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Tesla, Inc., based in Palo Alto, California, is an American electric car and clean energy company. Tesla creates electric vehicles, battery energy storage from the house to the grid, solar panels and solar roof tiles, and other goods and services. Tesla sold the most battery electric and plug-in electric vehicles in 2020, accounting for 16 percent of the plug-in market (which includes plug-in hybrids) and 23 percent of the battery-electric (purely electric) market.

The company designs and operates solar systems in the United States through its subsidiary Tesla Energy. With 3 gigawatt-hours (GWh) deployed in 2020, Tesla Energy is also one of the leading global battery energy storage systems suppliers.

Tesla Motors was founded in July 2003 by Martin Eberhard and Marc Tarpenning as a homage to inventor and electrical engineer Nikola Tesla. Elon Musk, co-founder of X.com, became the company’s largest stakeholder and chairman in February 2004 after investing US$6.5 million.

Since 2008, he has been the company’s CEO. Tesla’s mission, according to Musk, is to assist accelerate the transition to sustainable transportation and energy, which will be achieved through electric vehicles and solar power. The Roadster, Tesla’s first vehicle model, was introduced in 2009. The Tesla Model S sedan launched in 2012, the Tesla Model X SUV arrived in 2015, the Tesla Model 3 sedan came in 2017, and the Tesla Model Y crossover premiered in 2020.

The Tesla Model 3 is the best-selling plug-in electric car of all time, and it was the first electric car to sell one million units globally in June 2021. Tesla sold 499,550 vehicles worldwide in 2020, an increase of 35.8% over the previous year.

Tesla has been involved in several lawsuits and disputes stemming from CEO Elon Musk’s words and actions, as well as claims of creative accounting, whistleblower retaliation, labor rights violations, and unsolved and hazardous technical faults with their vehicles. The National Highway Traffic Safety Administration (NHTSA) required Tesla to provide statistics on all marketed Autopilot vehicles in the United States in September 2021.

Musk was involved in the firm and oversaw Roadster product design at a high level, but he was not involved in the day-to-day operations. Musk has stated from the start that Tesla’s long-term objective is to build cheap mass market electric automobiles. The company planned to start with a high-end sports car geared for early adopters, then expand into more popular cars like sedans and inexpensive compacts.

Musk led Tesla’s $13 million Series B venture capital investment round in February 2006, including Valor Equity Partners. In May 2006, Musk co-led the third $40 million round, which included investors such as Google co-founders Sergey Brin and Larry Page and former eBay President Jeff Skoll. In May 2007, a fourth round of $45 million was added, bringing the total private finance investment to more than $105 million.

On July 19, 2006, in Santa Monica, California, prototypes of Tesla’s first vehicle, the Roadster, were unveiled to the public during a 350-person invitation-only event held at Barker Hangar at Santa Monica Airport.

Led by Elon Musk, the executive board urged Eberhard to stand down as CEO in August 2007. After that, Eberhard was promoted to “President of Technology” before retiring in January 2008. Marc Tarpenning, a co-founder and the business’s Vice President of Electrical Engineering, departed the company in January 2008. Michael Marks was appointed temporary CEO in August 2007, and Ze’ev Drori was named CEO and President in December 2007. In October 2008, Musk took over as CEO from Drori. Eberhard filed a lawsuit against Musk in June 2009, alleging that he was forced out.

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