Tesla, Inc.

Tesla, Inc. is an American company that makes electric cars and clean energy products. Its headquarters are in Austin, Texas. The company produces battery electric vehicles, home and grid-scale battery storage, solar panels, and solar shingles, along with related services. It was founded in July 2003 by Martin Eberhard and Marc Tarpenning under the name Tesla Motors, a tribute to inventor Nikola Tesla. Tesla is among the most valuable companies globally by market capitalization and has been the most valuable automaker since July 2020.

The company was incorporated on July 1, 2003, with Eberhard as CEO and Tarpenning as CFO. Eberhard aimed to create a car manufacturer that was also a technology company, focusing on the battery, software, and motor. Ian Wright joined a few months later. In February 2004, Tesla raised $7.5 million in Series A funding, with $6.5 million from Elon Musk, who had made $176 million from selling his PayPal stake two years earlier. Musk became chairman and the largest shareholder. J. B. Straubel joined as chief technical officer in May 2004. A 2009 lawsuit settlement allowed Eberhard, Tarpenning, Wright, Musk, and Straubel all to be called co-founders.

Tesla’s strategy was to start with a premium sports car for early adopters, then move to sedans and affordable compacts. Musk was active but not deeply involved in daily operations. In February 2005, he led a $13 million Series B round, adding Valor Equity Partners. A $40 million Series C round in May 2006 included investors like Google co-founders Sergey Brin and Larry Page, and former eBay president Jeff Skoll. A fourth $45 million round in May 2007 brought total private financing to over $105 million. In August 2007, the board, led by Musk, asked Eberhard to step down as CEO; he became "President of Technology" before leaving in January 2008. Tarpenning also left that month. Michael Marks served as interim CEO from August 2007, and Ze'ev Drori became CEO and president in December 2007. Musk took over as CEO in October 2008. Eberhard sued Musk in June 2009, alleging he was forced out; the case was dismissed in August 2009.

Production of the Roadster began in 2008 in a former Chevrolet dealership in Menlo Park. By January 2009, Tesla had raised $187 million and delivered 147 cars. Musk had contributed $70 million of his own money.

In January 2010, Tesla received a $465 million loan from the U.S. Department of Energy’s Loan Program Office for clean energy technology, which was critical for the Model S and was repaid in full. In May 2010, Tesla bought the NUMMI plant in Fremont, California, from Toyota for $42 million. On June 29, 2010, Tesla went public on the NASDAQ, issuing 13.3 million shares at $17 each, raising $226 million—the first American car company IPO since Ford in 1956. The Tesla Factory opened in October 2010. Roadster production ended in January 2012, and the Model S sedan began production in June 2012, winning several automotive awards.

Tesla’s vehicle lineup expanded: the Model X SUV in 2015, the Model 3 sedan in 2017, the Model Y crossover in 2020, the Tesla Semi truck in 2022, and the Cybertruck pickup in 2023. From October 2021 to March 2022, Tesla was a $1 trillion company, the sixth U.S. firm to reach that valuation. In 2023, it ranked 69th on the Forbes Global 2000. In 2024, it led the battery electric vehicle market with a 17.6% share. Tesla again exceeded $1 trillion in market capitalization from November 2024 to February 2025 and from May 2025 to July 2026. In November 2025, Tesla approved a $1 trillion pay package for Musk, to be paid over 10 years if he meets specific goals. By the end of 2025, Tesla lost its position as the world’s leading electric vehicle manufacturer.

Tesla has faced lawsuits, boycotts, government scrutiny, and journalistic criticism over allegations of whistleblower retaliation, worker rights violations including sexual harassment and anti-union activities, safety defects leading to dozens of recalls, the lack of a public relations department, and controversial statements from Musk, such as overpromising on driving assist technology and product release timelines.