Photo by Larry D. Moore (CC BY 4.0)
Tesla
The electric-vehicle maker that bent the auto industry. Roadster to Cybertruck, Powerwall to Optimus.
Photos
Before Tesla, electric cars meant golf carts. In 2003 two engineers in Silicon Valley decided to prove otherwise. Elon Musk bet his PayPal fortune that lithium-ion cells could power a sports car faster than a Ferrari — and that sex appeal, not subsidy, would drag the auto industry into the electric age. Two decades, five stock splits, and ten million vehicles later, every major automaker is scrambling to catch up. Tesla did not merely survive; it reshaped the gravitational field of global manufacturing, energy storage, and autonomous driving simultaneously.
Founding Story
Tesla Motors was incorporated on July 1, 2003 by Martin Eberhard and Marc Tarpenning in Delaware, with a single thesis: that electric motors are inherently superior to internal combustion engines — quieter, simpler, more efficient — and that the only thing holding back mass adoption was that no one had built an electric car worth wanting.
Elon Musk arrived seven months later. At a Silicon Valley meeting in early 2004, Eberhard pitched a Series A to a room that included Musk. He wrote the $6.5 million check that kept the company alive, took the chairman's seat, and began redesigning the car. His first directive: the battery pack had to use 18650 lithium-ion cells — the same chemistry in laptop computers — not purpose-built automotive cells, because the manufacturing base already existed.
The original Roadster, built on a modified Lotus Elise chassis, delivered its first units in February 2008. Seven months later Tesla was nearly dead. The 2008 financial crisis drained the company's runway to weeks. Musk's personal finances were nearly wiped out simultaneously — he had also funded SpaceX to the edge of bankruptcy. He split his last $40 million between the two companies, took the CEO role from Ze'ev Drori, and negotiated an emergency $40 million funding round on Christmas Eve 2008, hours before the deadline.
The company that survived that near-death became one of the most valuable on Earth. The Model S (2012), Model X (2015), Model 3 (2017), Model Y (2020), and Cybertruck (2023) each defined a new chapter. Tesla's $17 IPO in June 2010 — the first American automaker to go public since Ford in 1956 — closed the proof-of-concept loop.
- Feb 2004Leads Tesla Series A with $6.5MInvests $6.5M in the Series A round of Tesla Motors, joining as chairman of the board. Martin Eberhard and Marc Tarpenning are the original co-founders.
- Jul 19, 2006Tesla Roadster unveiledTesla unveils the Roadster at a star-studded event in Santa Monica. The all-electric sports car demonstrates that EVs can be desirable and high-performance.
- Feb 2008Tesla Roadster deliveries beginFirst production EV with lithium-ion battery cells begins customer deliveries. About 2,450 Roadsters are produced in total before the model ends in 2012.
- Oct 2008Becomes Tesla CEO during cash crisisTakes over as CEO as Tesla faces bankruptcy during the 2008 financial crisis. Simultaneously managing SpaceX's own near-collapse. Tesla has roughly 2 weeks of cash remaining.
- Dec 2008SpaceX 2008 cash crisisBy year-end 2008, SpaceX is near insolvency simultaneously with Tesla's crisis. Musk splits his last $40M between the two companies. Both are saved by a combination of the NASA con…
- Jun 2009Tesla wins $465M DOE loanThe US Department of Energy grants Tesla a $465M low-interest loan under the Advanced Technology Vehicles Manufacturing program — providing critical bridge capital for Model S deve…
- Jun 29, 2010Tesla IPO at $17/shareTesla raises $226M in its IPO at $17 per share — the first American automaker to go public since Ford in 1956. Shares close at $23.89 on the first day.
- Mar 2012Becomes a billionaire for the first timeAs Tesla's stock climbs following the Model S development milestone payments and SpaceX's Dragon ISS mission, Musk's combined stake valuation crosses $1 billion for the first time.
- Jun 22, 2012Model S deliveries beginThe Model S begins customer deliveries at a Fremont factory event. Goes on to win Motor Trend Car of the Year 2013 with a perfect 100-point score — unprecedented.
- Mar 31, 2016Model 3 revealed with 400,000 pre-ordersTesla unveils the mass-market Model 3, targeting a $35,000 base price. Over 400,000 people place $1,000 deposits within the first week — unprecedented in automotive history.
