Tesla, Inc.

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Tesla, Inc.
Traded as
Founded July 1, 2003; 15 years ago (2003-07-01) (as Tesla Motors)
Delaware, U.S.
Headquarters Palo Alto, California, U.S.
Area served
Key people
Revenue Increase US$7.00B [4] (2016)
Increase US$-667.3M [4] (2016)
Increase US$-674.9M [4] (2016)
Total assets Increase US$22.66B[4] (2016)
Total equity Increase US$4.75B [4] (2016)
Owner Elon Musk (20.5%)[5]
Number of employees
33,000 [6] (2017)
Website tesla.com
Footnotes / references
  1. 1.0 1.1 1.2 The company was initially founded in 2003 by Martin Eberhard and Marc Tarpenning, although the company also considers Elon Musk, JB Straubel, and Ian Wright amongst its co-founders.[1]

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Tesla, Inc. (formerly named Tesla Motors) is an American automaker, energy storage company, and solar panel manufacturer based in Palo Alto, California.[7] Founded in 2003, the company specializes in electric cars, lithium-ion battery energy storage, and, through their SolarCity subsidiary, residential solar panels.[8][9][10][11]

Tesla first gained widespread attention following production of the Roadster, the first electric sports car, in February 2008.[12] The company's second vehicle, the Model S, an electric luxury sedan, debuted in June 2012 and is built at the Tesla Factory in California. The Model S has been the world's best-selling plug-in electric car for two years in a row, 2015 and 2016.[13][14] Its global sales achieved the 150,000 unit milestone in November 2016, four years and five months after its introduction.[15] As of December 2016, the Model S ranks as the world's all-time second best-selling plug-in after the Nissan Leaf.[16] The Model S was then followed in September 2015 by the Model X, a crossover SUV. Tesla's fourth vehicle that is designed for the mass-market is the Model 3,[17] which was unveiled in March 2016 and its production started in July 2017 with a base price of US$35,000, before any government incentives.[18][19][20]

Tesla global sales passed the 200,000 unit milestone in March 2017,[21] making the carmaker the second largest global pure electric car manufacturer after the Renault–Nissan Alliance.[22][23] For two years running, 2015 and 2016, Tesla ranked as the world's second best selling manufacturer of plug-in electric cars after BYD Auto.[13][24][25] Musk, the CEO, has said that he envisions Tesla as a technology company and independent automaker,[26] aimed at eventually offering electric cars at prices affordable to the average consumer.[27][28]

Tesla has a network of high-powered Superchargers located across North America, Europe and Asia for Tesla vehicles.[29] The company also operates a Destination Charging program, under which shops, restaurants and other venues are offered fast chargers for their customers.[30] Although Tesla operates a number of production and assembly plants, the company's most iconic facility is the Gigafactory 1 near Reno, Nevada, where Panasonic builds 21-70 cells for Tesla batteries. Tesla also manufactures the Tesla Powerwall, Powerpack batteries, solar panels (in varying form factors) and solar roof tiles for home and industry applications.


Tesla's financial performance

Tesla is named after a Serbian electrical engineer and physicist, Nikola Tesla.[31][32][33] The Tesla Roadster uses an AC motor descended directly from Nikola Tesla's original 1882 design.[34] The Roadster, the company's first vehicle, was the first production automobile to use lithium-ion battery cells and the first production EV with a range greater than 200 mi (320 km) per charge.[35] Between 2008 and March 2012, Tesla sold more than 2,250 Roadsters in 31 countries.[36][37][38] Tesla stopped taking orders for the Roadster in the U.S. market in August 2011.[39] In December 2012, Tesla employed almost 3,000 full-time employees.[40][41] By December 31, 2015, this number had grown to 13,058 employees,[42] and to over 30,000 (of which 25,000 in US) after acquiring Grohmann and SolarCity in late 2016.[43]

Tesla unveiled the Tesla Model S all-electric sedan on March 26, 2009,[44] and began deliveries in June 2012.[45] Tesla unveiled the Model X crossover SUV on February 9, 2012 and first deliveries began in September 2015.[46] Global sales of the Model S passed the 100,000 unit milestone in December 2015, three years and a half after its introduction.[47] The Model 3, the company's first model aimed for the mass market, was unveiled in March 2016. A week after the unveiling, global reservations totaled 325,000 units, representing potential sales of over US$14 billion.[18][48]

Global sales of the Model S achieved the 150,000 unit milestone in November 2016, just eleven months after passing the 100,000 unit mark, and just five more months than it took the Nissan Leaf to achieve the same milestone.[15] As of November 2016, the Model S ranks as the world's second-best-selling plug-in electric car in history after the Nissan Leaf (about 240,000 through September 2016), and ahead of the Volt/Ampera family of plug-in hybrids (over 130,000 through November 2016).[15]

In 2016, Tesla topped Consumer Reports' Annual Owner Satisfaction Survey at 91%.[49] In February 2017 Consumer Reports named Tesla as the top American car brand and ranked it 8th among global carmakers.[50]


Further information: Timeline of Tesla Inc.
Main article: History of Tesla Inc.

The company was initially founded in 2003 by Martin Eberhard and Marc Tarpenning, although the company also considers Elon Musk, JB Straubel, and Ian Wright as its co-founders.[1]

The beginnings: Roadster and private funding

The insignia of Tesla as seen on a Tesla Roadster Sport

The company was incorporated as Tesla Motors in July 2003 by Martin Eberhard and Marc Tarpenning who financed the company until the Series A round of funding.[7] The founders were influenced to start the company after GM recalled and destroyed all of its EV1 electric cars in 2003.[51]

Musk led the Series A round of investment in February 2004, joining Tesla's board of directors as its chairman as well as in operational roles, but Eberhard remained as CEO. Musk was the controlling investor in Tesla from the first financing round, funding the large majority of the Series A capital investment round of US$7.5 million with personal funds. Tesla's early primary goal was to commercialize electric vehicles, starting with a premium sports car aimed at early adopters and then moving as rapidly as possible into more mainstream vehicles, including sedans and affordable compacts for the mass market,[52][53] serving "as a catalyst to accelerate the day of electric vehicles".[54]

Tesla signed a production contract on July 11, 2005, with Group Lotus to produce "gliders" (complete cars minus powertrain).[55] The contract ran through March 2011, but the two automakers extended the deal to keep the electric Roadster in production through December 2011 with a minimum number of 2,400 units.[56]

Musk led Tesla's Series B US$13 million investment round. Musk co-led the third, US$40 million round in May 2006. Tesla's third round included investment from prominent entrepreneurs including Google co-founders Sergey Brin and Larry Page.[57] The fourth round in May 2007 added another US$45 million and brought the total investments to over US$105 million through private financing.

In late 2007, Tesla brought on Michael Marks,[58] and later Ze'ev Drori, to replace Eberhard as CEO.[59] Drori was able to temporarily return the company to profitability, reducing the company's workforce by about 10% to lower its burn rate.[60] In May 2008, The Truth About Cars launched a "Tesla Death Watch", as Tesla needed another round of financing to survive. In October 2008, Musk became CEO and laid off an additional 25% of Tesla's workforce.[59] Drori became vice-chairman, but then left the company in December. In December a fifth round added another US$40 million, avoiding bankruptcy.[61][62]

By January 2009, Tesla had raised US$187 million and delivered 147 cars. Musk had contributed US$70 million of his own money to the company.[60][63] Elon Musk owns a 20.8% stake in the company as of March 2017.[64] The prototype Model S was displayed at a press conference on March 26, 2009.[65] On May 19, 2009, Germany's Daimler AG, maker of Mercedes-Benz, acquired an equity stake of less than 10% of Tesla for a reported US$50 million,[66][67] in effect saving Tesla.[68] Toyota provided a similar amount in 2010.[67]

The Tesla obelisk is used to identify the Supercharger network sites in California.

In June 2009 Tesla was approved to receive US$465 million in low-interest-bearing loans from the 2007 US$8 billion Advanced Technology Vehicles Manufacturing Loan Program by the United States Department of Energy,[69] while Ford got $5.9 billion, and Nissan got $1.6 billion.[67] The funding came in 2010, and supported engineering and production of the Model S sedan, as well as the development of commercial powertrain technology.[69] Tesla repaid the loan early and with $12 million in interest in May 2013, and was the first of the automakers to repay.[70]

IPO and Model S

On June 29, 2010, Tesla launched its initial public offering (IPO) on NASDAQ. 13,300,000 shares of common stock were issued to the public at a price of US$17.00 per share.[71] The IPO raised US$226 million for the company.[72] It was the first American car maker to go public since the Ford Motor Company had its IPO in 1956.[73] By 2014, Tesla had market value half that of Ford after[74] the Model S deliveries began in June 2012[45] as the second step on its way to a mass market car.[75]

As of 2014, Tesla had a US Corporate Average Fuel Economy (CAFE) of 276 mpg.[76]

Tesla makes its cars at the Tesla Factory in California. As a result of the high demand for Model 3, in May 2016 Tesla announced its decision to advance its 500,000 annual unit build plan (combined for Model S, Model X, and Model 3) to 2018, two years earlier than previously planned, in order to accelerate its target for Model 3 output.[77][78] This in turn can allow more Model 3 buyers to benefit from the $7,500 US tax credit before the limit of 200,000 electric vehicles per maker since 2010 reduces the credit.[79][80][81]

US authorities encourage production of non-polluting vehicles (electric or other) by legislating incentives for manufacturers, usually tax credits and ZEV credits from other manufacturers,[82] and local authorities also try to attract new business with tax abatements.[83] In 2016, a financial watchdog group projected US$2.4 billion in future incentives for Tesla, mostly Nevada tax credits (for Gigafactory 1) through the year 2034.[84][85]

