Tesla, Inc.

Tesla, Inc.

File:Tesla logo.svg Tesla logo
Company type	Public
Industry	Automotive; Renewable energy
Predecessor	Tesla Motors
Founded	July 1, 2003 (2003-07-01) in San Carlos, California, United States
Founder	Martin Eberhard, Marc Tarpenning
Headquarters	Austin, Texas , United States
Area served	Worldwide (East Asia, Europe, North America, Oceania, Southeast Asia, Middle East, Indian Subcontinent)
Key people	Elon Musk (CEO)
Products	Battery electric vehicles, energy storage solutions, solar panels, solar roof tiles, Supercharger network, insurance, vehicle maintenance services
Website	www.tesla.com

Tesla, Inc. (pronounced ) is a U.S.-based multinational corporation specializing in automotive and renewable energy sectors, with its headquarters located in Austin, Texas. The company develops, manufactures, and markets battery electric vehicles (BEVs), stationary energy storage solutions ranging from residential to utility scale, solar panels, solar roof tiles, and associated products and services.

Established in July 2003 by Martin Eberhard and Marc Tarpenning under the original name Tesla Motors, the enterprise was named in honor of inventor Nikola Tesla. In 2004, Elon Musk led Tesla’s initial funding round, becoming chairman and later assuming the role of CEO in 2008. Tesla's production commenced with the Roadster sports car in 2008, followed by the Model S sedan in 2012, Model X SUV in 2015, Model 3 sedan in 2017, Model Y crossover in 2020, Semi truck in 2022, and Cybertruck pickup in 2023.

Among the highest valued companies globally by market capitalization, Tesla has been the top automaker by value since July 2020. The company briefly achieved a $1 trillion valuation twice: first from October 2021 to March 2022 and again from November 2024 through February 2025. In 2024, Tesla commanded a 17.6% share of the worldwide battery electric vehicle market. It was ranked 69th on the Forbes Global 2000 list for 2023.

Tesla’s portfolio encompasses electric vehicles; energy storage products such as the Megapack and Powerwall; solar offerings including Solar Roof and photovoltaic panels; plus services like its Supercharger network, insurance options, and vehicle maintenance. Its international footprint covers regions including East Asia, Europe, North America, Oceania, Southeast Asia, the Middle East, and the Indian Subcontinent.

The company has encountered legal disputes and criticism concerning whistleblower retaliation claims, labor rights controversies including sexual harassment allegations and anti-union practices, product recalls due to safety concerns, absence of a dedicated public relations department, as well as contentious remarks by CEO Elon Musk regarding product launch timelines and autonomous driving technologies. Critics have also organized campaigns opposing Musk’s leadership style and political positions.

Founding (2003–2004)

Tesla Motors, Inc. was officially incorporated on July 1, 2003 by Martin Eberhard and Marc Tarpenning, who took on roles as CEO and CFO respectively. Eberhard envisioned creating "an automaker that is simultaneously a technology company," emphasizing innovations in battery technology, software development, and proprietary electric motors.

Shortly after its inception, Ian Wright joined the team. In February 2004, Tesla completed a Series A funding round totaling $7.5 million, with $6.5 million contributed by Elon Musk, who became chairman and largest shareholder following his exit from PayPal. J. B. Straubel was appointed CTO in May 2004.

A settlement reached in 2009 officially acknowledged all five key contributors—Eberhard, Tarpenning, Wright, Musk, and Straubel—as co-founders to recognize their collective involvement during Tesla’s formative years.

Roadster Era (2005–2009)

While Elon Musk was actively involved from an investment standpoint during Tesla’s early phase, he did not engage in daily management. The company's initial strategy targeted producing a high-end sports car aimed at early adopters before progressing to mainstream sedans and more affordable models.

In February 2006, Musk spearheaded a $13 million Series B venture capital round that included Valor Equity Partners. Subsequently in May 2006, he co-led a $40 million financing round attracting investment from Google founders Sergey Brin and Larry Page as well as former eBay president Jeff Skoll. A fourth funding round in May 2007 raised an additional $45 million bringing total private capital raised beyond $105 million.

In August 2007, under Musk’s leadership on the board, CEO Martin Eberhard was asked to resign; he transitioned to President of Technology before departing entirely in January 2008. Co-founder Marc Tarpenning also left at that time. Michael Marks served as interim CEO until Ze'ev Drori assumed the position in December 2007. Musk replaced Drori as CEO in October 2008. In June 2009 Eberhard filed suit against Musk alleging wrongful ouster; the lawsuit was dismissed two months later.

Production of the Roadster began in 2008 at a repurposed Chevrolet dealership facility located in Menlo Park. By January 2009 Tesla had secured $187 million in funding and delivered approximately 147 vehicles; Musk personally invested around $70 million.

In June 2009 Tesla obtained $465 million in loans bearing interest from the U.S. Department of Energy through the Advanced Technology Vehicles Manufacturing Loan Program to finance Model S development along with commercial powertrain technologies. The loan was fully repaid with $12 million interest by May 2013.

IPO, Model S, and Model X (2010–2015)

In May 2010, Tesla purchased the NUMMI facility located in Fremont, California from Toyota for $42 million. The company went public on June 29, 2010, marking the first American automaker to conduct an initial public offering (IPO) since Ford's 1956 offering. Tesla raised $226 million by selling 13.3 million shares at $17 each on the NASDAQ exchange.

The Tesla Factory commenced operations in October 2010 to begin manufacturing the Model S. Production of the Roadster concluded in January 2012, followed by the release of the luxury Model S sedan in June 2012. The Model S received numerous accolades, including the 2013 Motor Trend Car of the Year, and became the first electric vehicle to lead a national monthly sales chart in Norway by September 2013. It was also recognized as the top-selling plug-in electric car worldwide in both 2015 and 2016.

Tesla was added to the NASDAQ-100 index on July 15, 2013.

In 2014, Tesla launched its Tesla Autopilot, an advanced driver-assistance system, equipping all new vehicles with the required sensors and software starting September of that year.

Expanding into energy storage solutions, Tesla introduced the Tesla Powerwall for residential use and Tesla Powerpack for commercial applications in April 2015, securing orders totaling $800 million within just seven days.

The luxury SUV Tesla Model X, Tesla’s third vehicle, began deliveries in September 2015, launching with an initial backlog of 25,000 pre-orders.

SolarCity and Model 3 (2016–2018)

In November 2016, Tesla broadened its footprint in renewable energy by acquiring SolarCity through a $2.6 billion all-stock transaction, integrating it with its battery storage business to establish the Tesla Energy division. This acquisition stirred controversy due to undisclosed liquidity challenges at SolarCity, raising concerns among investors. By February 2017, Tesla Motors rebranded as Tesla, Inc., reflecting its expanded business scope.

April 2016 saw the debut of the Model 3, Tesla’s first vehicle aimed at mass-market affordability compared to its earlier models. Within a week of launch, over 325,000 reservations were secured with deposits. To accelerate production and minimize expenses, Tesla invested heavily in automation; however, this approach initially slowed assembly lines and caused substantial delays referred to as "production hell." By late 2018, these issues were largely resolved, enabling the Model 3 to become the world’s best-selling electric car from 2018 through 2021.

These manufacturing challenges placed significant pressure on Tesla's financial health and made it one of the most shorted stocks on public markets. On August 8, 2018, CEO Elon Musk announced intentions to take Tesla private—a plan that ultimately did not materialize and led to legal complications including an SEC securities fraud lawsuit. Musk settled by paying a $20 million fine and stepping down as chairman while remaining CEO.

Global expansion and Model Y (2019–present)

Between July 2019 and June 2020, Tesla recorded four consecutive profitable quarters, qualifying it for inclusion in the S&P 500. Throughout 2020, Tesla’s stock price soared by approximately 740%, and by December its market capitalization surpassed that of the next nine largest automakers combined. This milestone made Tesla the sixth most valuable publicly traded company in the United States. It officially joined the S&P 500 index on December 21, 2020, as both its most valuable addition and sixth-largest member.

