vehicles due to worries that brake caliper bolts might become loose, which could lead to loss of tire pressure, potentially increasing the chance of a crash. On December 30, 2021, Tesla announced that they are recalling more than 475,000 US model vehicles. This included 356,309 Model 3 Tesla vehicles from 2017 to 2020 due to rear-view camera issues and a further 119,009 Tesla Model S vehicles due to potential problems with the trunk or boot. The Model S recall includes vehicles manufactured between 2014 and 2021. Around 1% of recalled Model 3s may have a defective rear-view camera, and around 14% of recalled model S's may have the defect. The recall was not linked to a contemporaneous issue regarding the Passenger Play feature, which allowed games to be played on the touchscreen while the car is in motion. After an investigation was launched by the NHTSA covering 585,000 vehicles, Tesla agreed to make changes where the feature would be locked and unusable while the car is moving. In September 2022, Tesla announced that they are recalling almost 1.1 million US model vehicles because the automatic window reversal system might not react correctly after detecting an obstruction, increasing the risk of injury. In response, Tesla announced an over-the-air software fix.Fires and Autopilot crashes
Tesla customers have reported the company as being "slow" to address how their cars can ignite. In 2013, a Model S caught fire after the vehicle hit metal debris on a highway in Kent, Washington. Tesla confirmed the fire began in the battery pack and was caused by the impact of an object. As a result of this and other incidents, Tesla announced its decision to extend its current vehicle warranty to cover fire damage. In March 2014, the NHTSA announced that it had closed the investigation into whether the Model S was prone to catch fire, after Tesla said it would provide more protection to its battery packs. All Model S cars manufactured after March 6, 2014, have had the aluminum shield over the battery pack replaced with a new three-layer shield. In October 2019, the NHTSA opened an investigation into possible battery defects in Tesla's Model S and X vehicles from 2012 to 2019 that could cause "non-crash" fires. A Model S driver died in a collision with a tractor-trailer in 2016, while the vehicle was in Autopilot mode; the driver is believed to be the first person to have died in a Tesla vehicle in Autopilot. The NHTSA investigated the accident but found no safety-related defect trend. In March 2018, a driver of a Tesla Model X was killed in a crash. Investigators say that the driver of the vehicle had his car in 'self-driving' mode and was using his phone to play games when the vehicle collided with the barrier in the middle of the freeway. Through investigation, the NTSB found that the Tesla malfunctioned due to the system being confused by an exit on the freeway. According to a document released in June 2021, the NHTSA has initiated at least 30 investigations into Tesla crashes that were believed to involve the use of Autopilot, with some Tesla Autopilot#Fatal crashes, involving fatalities. In early September 2021, the NHTSA updated the list with an additional fatality incident and ordered Tesla to hand over all extensive data pertaining to US cars with Autopilot in order to determine if there is a safety defect that leads Tesla cars to collide with first-responder vehicles. In late September 2021, Tesla released an over-the-air software update to detect emergency lights at night. In October 2021, the NHTSA asked Tesla why it did not issue a recall when it sent out that update. In June 2022, the NHTSA said it would expand its probe, extending it to 830,000 cars from all current Tesla models. The probe will be moved up from the ''Preliminary Evaluation'' level to the ''Engineering Analysis'' one. The regulator cited the reason for the expansion as the need to "explore the degree to which Autopilot and associated Tesla systems may exacerbate human factors or behavioral safety risks by undermining the effectiveness of the driver's supervision." A safety test conducted by the Dawn Project in August 2022 demonstrated that a test driver using the beta version of Full Self-Driving repeatedly hit a child-sized mannequin in its path, but there has been controversy over its conclusions. Several Tesla fans responded by conducting their own, independent tests using children; NHTSA released a statement warning against the practice.Software hacking
In August 2015, two researchers said they were able to take control of a Tesla Model S by hacking into the car's entertainment system. The hack required the researchers to physically access the car. Tesla issued a Patch (computing), security update for the Model S the day after the exploit was announced. In September 2016, researchers at Tencent's Keen Security Lab demonstrated a remote attack on a Tesla Model S and controlled the vehicle in both Parking and Driving Mode without physical access. They were able to compromise the automotive networking bus (CAN bus) when the vehicle's web browser was used while the vehicle was connected to a malicious Wi-Fi hotspot. This was the first case of a remote control exploit demonstrated on a Tesla. The vulnerability was disclosed to Tesla under their bug bounty program and patched within 10 days, before the exploit was