Tesla has financed operations (production, development, administration, etc.) partly by sales income, stock offering and bond sales. In May 2013 Tesla raised $1.02 billion ($660m from bonds) partially to repay the DOE loans after their first profitable quarter,[86][87] in February 2014 $2 billion from bonds (building GigaFactory),[87] in August 2015 $738 million in stock (for the Model X),[88] and in May 2016 $1.46 billion in stock ($1.26 billion for the Model 3).[89] Tesla has raised over $4.5 billion since the IPO in 2010.[90] As of January 29, 2016, Musk owned about 28.9 million Tesla shares, which equates to about 22% of the company.[91][92] Tesla stated in 2016 that its automotive branch had a gross margin of 23.1% as of 2Q2016, and has generally been above 20%.[93] However, expenditures[94][95] for expanding future production (such as Gigafactory 1[96] and Model 3[97]) are bigger than product profit, resulting in a net loss.[98]

Tesla acquisition of Grohmann Engineering, a company focused on highly automated methods of manufacturing, was completed in January 2017. This acquisition launches Tesla Advanced Automation Germany, which will help Tesla innovate manufacturing processes to be used initially in Model 3 production.[99]

On February 1, 2017 the company changed its name from Tesla Motors to Tesla.[100][101]

In late March 2017, Tesla Inc. announced that Tencent Holdings Ltd., at the time China's "most valuable company," had purchased a 5% stake in Tesla for $1.8 billion.[102]

In 2017, Tesla briefly surpassed Ford Motor Company and General Motors in market capitalization for a couple of months, making it the most valuable American automaker.[103][104] In June 2017, Tesla appeared for the first time in the Fortune 500 list.[103]

Production and sales

Quarter Total
Model S
Model 3
Model X
sales[lower-alpha 1]
In transit[lower-alpha 2] Source
Q1 2015 11,160 10,045 10,045 [105]
Q2 2015 12,807 11,532 11,532 [106]
Q3 2015 13,091 11,597 6 11,603 [107]
Q4 2015 14,037 17,272 206 17,478 [108]
Q1 2016 15,510 12,420 2,400 14,820 2,615 [78]
Q2 2016 18,345 9,764 4,638 14,402 5,150 [109][110]
Q3 2016 25,185 16,047 8,774 24,821 5,065 [111]
Q4 2016[lower-alpha 3] 24,882 12,700 9,500 22,254 6,450 [23][99]
Q1 2017 25,418 ~13,450 ~11,550 25,051 ~4,650 [112]
Q2 2017 25,708 ~12,000 ~10,000 22,026 ~3,500 [113][114]
Q3 2017
  1. Sales are only counted as sold when delivered to end customer and all paperwork is correct
  2. Goods in transit are produced but not counted as sold until delivered
  3. Sales by model do not add up to total, these are preliminary figures reported Tesla. Only total sales is final figure reported by Tesla, as breakdown by model was not provided in its Fourth Quarter & Full Year 2016 Update report.

Tesla deliveries vary significantly between months due to regional issues such as ship availability, registration and so on. Tesla does not follow the auto industry standard of monthly reporting.[115] Some monthly sales are estimated by media.[116] In 2016, Tesla was ranked as the 10th most valuable car brand in the world.[117]

Model 3 rollout

File:First flotilla of Model 3 cars.jpg
Tesla Model 3 first deliveries event took place on 28 July 2017.

In the week preceding the debut on July 7, 2017, of the Model 3 sedan, Tesla's stock-market value declined by more than $12 billion from a previous value of $63 billion. The loss was a result of a combination of factors that disappointed investors. Demand for Tesla’s luxurious existing models, Model S and Model X, flatlined in the second quarter.[118] Brian Johnson of Barclays said that customer deposits for the Model S and Model X fell by $50 million, potentially indicating that Tesla's introduction of the Model 3 could be having an adverse effect on sales of existing models in its lineup. Tesla has called this issue a misconception and expects demand for the existing models to reach 100,000 per year, a figure that still fell short of some analysts' expectations.[119]

Just before the release of the Model 3 on July 28, 2017, investors expressed concern about Tesla's plans for execution and competitive risk, especially as Volvo announced its commitment to eliminate solely gasoline-powered vehicles in its lineup by 2019.[118] Brian Johnson said that as traditional manufacturers begin to offer more electric options of their own, "Tesla will face intense competition by the next decade."[120]

David Whiston, an analyst at Morningstar, attributed additional issues to Tesla's problems leading up to the Model 3 release. He said a revised, slower timetable for the introduction of the Model 3 and a company acknowledgement of problems with building battery packs for its cars caused investor strife. In 2016, Elon Musk predicted 100,000 Model 3 units would be sold in 2017, but due to delayed production, production may reach only 20,000 by December 2017. Axel Schmidt, a managing director at Accenture, a consulting firm, said that Tesla’s problems with its giant battery plant in Nevada prove that increasing Model 3 production "remains a huge challenge."[120]

Corporate strategy

Tesla's strategy has been to emulate typical technological-product life cycles and initially enter the automotive market with an expensive, high-end product targeted at affluent buyers. As the company, its products, and consumer acceptance matured, it would move into larger, more competitive markets at lower price points.[52][121] The battery and electric drivetrain technology for each model would be developed and paid for through sales of the former models.[52][122] The Roadster was low-volume, priced at US$109,000. Model S and X are mid-price and mid-volume; Model S had a base price of US$57,400. Model 3 is aimed at high-volume with a base price of US$35,000.[53][123] This business strategy is very popular in the technology industry such as for cellular phones, laptop computers, and flat-screen televisions.[124] According to a blog post by Musk, "New technology in any field takes a few versions to optimize before reaching the mass market, and in this case it is competing with 150 years and trillions of dollars spent on gasoline cars."[125]

Tesla Motor's high degree of vertical integration (80% in 2016 according to Goldman Sachs), which includes component production and proprietary charging infrastructure, is rare in the automotive industry, where companies typically outsource 80% of components to suppliers,[126] and focus on engine manufacturing and vehicle assembly.[127][128]

Some of Tesla's stated goals are to increase the number and variety of electric vehicles (EVs) available to mainstream consumers by:

Tesla focuses on pure-electric propulsion technology, even for larger vehicles and ranges beyond 200 mi (320 km). Musk won the 2010 Automotive Executive of the Year Innovator Award for hastening the development of electric vehicles throughout the world.[134]

Tesla aims to disrupt the automotive industry by creating many innovative pieces which fit together to bring tremendous advantages; this strategy was called "complex coordination" by Tesla investor Peter Thiel (see PayPal Mafia).[135]

Arnnon Geshuri, the Vice President of Human Resources since November 2009, has committed to bringing manufacturing jobs "back to California".[136][137] In 2015, Geshuri led a hiring spree for Tesla about which he said; "In the last 14 months we've had 1.5 million applications from around the world. People want to work here."[138] Geshuri also emphasizes hiring military veterans, saying "Veterans are a great source of talent for Tesla, and we're going after it."[137][139] The company is known for its outreach efforts to hire American military veterans.[140]

On August 1, 2016, Tesla publicly announced that it had agreed to acquire SolarCity Corp. for $2.6 billion in stock. SolarCity is the largest installer of rooftop solar systems in the United States.[141] More than 85% of unaffiliated shareholders from Tesla and SolarCity voted to approve the acquisition on November 17, 2016,[142][143] which was closed on the morning of November 21, 2016.[144]

Sales model

Tesla owns and operates more than 200 stores and galleries, 120 of which are outside the U.S. It sells directly to customers via the internet and in non-U.S. stores.[145][146][147][better source needed] In August 2015, Tesla launched a revamp of its stores to include interactive displays focused on four themes: safety, autopilot, charging network and the dual motors that power each axle.[148]

Tesla utilises a yearly budget of around US$ 52 million for marketing purposes, and additionally uses a referral program and word of mouth to attract buyers.[149][150]

Dealership Disputes

Tesla gallery in Austin, Texas

There are stores and galleries[151][152]—usually located in shopping malls—in 22 U.S. states and Washington D.C. Customers cannot buy vehicles from stores,[153][154][155] only from the Tesla website.[156] The stores serve as showrooms that allow people to learn about the company and its vehicles. Some galleries are located in states with restrictive dealership protection laws which prevent discussing price, financing, and test drives, as well as other restrictions.

Tesla's strategy of direct customer sales and owning stores and service centers is different from the standard dealership model in the global vehicle marketplace.[157] Tesla is the only automaker that sells cars directly to consumers; all other automakers use independently owned dealerships[158][159] (partly due to earlier conflict),[74][160] although some automakers provide online configuration and financing.[161][162][163] 48 states have laws that limit or ban manufacturers from selling vehicles directly to consumers,[164][165][166] and although Tesla has no independent dealerships, dealership associations in multiple states have filed numerous lawsuits against Tesla, to prevent the company from selling cars.

Countries other than U.S. do not have such laws protecting car dealerships. The Federal Trade Commission recommends allowing direct manufacturer sales,[167][168] which analysts believe would save consumers 8% per purchase on average.[74][169]

Used vehicles

Under a buyback program called the Resale Value Guarantee available in 37 U.S. states, a Tesla Model S sold before July 1, 2016, included right to return it to the company after three years for a reimbursement of 43% to 50% of its initial price. This reimbursement matched the trade-in values of German luxury cars of that age. In addition to maintaining a high resale value of its cars, Tesla hoped to secure a supply of used cars to refurbish and re-sell with warranty. According to Automotive News, the profit margin on used car sales in the U.S. is about triple that on new cars, and because Tesla sells directly to consumers, it would collect resale profits.[170] Tesla ended the program in 2016 to minimize the differences between their GAAP and non-GAAP financial reporting, although they retailed the Residual Value Guarantee on leased vehicles.[171][172]

In May 2015, Tesla started selling refurbished Model S cars in the U.S.[173] and within a month sold 1,600 cars to buyers younger, less wealthy and a lower proportion of whom were from California than buyers of new Model S cars.[174] As of July 2017, over 80 used Model S and Model X cars were for sale in U.S. Tesla stores, with either a four-year, 50,000-mile warranty[175] or a two-year, 100,000-miles warranty for vehicles above 50,000 miles.[176][177] Used 3-year-old Model S cars sold for about 62% of their original price in 2016.[178] As of September 2015, similar programs existed in Canada (in 3 locations),[179] Austria (3),[180] Belgium (3),[181] Denmark (2),[182] France (3),[183] Germany (6),[184] Britain (3),[185] Netherlands (4),[186] Norway (5),[187] Sweden (2)[188] and Switzerland (5).[189]


Tesla builds electric powertrain components for vehicles from other automakers, including the Smart ForTwo electric drive (the lowest-priced car from Daimler), the Toyota RAV4 EV, and Freightliner's Custom Chassis Electric Van.