- Jul 20, 2016Master Plan Part Deux publishedMusk publishes the second Tesla Master Plan, expanding the vision to include solar energy, stationary storage, autonomous ride-sharing, and heavy-duty electric trucks.
- Jul 29, 2016Gigafactory Nevada opensTesla's battery manufacturing Gigafactory in Sparks, Nevada holds its grand opening, aiming to produce more lithium-ion batteries annually than the entire world's output at the tim…
- Nov 21, 2016Tesla acquires SolarCity for $2.6BTesla closes the all-stock acquisition of SolarCity, folding it into what becomes Tesla Energy. Critics call it a bailout of a company where Musk's cousins are executives and Musk …
- Jul 28, 2017Model 3 deliveries beginFirst 30 Model 3 cars delivered at a Fremont ceremony. The $35,000 mass-market sedan triggers 'production hell' — Tesla struggles to hit 5,000 units per week through 2018.
- Feb 6, 2018Falcon Heavy first flight — Roadster to spaceFalcon Heavy successfully completes its maiden flight, launching Elon's personal Tesla Roadster (with 'Starman' mannequin) into heliocentric orbit. Two side boosters land simultane…
- Jun 2018Model 3 production hell peakTesla's attempt to ramp Model 3 production to 5,000/week reveals deep manufacturing flaws, including an over-automated assembly line. Musk famously sleeps on the factory floor and …
- Aug 7, 2018"Funding secured" tweet causes SEC lawsuitTweets 'Am considering taking Tesla private at $420. Funding secured.' The SEC sues Musk for securities fraud. Settlement: $40M total ($20M each from Musk and Tesla), Musk steps do…
- Aug 7, 2018SEC charges related to '420 funding secured' tweetThe SEC charges Musk with securities fraud over the August 7 tweet claiming funding was secured for a Tesla buyout at $420/share. The charge is resolved with a $40M settlement and …
- Sep 29, 2018Musk and Tesla settle with SECElon Musk settles securities fraud charges with the SEC for $20M personally and Tesla for $20M. Musk must resign as Tesla chairman for at least 3 years but retains the CEO role.
- Jan 7, 2019Shanghai Gigafactory groundbreakingTesla breaks ground on Gigafactory Shanghai — the company's first factory outside the US, built in a record 357 days. It becomes Tesla's primary export hub.
- Nov 21, 2019Cybertruck unveiled — windows shatterTesla unveils the stainless-steel Cybertruck at a Los Angeles event. When designer Franz von Holzhausen throws a metal ball at the 'armored' windows, they shatter. Musk says 'We'll…
- Jan 2020Tesla crosses $100B market capTesla's market capitalization exceeds $100 billion, making it the most valuable US automaker in history and triggering a $1.8B CEO compensation tranche for Musk.
- Mar 13, 2020Model Y deliveries beginTesla's compact SUV begins deliveries. The Model Y becomes the company's highest-volume vehicle and eventually the world's best-selling car in 2023.
- Dec 21, 2020Tesla joins the S&P 500Tesla is added to the S&P 500, representing the largest single addition in the index's history at the time (~$650B market cap). Passive funds are forced to buy $51B of Tesla stock …
- Aug 19, 2021Tesla AI Day 2021 — Optimus Bot revealedTesla holds its first AI Day, revealing the Dojo supercomputer training system and announcing 'Tesla Bot' — a humanoid robot using Tesla AI stack. An actor in a suit performs a dan…
- Oct 25, 2021Tesla joins $1 trillion market cap clubTesla's share price hits $1,000 after the Hertz rental car company places a 100,000-vehicle order, briefly pushing Tesla's market cap above $1 trillion — joining Apple, Microsoft, …
- Nov 4, 2021Tesla stock reaches all-time high of $409.97 (split-adjusted)Tesla shares hit their record high, pushing Musk's net worth to approximately $320 billion — the highest individual net worth in recorded history at that time.
- Mar 22, 2022Gigafactory Berlin opensTesla opens Gigafactory Berlin-Brandenburg (Giga Berlin) in Grünheide, Germany, becoming Tesla's first European manufacturing facility. Musk attends in person, handing over the fir…
- Jun 2022NHTSA opens formal investigation into Tesla AutopilotThe National Highway Traffic Safety Administration opens a formal investigation into Tesla Autopilot after crashes into stationary emergency vehicles. The investigation covers appr…
- Sep 30, 2022Tesla AI Day 2022 — Optimus prototype walksTesla's second AI Day features the first walking prototype of the Optimus humanoid robot. Musk claims Optimus will be produced in the millions and could sell for under $20,000.