Tesla introduced its second mass-market model—the mid-size crossover SUV Model Y—in March 2019, with deliveries commencing one year later in March 2020. To meet growing demand, Tesla rapidly expanded production capabilities by establishing three new Gigafactories: Shanghai (construction started January 2019; first vehicle produced December 2019), Berlin (construction began February 2020; Model Y production initiated March 2022), and Texas (construction began June 2020; production started April 2022). In March 2023, Tesla revealed plans for a Gigafactory in Mexico targeting a 2025 start date; however, groundbreaking has been postponed.

During the COVID-19 pandemic, Tesla temporarily ceased operations at its Fremont facility due to local government mandates but resumed production following legal challenges and lifted restrictions. In December 2021, Tesla shifted its legal headquarters to Gigafactory Texas while continuing substantial activities and expansions within California—including opening a Megafactory dedicated to Megapack battery production in Lathrop in 2022 and establishing a global engineering hub in Palo Alto by 2023.

In early 2021, Tesla invested $1.5 billion into bitcoin and briefly accepted it as payment before suspending this option over environmental concerns. By July 2022, approximately three-quarters of its bitcoin holdings had been sold at a loss to safeguard profitability.

From May 2023 through February 2024, leading North American electric vehicle manufacturers committed to adopting Tesla’s North American Charging Standard adapters by the year’s end—positioning Tesla for consistent recurring revenue streams. In November 2023, shipments of the Cybertruck commenced from Gigafactory Texas.

In April 2024, Tesla announced workforce reductions exceeding ten percent. Two months later in June, it transferred incorporation from Delaware to Texas. October featured unveiling of concept autonomous vehicles—the Cybercab and Robovan—intended for deployment via Tesla’s forthcoming ridehailing platform known as the Tesla Network.

A Delaware court rejected Elon Musk’s proposed $56 billion compensation package in December 2024 due to board approval deficiencies amid shareholder lawsuits alleging excessive remuneration.

By early 2025, Tesla faced substantial declines in stock value and sales across European markets tied to Elon Musk’s political engagements and associations with far-right figures. Polling data indicated Musk's connections with former President Donald Trump negatively affected brand perception globally—sparking protests, vandalism incidents, and violent episodes at Tesla facilities worldwide. By March 7 of that year, Tesla’s stock had fallen for seven straight weeks—the longest losing streak since its IPO—with over two hundred protests reported internationally by late March.

In July 2025, a software update integrated Grok chatbot capabilities into Tesla vehicles without granting control over driving functions. That same month marked Tesla’s strategic entrance into India with its inaugural showroom opening in Mumbai featuring the Model Y on display.

Automotive products and services

Tesla's vehicle lineup includes six distinct models: Model S, Model X, Model 3, Model Y, Semi, and Cybertruck. The original Tesla Roadster is no longer available for purchase. Upcoming offerings are set to feature a second-generation Roadster, the Cybercab, and the Robovan.

Model S

The Model S is a full-size car characterized by a liftback design and equipped with a dual-motor all-wheel drive system. Its development commenced prior to 2007, with deliveries starting in June 2012. Significant updates were made in April 2016 to the front end and in June 2021 to the interior. It held the position as the best-selling plug-in electric vehicle worldwide during 2015 and 2016, achieving combined sales with the Model X exceeding 250,000 units by December 2018.

Model X

The Model X is a mid-size luxury crossover SUV offered in configurations for 5, 6, or 7 passengers, featuring dual- or tri-motor all-wheel drive options. It is distinguished by its falcon-wing rear doors. The prototype was unveiled in February 2012, with customer deliveries beginning in September 2015. Approximately 30% of its parts are shared with the Model S, and it received an interior update in June 2021.

Model 3

Designed as a more affordable alternative to the luxury Model S, the Model 3 is a mid-size fastback available with either dual-motor all-wheel drive or rear-motor rear-wheel drive configurations. Announced in 2016, it attracted over 325,000 paid reservations within one week. Deliveries started in July 2017. From 2018 through 2021, it was the top-selling electric vehicle globally, surpassing one million cumulative sales by June 2021. A comprehensive redesign refreshing both exterior and interior elements was launched in September 2023.

Model Y

The Model Y is a mid-size crossover SUV offered in both 5- and 7-seat layouts, available with single-motor rear-wheel drive or dual-motor all-wheel drive variants. Positioned as an economical alternative to the luxury Model X, it shares about three-quarters of its components with the Model 3. Introduced as a prototype in March 2019, deliveries commenced in March 2020. In the first quarter of 2023, the Model Y overtook the Toyota Corolla to become the best-selling car worldwide—a notable achievement for electric vehicles' market presence.

Tesla Semi

The Tesla Semi is a Class 8 heavy-duty truck powered by a tri-motor rear-wheel drive configuration that delivers approximately three times the power of conventional diesel trucks and offers an estimated range near 500 miles. Two prototypes were revealed in November 2017; initial deliveries began on December 1, 2022, to PepsiCo. Tesla aims to start full-scale production by late 2025 as part of its strategic move into commercial electric vehicle segments.

Cybertruck

First announced in November 2019, the Cybertruck is a full-size electric pickup truck. Pilot production started in July 2023, with deliveries commencing on November 30, 2023. It is available in three variants: rear-wheel drive, dual-motor all-wheel drive, and tri-motor all-wheel drive, offering EPA-rated ranges between 320 and 340 miles depending on the model. Its stainless steel body design has elicited varied responses from media outlets. Initially targeting an annual production capacity exceeding 250,000 units, Tesla's sales volume stood at approximately 20,000 units per year as of 2025.

Roadster (second generation)

Revealed in November 2017, the second-generation Roadster is designed to deliver an estimated 620-mile driving range powered by a 200 kWh battery pack. It accelerates from 0 to 60 mph in just 1.9 seconds and reaches a top speed surpassing 250 mph. An optional "SpaceX Package" equips the car with cold-gas thrusters to boost performance capabilities. The vehicle is equipped with three electric motors providing all-wheel drive and torque vectoring. Initially set at a $200,000 price point, its production has encountered several postponements; CEO Elon Musk anticipates a launch in 2025.

Tesla next-generation vehicle

The Tesla next-generation vehicle represents Tesla’s third significant battery-electric platform, announced with an expected release around 2025. CEO Elon Musk has confirmed availability during the first half of that year. This platform is intended to push Tesla’s lineup forward while reinforcing its leadership in electric vehicle technology.

Cybercab

The Tesla Cybercab, also known as the Robotaxi, is an upcoming fully autonomous two-passenger electric vehicle. Introduced as a concept in October 2024, it showcased 20 prototypes designed for short rides without traditional controls such as steering wheels or pedals. The production version aims for full autonomy and is planned for release before 2027, targeting the autonomous ride-hailing market segment.

Robovan

Announced in October 2024, the Tesla Robovan is an electric self-driving van capable of accommodating up to 20 passengers. This model broadens Tesla’s offerings into larger-scale passenger transport, supporting expansion into commercial and shared mobility markets.

Tesla Roadster (first generation)

The original Tesla Roadster was a two-seat sports car based on the Lotus Elise chassis, produced between 2008 and 2012. It was notable for being the first highway-legal serial production electric vehicle utilizing lithium-ion battery cells and the first all-electric production car to exceed per single charge, marking a critical achievement in Tesla’s early development and recognition within the automotive industry.

Connectivity services

Tesla vehicles come standard with "Standard Connectivity," which provides navigation through cellular networks. For an additional monthly subscription, "Premium Connectivity" offers live traffic information, satellite imagery maps, internet browsing capabilities, and media streaming options. This service enhances user experience while generating ongoing revenue.

Vehicle servicing

Tesla emphasizes remote diagnostics and repairs to minimize service expenses and improve convenience for customers. When remote solutions are insufficient, repairs are conducted by mobile technicians or at Tesla-operated service centers. As of 2024, Tesla maintains a global network of 1,306 retail outlets, galleries, service centers, delivery points, and body shops supporting its worldwide operations. Unlike conventional dealerships, Tesla does not seek profit from servicing vehicles, reflecting its customer-focused business approach.

In 2016, Tesla recommended maintenance every 12,500 miles or annually; by 2019, this shifted to an "as-needed" maintenance model concentrating on brake fluid replacement, air conditioning servicing, tire care, and air filter changes—demonstrating Tesla’s innovative strategy toward vehicle maintenance and cost management.

Supercharger Network

The Supercharger network represents Tesla's proprietary high-voltage direct current (DC) fast-charging stations designed to rapidly recharge Tesla vehicles.