Tesla Supercharger in Hartford, Connecticut

Unlike other automakers, Tesla does not use single-purpose, large battery cells, but thousands of small, cylindrical, lithium-ion 18650-like commodity cells used in laptops and other consumer electronics devices. It uses a version of these cells that is designed to be cheaper to manufacture and lighter than standard cells by removing some safety features. According to Tesla, these features are redundant because of the advanced thermal management system and an intumescent chemical in the battery to prevent fires.[190] Panasonic is the only supplier of the battery cells for the car company, and cooperates with Tesla in the Gigafactory 1's '21-70' cells.[191]

Tesla may have the lowest costs for electric car batteries, estimated under US$200 per kWh.[127][190][192] Tesla indicated in 2016 that their battery pack costs less than $190/kWh.[193] Argonne Labs estimates $163/kWh at 500,000 packs per year.[194][195] Older battery packs with many fast charges may have restricted charge speed due to cell aging.[196]

Unlike the Tesla Roadster, whose battery is behind the seats, the Model S, 3 and X batteries are inside the floor. This saves interior space and trunk space but, together with the low ride of the Model S, increases risk of battery damage by debris or impact. To protect the battery, the Model S has 0.25 in (6.4 mm) aluminum-alloy armor plate.[197] The battery's location allows quick battery swapping.[198] Tesla's first and only battery swap station was opened in December 2014.[199] Due to lack of customer interest, battery swapping will not expand.[200] Straubel expects batteries to last 10–15 years,[201] and discounts using electric cars to charge the grid (V2G) because battery wear outweighs economic benefit. He also prefers recycling over re-use for grid once batteries have reached the end of their useful car life,[202] and an analyst agreed.[203] Since 2008, Tesla has worked with ToxCo/Kinsbursky to recycle worn out RoHS batteries, which will be an integral part of GigaFactory.[204][205][206]


Tesla makes electric induction motors with three phase, four pole AC and copper rotor.[207] Design simulations are made before choosing appropriate designs to manufacture.[208] Motors for the Model S and Model X are made at Tesla Factory in Fremont, while motors for Model 3 are made at Gigafactory 1 in Nevada.

Technology sharing

The Tesla Patent Wall at its headquarters was removed after the company announced its patents are part of the open source movement.[209]

Tesla CEO Elon Musk announced in June 2014, that the company will allow its technology patents be used by anyone in good faith.[210] Post-2014 agreements were expected to be executed that would include provisions whereby the recipients agree not to file patent suits against Tesla, or to copy its designs directly.[211] Reasons expressed for this stance include attracting and motivating talented employees, as well as to accelerate the mass market advancement of electric cars for sustainable transport. "The unfortunate reality is, electric car programs (or programs for any vehicle that doesn't burn hydrocarbons) at the major manufacturers are small to non-existent, constituting an average of far less than 1% of their total vehicle sales," Musk said. Tesla will still hold other intellectual property, such as trademarks and trade secrets, which would help to prevent direct copying of its vehicles.[212]


Main article: Tesla Autopilot

Autopilot, stylized as AutoPilot, provides semi-autonomous driver assist in Tesla vehicles manufactured since late September 2014. These vehicles are equipped with a camera mounted at the top of the windshield, a forward looking radar (supplied by Bosch)[213] in the lower grill and ultrasonic acoustic location sensors in the front and rear bumpers that provide a 360-degree buffer zone around the car. This equipment allows vehicles to detect road signs, lane markings, obstacles and other vehicles. In addition to adaptive cruise control and lane departure warning, a "Tech Package" option allows this system to enable semi-autonomous drive (called Summon) and parking capabilities (called AutoPark).[214][215] These features were activated via over-the-air software updates as of October 15, 2015. The AutoPilot system as of version 8 uses the radar as the primary sensor instead of the camera.[216]

Starting October 2016, all Tesla cars are built with the necessary hardware to allow full self-driving capability at a safety level (SAE Level 5). The hardware includes eight surround cameras and twelve ultrasonic sensors, in addition to the forward-facing radar.[217] The system will operate in "shadow mode" (processing without taking action) and send data back to Tesla to improve its abilities until the software is ready for deployment via over-the-air upgrades.[218] Therefore, Tesla cars with the new hardware will not have automatic emergency braking, collision warning, lane holding and active cruise control initially; these will be activated after the features are validated over time.

At the end of 2016, Tesla expected to demonstrate full self-driving by the end of 2017.[219][220] In April 28, 2017, Elon Musk predicted that in around two years drivers would be able to sleep in their Tesla until it finishes the trip.[221]

Tesla glass

In November 2016, the company said that they have created a Tesla glass technology group. The group is developing the glass that will be used in the Solar City roof tiles that were announced in October 2016. The group will also develop and manufacture the roof glass for the Tesla Model 3.[222]

The glass roof tiles which contain an embedded solar collector are one third lighter than standard roof tiles and will be available for sale in the United States in summer 2017.[223]


General Motors' then-Vice chairman Robert Lutz said in 2007 that the Tesla Roadster inspired him to push GM to develop the Chevrolet Volt, a plug-in hybrid sedan.[224] In an August 2009 edition of The New Yorker, Lutz was quoted as saying, "All the geniuses here at General Motors kept saying lithium-ion technology is 10 years away, and Toyota agreed with us—and boom, along comes Tesla. So I said, 'How come some tiny little California startup, run by guys who know nothing about the car business, can do this, and we can't?' That was the crowbar that helped break up the log jam."[225] On April 10, 2017, Tesla passed General Motors as the most valuable American automotive manufacturer, measured by its market capitalization.[226]

Tesla's success with the Model S sedan has pressured other luxury-car makers to enter the alternative-fuel market[227] to "challenge Tesla".[228]

Car models

"Tesla electric car" redirects here. It is not to be confused with Nikola Tesla electric car hoax.
File:BEV EPA range comparison 2016-2017 MY US.png
Comparison of EPA-rated range for model year 2016 and 2017 electric cars rated up until July 2017. Tesla vehicles shown correspond to the variants with the longest and shortest range for each model (S, X and 3).[229][230]

As of 31 March 2017, Tesla had sold more than 211,000 electric cars worldwide since delivery of its first Tesla Roadster in 2008, making the carmaker the second largest global pure electric car manufacturer after the Renault-Nissan Alliance.[22][23][112] The top selling car of Tesla's line-up is the Model S, with global sales of over 171,600 units between June 2012 and March 2017, followed by the Model X with more than 37,000 units sold between September 2015 and March 2017,[13][112] and the Roadster with about 2,450 units sold globally through December 2012.[231] Tesla's fourth vehicle, the Model 3, is aimed for the mass market and first deliveries began in July 2017.[230]

With 50,580 electric cars sold worldwide in 2015, Tesla ranked as the world's second best selling manufacturer of highway legal light-duty plug-in electric vehicles after BYD Auto (61,722).[24][25][232] In 2016 BYD continued as the world's top selling plug-in car manufacturer with 101,183 units sold in China, followed again by Tesla with 76,243 combined global sales of the Model S and X.[13][14] However, in terms of sales revenue, Tesla ranked ahead with US$6.35 billion from its electric car sales in 2016, while BYD sales totaled US$3.88 billion from its electric car division.[233]

In September 2016, Tesla said their combined sales of all models was 13,000 units worldwide.[234] In June 2015 Tesla said their vehicles had accumulated a total of 1 billion miles (1.6 billion km) worldwide, and reached 2 billion mi (3.2 billion km) 10 months later.[235] In October of the same year, Tesla said its cars had accumulated 3 billion mi (4.8 billion km).[235] The following July, Tesla said they reached 5 billion mi (8 billion km).[236]

Tesla Roadster

Main article: Tesla Roadster

Tesla's first production vehicle, the Tesla Roadster, was an all-electric sports car. The Roadster was the first highway-capable all-electric vehicle in serial production for sale in the United States in the modern era. The Roadster was also the first production automobile to use lithium-ion battery cells and first mass production battery electric vehicle to travel more than 200 mi (320 km) per charge.[35]

Prototypes were introduced to the public in July 2006. The Tesla Roadster was featured on the cover of Time in December 2006 as the recipient of the magazine's "Best Inventions 2006—Transportation Invention" award.[237] The first "Signature One Hundred" set of fully equipped Roadsters sold out in less than three weeks,[238] the second hundred sold out by October 2007, and general production began on March 17, 2008.[239] Since February 2008 two new models were introduced, one in July 2009, and another in July 2010.[240][241][242]

Tesla Roadster Sport 2.5, the company's fourth-generation Roadster

In January 2010, Tesla began producing its first right-hand-drive Roadsters for the UK and Ireland, then began selling them in mid-2010 in Japan, Singapore, Hong Kong and Australia.[243] Tesla produced the Roadster until early 2012, when its supply of Lotus Elise gliders ran out, as its contract with Lotus Cars for 2,500 gliders expired at the end of 2011.[37][38] Tesla stopped taking orders for the Roadster in the U.S. market in August 2011.[244][245] Featuring new options and enhanced features, the 2012 Tesla Roadster was sold in limited numbers only in Europe, Asia and Australia.[246][247] The next generation is expected to be introduced in 2019, based on a shortened version of the platform developed for the Tesla Model S.[248] Tesla sold more than 2,400 Roadsters in 31 countries through September 2012.[249][250] Most of the remaining Roadsters were sold during the fourth quarter of 2012.[251] The U.S. was the leading market with about 1,800 Roadsters sold.[252]

The car had an average range of 245 mi (394 km) per charge according to Tesla.[253] On October 27, 2009, the Roadster driven by Simon Hackett drove the entire 313-mile (504 km) segment of Australia's annual Global Green Challenge on a single charge, at an average speed of 25 mph (40 km/h).[254][255] The Tesla Roadster can accelerate from zero to 60 mph (97 km/h) in under 4 seconds and has a top speed of 125 mph (201 km/h). Deliveries began in July 2009. Motor Trend reported that the Roadster Sport recorded a 0–60 mph of 3.70 seconds and a quarter-mile test at 12.6 sec @ 102.6 mph (165.1 km/h), and said "Tesla is the first maker to crack the EV legitimacy barrier in a century."[256]

Model S

Main article: Tesla Model S
File:Tesla Model S P90D charging.jpg
Tesla Model S deliveries to retail customers began in June 2012.