- Mar 1, 2023Master Plan Part 3 published at Investor DayAt Tesla's 2023 Investor Day in Austin, Musk presents the third Master Plan: a pathway to a fully sustainable global energy economy requiring approximately $10T of investment.
- Nov 30, 2023Cybertruck deliveries beginFirst 10 Cybertruck deliveries at the Gigafactory Texas event. The stainless-steel exoskeleton pickup arrives four years after its reveal, with base prices higher than originally a…
- Jan 30, 2024Delaware court voids Musk's $56B Tesla pay packageDelaware Court of Chancery Chancellor Kathaleen McCormick voids the 2018 CEO compensation plan, finding it was awarded through a flawed process with conflicts of interest on the co…
- Mar 2024FSD v12 released — end-to-end neural networkTesla releases Full Self-Driving version 12, which eliminates explicit C++ rules in favor of an end-to-end neural network trained on video. Musk calls it a fundamental leap in the …
- Jun 13, 2024Shareholders re-ratify $56B pay packageTesla shareholders vote to reinstate the 2018 CEO compensation plan and reincorporate in Texas from Delaware, in a direct rebuke to the Delaware court ruling.
- Oct 10, 2024Tesla 'We, Robot' eventTesla's autonomous robotaxi event at Warner Bros. lot in Hollywood features Cybercab and Robovan unveils, with Optimus robots serving drinks. Musk announces full self-driving witho…
Overview
Tesla was founded in July 2003 by Martin Eberhard and Marc Tarpenning as Tesla Motors. Elon Musk joined as the lead Series A investor in February 2004 with a $6.5M check, becoming chairman of the board. He took over as CEO in October 2008 after the company nearly collapsed during the 2008 financial crisis. Tesla shipped the original Roadster in 2008, the Model S in 2012, the Model X in 2015, the Model 3 in 2017, and the Model Y in 2020. The Cybertruck began deliveries in late 2023. Tesla's IPO in June 2010 priced at $17 per share; the stock has split twice (5-for-1 in 2020, 3-for-1 in 2022). Tesla acquired SolarCity in November 2016 for ~$2.6B in an all-stock deal. The company has expanded beyond cars into stationary energy storage (Powerwall, Megapack), solar (Solar Roof), and humanoid robotics (Optimus, unveiled 2021).
Elon's Role
Has personally led design of every flagship vehicle since Roadster.
Settled lawsuit gave Musk co-founder status alongside Eberhard, Tarpenning, JB Straubel, and Ian Wright.
Co-founders
Products & Vehicles
The car that proved EVs could be desirable. ~2,450 made (2008–2012).
The luxury sedan that legitimized Tesla. Plaid trim runs the quarter-mile in 9.2s.
The mass-market sedan. 'Production hell' on the way out — now Tesla's bestseller globally.
Falcon-wing-door SUV. Engineering ambition delayed it years; Plaid does 0-60 in 2.5s.
Compact crossover on the Model 3 platform. The world's bestselling car (overall) in 2023.
Stainless-steel exoskeleton pickup. The unveil window-smash became a cultural moment.
Class-8 electric tractor. 500 mi range, 0-60 in 20s loaded. Pepsi was first customer.
Humanoid robot for general-purpose work. Gen-2 prototype walking and folding laundry by 2024.
Key Milestones
- Jul 1, 2003founding
Tesla Motors founded
Eberhard and Tarpenning incorporate the company in Delaware.
- Feb 2004funding
Musk leads $6.5M Series A
Joins as chairman with a $6.5M check; the funding round totals $7.5M.
- Feb 2008delivery
Roadster deliveries begin
First production EV with lithium-ion cells. Range: 244 mi.
- Oct 2008leadership
Musk becomes CEO
Takes over from Ze'ev Drori during the 2008 cash crisis.
- Jun 29, 2010ipo
IPO at $17/share
First American automaker IPO since Ford in 1956. Raised $226M.
- Jun 22, 2012delivery
Model S deliveries begin
Tesla's flagship sedan; Motor Trend Car of the Year 2013.
- Sep 29, 2015delivery
Model X deliveries begin
Falcon-wing-door SUV; long delays attributed to engineering ambition.