Destination Charging Network

Tesla's "Destination Chargers" provide slower charging options at venues where customers typically spend extended periods, such as hotels and retail centers. Unlike Superchargers, these chargers are owned and managed by the property proprietors, who determine the pricing structure. Launched in 2014 with Tesla initially funding the equipment and installation, this network has grown through collaborative partnerships. A significant development occurred in 2023 when Hilton Worldwide announced plans to deploy 20,000 chargers across 2,000 of its North American locations by 2025.

Insurance Offerings

Since 2017, Tesla has been providing vehicle insurance within the United States, operating under Tesla Insurance Services, Inc. since 2021. This initiative arose after conventional insurers increased premiums for Tesla owners due to elevated repair expenses and accident statistics. Capitalizing on its comprehensive knowledge of its vehicles and technology, Tesla delivers competitive insurance rates by removing traditional insurer profit margins. Utilizing real-time data from vehicles, Tesla offers customized insurance pricing based on individual driving patterns.

As of January 2023, Tesla Insurance is available in Arizona, California, Colorado, Illinois, Maryland, Minnesota, Nevada, Ohio, Oregon, Texas, Utah, and Virginia. The service also extends coverage to non-Tesla automobiles owned by Tesla customers.

Energy Products

Tesla Energy, a subsidiary of Tesla, focuses on the development, manufacturing, sales, and installation of solar energy generation systems and battery storage solutions catering to residential, commercial, and industrial markets. Established through the integration of Tesla’s battery storage division with SolarCity following its 2016 acquisition, Tesla Energy aims to broaden its footprint in renewable energy technologies. In 2023, the company installed 14.7 GWh of battery storage capacity—a 125% increase compared to 2022—while solar system installations fell by 36% to 223 MW.

The product lineup from Tesla Energy includes solar panels (produced by partner manufacturers), the Tesla Solar Roof featuring integrated solar shingles, and the Tesla Solar Inverter. For energy storage needs, offerings encompass the Powerwall for residential applications and the Megapack designed for utility-scale projects.

For commercial clients, Tesla provides an online platform that facilitates automated energy trading, demand forecasting, and management of deployed products. By March 2021, this software was controlling over 1.2 GWh of storage capacity. Additionally, Tesla Electric—a virtual power plant operating in Texas—utilizes this platform to optimize Powerwall systems by selling stored electricity back to the grid during peak demand periods, thereby generating income for customers.

Business strategy

When Tesla was established in 2003, the electric vehicle market was characterized by high costs. Elon Musk’s 2006 approach emphasized initially manufacturing expensive, limited-run sports cars to decrease battery expenses, paving the way for more affordable, larger-scale models in the future. The first Roadster carried a price tag exceeding $100,000 and had restricted production numbers. Following this, the Model S and Model X were introduced to serve the luxury segment, while the more budget-friendly Model 3 and Model Y targeted mass-market consumers, each surpassing quarterly sales of 100,000 units. Tesla sets itself apart by frequently upgrading vehicle hardware beyond the conventional annual model refresh cycle.

Tesla avoids the traditional franchised dealership model by selling vehicles directly via its website and company-owned outlets, marking it as the first American automaker to adopt this strategy. In areas where direct sales are legally restricted, Tesla operates "galleries" designed to educate potential buyers without completing sales transactions. The company maintains close to 400 stores and galleries in over 35 countries, typically positioning them in high-footfall retail environments rather than near conventional dealerships.

Industry experts highlight Tesla’s extensive vertical integration as a significant competitive edge; unlike most automakers who outsource roughly 80% of parts, Tesla manufactures many critical components internally—including batteries, electric motors, and software—allowing greater control over its operations and business model.

To promote sustainable energy adoption across the sector, Tesla licenses its technology to competitors under agreements that prohibit patent lawsuits or direct replication of designs. The company safeguards its intellectual property by retaining ownership of trademarks and trade secrets.

In April 2024, Tesla finalized a semiconductor supply contract with Tata Electronics, supporting its expansion into India’s automotive market and strengthening global supply chains. In May 2024, Tesla decided against pursuing next-generation gigacasting—a manufacturing innovation intended to reduce costs—in favor of established methods involving casting vehicle underbodies in three sections. This decision reflects Tesla’s strategic emphasis on advancing autonomous driving technology while responding flexibly to evolving market conditions.

Technology

Tesla maintains a high degree of vertical integration by producing many core components internally, such as batteries, electric motors, and proprietary software.

Batteries

By 2023, Tesla utilized four different battery cell formats: 18650, 2170, 4680, and prismatic cells. These are sourced from suppliers including CATL, LG Energy Solution, and Panasonic—the latter co-manufacturing batteries within Tesla’s Gigafactory in Nevada. Additionally, Tesla is scaling up its own battery manufacturing capabilities.

The battery packs are installed beneath the vehicle floor to optimize cabin space and are shielded with a multi-layer aluminum and titanium protective casing designed to guard against road debris and collision impacts.

According to BloombergNEF estimates from 2021, Tesla’s battery pack cost stood at $112 per kilowatt-hour (kWh), approximately 15% lower than the industry average of $132 per kWh—highlighting Tesla’s cost efficiency advantage in battery technology.

18650

Tesla was an early adopter of cylindrical lithium-ion cells in automotive use with its first-generation Roadster, employing standard 18650 cells (18 mm diameter by 65 mm length). Although these cells have relatively modest capacity requiring thousands per battery pack, Tesla capitalized on mature production techniques to achieve consistent quality at scale. These cells utilize nickel-cobalt-aluminum (NCA) cathode chemistry and continue powering the Model S and Model X vehicles with Panasonic supplying them from factories in Japan. Key engineering challenges such as thermal regulation and fire safety were addressed through liquid cooling systems and specialized fire-retardant additives to maximize performance reliability.

2170

For its Model 3 and Model Y vehicles, Tesla transitioned to using the larger 2170 cylindrical cells, which measure 21 mm in diameter and 70 mm in height. This change increased the energy capacity per individual cell while decreasing the overall number of cells required in each battery pack. At the Fremont Factory, these NCA cathode-equipped batteries are produced by Panasonic at Gigafactory Nevada, which had an annual manufacturing capability of 39 GWh as of January 2021. Additionally, Tesla Energy incorporates 2170 cells within its Powerwall residential energy storage solutions.

In contrast, Tesla’s vehicles assembled at Gigafactory Shanghai and Berlin utilize 2170 cells featuring nickel-cobalt-manganese (NMC) cathodes, procured from LG Energy Solution’s manufacturing sites in China. This approach reflects Tesla’s global production footprint and diversified supplier network.

4680

Introduced in 2021, Tesla's proprietary 4680 cylindrical cell measures 46 mm in diameter and 80 mm in height, making it five times larger than the previous 2170 format. Designed internally, this cell provides greater capacity per unit and lowers the total cell count needed for a battery pack. Production of these cells occurs at Tesla's Fremont facility, with plans to expand manufacturing to Gigafactory Nevada and Texas. The 4680 format powers the Model Y and Cybertruck models built at Gigafactory Texas.

Prismatic

Tesla also utilizes prismatic lithium iron phosphate (LFP) cells—rectangular in shape—which have lower energy density but exclude nickel and cobalt, resulting in reduced manufacturing expenses. These batteries are primarily installed in many base versions of Model 3 and Model Y vehicles and are sourced from CATL’s factories in China. By April 2022, prismatic cells accounted for nearly half of Tesla’s vehicle production. Furthermore, Tesla Energy employs prismatic cells within its Megapack systems designed for large-scale grid energy storage.

Research

Tesla dedicates substantial resources to lithium-ion battery research, exemplified by a five-year collaboration that began in 2016 with Dalhousie University in Canada under the leadership of researcher Jeff Dahn. The company has broadened its battery technology expertise through key acquisitions such as Maxwell Technologies for over $200 million—although it divested this unit in 2021—and Hibar Systems, which specializes in rapid battery manufacturing techniques. Tesla also obtained multiple battery production patents from Springpower International, a Canadian startup focused on developing more affordable and environmentally friendly batteries. These strategic moves support Tesla’s goal to enhance its competitive position in battery innovation while underpinning its worldwide electric vehicle manufacturing operations.