The Model S was announced in a press release on June 30, 2008.[257][258] Retail deliveries began in the US on June 22, 2012.[45] The first delivery of a Model S to a retail customer in Europe took place on August 7, 2013.[259] Deliveries in China began on April 22, 2014.[260] First deliveries of the right-hand-drive model destined for the UK, Australia, Hong Kong and Japan were made as scheduled in 2014.[261] The United States Environmental Protection Agency range for the 85 kW·h battery pack model, the first trim launched in the United States market, is 265 mi (426 km),[262] and 208 mi (335 km) for the model with the 60 kW·h battery.[263]

In April 2016, Tesla updated the design of the Model S to look more like the Model X and made Model S 70, 70D, 75, 75D, 90 and 90D versions available. 70 and 70D Model S owners have the option to unlock the 75 kWh capacity via a software update, adding up to 19 miles (30 km) per charge.[264] The 60 and 60D, reintroduced in June 2016, owners have a US$9,000 anytime option to unlock the full 75 kWh capacity via a software update.[265] In March 2017, the EPA approved 100D variants of the Model S and Model X with ranges of 335 miles and 315 miles respectively.[266]

Quarterly Model S global sales up to June 2017

A total of 2,650 Model S cars were sold in North America during 2012, mostly in the United States.[251] In 2013, the Model S was the top-selling full-size luxury sedan in the U.S.[267] During 2014, a total of 31,655 units were delivered worldwide,[268] making the Model S the world's second best-selling plug-in electric vehicle after the Nissan Leaf in 2014.[268] The Model S, with total global sales of 50,446 units in 2015, was the world's best selling plug-in electric car in 2015.[24][108][268] The Model S also ranked as the top selling plug-in electric car in the United States in 2015.[108] With an estimated 50,931 units sold globally in 2016, the Model S ranked as the world's best-selling plug-in car for the second year in a row.[13][14] The Model S also remained as the top selling plug-in car in the U.S. in 2016.[269] As of December 2016, the Model S is the world's second best selling plug-in electric car in history after the Nissan Leaf with over 158,000 units sold.[16]

Norway is the Model S largest overseas market thanks to the country's comprehensive incentives for the adoption of pure electric cars.

The United States is the world's leading Model S market with an estimated 92,317 units sold through December 2016.[269] Norway is the Model S largest overseas market,[270] with 11,802 new units registered through October 2016.[271][272][273] The Tesla Model S became the first electric car ever to top the monthly sales ranking in any country, when the electric car achieved the first place in the Norwegian new car sales list in September 2013.[274][275][276]

Tesla manufactures the Model S in Fremont, California, in an assembly plant formerly operated by NUMMI, a defunct joint venture of Toyota and General Motors, now called Tesla Factory. Tesla purchased a stake in the site in May 2010 for US$42 million,[67][277][278] and opened the facility in October 2010.[277][279][280] For the European market, Tesla assembles and distributes the Model S from its European Distribution Center in Tilburg, the Netherlands. Tesla chose Tilburg because of its location near the port of Rotterdam, where Models S components arrive from the U.S. The center also serves as a workshop and spare parts warehouse. Cars are built and tested in Fremont; then, the battery pack, the electric motor and parts are disassembled and shipped separately to Tilburg, where the cars are reassembled.[281]

Among other awards, the Model S won the 2013 "Motor Trend Car of the Year",[282] the 2013 "World Green Car",[283] Automobile Magazine's 2013 "Car of the Year",[284] and Time Magazine Best 25 Inventions of the Year 2012 award.[285] In early October 2016, Tesla reported that combined miles driven by its three models have accumulated 3 billion electric miles (4.8 billion km) traveled. The first billion mark was recorded in June 2015 and the second billion in April 2016.[286]

Model X

Main article: Tesla Model X
Elon Musk delivering one of the first six Model X Founders Series models

The Tesla Model X is a full-size crossover SUV. Unveiled in February 2012,[287] Model X deliveries started in September 2015.[46]

More than a thousand people attended the 2012 unveiling, at which Musk said the car would enter production in 2013.[288] In February 2013, Tesla announced that production had been rescheduled to begin by late 2014 in order to focus "on a commitment to bring profitability to the company in 2013" and to achieve their production target of 20,000 Model S cars in 2013.[289][290] The company began taking reservations for the vehicle in 2013 and said that deliveries would begin in 2014.[291][292]

In November 2013, Tesla confirmed the company expected to deliver the Model X in small numbers by end of 2014, with high volume production planned for the second quarter of 2015.[293] However, Tesla announced in February 2014 that in order to focus on overseas roll outs of the Model S during 2014, it expected to have production design Model X prototypes in late 2014, and begin high-volume deliveries for retail customers in the second quarter of 2015.[294] In November 2014 Tesla again delayed the start of deliveries till the third quarter of 2015.[295] In August 2015, user groups estimated around 30,000 X pre-orders, compared to 12,000 for the S.[296]

The Tesla Model X (right) shares the same platform and 30% of the parts of the Tesla Model S (left).

Deliveries of the Model X Signature series began on September 29, 2015. Pricing for the premium special version of the Model X varies between US$132,000 and US$144,000.[46] Model X sales totaled 2,400 units during the first quarter of 2016. According to Tesla, deliveries were lower than expected because production was impacted by severe Model X supplier parts shortages in the first two months of 2016.[78] Sales during the second quarter of 2016 totaled 4,638 units. Although Tesla's production was up 20% from the previous quarter, the number of vehicles in transit at the end of June 2016 was much higher than expected (5,150 including Model S cars), representing 35.8% of the number of cars delivered in the quarter (14,402 vehicles including the Model S).[109] Global sales passed the 10,000 unit mark in August 2016, with most vehicles delivered in the United States.[297] Global deliveries totaled 25,312 units in 2016, allowing the Model X to rank among the world's top ten best-selling plug-in cars just in its first full year in the market.[13] As of December 2016, a total of 25,524 units have been delivered worldwide.[13] The United States is its main market with 18,240 units delivered through December 2016.[13]

The Model X ranked as the top selling plug-in electric car in Norway in September 2016.[298][299] However, when Volkswagen Golf nameplate registrations are broken down by each variant's powertrain, the all-electric e-Golf registered 392 units, the Golf GTE plug-in hybrid 358, and the internal combustion-powered Golf only 242 units. Therefore, the Model X also ranked as the top selling new car model in September 2016.[298][299][300] Norway was the world's first country to have all-electric cars topping the new car sales monthly ranking. Previously, the Tesla Model S had been the top selling new car four times.[298]

Model 3

Main article: Tesla Model 3
Tesla Model 3 prototype at the unveiling on March 31, 2016 in Hawthorne, California.

The Model 3 (originally stylized as "☰") is Tesla's third-generation car, codenamed Tesla BlueStar in the original business plan.[122] The car was originally intended to be called the Model E, but after a lawsuit from Ford that holds the trademark on "Model E",[301] Musk announced on July 16, 2014 that the car would be called "Model 3" instead. Initially Tesla estimated the all-electric car would have a range of at least 350 kilometres (215 mi), the production version achieved a longer range, as the standard Model 3 delivers an EPA rated all-electric range of 220 miles (350 km) and the long range model delivers 310 miles (500 km).[230]

On March 31, 2016, Tesla unveiled its Model 3 for an invited audience and via a live stream on Tesla's website.[302] Potential customers were first able to reserve spots in the queue at Tesla stores on March 31 with a refundable deposit.[303] Tens of thousands of people were reported waiting in lines to reserve their spot.[304] During the Model 3 unveiling event, Tesla said over 115,000 people had reserved the Model 3.[305] As of April 7, 2016, one week after the unveiling, Tesla reported over 325,000 reservations, more than triple the 107,000 Model S cars sold by the end of 2015.[306][307] These reservations represent potential sales of over US$14 billion.[48] According to Tesla's global vice-president Robin Ren, China is the second largest market for the Model 3 after the US.[308] Tesla reported net reservations totaled about 373,000 as of 15 May 2016, after about 8,000 cancellations by customers and about 4,200 cancellations by Tesla of reservations that appeared to be duplicates from speculators.[309][310] As of July 2017, Tesla reported about 500,000 reservations.[311]

File:The Model 3 Interior.jpg
The Model 3 is one of the first cars to have a barren dashboard, with the exception of a center mounted LCD touchscreen.