made public. Tencent also hacked the doors of a Model X in 2017. In January 2018, security researchers informed Tesla that an Amazon Web Services account of theirs could be accessed directly from the Internet and that the account had been exploited for cryptocurrency mining. Tesla responded by securing the compromised system, rewarding the security researchers financially via their bug bounty program, and stating that the compromise did not violate customer privacy, nor vehicle safety or security. Later in 2019, Tesla awarded a car and $375,000 to White hat (computer security), ethical hackers during a Pwn2Own Model 3 hacking event. In June 2022, Martin Herfurt, a security researcher in Austria, discovered that changes made to make Tesla vehicles easier to start with Near-field communication, NFC cards also allowed for pairing new keys to the vehicle, allowing an attacker to enroll their own keys to a vehicle.Phantom braking
Tesla drivers have reported a surge in "phantom braking" events when using Tesla Autopilot which coincides with the automaker's removal of radar as a supplemental sensor. In response, NHTSA has opened an investigation.Vehicle sales
In 2021, Tesla ranked as the world's bestselling Plug-in electric vehicle, plug-in and Battery electric vehicle, battery electric passenger car manufacturer, with a market share of 14% of the plug-in segment and 21% of the battery electric segment sales. Tesla reported 2021 vehicle deliveries of 936,222 units, up 87% from 2020. See table "Operational Summary" pp. 7 and 8 for revised and final production and sales numbers. At the end of 2021, Tesla's global sales since 2012 totaled 2.3 million units.Production and sales by quarter
Tesla deliveries vary significantly by month due to regional issues such as availability of car carriers and registration. On March 9, 2020, the company produced its 1 millionth electric car, becoming the first auto manufacturer to achieve such a milestone. In the third quarter of 2021, Tesla sold its 2 millionth electric car, becoming the first auto manufacturer to achieve such a milestone.Finances
For the fiscal (and calendar) year 2021, Tesla reported a net income of $5.52 billion. The annual revenue was $53.8 billion, an increase of 71% over the previous fiscal year. Of the revenue number in 2021, $314 million came from selling regulatory credits to other automakers to meet government pollution standards. That number has been a smaller percentage of revenue for multiple quarters. In Q1 2022, Tesla sold $679 million of regulatory carbon credits. Tesla ended 2021 with $17.6 billion of cash on hand, down $1.8 billion from the end of 2020. In February 2021, a Form 10-K, 10-K filing revealed that Tesla had invested some $1.5 billion in the cryptocurrency Bitcoin, and the company indicated it would soon accept Bitcoin as a form of payment. Critics then pointed out how investing in cryptocurrency can run counter to Tesla's environmental goals. Tesla made more profit from the 2021 investment than the profit from selling cars in 2020, due to the Bitcoin price increase after the investment was announced. The quarter ending June 2021 was the first time Tesla made a profit independent of Bitcoin and regulatory credits.Senior leadership
List of chief executives
# Martin Eberhard (2004–2007) # Ze'ev Drori (2007–2008) # Elon Musk (since October 2008)List of board chairs
# Elon Musk (2004–2018) # Robyn Denholm (since November 2018)Board of directors
In an April 2017 public letter, a group of influential Tesla investors, including the California State Teachers' Retirement System, asked Tesla to add two new independent directors to its board "who do not have any ties with chief executive Elon Musk". The investors wrote that "five of six current non-executive directors have professional or personal ties to Mr. Musk that could put at risk their ability to exercise independent judgement." Tesla's directors at the time included Brad Buss, who served as chief financial officer at SolarCity; Steve Jurvetson, a venture capitalist who also sits on the board of SpaceX; Elon Musk's brother, Kimbal Musk, Kimbal; and Ira Ehrenpreis and Antonio Gracias, both of whom also invested in SpaceX. The letter called for a more independent board that could put a check on groupthink. At first Musk responded on Twitter, writing that the investors "should buy Ford stock" because "their governance is amazing." Two days later, he promised he would add two independent board members; Kathleen Wilson-Thompson and Larry Ellison were added at the end of 2018. Ellison stepped down in August 2022. Other previous board members include businessman Steve Westly; Daimler executive Herbert Kohler; and CEO and Chairman of Johnson Publishing Company Linda Johnson Rice. As of September 2022, the board members are:See also
* List of automobile manufacturers of the United States * List of Easter eggs in Tesla products * List of production battery electric vehicles * Plug-in electric vehicles in California * Plug-in electric vehicles in the United StatesNotes
FootnotesReferences
Further reading
* Higgins, Tim (2021). ''Power Play: Tesla, Elon Musk, and the Bet of the Century''. Doubleday. . * * Niedermeyer, Edward (2019). ''Ludicrous: The Unvarnished Story of Tesla Motors''. Dallas: BenBella. . . *External links
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