Lithium Refinement

In 2023, Tesla commenced building a $375 million lithium refining plant near Robstown, Texas. The facility employs an innovative process that avoids using sulfuric acid during lithium refinement, thereby minimizing the generation of harmful sodium sulfate waste. Nonetheless, there are concerns regarding the plant’s substantial water usage, estimated at approximately 400,000 US gallons daily under normal conditions and potentially reaching up to 8 million gallons during peak demand periods.

Software

Tesla utilizes over-the-air (OTA) updates to improve vehicle performance and fix bugs, relying on integrated onboard computers instead of conventional off-the-shelf components. This method allows Tesla to manage feature availability after purchase, demonstrated by the ability to activate heated rear seats or advanced driver-assistance systems such as Enhanced Autopilot and Full Self-Driving through software licensing, despite all vehicles being equipped with the necessary hardware from the outset.

Motors

Tesla manufactures two varieties of electric motors: a three-phase four-pole alternating current induction motor and an internal permanent magnet synchronous reluctance motor (IPM-SynRM).

The induction motor, which includes a copper rotor that inspired Tesla’s emblem, generates torque through electromagnetic induction. It functions as the rear motor in the Model S and Model X, the front motor in the Model 3 and Model Y, and was used in the original Roadster.

Beginning in 2017, Tesla introduced IPM-SynRM motors featuring iron rotors embedded with magnets. These motors provide robust starting torque and exploit iron’s reluctance characteristics for efficient high-speed operation. The IPM-SynRM motor powers the rear axle of the Model 3 and Model Y, serves as the front motor in post-2019 Model S and X models, and is expected to be implemented in the Tesla Semi.

North American Charging Standard

The North American Charging Standard (NACS), created by Tesla, has been the standard charging connector for all Tesla vehicles in North America since 2012. After opening the standard to other manufacturers in 2022, nearly every automaker plans to incorporate NACS ports into their electric vehicles starting in 2025. Additionally, numerous EV charging network providers and equipment manufacturers are adopting NACS connectors, broadening its market presence.

Glass

In November 2016, Tesla established its Tesla Glass division to produce roof glass for the Model 3 as well as glass components for its Solar Roof solar shingles, enhancing integration across products and strengthening vertical manufacturing capabilities.

Robotics

Prior to launching Model 3 production, Tesla made significant investments in robotics and automation by acquiring companies such as Compass Automation, Grohmann Automation, Perbix Machine Company, and Riviera Tool and Die between 2015 and 2017 to boost manufacturing productivity. Nevertheless, Elon Musk admitted that early adoption of robotics initially hindered production speeds.

Subsequently, Tesla adopted large casting machines known as Giga Presses to create single-piece underbodies. This advancement lowered production duration, reduced labor expenses, minimized factory space requirements, and decreased dependency on welding robots, thereby enhancing Tesla’s manufacturing efficiency advantage. However, some critics argue this technique may lead to more complicated and costly repairs.

Since 2022, Tesla has been developing a humanoid robot called Optimus, which utilizes software derived from its Full Self-Driving system. Optimus is intended to automate repetitive tasks within Tesla’s factories, helping to mitigate labor shortages and support scalable operations.

Facilities

Tesla operates seven principal manufacturing plants alongside approximately twelve smaller sites across the globe. By December 2024, the company also oversaw more than 1,350 locations worldwide, including retail outlets, galleries, service centers, delivery hubs, and body shops.

Key Tesla manufacturing sites

Established	Facility	Location	Nation	Staff Count	Products
2010	Tesla Fremont Factory	Fremont, California	United States	22,000	Model S, Model X, Model 3, Model Y
2016	Gigafactory Nevada	Storey County, Nevada	United States	7,000	Batteries, Powerwall, Semi
2017	Gigafactory New York	Buffalo, New York	United States	1,500	Solar Roof, Supercharger
2019	Gigafactory Shanghai	Shanghai	China	20,000	Model 3, Model Y, Supercharger
2022	Gigafactory Berlin	Grünheide	Germany	10,000	Model Y
2022	Gigafactory Texas	Austin, Texas	United States	12,000	Model Y, Cybertruck

North America

Established in 2003 in San Carlos, California, Tesla's initial production site launched in 2008 at a former Chevrolet dealership located in Menlo Park, California, where the original Roadster was assembled until 2012. The company expanded its retail footprint by opening a store in Los Angeles that same year. In 2010, Tesla moved its corporate headquarters and powertrain engineering operations to Palo Alto.

The main assembly facility is the former NUMMI plant in Fremont, California—acquired from Toyota in 2010 following General Motors’ bankruptcy. Known as the Tesla Fremont Factory, this location remains a cornerstone of Tesla’s manufacturing network.

In 2016, Tesla launched its first custom-built Gigafactory in Nevada. This plant produces Powerwall battery units, drivetrains for the Model 3, and the Tesla Semi truck in collaboration with Panasonic. The Nevada site benefits from extensive state and local tax incentives that include nearly a decade of tax exemption extended to twenty years contingent on factory expansion commitments.

Following the acquisition of SolarCity in 2016, Tesla took control of the Buffalo-based Gigafactory New York, financed through New York’s Buffalo Billion initiative. This factory manufactures the Tesla Solar Roof and assembles Superchargers but has attracted scrutiny regarding its economic returns for the region.

To address increasing production volumes, Tesla installed tension fabric structures at Fremont in 2018 to support monthly vehicle output goals of up to 5,000 units.

In July 2020, Tesla announced plans for its fifth Gigafactory near Austin, Texas—Gigafactory Texas—which produces the Cybertruck and Model Y for markets east of the Mississippi. By December 2021, Tesla had shifted its legal headquarters from Palo Alto to this new facility while maintaining its original Palo Alto campus. The factory officially commenced operations in April 2022.

In addition, Tesla acquired a former JC Penney distribution center near Lathrop, California in 2021 to establish a "Megafactory" dedicated to Megapack energy storage systems; production began there in 2022.

The company also unveiled intentions to develop a new global engineering headquarters at a former Hewlett Packard site in Palo Alto to bolster innovation and executive oversight.

Plans for a sixth Gigafactory located near Monterrey—Gigafactory Mexico—were announced but remain on hold as of mid-2024 due to tariff-related complications stemming from U.S. political developments.

These North American sites exemplify Tesla’s strategy emphasizing vertical integration and expanded manufacturing capacity to sustain competitive advantage and support worldwide operations.

Europe

Tesla launched its inaugural European retail outlet in London in June 2009. The company’s European headquarters and Distribution Centre are situated in the Netherlands, where the Tilburg facility manages final assembly operations to minimize import duties and reduce production expenses.

In 2016, Tesla expanded its manufacturing capabilities by acquiring the German engineering company Grohmann Engineering, which was subsequently renamed Tesla Automation. This acquisition was aimed at advancing automation technologies specifically for Tesla’s manufacturing processes.

Tesla revealed plans in 2016 for a combined vehicle and battery manufacturing plant in Europe, attracting proposals from several countries before ultimately selecting Germany as the site in November 2019. On March 22, 2022, the company officially opened its first European Gigafactory, Gigafactory Berlin, located near Berlin, designed to produce up to 500,000 electric cars and battery units annually.

Asia

Tesla established its first showroom in Asia by opening a location in Tokyo, Japan, in October 2010.

In July 2018, Tesla entered into an agreement to construct a factory in Shanghai, China—marking its first Gigafactory outside the United States. Construction was completed by August 2019, with Model 3 production commencing two months later in October. By 2024, China represented 21% of Tesla’s total sales revenue and ranked as its second-largest market after the U.S., which accounted for 48%. In that year, Tesla sold 37% of its vehicles within China.

The company has expressed interest in expanding operations into India, including the potential establishment of a Gigafactory. Tesla established a legal entity in India in 2021 and intends to inaugurate an office in Pune by October 2023.

Panasonic

In January 2010, Tesla partnered with battery manufacturer Panasonic to co-develop nickel-based lithium-ion battery cells tailored for electric vehicles. Panasonic committed $30 million to this multi-year collaboration. By July 2014, Panasonic agreed to participate in battery production at Tesla’s Giga Nevada facility. Additionally, the two companies cooperated on photovoltaic cell and module manufacturing at Giga New York from mid-2017 until early 2020, when Panasonic withdrew from the solar sector.