Tesla claims this is "the single biggest one-week launch of any product ever."[312] According to Bloomberg News, "the Model 3's unveiling was unique in the 100-year history of the mass-market automobile." Bloomberg reported that while the 1955 Citroën DS took in 80,000 deposits over 10-days at the Paris Auto Show, the Model 3 took 232,000 reservations in two days. In another comparison, the original iPhone had 270,000 sales and reservations, also in two days.[313]

During the event, Musk said that all Model 3s will support supercharging.[314] Tesla also announced plans to make Model 3 available in several new markets including India, Brazil, South Africa, South Korea, New Zealand, Singapore, and Ireland.[315]

The company said the Model 3 is part of Tesla's three step strategy to start at high price and move progressively towards lower cost, where the battery and electric drivetrain technology would be developed and paid for through sales of the Tesla Roadster and Tesla Model S vehicles.[52][122] Whereas the Roadster used carbon fiber and the Model S and X use aluminum for the body, the composition of the Model 3 is unknown as of March 2016. Musk has said that Tesla will need to sell 500,000 cars per year (mostly Model 3) to become profitable.[316]

File:First Model 3 production cars ready for delivery.jpg
First production Tesla Model 3 cars ready for the delivery event on July 28, 2017.

According to Tesla's CTO, JB Straubel, in October 2015 most Tesla engineers were working on the 3 rather than S or X.[317] The design was finished in July 2016.[318] Tesla began building Model 3 prototypes in early February 2017 as part of the testing of the vehicle design and manufacturing processes. Tesla reported that initial crash test results have been positive. According to Tesla, the company expects to invest between US$2 billion and US$2.5 billion in capital expenditures ahead of the start of Model 3 production.[99]

Limited vehicle production began in July 2017, and volume production is expected by September 2017. Tesla plans to ramp up production to exceed 5,000 vehicles per week at some point in the fourth quarter, and 10,000 vehicles per week at some point in 2018.[99] The first 30 units were delivered at an special event on July 28, 2017.[230]

Future models

In June 2009, Tesla announced plans for electric minivans, electric sports cars, crossover SUVs and electric fleet vans for municipal governments.[319][320] In 2010, Tesla articulated ideas besides the Model X crossover: a utility van and cabriolet were discussed that, if built, would be based on the second-generation platform like Model S.[321] Besides the third-generation platform to be used in Model 3, the possibility of a truck was discussed in 2012.[322] In July 2015, it was announced that a successor to the Roadster would debut in 2019.[323] In October 2015, Musk said a future 'Model Y' that would be a Model 3/Model X-like cheaper crossover utility vehicle with falcon-wing doors,[324] and Tesla trademarked the name "Model Y" in 2013.[325]

Tesla had stated that the Model Y would be built as a new platform in a new factory around 2020, with better production efficiency than for the Model 3,[326] but in August 2017 Tesla announced that the Model Y would in fact be based on the Model 3 platform.[327] Musk credited his executive team with pulling him back from the "cliffs of insanity", and said "after talking to my executive team, the Model Y will use a significant amount of Model 3 components."[327]

Musk wanted the first three models to spell "S-E-X", but settled with "S3X" because Ford owns the trademark to "Model E".[328] The next model is planned to be called Model Y so that the models will spell "S3XY".[329]

Musk hopes to produce a car cheaper than the Model 3, to be affordable for everyone:[330][331]

There will be future cars that will be even more affordable down the road . . . With fourth generation and smaller cars and what not, we'll ultimately be in a position where everyone can afford the car.

— Elon Musk at the Future Transport Solutions conference in Oslo, April 21, 2016

Future models may also reach a 800-kilometer (500 mi) range, partially because of a new patented battery system, pairing metal–air and lithium-ion batteries.[332]

On July 20, 2016, Musk detailed his master plan for Tesla that has been in the works for 10 years. It includes the manufacturing of more affordable cars produced in higher volume, solar power roofs, mid-size vehicles, SUV's and pickup trucks, as well as the refinement of autonomous vehicles and the creation of a sharing economy, in which cars can be requested and driven while the owner is not using them.[333] A Tesla Minibus would be built on the Model X platform.[334] In May 2017, Musk indicated that he might favor a 10–12-passenger version of the Model X over a dedicated minibus design.[335]

The Tesla Semi, an all-electric Class 8 semi-trailer truck announced in the 2016 Master plan, will be unveiled on September 28, 2017. According to Musk, it is using ‘a bunch' of Model 3 electric motors. Tesla's Vice President of Vehicle Programs, Jerome Guillen, leads the heavy truck program, after having once been in charge of the Freightliner Cascadia Diesel Class 8 semi truck.[citation needed] Somewhat related truck concepts, with battery plus hydrogen fuel cell, have been announced by Nikola Motor Company.[citation needed]

Battery products

In April 2015, the company unveiled its Powerwall home and industrial battery packs,[336][337][338] and quickly received orders to a total value of US$800 million.[339] The two models included a 7 kilowatt-hour (kWh) wall-mounted unit and 10 kWh unit that cost less than the going rate for large-scale batteries for summer delivery. The company also announced larger-scale battery blocks for industrial users in units of 100 kWh. The company planned to open source its patents for the entire range. First battery customers include Green Mountain Power, which plans to resell them to customers that already have solar power.[336]

Battery cells will initially be made by Panasonic. When production shifts to Reno (forecast for 2016 or 2017[340]), Tesla expects costs to drop by 30%.[336]

Some 62 megawatt-hours (MWh) of batteries and other energy-storage devices were installed in 2014 at 180 properties, at a value of about US$128 million, up 40% from the previous year, with sales expected to more than triple, to 220 MWh in 2015. In California, state rebates cover up to 60% of the battery price. Batteries that are connected to solar panels are also eligible for federal tax credits equal to 30% of the price.[336]

In September 2016, Tesla announced it had been chosen "through a competitive process" to supply utility company Southern California Edison with 20 MW power (and 80 MWh energy) of battery storage. In May, regulators ordered Southern California Edison to invest in utility-scale battery networks after natural gas provider SoCal Gas leaked 1.6 million pounds (730 t) of methane into the atmosphere when a well ruptured at its Aliso Canyon Natural Gas Storage Facility.[341]

In October 2016, Tesla announced that it will manufacture photovoltaic cells and modules at its Buffalo, New York factory for Panasonic beginning in the summer of 2017.[342][343]

In February 2017, Musk announced plans to build three additional Gigafactories to increase its factory capacity to handle battery manufacturing.[344]

Supercharger network

Main article: Tesla Supercharger
Tesla Model S charging at a Supercharger station in Newark, Delaware

In order to allow quick charging of Tesla cars, in 2012 Tesla began building a network of 480-volt fast-charging Supercharger stations. As of 12 May 2017, there were 848 Supercharager stations globally that have 5,487 superchargers.[29] The Supercharger is a proprietary direct current (DC) technology that provides up to 120 kW of power per car, depending on location, giving the 90 kWh Model S an additional 270 kilometres (170 mi) of range in about 30 minutes charge and a full charge in around 75 minutes.[29] A software update provided in 2015 to all Tesla cars uses demand information from each Supercharger station to plan the fastest route including stopping if charging will be necessary to reach the destination.[345]

All Tesla cars come standard with the hardware required for Supercharging. Cars ordered after January 15, 2017 will get 400 kWh of free Supercharging credits, as roughly 1,600 kilometres or 1,000 miles per year, with a charge for further kWh; cars purchased before that date will continue to get free Supercharging.[346]

During 2016, Tesla had been working on an "idle fee" from owners who let their Tesla vehicles occupy Supercharger stalls even after the vehicles have been fully charged.[347] In December 2016, after a complaint sent to Elon Musk via Twitter about abuse, Tesla announced that it will start charging an idle fee.[348][349]

Battery swapping
Panoramic view of Tesla Supercharger rapid charging station in Tejon Ranch, California

Tesla designed its Model S to allow fast battery swapping. This feature facilitated the assembly process at the factory, as well as future distributed battery swaps for cars during their operational life.[350] A survey in 2015 showed that most users were not interested,[200] and only one facility (Harris Ranch) featured battery swapping as of 2016. The battery swapping process took an average time of 20 minutes, which is not much faster than utilizing a Supercharger. Additionally, Supercharging is a cheaper and more expandable technology than battery swapping.[351]

Destination Charging network

In 2014, Tesla discreetly launched the "Destination Charging Location" Network by providing High Powered Wall Chargers to high-end hotels, restaurants, shopping centers, resorts and other full service stations to provide on-site vehicle charging, twice the power of a typical charging location.[352][353] In conjunction with the Supercharger Network, this new partnership allows Tesla's High Powered Wall Chargers to be where its customers spend the most time.[354] On 25 April 2016, Tesla launched European destination charging, with 150 locations and more to be added later.[355] Businesses that are interested in installing destination chargers are able to contact Tesla through their website. If approved, chargers are installed free of charge by Tesla certified contractors. All installed destination charges are also added to the in-car navigation system, which allows customers to see various destination chargers in the car.[356]


Tesla's headquarters are located in Palo Alto, California. As of August 2013, Tesla operates over 50[357] company-owned showrooms worldwide.[358] In July 2010, Tesla hired former Apple and Gap Executive George Blankenship as Vice President of Design and Store Development to build Tesla's retail strategy.[359] He left the company in November 2013.[360]

United States

New Tesla Model S cars at the Tesla Factory in 2012

Tesla was founded in San Carlos, California.[361] In 2007, Tesla opened an office in Rochester Hills, Michigan.[362] The office was later closed due to mounting losses at the time, most of the remaining employees returned to California while some moved into a smaller office in Auburn Hills, Michigan.[363] Tesla opened these retail stores initially: in Los Angeles, on Santa Monica Boulevard in the Westwood neighborhood[364] in April 2008; in Menlo Park, California in July 2008;[365] a display showroom in New York City's Chelsea art district in July 2009; and later stores in Washington, DC, Chicago, Dania Beach, Florida, Boulder, Colorado, Seattle, Washington, San Jose, California and Denver, Colorado.[129] In 2010, Tesla moved its corporate headquarters and opened a powertrain development facility at 3500 Deer Creek Road, in the Stanford Research Park in Palo Alto. It financed the project in part through US$100 million in federal low-interest loans. The new facility occupies 369,000 sq ft (34,300 m2) on a 23-acre (9.3 ha) parcel previously occupied by Agilent Technologies. About 350 employees were expected to be based at the Stanford site initially, potentially increasing to 650.[366]