- Nov 2016acquisition
Acquires SolarCity for $2.6B
Controversial all-stock deal; Musk later wins shareholder lawsuit defending it.
- Jul 28, 2017delivery
Model 3 deliveries begin
$35K mass-market sedan. 'Production hell' through 2018.
- Aug 7, 2018tweet
"Funding secured" tweet
Musk tweets about taking Tesla private at $420; SEC lawsuit follows.
- Apr 22, 2019product
Autonomy Day robotaxi pledge
Musk promises 1M robotaxis on the road by end of 2020. Did not happen.
- Mar 13, 2020delivery
Model Y deliveries begin
Compact SUV on Model 3 platform. Becomes Tesla's volume seller.
- Dec 21, 2020ipo
S&P 500 inclusion
Largest single-day add ever (~$650B market cap).
- Apr 7, 2022leadership
Austin HQ opens
Gigafactory Texas inaugurated; HQ relocates from Palo Alto.
- Nov 30, 2023delivery
Cybertruck deliveries begin
Stainless-steel exoskeleton pickup; first 10 trucks delivered at Austin event.
- Jan 30, 2024lawsuit
Delaware court voids $56B pay package
Chancellor McCormick rescinds the 2018 CEO compensation plan.
- Jun 13, 2024lawsuit
Pay package reinstated by shareholder vote
Tesla shareholders re-ratify 2018 plan and approve Texas reincorporation.
Notable Tweets
“I am become meme, Destroyer of shorts.”
Tesla shorts had been crushed throughout 2020-2021 as TSLA went vertical. The line riffs on Oppenheimer's 'I am become Death.'
“I am become meme, Destroyer of shorts.”
Tesla short-sellers had been crushed through 2020-21 as TSLA went vertical. Riffs on Oppenheimer's 'I am become Death.'
“I will sell Tesla stock if I have to pay taxes on it. Just wanted to put that out there.”
Posted during Congressional debate over a billionaire unrealized-gains tax. After a Twitter poll went 57.9% in favor of selling, Musk sold ~…
Predictions
We should have full self-driving capability in approximately five to six years.
Full self-driving remained supervised beta by 2020. No level 4/5 autonomy achieved.
I think we'll be able to do full autonomy — meaning the car can go anywhere without any driver intervention — in about two years.
FSD remained in beta/supervised mode well past 2019.
A million robotaxis on the road by end of 2020.
Full Self-Driving (Supervised) remained in beta in 2020. No robotaxi fleet was deployed.
Famous Quotes
“Build sports car. Use that money to build an affordable car. Use that money to build an even more affordable car. While doing above, also provide zero emission electric power generation options.”
— Tesla Master Plan (Part 1), Aug 2006
“The point of all this was, and remains, accelerating the advent of sustainable energy, so that we can imagine far into the future and life is still good. That's what 'sustainable' means. It's not some silly short-term thing.”
— Tesla Master Plan Part Deux, Jul 2016
“Prototypes are easy. Production is hard.”
— tweet, Jul 2018
Controversies & Disputes
"Funding secured" — SEC lawsuit and settlement
lawsuit2018On August 7, 2018, Musk tweeted "Am considering taking Tesla private at $420. Funding secured." The tweet briefly spiked TSLA stock before regulators intervened. The SEC sued Musk and Tesla for securities fraud, alleging the tweet was false and misleading — no firm funding had been secured. The tweet is widely believed to have been partly a marijuana joke ($420) directed at a short-seller.
Tesla Autopilot fatalities — NHTSA investigations
regulatory2018A series of fatal accidents involving Tesla vehicles operating in Autopilot or Full Self-Driving mode prompted NHTSA to open multiple special crash investigations beginning in 2018. By 2022 NHTSA had opened a formal defect investigation covering ~830,000 Tesla vehicles. The agency questioned whether Autopilot's driver-monitoring system was sufficient to prevent driver inattention.
SolarCity acquisition shareholder lawsuit
lawsuit2022Tesla shareholders sued Musk and the Tesla board in Delaware Chancery Court, alleging that the $2.6B acquisition of SolarCity in 2016 was a bailout of a failing Musk-family company (Musk, his brother Kimbal, and his cousins the Rive brothers all had stakes) at Tesla shareholder expense. The plaintiffs argued Tesla overpaid for a company facing existential cash problems.