In March 2021, Panasonic’s outgoing CEO announced intentions to lessen dependence on Tesla as their battery partnership progressed, reflecting changes in corporate strategy and market priorities.

Other current partners

Tesla secures long-term lithium supply through contractual agreements. In September 2020, it signed a decade-long sales contract with Piedmont Lithium for high-purity spodumene concentrate sourced from North Carolina. In 2022, Tesla entered into a four-year agreement to procure 110,000 tonnes of spodumene concentrate from Core Lithium’s mine located in Australia’s Northern Territory.

The company also collaborates with enterprises such as Airbnb and various hotel chains to install destination chargers at selected venues, facilitating expansion of its charging infrastructure.

Daimler

The partnership between Daimler and Tesla began in late 2007, with Daimler acquiring just under a 10% stake for $50 million in 2009. Herbert Kohler, Daimler’s Vice President of E-Drive and Future Mobility, joined Tesla’s board of directors. In July 2009, Daimler sold 40% of its shares to Aabar Investment Company and fully divested by October 2014 for around $780 million.

In 2010, Tesla supplied battery packs for Freightliner Trucks and developed electric powertrain components for the Mercedes-Benz A-Class E-Cell, producing approximately 500 units for trial use across Europe starting in 2011. Tesla also co-engineered the powertrain for the Mercedes-Benz B250e until production ceased in 2017; this vehicle featured a 136 PS electric motor paired with a 36 kWh battery pack offering an estimated range of roughly 200 kilometers.

Daimler’s Smart division manufactured Smart ED2 electric cars between 2009 and 2012 utilizing lithium-ion batteries supplied by Tesla.

Toyota

In May 2010, Tesla and Toyota entered into a strategic alliance wherein Tesla purchased the former NUMMI manufacturing plant from Toyota for $42 million. Concurrently, Toyota invested $50 million in Tesla shares, and the two companies embarked on a joint electric vehicle initiative.

By July 2010, they revealed plans for a second-generation Toyota RAV4 EV, which debuted at the October 2010 Los Angeles Auto Show. Tesla contributed lithium metal-oxide battery technology and powertrain components derived from its Roadster platform. The finalized production version, introduced in August 2012, featured battery modules and electronics adapted from the Tesla Model S sedan. Despite the advanced technology integration, production was capped at fewer than 3,000 units before discontinuation in 2014.

The collaboration encountered difficulties; according to Bloomberg News, there were engineering disputes, especially concerning the design of the battery enclosure. Toyota eventually assumed control and reinforced the enclosure structure. Subsequently, Tesla incorporated a titanium shield into Model S batteries following incidents involving fires caused by road debris penetration. On June 5, 2017, Toyota divested its entire Tesla stock holding, officially terminating their partnership.

This alliance underscored Tesla’s strategy of utilizing partnerships to accelerate market expansion, while Toyota’s investment demonstrated its strategic focus on electric vehicle advancement. However, divergent engineering philosophies and corporate priorities constrained the duration and effectiveness of their cooperation.

Mobileye

The initial versions of Autopilot were developed through collaboration with Mobileye beginning in 2014. This partnership concluded on July 26, 2016, due to "disagreements regarding the deployment of the technology."

Unsuccessful libel lawsuit over critical review

In 2008, Tesla supplied two Roadsters to the British automotive television program Top Gear for evaluation. The show assessed the vehicle as a high-performance sports car, blending entertainment with humor rather than providing an objective review aligned with its intended purpose. Although praising the Roadster's handling and performance, the program reported a battery range of only 55 miles during performance testing—a statistic Tesla contested, asserting that typical usage resulted in approximately 211 miles. Tesla pursued legal action for libel but was unsuccessful.

In 2025, following protests and acts of vandalism targeting Tesla due to Elon Musk’s political affiliations with the Trump administration, former Top Gear host Jeremy Clarkson publicly ridiculed these events as "kinda hilarious."

Sexual harassment

In 2021, seven women accused Tesla’s Fremont factory workplace of sexual harassment and discrimination, alleging an environment rife with misconduct. Reported behaviors included catcalling, unsolicited advances, and inappropriate touching. One employee recounted taking measures to avoid male attention merely to complete her duties. Incidents ranged from groping to being summoned for sexual encounters.

Many employees refrained from reporting due to fear of retaliation, especially as supervisors were frequently implicated. Although CEO Elon Musk was not formally charged, plaintiffs connected their experiences to his crude comments and dismissive stance on harassment allegations. Attorney David A. Lowe described a "shocking pattern of rampant harassment" within Tesla. A comparable case in 2017 led to the dismissal of a female employee who had filed complaints; Tesla stated that an independent investigation found no evidence supporting her claims.

In May 2022, a California court judge allowed the sexual harassment lawsuit to proceed through litigation by rejecting Tesla’s motion for confidential arbitration.

Accidents, repairs and safety violations

In June 2016, the National Highway Traffic Safety Administration (NHTSA) raised concerns over Tesla's use of nondisclosure agreements (NDAs) concerning customer repairs. Later, in October 2021, the agency formally sought clarification on Tesla’s NDA practices specifically related to participants in the Full Self-Driving (FSD) Beta program. Tesla has implemented NDAs with both its workforce and customers as a means to mitigate adverse publicity.

From 2014 through 2018, the Fremont manufacturing facility recorded OSHA violations at a rate three times higher than the combined total of the ten largest automotive plants in the United States. Investigations indicated that Tesla may have underreported severe injuries to minimize the appearance of workplace safety problems.

In January 2019, Sean Gouthro, a former security manager, filed a whistleblower complaint alleging that Tesla engaged in employee surveillance and neglected to disclose unlawful activities. Numerous lawsuits have revolved around accusations of retaliation against whistleblowers, including cases involving dismissed safety inspectors and security personnel. One such claim was dismissed through arbitration in 2022.

The California Civil Rights Department initiated legal action in 2022, accusing Tesla of pervasive racial harassment at its Fremont facility and alleging that the company impeded the department’s ongoing inquiry as of April 2023.

A 2024 study conducted by iSeeCars and reported by Jalopnik identified Tesla vehicles as having the highest fatal crash rate among U.S. car manufacturers. Furthermore, a lawsuit filed in California in 2025 accused Tesla of manipulating odometer software to inflate mileage readings, resulting in premature warranty invalidations.

Fraud allegations

Tesla has encountered several allegations concerning its financial disclosures. In 2013, Bloomberg News questioned whether Tesla’s financial reports adhered to Generally Accepted Accounting Principles (GAAP). Fortune magazine in 2016 accused Tesla of employing aggressive accounting techniques to portray positive cash flow and quarterly earnings. Concerns about Tesla’s accounts receivable figures were raised by analysts in 2018. In September 2019, the SEC questioned CFO Zach Kirkhorn regarding warranty reserves and lease accounting practices. Hedge fund manager David Einhorn publicly charged Elon Musk with "significant fraud" that same year, challenging Tesla’s accounting methods and disputing the validity of reported accounts receivable.

Between 2012 and 2014, Tesla received over $295 million from Zero Emission Vehicle credits for a battery-swapping technology that was never made available to consumers, prompting scrutiny from the California Air Resources Board over potential subsidy exploitation.

A consolidated shareholder lawsuit alleged that Musk was aware of SolarCity’s financial difficulties prior to its acquisition and accused Tesla’s board of overpaying and violating fiduciary responsibilities. The board members settled in 2020, leaving Musk as the sole defendant. In April 2022, the Delaware Court of Chancery ruled in Musk’s favor; this decision was subsequently upheld by the Delaware Supreme Court in June 2023.

In August 2018, Musk tweeted about taking Tesla private at $420 per share with "funding secured," which caused market volatility once it became apparent that funding was not secured. Musk settled SEC fraud charges in September 2018 by agreeing to have his tweets reviewed by Tesla’s legal counsel, stepping down temporarily as chairman, and adding independent directors to the board; both he and Tesla paid $20 million in civil penalties. Related shareholder lawsuits were filed but a California jury found neither Musk nor Tesla liable in February 2023.

In September 2018, Tesla revealed an FBI investigation into allegations that it misrepresented Model 3 production numbers to investors. A related shareholder lawsuit was dismissed in March 2019.