In 2015, Tesla acquired Riviera Tool & Die (with 100 employees in Michigan), one of its suppliers of stamping items.[367][368]

Tesla Factory

Main article: Tesla Factory

Tesla built its Model S assembly plant in California to a preliminary annual output of 20,000 sedans in 2010.[369][370] It partnered with Toyota[clarification needed] to produce the Model S at the former NUMMI plant in Fremont, California, which opened on October 27, 2010 and was renamed the Tesla Factory.[371] In 2016 the plant was expected to produce some 80,000 cars with 6,000 workers compared to a "typical" plant that might produce 250,000 cars with 3,000 workers.[372]

In June 2015, Tesla signed a lease to occupy a manufacturing building at 901 Page Avenue in Fremont, California. The building is more than 500,000 sq ft (46,500 m2) and was formerly used by Solyndra. The location is next to a SolarCity facility, a couple of miles from its existing car plant in Fremont.[373]


Main article: Gigafactory 1

In August 2014 the company announced it would establish (in conjunction with Panasonic) a "gigafactory" battery manufacturing plant in the Southwest or Western United States by 2020. The US$5 billion plant would employ 6,500 people, and reduce Tesla's battery costs by 30%. On September 4, 2014, Tesla announced that Nevada would be the site for the battery factory;[374] as of September 10, the Nevada legislature was debating $1.3 billion of tax incentives for the factory.[375] Two days later, state lawmakers unanimously approved the plan.[376] The factory, near Reno, Nevada, was slated to start production in 2016.[340]

In July 2016, Tesla doubled the labor force working on the factory in an attempt to finish construction on a new and much tighter schedule. The company would like to have the factory ready for the launch of its Model 3. About 1,000 workers are working up to seven days a week to meet Tesla's plan to produce lithium-ion battery cells by early 2017.[377]

At the 2017 shareholder's meeting, Tesla confirmed plans for three new Gigafactories but did not reveal further details.[378]


Tesla store in Toronto.

Tesla opened its first "new design" store in Canada on November 16, 2012 in the Yorkdale Shopping Centre in Toronto, Ontario. The store features interactive displays and design studios which allow customers to customize the Model S and view the results on an 85-inch wall.[379] As of May 2017, there are eight Tesla stores/galleries in Canada: one in Montreal, one in Quebec City, one in Calgary, three in Toronto, and two in Vancouver.[380]


Tesla showroom in Munich, Germany

Tesla opened its first store in Europe in June 2009 in London's Knightsbridge district in the United Kingdom,[381] followed by Munich in Germany in September.[382] The London store relocated to the Westfield London Shopping Centre in October 2013.[383] Tesla has 24 "galleries" and stores around Europe by the start of 2014.

Tesla's European headquarters are in Amsterdam, the Netherlands.[384] The Roadster's chassis was assembled by Lotus Cars in Hethel, Norfolk, England.[385] A 62,000 sq ft (5,800 m2) European distribution center and final assembly facility was established in 2013 in Tilburg in the Netherlands. This was turned into a service center when a second Tilburg assembly facility at 77,650 m2 (835,800 sq ft) was opened in 2015 where drivetrain, battery and software are added to the car body to reduce EU import tax,[386][387][388] making and testing[389][390] 90 cars per day.[391] Tesla's CEO confirmed in June 2014[392] and November 2016 its long-term plans to build a car and battery gigafactory in Europe,[393] which several countries have campaigned to host.[394]

In November 2016 Tesla announced that they will acquire German engineering firm Grohmann Engineering in Prüm and establish it as a new subdivision of the automaker dedicated to helping Tesla increase the automation and effectiveness of its manufacturing process to the level required by the Model 3 production rate.[395] On this deal CEO Elon Musk said that "This will really be our first acquisition of significance in our whole history".[396] The takeover occurred in January 2017. After winding down existing contracts with other auto manufacturers, Grohmann would only serve Tesla, in particular preparing for the Model 3.[397]


Tesla Motor's Japanese showroom in Aoyama, Tokyo, which was the first showroom opened in the country

Tesla opened its first Japanese showroom in Aoyama on November 2010.[398] Another showroom was subsequently opened in Osaka.[399] Roadsters sold in Japan were either in left- or right-hand drive configurations,[400] although Model S vehicles are only available in right-hand drive configurations from 2014.[399] According to Kevin Yu, the director of Tesla Asia Pacific, Roadsters in Japan sell at an average price of between about ¥12,800,000 and ¥20,000,000.[401]

Tesla established a Hong Kong branch and showroom in 2011.[402] Roadsters were previously sold in Hong Kong for HK$1.2 million.[403] The Hong Kong showroom consists of a "Design Studio" where prospective buyers can design their vehicle on a large touchscreen.[404] The official Hong Kong service center opened in September 2011.[405]

A Tesla branch existed in Singapore from July 2010 to February 2011, but the company ceased its operations in the country due to a lack of tax exemptions.[406][407]

Tesla's Chinese website was launched on December 16, 2013 to sell the Model S and Model X and set a February 2014 date for the distribution of both vehicles in China. The launch followed the opening of a Tesla showroom in Beijing in November 2013.[408]


Tesla opened a showroom in Sydney in 2010.[409][410] A Roadster was driven by Country Manager Jay McCormack along the entire eastern seaboard covering a distance of more than 4,000 km (2,500 mi), the longest distance traveled by an electric vehicle in Australia at the time.[411]

Tesla Australia opened its first Melbourne Store in Chadstone Shopping Centre in December 2014.[412] A Signature Model S was driven by Shiny Things founder Mat Peterson from his home in Sydney to the Marriott Hotel in Melbourne, covering a distance of 702 km (436 mi), the longest documented distance traveled by a Model S at the time in Australia.

Tesla Australia opened its second Melbourne store and first service center/Showroom in Melbourne at Richmond, Victoria in May 2015.[413]

In July 2017, Tesla won an Australian contract to install the world's biggest grid-scale battery.[414]


Unlike many traditional manufacturers, Tesla operates as an original equipment manufacturer (OEM), manufacturing powertrain components for other automakers. Tesla has confirmed partnerships with Daimler and Toyota. It also works closely with Panasonic as a partner in battery research and development. The company also supplies battery packs for Freightliner Trucks' Custom Chassis electric van.[415]

Daimler AG

Starting in late 2007, Daimler AG and Tesla began working together. The two companies were expected to collaborate further, including on the Tesla Model S sedan. On May 19, 2009, Daimler bought a stake of less than 10% in Tesla for a reported US$50 million.[66][416] As part of the collaboration, Herbert Kohler, Vice President of E-Drive and Future Mobility at Daimler, took a seat on Tesla's board of directors.[417] On July 13, 2009, Daimler AG sold 40% of its May acquisition to Aabar Investments PJSC. Aabar is an investment company controlled by the International Petroleum Investment Company (IPIC), which is wholly owned by the Government of Abu Dhabi.[418][419] In March 2009, Aabar bought a 9% stake in Daimler for €1,95 billion. In October 2014, Daimler sold its remaining holding.[420]

Mercedes-Benz A-Class

The Mercedes-Benz B-Class Electric Drive uses a battery pack developed by Tesla.[421]

Tesla, in collaboration with Mercedes-Benz, is building electric powertrain components for the Mercedes-Benz A-Class E-Cell, an electric car with a range of 120 mi (200 km) and 214 ft·lbf (290 N·m) of torque. The 36 kWh battery would contain approximately 4,000 lithium-ion cells.[422] Daimler was not expected to release the electric version outside Europe. The model was unveiled at the 2010 Paris Motor Show. Only 500 cars would be built for trial in Europe beginning in September 2011.[423][424]

Mercedes-Benz B-Class ED

Smart Fortwo

Main article: Smart electric drive

In January 2009, Tesla announced that it would produce the battery packs and chargers for an initial 1,000-unit test fleet of Smart EVs.[425][dated info][67]


On May 20, 2010, Tesla and Toyota announced a partnership to work on electric vehicle development, which included Toyota's US$50 million future conditional investment[426] in Tesla and Tesla's US$42 million purchase of a portion of the former NUMMI factory.[67][277][279][427] Tesla cooperated on the development of electric vehicles, parts, and production system and engineering support. It was announced that an electric version of the Toyota RAV4 would be mass-produced in 2012 at Toyota's Woodstock, Ontario plant.[428]

On June 5, 2017, Toyota announced that it had sold all of its shares in Tesla and halted cooperation, as Toyota created their own electric car division.[429]

Toyota RAV4 EV

Tesla and Toyota announced in July 2010 an agreement to develop a second generation of the compact Toyota RAV4 EV. At the time, Toyota planned to introduce the model into the market by 2012.[430] A second generation RAV4 EV demonstrator was unveiled at the October 2010 Los Angeles Auto Show. Toyota built 35 of these converted RAV4s (Phase Zero vehicles) for a demonstration and evaluation program that ran through 2011. The lithium metal-oxide battery and other powertrain components were supplied by Tesla.[431][432] In August 2012, the production version RAV4 EV was unveiled; the battery pack, electronics and powertrain components are similar to those used in the Tesla Model S sedan launched in June 2012, and the Phase Zero vehicles used components from the Tesla Roadster.[433][434]

Freightliner Electric Van

The company is supplying battery packs for Freightliner Trucks' Custom Chassis electric van.[415]


Panasonic Energy Company President Naoto Noguchi presented Tesla CTO JB Straubel with the first production run of lithium-ion cells from Panasonic's facility in Suminoe-ku, Osaka, Japan

On January 7, 2010, Tesla and battery cell maker Panasonic announced that they would together develop nickel-based lithium-ion battery cells for electric vehicles. Naoto Noguchi, President of Panasonic's Energy Company, said that the Japanese firm's cells will be used for Tesla's "current and next-generation EV battery pack."[435] The partnership was part of Panasonic's US$1 billion investment over three years in facilities for lithium-ion cell research, development and production. Tesla disclosed that the new cell resulting from its collaboration with Panasonic will allow Tesla to continue using cells from multiple suppliers.[436]

In April 2010, Noguchi presented Tesla Chief Technology Officer J. B. Straubel with the first production cells manufactured at the new facility in Suminoe-ku, Osaka, Japan. The Suminoe factory produced 3.1Ah battery cells, the highest energy density cells in the market. The facility produces more than 300 million cells per year.[437] On November 5, 2010, Panasonic invested US$30 million for a multi-year collaboration on next generation cells designed specifically for electric vehicles.[438]

In July 2014, it was announced that Panasonic has reached a basic agreement with Tesla to participate in the Gigafactory, the huge battery plant that the American electric vehicle manufacturer is building in Nevada.[439]

In October 2016, it was announced that Tesla and Panasonic would begin collaborating on the manufacturing and production of photovoltaic (PV) cells and modules in Buffalo, New York, contingent upon the completion of Tesla's acquisition of SolarCity.[440] In December 2016, this agreement was finalized, with production of the first PV modules to begin in summer 2017.[441]


In August 2015, Tesla partnered with Airbnb to provide destination chargers at certain host houses, initially in California.[442]

Lawsuits and controversies

Fisker Automotive

On April 14, 2008, Tesla sued Fisker Automotive, alleging that Henrik Fisker "stole design ideas and confidential information related to the design of hybrid and electric cars" and was using that information to develop the Fisker Karma, which was announced at the North American International Auto Show in January 2008. Tesla had hired Fisker Coachbuild to design the WhiteStar sedan but dropped the design that Musk considered "substandard".[443][444] On November 3, 2008, Fisker Automotive Inc. issued a press release indicating that an arbiter had issued an interim award finding in Fisker's favor on all claims.[445] Tesla said the ruling was binding and that it would not pursue the case.[445]

Founder dispute

The founding of the company was the subject of a lawsuit that was later dropped after an out-of-court settlement.[446][447] On May 26, 2009, Eberhard filed suit in San Mateo County, California, against Tesla and Musk for slander, libel and breach of contract.[448] Musk wrote a lengthy blog post that included original source documents, including emails between senior executives and other artifacts demonstrating that Eberhard was unanimously fired by Tesla's board of directors.[125] On July 29, 2009, a judge in San Mateo County, California, Superior Court struck down a claim by former CEO Eberhard, who asked to be declared one of only two company founders.[449] Tesla said in a statement that the ruling is "consistent with Tesla's belief in a team of founders, including the company's current CEO and Product Architect Elon Musk, and Chief Technology Officer JB Straubel, who were both fundamental to the creation of Tesla from inception."[450] In early August, Eberhard withdrew the case,[451] and the parties reached a final settlement on September 21. One public provision said that the parties will consider Eberhard, Musk, Straubel, Tarpenning, and Wright to be the five co-founders. Eberhard also issued a statement about Musk's foundational role in the company: "As a co-founder of the company, Elon's contributions to Tesla have been extraordinary."[452]


In early 2014, Tesla reportedly tried to break the exclusivity agreement their charging partner in the UK had for locations along the UK's highways; Ecotricity replied by taking an injunction against them.[453][454] The dispute was resolved by an out of court settlement.[455]

Top Gear review

Tesla unsuccessfully sued British television show Top Gear for its review of the Roadster in a 2008 episode in which Jeremy Clarkson could be seen driving one around the Top Gear test track, complaining about a range of only 55 mi (89 km), before showing workers pushing it into the garage, supposedly out of charge. Tesla filed a lawsuit against the BBC for libel and malicious falsehood, claiming that two cars were provided and that at any point, at least one was ready to drive. In addition, Tesla said that neither car ever dropped below 25% charge, and that the scene was staged.[456][457][458][459] On October 19, 2011, the High Court in London rejected Tesla's libel claim.[460] The falsehood claims were also struck out by February 2012, with Justice Tugendhat describing Tesla's malicious falsehood claim as "so 'gravely deficient' it too could not be allowed to proceed."[461] The Top Gear website posted a favorable review of the Model S in 2015,[462] and the show (with new hosts) featured the Model X favorably in 2016.[463]

New York Times test drive

In early 2013, Tesla approached the New York Times to publish a story "Focused on future advancements in our Supercharger technology."[464] In February 2013, the Times published an account on the newly installed Supercharger network on the I-95 highway between Boston and New York City. In it, the author describes fundamental flaws in the Model S sedan, primarily that the range was severely lowered in the below freezing temperatures of the American Northeast, and at one point the vehicle died completely and needed to be towed to a charging station.[465]

After the story was published, Tesla stock dipped 3%.[466] Three days later, CEO Elon Musk responded with a series of tweets, calling the article "fake",[467] and followed up with a lengthy blog post disputing several of the claims of the original feature. He called it a "salacious story" and provided data, annotated screenshots, and maps obtained from recording equipment installed in the press vehicle as evidence that the New York Times fabricated much of the story.[464]

[...] Instead of plugging in the car, he drove in circles for over half a mile in a tiny, 100-space parking lot. When the Model S valiantly refused to die, he eventually plugged it in.

— Elon Musk, A Most Peculiar Test Drive – Tesla Blog

In a statement, the Times stood by the accuracy of the story, calling it "completely factual."[467] The author of the original piece John Broder quickly issued a rebuttal in which he clarified and refuted many of the accusations made by Musk.[468]

[...] I drove around the Milford service plaza in the dark looking for the Supercharger, which is not prominently marked. I was not trying to drain the battery. (It was already on reserve power.) As soon as I found the Supercharger, I plugged the car in.

— John Broder, That Tesla Data: What It Says and What It Doesn't — The New York Times

Further investigation was made by the media. Musk said "the Model S battery never ran out of energy at any time, including when Broder called the flatbed truck." Auto blog Jalopnik contacted Rogers Automotive & Towing, the towing company Broder used. Their records showed that "the car's battery pack was completely drained."[469] In his follow-up blog post, Broder said "The car's display screen said the car was shutting down, and it did. The car did not have enough power to move, or even enough to release the electrically operated parking brake."

In the days that followed, NYT public editor Margaret Sullivan published an opinion piece titled "Problems With Precision and Judgment, but Not Integrity, in Tesla Test". She concludes "In the matter of the Tesla Model S and its now infamous test drive, there is still plenty to argue about and few conclusions that are unassailable."[470] No legal action was pursued by either organization.

Singapore tax surcharge

In early March 2016, a report by Stuff magazine said that test performed by VICOM, Ltd on behalf of Singapore's Land Transport Authority had found a 2014 Tesla Model S to be consuming 444 Wh/km (0.715 kW·h/mi),[471][472] which was greater than the 236 watt-hours per kilometre (0.38 kW·h/mi) reported by the U.S Environmental Protection Agency (EPA)[473] and the 181 watt-hours per kilometre (0.291 kW·h/mi) reported by Tesla.[474] As a result, a carbon surcharge of S$15,000 (US$10,900 at March 2016 exchange rate) was imposed on the Model S, making Singapore the only country in the world to impose an environmental surcharge on a fully electric car.[475] The Land Transport Authority justified this by stating that it had to "account for CO2 emissions during the electricity generation process" and therefore "a grid emission factor of 0.5g/watt-hour was also applied to the electric energy consumption",[476] however Tesla countered that when the energy used to extract, refine, and distribute gasoline was taken into account, the Model S produces approximately one-third the CO2 of an equivalent gasoline-powered vehicle.[474]

Later that month, the Land Transport Authority released a statement stating that they and the VICOM Emission Test Laboratory will be working with Tesla engineers to determine if there was a flaw in the test,[477] and a Tesla statement indicated that the discussions were "positive" and that they were confident of a quick resolution.[474]

SEC investigations

On July 11, 2016, the Wall Street Journal reported that Tesla is being investigated by the U.S. SEC to see if the company should have disclosed a fatal crash involving its autopilot technology before the company sold more than US$2 billion worth of new shares to investors in May 2016.[478] A separate SEC investigation closed "without further action" in October 2016 about Tesla's use of non-GAAP reporting; Tesla switched to GAAP-reporting in October 2016.[479] SEC and companies increasingly use GAAP over non-GAAP reporting.[480]

SolarCity acquisition shareholder litigation

In September and October 2016, seven lawsuits were filed in the Court of Chancery of the State of Delaware by stockholders of Tesla seeking to block the proposed acquisition of SolarCity. In October 2016, the Court consolidated the actions and appointed a lead plaintiff. The plaintiffs allege, among other things, that the Tesla board of directors breached their fiduciary duties in approving the acquisition and that certain individuals would be unjustly enriched by the acquisition. As of October 2016, the plaintiffs were seeking among other relief, damages in an unspecified amount and rescission of the acquisition.[481] The acquisition was approved by Tesla and SolarCity's stockholders on November 17, 2016 [482] and the merger closed on November 21, 2016.