In May 2024, Reuters reported on a federal investigation into whether Tesla deceived investors and consumers regarding Autopilot and Full Self-Driving capabilities, focusing on possible securities or wire fraud violations.

Tesla US dealership controversies

Tesla diverges from conventional automakers by selling its vehicles directly via its website and company-owned outlets, eliminating the use of franchised dealerships. In certain U.S. states where laws prohibit direct sales from manufacturers to consumers, Tesla maintains "galleries" that serve to inform potential buyers but do not facilitate transactions. Franchise dealer organizations have initiated lawsuits aiming to prevent Tesla's direct-to-consumer sales strategy, contending that the franchise model promotes competition and safeguards buyers by keeping prices competitive. They also argued that direct sales could allow manufacturers to underprice dealers unfairly. Nevertheless, the U.S. Federal Trade Commission dismissed these concerns, endorsing direct sales as a means to reduce vehicle costs for consumers by an estimated 8%.

Tesla has vigorously engaged in lobbying efforts at the state level to legalize direct sales, emphasizing that their company-operated stores provide superior consumer education regarding electric vehicles (EVs). The company asserts that traditional dealerships face inherent conflicts of interest when marketing both EVs and gasoline-powered cars, potentially limiting their enthusiasm for promoting electric options. CEO Elon Musk pointed out that dealers have diminished motivation to push EVs because these vehicles demand less maintenance, thereby decreasing revenue from after-sales services—a significant profit driver for conventional dealerships.

Intellectual property issues

Tesla has initiated lawsuits against former staff members accused of misappropriating proprietary information, especially those who subsequently joined rival firms like XPeng and Zoox. For example, engineer Guangzhi Cao faced allegations of transferring Tesla Autopilot source code to his personal iCloud account, while Alex Khatilov was charged with downloading documents related to Tesla's Warp Drive software onto his private Dropbox account.

Allegations of misappropriation

A class action lawsuit filed in 2018 claimed that Musk and Tesla’s board violated fiduciary responsibilities by approving Musk’s stock compensation package. This plan resulted in Musk receiving over $700 million in May 2020. In July 2023, Tesla’s board members reimbursed $735 million to resolve allegations stemming from a 2020 suit concerning the misallocation of 11 million stock options granted between 2017 and 2020 to Elon Musk, Kimbal Musk, Larry Ellison, and others.

Environmental compliance issues

In 2019, the United States Environmental Protection Agency imposed fines on Tesla for hazardous waste violations dating back to 2017. That June, Tesla reached an agreement addressing penalties for 19 environmental infractions related to its Fremont paint facility, which suffered several fires between 2014 and 2019. These violations escalated during the Model 3 production scale-up.

In 2018, employee Martin Tripp disclosed that up to 40% of raw materials at Tesla’s Nevada Gigafactory were being discarded or reworked. Following his termination and a subsequent lawsuit alleging false police reports filed by Tesla’s security personnel, the court ruled in favor of Tesla in September 2020.

In January 2024, a coalition of 25 California counties filed suit against Tesla over unlawful hazardous waste disposal practices. The dispute was resolved with Tesla agreeing to pay $1.5 million in fines, acknowledge both intentional and negligent conduct, implement employee training on waste management procedures, and conduct audits on 10% of its facilities annually for five years.

Property damage

In August 2019, Walmart initiated a lawsuit worth several million dollars against Tesla, accusing the company of "careless installation and upkeep" of solar panels that allegedly led to roof fires at seven Walmart locations since 2012. The dispute was resolved through a settlement in November 2019, though the specific conditions were not made public.

A Norwegian court ruled against Tesla in April 2021 for deliberately reducing charging speeds via a 2019 software update after Tesla did not respond to the legal action. As a result, thirty affected customers were awarded compensation of 136,000 Norwegian kroner each (approximately $16,000).

Racism

Tesla has encountered numerous allegations related to workplace harassment and racial bias, with some former employees characterizing the environment as rife with discriminatory behavior. By December 2021, African-Americans represented only 3% of Tesla’s leadership roles. Reports from ex-workers at the Buffalo facility also highlighted a hostile and racially charged atmosphere. Both Tesla and SpaceX faced backlash concerning their observance of Juneteenth in 2020. Nearly one hundred former employees submitted declarations accusing the companies of systemic discrimination against African Americans and permitting a culture tolerant of racism.

Most disputes are resolved through mandatory arbitration clauses, which require conflicts to be settled confidentially outside of court.

Fremont, California, plant

The Fremont manufacturing site has been the focus of several racial discrimination accusations. Black staff members have reported being assigned the most physically taxing and low-status duties. In February 2022, the California Department of Fair Employment and Housing filed a lawsuit against Tesla alleging discrimination targeting Black employees.

In July 2021, Melvin Berry, a former employee, secured $1 million through arbitration after alleging racial insults and excessive work hours at Fremont. Later, in October 2021, a jury granted Owen Diaz $137 million for racial harassment experienced there during 2015–2016. Tesla contested Diaz’s employment classification and challenged the context surrounding the offensive language.

A federal judge affirmed Tesla’s responsibility in April 2022 but lowered the damage award to $15 million. Diaz declined this offer in June 2022, leading to a retrial. In April 2023, Diaz was granted $3.2 million following the subsequent proceedings.

These legal battles underscore profound issues within Tesla’s workplace environment that could potentially harm its public image and operational continuity.

COVID-19 pandemic

Tesla’s handling of the COVID-19 pandemic in the United States attracted substantial criticism. CEO Elon Musk attempted to exempt the Fremont factory in Alameda County, California, from stay-at-home directives and described public health regulations as "fascist" during an earnings call in April. He also downplayed the severity of the virus, forecasting no cases by that month. Despite ongoing discussions with Alameda County officials, Tesla resumed production prematurely on May 11, 2020, defying local mandates. The company filed a lawsuit against Alameda County over these restrictions but withdrew it after obtaining permission to reopen.

By June 2020, Tesla unveiled a plan intended to safely restart operations; however, some employees expressed ongoing concerns about health risks. Musk permitted workers uncomfortable with returning to remain home, yet Tesla later terminated an employee who criticized safety protocols at Fremont. Additional employees claimed they were laid off for staying home due to COVID-19 fears; Tesla refuted these assertions and confirmed those individuals remained on payroll. COVID-19 infections at Fremont increased from 10 cases in May to 125 by December 2020, totaling approximately 450 cases among an estimated workforce of 10,000 (4.5%).

In China, Tesla benefited from extraordinary government incentives such as tax exemptions, favorable financing options, and expedited support for constructing its Giga Shanghai facility. An executive described Tesla’s return-to-work process there as being accompanied by a "flashing-sirens police escort" rather than merely receiving a green light. Musk commended China’s approach despite ongoing controversies surrounding U.S.–China relations and human rights issues.

Right to repair

In March 2023, Virginia M. Lambrix initiated a class action antitrust lawsuit against Tesla in San Francisco, accusing the company of illegally monopolizing the maintenance and repair market for its vehicles, thereby violating the Sherman Act and California's antitrust statutes. The complaint alleges that vehicle owners were compelled to endure excessive charges and lengthy delays for repairs and parts. This lawsuit was subsequently merged with four other similar cases.

By June 2024, US District Judge Trina Thompson dismissed six out of eight alleged violations but permitted two claims to advance, specifically those involving breaches of California's Cartwright Act and Unfair Competition Law. The court determined that Tesla engineered its vehicles to require diagnostic and software updates exclusively accessible through the company, effectively establishing a monopoly on repairs. Additionally, Tesla limited original equipment manufacturers from distributing parts beyond its own channels, creating a monopoly over replacement components.

TeslaTakedown protests

In February 2025, a series of nationwide demonstrations targeted Tesla’s showrooms and service centers throughout the United States. These protests were sparked by Elon Musk’s contentious appointment as head of the Department of Government Efficiency (DOGE) during Donald Trump’s second presidential administration.

Legal actions against critics and complainants in China

Beginning in 2021, Tesla engaged in litigation against six vehicle owners, several bloggers, and two media organizations in China over defamation claims linked to public grievances about vehicle defects and critical reporting. By early 2025, Tesla had won 11 rulings in its favor, with additional lawsuits either under appeal or resolved through settlements.

Data privacy

Tesla is one of the most heavily examined firms concerning data privacy issues and was only the second product assessed by the Mozilla Foundation to raise major privacy concerns. In 2023, a class-action suit emerged after revelations that Tesla personnel shared intrusive footage recorded by customer vehicle cameras within internal circles.

Whistleblower Lukasz Krupski unveiled significant lapses in data protection practices, disclosing that confidential employee data—including passport details, medical information, and salary records—was widely accessible across Tesla’s internal systems. This revelation triggered investigations by regulatory bodies such as the Dutch Data Protection Authority into Tesla’s adherence to privacy regulations.

Short sellers

TSLAQ is a community of Tesla skeptics and short sellers aiming to sway market sentiment about Tesla’s stock. In January 2020, short interest in Tesla shares reached 20%, marking the highest level among US equities at that time. Despite this, short sellers suffered losses totaling $40 billion throughout 2020 as Tesla’s share price soared. Notably, Michael Burry, known from The Big Short, had taken a short position on Tesla via his firm Scion Asset Management but exited it in October 2021.

Tesla’s mission

Automotive journalist Jamie Kitman reported that instead of providing their electric vehicle technology when approached by major automakers, Tesla offered regulatory credits for purchase instead. This practice raised doubts regarding Tesla’s genuine dedication to advancing the electric vehicle industry.

Giga New York audit

A 2020 review conducted by the New York State Comptroller sharply criticized the Giga New York manufacturing facility, citing inadequate due diligence and unsatisfactory economic returns. The analysis revealed that for every dollar invested by the state in the plant, only $0.54 of benefit was generated.

Delays

Elon Musk has been frequently reproached for repeatedly deferring Tesla product launch and production timelines. By 2016, he had missed around 20 forecasted deadlines. For instance, in October 2017, Musk anticipated that Model 3 output would reach 5,000 units weekly by December; however, this goal was postponed to "sometime in March" 2018. Delivery schedules for the Model 3 also experienced setbacks. Other projects, including the transition of supercharger stations to solar energy, have similarly fallen behind initial estimates. In late 2018, Musk admitted, "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?"

Recalls

On April 20, 2017, Tesla initiated a recall affecting 53,000 vehicles—approximately 70% of its sales from 2016—due to defective parking brakes that could impede vehicle movement. On March 29, 2018, Tesla recalled 123,000 Model S cars manufactured prior to April 2016 because of corrosion-prone power steering bolts that increased driver effort.

In October 2020, nearly 50,000 Model X and Y vehicles in China were recalled over suspension-related defects. Following this, the NHTSA launched an inquiry into 115,000 Tesla vehicles (2015–2017 Model S and 2016–2017 Model X) concerning front suspension safety issues, including reports of the so-called "whompy wheel" effect impacting certain Model X and Model 3 units.

By February 2021, Tesla was mandated to recall 135,000 Model S and Model X cars (2012–2018) due to touchscreen malfunctions caused by premature flash memory degradation, which compromised safety features and Autopilot functionality. That same month, Germany’s Federal Motor Transport Authority ordered a recall of 12,300 Model X vehicles because of body molding faults.

In June 2021, Tesla recalled close to 6,000 vehicles due to loose brake caliper bolts that posed risks of tire pressure loss and potential accidents. On December 30, 2021, Tesla announced a recall exceeding 475,000 US vehicles: this included 356,309 Model 3s (2017–2020) affected by rear-view camera problems and 119,009 Model S cars (2014–2021) with trunk-related defects. This action was unrelated to the "Passenger Play" feature, which was subsequently disabled during driving following an NHTSA investigation.

In September 2022, Tesla recalled nearly 1.1 million US vehicles to upgrade software controlling automatic window reversal systems aimed at minimizing injury hazards; these updates were delivered over-the-air.

February 2023 saw a recall of approximately 360,000 vehicles equipped with Full Self-Driving (FSD) software after the NHTSA identified an "unreasonable risk" associated with city street operation. The following month in March 2023, about 3,500 Model Y units were recalled due to loose bolts found in second-row seating.

In December 2023, after a comprehensive two-year investigation by the NHTSA, Tesla recalled more than two million vehicles fitted with Autosteer technology (covering Model S from 2012–2023; Model X from 2016–2023; Model 3 from 2017–2023; and Model Y from 2020–2023). The agency concluded that Autosteer does not adequately guarantee continuous driver engagement. Affected owners will receive complimentary over-the-air software updates as corrective measures.

Fires

Tesla has been criticized for what some perceive as a delayed reaction to incidents involving vehicle fires. In 2013, a Model S ignited after striking metal debris on a highway in Kent, Washington. Tesla confirmed that the fire originated from the battery pack as a result of the impact. In response to this and similar occurrences, Tesla extended its warranty coverage to include fire-related damage. By March 2014, after Tesla improved the battery pack’s protective measures—replacing the initial 0.25-inch aluminum shield with a triple-layer shield for all Model S units manufactured post-March 6, 2014—the NHTSA concluded its investigation into Model S fires.

In October 2019, the NHTSA initiated a fresh inquiry into potential battery defects affecting Tesla Model S and X vehicles from 2012 to 2019 that might lead to "non-crash" fires. Reports suggested Tesla had been aware of a design flaw in the battery cooling system since 2012 but continued selling the vehicles regardless. This probe underscores ongoing regulatory and public scrutiny regarding Tesla’s battery safety standards and technological reliability, influencing both its regulatory standing and public perception.

Autopilot crashes

A fatal accident in 2016 involved a Tesla Model S operating in Autopilot mode, marking the first death linked to Tesla's semi-autonomous driving system. The NHTSA investigated but did not identify any pattern of safety defects. In March 2018, another fatal crash occurred when a Tesla Model X driver was using self-driving mode; the NTSB attributed this accident to confusion caused by a freeway exit combined with driver inattention.

By June 2021, the NHTSA had launched at least 30 investigations into crashes involving Tesla’s Autopilot system, including cases with fatalities. In September 2021, the agency demanded extensive data from Tesla on all US vehicles equipped with Autopilot to evaluate possible safety defects, especially collisions involving emergency response vehicles. Tesla addressed these concerns by deploying an over-the-air software update aimed at enhancing emergency light detection and reducing vehicle speed. However, the NHTSA questioned why this fix was not issued as an official recall. In June 2022, the investigation expanded to encompass approximately 830,000 vehicles across all Tesla models, advancing from Preliminary Evaluation to Engineering Analysis due to concerns about Autopilot’s influence on driver monitoring and associated safety risks.

In August 2022, safety tests conducted by the Dawn Project revealed that Tesla’s beta Full Self-Driving (FSD) system consistently failed to recognize child-sized mannequins, generating controversy and prompting independent evaluations by some Tesla owners. The NHTSA cautioned against using children in such testing scenarios.

In 2025, the California Department of Motor Vehicles filed a lawsuit against Tesla for allegedly providing misleading information about its vehicles’ self-driving capabilities. The DMV sought at least a 30-day suspension of Tesla’s sales and manufacturing activities within California.

Software hacking

In August 2015, security researchers gained control of a Tesla Model S through its entertainment system; this required physical access to the vehicle. Tesla responded swiftly by releasing a security patch the very next day.

In September 2016, Tencent’s Keen Security Lab demonstrated a remote hack on a Model S by exploiting its web browser via a malicious Wi-Fi hotspot, enabling control without physical proximity. Under its bug bounty program, Tesla addressed this vulnerability within ten days. Tencent also managed to hack Model X door systems in 2017.

In January 2018, attackers exploited Tesla’s Amazon Web Services account for cryptocurrency mining purposes. The company secured its infrastructure promptly, rewarded the responsible researchers, and confirmed that no customer data or vehicle security had been compromised. During a Pwn2Own event in 2019, ethical hackers who breached Model 3 security were awarded both a vehicle and $375,000 by Tesla.

In June 2022, researcher Martin Herfurt discovered that NFC key-start functionality allowed attackers to add new keys to vehicles without authorization, presenting significant security concerns.

Phantom braking

In February 2022, Tesla owners reported a notable increase in incidents of "phantom braking," which were associated with the removal of radar sensors from the Autopilot system in May 2021. This prompted the NHTSA to initiate an investigation during the same month. By August 2022, a consumer class action lawsuit claimed that the Autopilot feature contained a dangerous defect that caused abrupt and unintended braking. Tesla's attempt to dismiss the case was unsuccessful in November 2024, with the subsequent court hearing scheduled for January 7, 2025.