Autopilot 2 class-action lawsuit

On April 19, 2017, Tesla owners filed a class-action lawsuit due to Tesla exaggerating the capabilities of its Autopilot 2 to consumers.[483] The lawsuit was filed by law firm Hagens Berman, who said "buyers of the affected vehicles have become beta testers of half-baked software that renders Tesla vehicles dangerous if engaged"[484] Tesla has dismissed the lawsuit as a "disingenuous attempt to secure attorney's fees posing as a legitimate legal action".[485]

Labor practices

On April 19, 2017, Tesla factory workers filed unfair labor practice charges with the National Labor Board, alleging that Tesla uses "illegal surveillance, coercion, intimidation and prevention of worker communications [...] in an effort to prevent or otherwise hinder unionization of the Fremont factory."[486][487]

According to CNBC, "the United Automobile Workers union filed four separate charges with the National Labor Relations Board alleging that [Tesla] has illegally surveilled and coerced workers attempting to distribute information about the union drive."[488] On February 10, three Tesla employees allegedly were passing out literature to start organizing union efforts. The literature pointed to working conditions, the company's confidentiality agreement, and employee rights under the National Labor Relations Act. The UAW's charges allege that Tesla illegally told employees that they could not pass out any literature unless it was approved by the company.[488]

Working conditions and injury policies

On May 18, 2017, Business Insider published a story titled "Tesla factory describe grueling work conditions where people pass out 'like a pancake'".[489] On the same day, CNBC ran a story (both in print and on its cable TV network) titled "Tesla workers are passing out on the factory floor, according to a report."[490]

Over the past several years, former and current Tesla employees have publicly expressed concerns about the way the company treats its workers. Since 2014, ambulances have been sent to Tesla’s Fremont, California factory over 100 times to provide emergency services to workers exhibiting symptoms like fainting, dizziness, abnormal breathing, and chest pains resulting from the physically demanding tasks associated with their positions.[489]

The decay of safe working conditions is in part a result of Elon Musk’s ambitious production figures. His goal is to manufacture 500,000 automobiles in 2018, which is a 495% increase from 2016.[489] An additional factor is the inherent competition between the motivation and pride employees have for their jobs and the physically and mentally stressful positions in which they work.[490] Tesla has acknowledged that its recordable incident rate (TRIR), which measures work-related injuries and illnesses that have been reported to regulators, exceeded the industry average between 2013 and 2016. Exact data was not released by Tesla over that period, because the company says the data is not representative of current operations at the factory.[489]

Elon Musk has strongly defended Tesla’s safety record, and argued that the company has made significant improvement over the past few years. In 2017, however, when The Guardian reached out to 15 people who either used to work for Tesla or still do, each contradicted Musk’s viewpoint. Jonathan Galescu, a production technician for the company, said, “I’ve seen people pass out, hit the floor like a pancake and smash their face open. They just send us to work around him while he’s still laying on the floor.”[489] In February of 2017, Jose Moran, a Tesla worker, posted a report on a blog about the company’s practices of mandatory overtime, frequent worker injuries, and low wages.[489]

Tesla’s policies of dealing with injured employees have also been lambasted. In 2017, some workers alleged that Tesla’s own policies got in the way of workers reporting injuries. At Tesla, workers who reported injuries were moved to lighter work and were given access to supplemental insurance benefits. Consequently, an injured worker reported that his pay went from $22 an hour to $10 an hour. In order to protect their incomes, many workers have chosen to work through their injuries, inciting even further bodily damage and pain.[489]

In 2017, Tesla added extra shifts and safety teams in attempts to improve conditions. When CNBC requested for comment about the issues in 2017, Tesla responded with language used in a company blog post. The company commented, “Tesla’s safety record is much better than the industry average, but it is not enough. Our goal is to have as close to zero injuries as humanly possible and to become the safest factory in the auto industry.”[490]

Product issues


As of April 2017, Tesla has had five recalls for the Model S, two recalls for the Tesla Roadster, and two recalls for the Model X.[491]

On April 20, 2017, Tesla issued a worldwide recall of 53,000 (~70%) of the 76,000 vehicles it sold in 2016 due to faulty parking brakes that may become stuck and "prevent the vehicles from moving."[492][493] According to the Seattle Times, "Tesla will contact owners by mail and start repairs immediately. It expects to have sufficient parts for all of the affected vehicles by October."[494]

Crashes and fires

On October 1, 2013, a Model S caught fire after the vehicle hit metal debris on a highway in Kent, Washington. Tesla confirmed the fire began in the battery pack and was caused by the "direct impact of a large metallic object to one of the 16 modules within the Model S battery pack."[495] On November 6, 2013, a Tesla Model S on Interstate 24 near Murfreesboro, Tennessee, caught fire after it struck a tow hitch on the roadway, causing damage beneath the vehicle. Tesla said that it would conduct its own investigation,[496] and as a result of these incidents, announced its decision to extend its current vehicle warranty to cover fire damage.[497]

On January 4, 2014, a Tesla Model S in Norway caught fire while charging at one of Tesla's own supercharger stations and was left completely destroyed. The owner of the car was luckily not in the vehicle when the car caught fire, and no one was injured.[498]

On March 28, 2014, the NHTSA announced that it had closed the investigation into whether the Model S design was making the electric car prone to catch fire, after the automaker said it would provide more protection to its lithium-ion batteries.[499] All Model S cars manufactured after March 6 have the .25-inch (6.4 mm) aluminum shield over the battery pack replaced with a new three-layer shield.[500]

On June 30, 2016, the media reported that a driver of a Model S died in a collision with a tractor-trailer on May 7, 2016, in Williston, Florida, while the vehicle was in autopilot mode and the driver is believed to be the first person to have died in a Tesla vehicle in autopilot mode.[501][502] The NHTSA investigated the accident and concluded: "A safety-related defect trend has not been identified at this time and further examination of this issue does not appear to be warranted."[503]

Maintenance costs, crash rates, and insurance costs

On June 4, 2017, the American Automobile Association raised insurance rates for Tesla owners following a report from the Highway Loss Data Institute. The report concluded that the Model S crashes 46% more often and is 50% more expensive to repair than comparable vehicles. Similarly, the Model X was concluded to crash 41% more often and to be 89% more expensive to repair than similar vehicles. As a result, AAA raised insurance rates on Tesla cars by 30%. Tesla said that the analysis is "severely flawed and not reflective of reality", however, Tesla failed to provide any contradictory numbers.[504] Shortly thereafter, Russ Rader, the spokesman for the Insurance Institute for Highway Safety, confirmed the AAA's analysis and that "Teslas get into a lot of crashes and are costly to repair afterward".[505][506] Tesla has not made further statements on this topic.


Tesla has been criticized for overpromising and underdelivering in a number of areas. Delivery dates for new vehicles and new vehicle features have slipped on the Roadster, the Model S and the Model X. Advanced technologies like the prospect of a large network of solar-powered supercharger stations (first installed 2012; only two are solar powered as of late 2014) and battery-swapping stations (first installed in 2013; none operational by 17 December 2014) are substantially behind.[507]


In August 2015, two researchers said to be able to take control of a Tesla Model S by hacking into the car's entertainment system.[508] The hack required the researchers to first physically access the car.[509] Tesla issued a security update for the Model S the day after the exploit was announced.[510]

In September 2016, researchers at Tencent's Keen Security Lab demonstrated a remote attack on a Tesla Model S and controlled the vehicle in both Parking and Driving Mode without any physical access. They were able to compromise the CAN bus when the vehicle's web browser was used while the vehicle was connected to a malicious Wi-Fi hotspot.[511] This was the first case of a remote control exploit demonstrated on a Tesla. The vulnerability was disclosed to Tesla under their bug bounty program and patched within 10 days, before the exploit was made public.[512]


Tesla offers service at their service centers, or if a center is not available there are mobile technicians known as rangers that can perform most inspections and repairs. It is recommended to have any Tesla car inspected every 12,500 miles or once a year, whichever comes first.[513] Early production is usually more flawed, and both the Model S and the Model X had several problems at the start of their production,[514] but improved since then.[515] As the Tesla vehicle fleet has grown, the amount of service centers has struggled to keep up while fixing the early flaws, resulting in waiting periods.[516] Auto experts view the service delays as insignificant, as owners are more accepting of the challenges of making a new type of car production.[516]

Tesla does not provide car service manuals except in places where they are legally required to.[517]

Lobbying activity

In June 2017, Tesla made a "last-minute push near the end of the Albany legislative session to expand its sales force in New York."[518] However, Tesla and the legislature got pushed back from the automotive dealers industry. A New York State Legislature bill (A.8248/S.6600) that was introduced on June 2 would allow Tesla to have 20 sales locations in the state, up from its current five. The car dealership industry is fighting the bill, arguing that it would hurt their dealership franchises because Tesla sells directly to consumers rather than through dealerships. According to the New York Law Journal, "Tesla . . . has its own in-house lobbyists, according to disclosures filed with the state's lobbying entity."[518] In May 2017, Tesla hired the Albany lobbying firm Albany Strategic Advisors for $7500 per month for state lobbying efforts.[518]

Board of directors

As of April 2017, the Tesla board of directors consists of:[519]

A group of investors asked Tesla in a public letter on April 10, 2017 to add two new independent directors to its board “who do not have any ties with chief executive Elon Musk”.[520] Musk's brother Kimbal is among the board members.[520] The investors wrote that “five of six current non-executive directors have professional or personal ties to Mr. Musk that could put at risk their ability to exercise independent judgement.”[521] The letter called for a more independent board that could put a check on groupthink.[521] At first Musk responded on Twitter, writing that the investors "should buy Ford stock" because "their governance is amazing.”[521] Two days later, he promised he would add two independent board members.[522] The investors who wrote the letter were the California State Teachers Retirement System, Hermes Equity Ownership Services, CtW Investment Group,[520] and New York City's asset managers.[521]

See also


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Further reading

  • Vance, Ashlee (2015). Elon Musk: How the Billionaire CEO of SpaceX and Tesla is Shaping our Future. Virgin Books. ISBN 9780753555620. 
  • Gene Berdichevsky, Kurt Kelty, JB Straubel, Erik Toomre (16 August 2006). "The Tesla Roadster Battery System". Tesla Motors. Archived from the original (PDF) on 19 December 2007. 

External links