In May 2023, the German business publication Handelsblatt disclosed internal Tesla documents indicating more than 1,000 accident reports related to phantom braking and unexpected acceleration. Following this revelation, Dutch authorities commenced an inquiry into possible data privacy breaches connected to the release of this information.

A German court declared Tesla’s Autopilot system defective for everyday use in February 2025 due to ongoing phantom braking problems. Concurrently, Australian consumers initiated a class action lawsuit against Tesla addressing issues with battery range, driver assistance features, and phantom braking incidents.

Driving range performance

Tesla has encountered thousands of complaints concerning inconsistencies between the advertised driving ranges and actual vehicle performance. Due to overwhelmed service centers, Tesla established a specialized team tasked with canceling numerous service appointments, often citing remote diagnostics that detected no faults. Additionally, South Korean regulators imposed fines on Tesla for exaggerating range capabilities in their marketing.

Vehicle sales

In 2024, Tesla maintained its position as the leading global manufacturer of battery electric passenger cars, capturing a 17.6% share of the market. The company reported delivering 1.8 million vehicles in 2023, marking a 38% rise compared to 2022, and reached a milestone by producing its six millionth automobile in March 2024. Although BYD briefly overtook Tesla in Q4 2023, Tesla regained its status as the top electric vehicle seller during Q1 2024.

Tesla dominated U.S. sales with over 674,000 units sold in 2023 and generated $11.4 billion from regulatory credits provided by federal and state programs. Previously, the U.S. federal government offered buyers a $7,500 tax rebate. China stands as Tesla’s second-largest market, with sales surpassing 603,000 vehicles in 2023 and government incentives amounting to approximately $426 million for cars produced at its Shanghai factory.

Germany ranked third among Tesla’s key markets with sales totaling 63,682 units in 2023. After Germany discontinued its electric vehicle subsidy program at the end of December 2023, Tesla pledged to fully absorb the discount that had been partially funded by the government. Despite a cutback in EV subsidies for 2024, France recorded over 63,000 Tesla sales during 2023. Canada also featured among Tesla’s top five markets with more than 52,000 vehicles sold; however, early in 2025, Tesla came under scrutiny for selling an unusually large volume of vehicles just before Canadian EV rebate funds were exhausted, leading authorities to suspend rebates and impose restrictions linked to U.S. tariffs.

Elon Musk has openly criticized government subsidies but continues to accept them when accessible.

Tesla’s worldwide sales have suffered due to Elon Musk’s political activities during Donald Trump’s second presidency. Sales dropped significantly across European countries—including France, Germany, the United Kingdom, Sweden, Norway, and the Netherlands—attributed to Musk’s endorsement of far-right political groups such as Reform UK and Germany’s AfD party, as well as controversies like his Nazi salute incident. These developments sparked boycotts and derogatory nicknames for Tesla vehicles. In Germany alone, sales fell by 76% in February 2025 compared to the previous year.

Following nearly a 50% decline in sales across the European Union and United Kingdom in January 2025, Tesla’s stock price fell over 9%, causing its market capitalization to dip below $1 trillion for the first time since November 2024. Although electric vehicle sales grew overall within Europe, Tesla faced mounting challenges from Chinese manufacturers. By May 2025, monthly European sales had decreased continuously since January, including a sharp 49% reduction in April relative to April 2024—resulting in a diminished European market share of just 0.7%, down from 1.3% twelve months earlier.

Quarterly production and sales

Tesla's monthly delivery volumes vary due to regional influences such as the availability of car transporters and vehicle registration processes. On March 9, 2020, Tesla reached a significant milestone by manufacturing its one millionth electric vehicle, becoming the first automaker to achieve this feat. By the third quarter of 2021, Tesla had sold its two millionth electric car. In the first quarter of 2023, the Model Y overtook the Toyota Corolla to become the top-selling automobile worldwide.

Financial performance

In the fiscal year 2021, Tesla reported a net profit of $5.52 billion alongside revenues amounting to $53.8 billion, marking a 71% growth compared to the previous year. For 2024, automotive sales represented $87.6 billion (89.7%) of total revenue, while Energy Generation and Storage contributed $10.1 billion (10.3%). Regionally in 2024, Tesla's highest revenue came from the United States with $47.7 billion (48.9%), followed by China at $20.9 billion (21.4%), and other international markets totaling $29 billion (29.7%).

In 2021, Tesla generated $314 million from selling regulatory credits to other automakers; however, this income stream has diminished over time.

At the end of 2021, Tesla held cash reserves of $17.6 billion, reflecting a decrease of $1.8 billion from the prior year.

Tesla announced in February 2021 a $1.5 billion bitcoin investment and plans to accept cryptocurrency payments—a decision that sparked criticism due to environmental concerns but ultimately yielded profits exceeding those from vehicle sales in the preceding year.

By mid-2021, Tesla had achieved profitability without relying on bitcoin gains or regulatory credit sales.

Significant financial indicators (fiscal year-end):

Year	Revenue (US$ millions)	Net income (US$ millions)	Total assets (US$ millions)	Employees
2005	0	−12	8
2006	0	−30	44	70
2007	0	−78	34	268
2008	15	−83	52	252
2009	112	−56	130	514
2010	117	−154	386	899
2011	204	−254	713	1,417
2012	413	−396	1,114	2,914
2013	2,013	−74	2,417	5,859
2014	3,198
5,831	10,161

Chief executive officers

1. Martin Eberhard (2004–2007)
2. Ze'ev Drori (2007–2008)
3. Elon Musk (from October 2008 onward)

Board chairs

1. Elon Musk (2004–2018)
2. Robyn Denholm (appointed November 2018 and currently serving)

Board composition

Tesla's board has drawn criticism for insufficient independent representation. In April 2017, prominent shareholders including the California State Teachers' Retirement System called for the appointment of two independent directors unaffiliated with CEO Elon Musk to address potential conflicts of interest among existing members. At that time, five out of six non-executive directors maintained professional or personal associations with Musk—this group included Brad Buss (former CFO at SolarCity), venture capitalist Steve Jurvetson, Musk's brother Kimbal Musk, and investors Ira Ehrenpreis and Antonio Gracias. The shareholders advocated for greater independence on the board to reduce risks associated with groupthink. Initially dismissive of these concerns, Musk later consented to adding two independent directors; Kathleen Wilson-Thompson and Larry Ellison joined in late 2018. Ellison resigned in August 2022. Former CTO J. B. Straubel, who departed Tesla in 2019, was elected to the board in early 2023.

Another point of contention is that most independent directors lack direct experience in the automotive sector aside from Robyn Denholm, who previously held financial leadership roles at Toyota Australia. Past board members have included businessman Steve Westly, Daimler executive Herbert Kohler, CEO Linda Johnson Rice, and UN Special Envoy Hiromichi Mizuno.

As of , Tesla's board comprises:

Year Joined	Name	Position(s)	Independent Director?
2014	Robyn Denholm	Chair since November 2018; former CFO and Head of Strategy at Telstra	Yes
2004	Elon Musk	CEO and product architect; also founder and CEO of SpaceX	No
2004	Kimbal Musk	Board member at SpaceX	No
2007	Ira Ehrenpreis	General Partner at Technology Partners	'Disputed' status
2017	James Murdoch	Former CEO of 21st Century Fox	Yes
2018	Kathleen Wilson-Thompson	Global head of Human Resources at Walgreens Boots Alliance	Yes
2022	Joe Gebbia	Co-founder and advisor at Airbnb	Yes
2023	'J. B. Straubel'	'Founder and CEO of Redwood Materials; former Tesla CTO'	'Disputed' status

Ownership structure

As of March 2024, the leading shareholders of Tesla comprised its founder and CEO, Elon Musk, who possessed a 12.9% stake. Prominent institutional investors included The Vanguard Group with 7.2%, BlackRock holding 4.5%, and State Street Corporation owning 3.4%. Additional significant stakeholders were Geode Capital Management at 1.7%, Capital Research & Management with 1.3%, BlackRock Life at 1.2%, Eaton Vance and Norges Bank each holding 1.0%, and Fidelity Investments at 0.9%. The balance of 64.9% was distributed among a wide array of other investors.

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 States

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. .