Tesla, Inc. (pronounced TEZ-lə or TESS-lə) is an American company that makes cars and clean energy products. The company's main office is in Austin, Texas. It creates, builds, and sells battery-powered electric cars, large batteries for storing energy at home and for power grids, solar panels, solar shingles, and other related items.

The company was started in July 2003 by Martin Eberhard and Marc Tarpenning as Tesla Motors. The name honors Nikola Tesla, a famous inventor and engineer. In 2004, Elon Musk helped fund the company and became its chairman. He later became the chief executive officer in 2008. Tesla began making its first car, the Roadster sports car, in 2008. Other models include the Model S sedan (2012), Model X SUV (2015), Model 3 sedan (2017), Model Y crossover (2020), Tesla Semi truck (2022), and Cybertruck pickup truck (2023).

Tesla is one of the world's most valuable companies based on its total value. From July 2020, it was the most valuable car company globally. Between October 2021 and March 2022, Tesla's value reached $1 trillion, making it the sixth U.S. company to reach that level. In 2023, it ranked 69th in the Forbes Global 2000 list. In 2024, Tesla led the market for electric cars, with 17.6% of all sales.

Tesla's value reached $1 trillion again between November 2024 and February 2025, and again in May 2025. In November 2025, Tesla approved a $1 trillion pay package for Elon Musk, which he will receive over 10 years if he meets certain goals. By the end of 2025, Tesla was no longer the top maker of electric vehicles worldwide.

Tesla has faced legal issues, public protests, government investigations, and media criticism. These include claims of unfair treatment of workers, safety problems in its cars that led to recalls, and statements by Musk about its technology and product timelines that were seen as overly optimistic.

History

Tesla Motors, Inc., was started on July 1, 2003, by Martin Eberhard and Marc Tarpenning. Eberhard became the chief executive officer, and Tarpenning became the chief financial officer. Eberhard wanted to create a car company that also focused on technology. He said the company’s main technologies would be the battery, computer software, and a special motor.

Ian Wright joined Eberhard and Tarpenning a few months later. In February 2004, the company raised US$7.5 million, which was worth about $12.8 million in 2025. Elon Musk, who had earned $176 million from selling his share in PayPal, invested $6.5 million, or about $11.1 million in 2025. Musk became the chairman of the board and the largest owner of Tesla. J. B. Straubel joined as chief technical officer in May 2004.

In September 2009, a legal agreement allowed Eberhard, Tarpenning, Wright, Musk, and Straubel to be called co-founders. Musk was involved in Tesla’s leadership but did not manage daily operations. The company planned to begin with a high-end sports car for early buyers and later create more common vehicles like sedans and affordable cars.

In February 2005, Musk led a funding round that raised $13 million. Valor Equity Partners joined the effort. In May 2006, Musk co-led a $40 million funding round with support from Google co-founders Sergey Brin and Larry Page, and former eBay president Jeff Skoll. A $45 million round in May 2007 brought total private funding to over $105 million.

In August 2007, Eberhard was asked to leave his role as CEO by the board, led by Musk. He later became "President of Technology" before leaving the company in January 2008. Marc Tarpenning, who was vice president of electrical engineering, also left in January 2008. Michael Marks became interim CEO in August 2007, and Ze’ev Drori became CEO and president in December 2007. Musk took over as CEO in October 2008. In June 2009, Eberhard sued Musk, claiming he was forced out. The case was dismissed in August 2009.

Tesla began making the Roadster in 2008 in the service area of a former Chevrolet dealership in Menlo Park. By January 2009, Tesla had raised $187 million and delivered 147 cars. Musk had personally invested $70 million in the company.

In June 2009, Tesla received $465 million in loans from the U.S. Department of Energy. This funding, part of an $8 billion loan program, helped develop the Model S sedan and commercial powertrain technology. Tesla repaid the loan in May 2013, including $12 million in interest.

In January 2010, Tesla got a $465 million government loan for U.S.-made clean energy technology. This funding was essential for creating the Model S, which was fully repaid.

In May 2010, Tesla bought the NUMMI plant in Fremont, California, from Toyota for $42 million. On June 29, 2010, Tesla had its first public offering of stock (IPO), becoming the first American car company to do so since Ford in 1956. The company sold 13.3 million shares at $17 each, raising $226 million.

In October 2010, Tesla opened a factory to produce the Model S. In January 2012, production of the Roadster ended, and the Model S was launched in June 2012. The Model S won awards like the 2013 Motor Trend Car of the Year and became the first electric car to top a country’s monthly car sales list in Norway in September 2013. It was the best-selling plug-in electric car globally in 2015 and 2016.

Tesla became a NASDAQ-100 company on July 15, 2013. In 2014, Tesla introduced Autopilot, a driver-assistance system. All Tesla cars began shipping with sensors and software to support this feature later that year.

In April 2015, Tesla launched the Powerwall (for homes) and Powerpack (for businesses) battery systems. The company received $800 million in orders within a week. In September 2015, Tesla started selling the Model X, a luxury SUV with 25,000 pre-orders.

In November 2016, Tesla bought SolarCity in a $2.6 billion all-stock deal. The company merged SolarCity with its energy storage division to form Tesla Energy. This deal was controversial because SolarCity had financial problems at the time. In February 2017, Tesla Motors changed its name to Tesla, Inc., to reflect its expanded business. Jon McNeill, Tesla’s president of global sales, took on government relations responsibilities

Automotive products

As of April 2026, Tesla offers five vehicle models: Model 3, Model Y, Semi, Cybertruck, and Cybercab. Tesla no longer sells three models: the first-generation Tesla Roadster, Model S, and Model X. Tesla plans to produce a second-generation Roadster and future vehicles like the Robovan.

The Model 3 is a mid-size car with a fastback design and either a dual-motor, all-wheel drive system or a rear-motor, rear-wheel drive system. It was created to be more affordable than the luxury Model S sedan. A prototype Model 3 was shown in 2016, and the company received over 325,000 paid reservations in one week. Deliveries began in July 2017. From 2018 to 2021, the Model 3 was the world’s best-selling electric car, and total sales reached 1 million by June 2021. A major design update was made in September 2023, changing the car’s outside and inside look.

The Model Y is a mid-size crossover SUV with 5- or 7-passenger options and either a single-motor, rear-wheel drive system or a dual-motor, all-wheel drive system. It was designed to be more affordable than the luxury Model X SUV. A prototype Model Y was shown in March 2019, and deliveries started in March 2020. The Model Y shares about 75% of its parts with the Model 3. In the first quarter of 2023, the Model Y sold more units than the Toyota Corolla, becoming the world’s best-selling car, the first electric vehicle to achieve this title.

The Tesla Semi is a large semi-truck with a tri-motor, rear-wheel drive system. Tesla claims it has about three times the power of a typical diesel semi-truck and can travel 500 miles (800 km). Two prototypes were shown in November 2017, and initial deliveries were made to PepsiCo in December 2022. Tesla plans full production of the Semi by late 2025.

The Cybertruck is a full-sized pickup truck. It was first announced in November 2019, and pilot production began in July 2023 after several delays. Deliveries started on November 30, 2023. Three models are available: rear-wheel drive, dual-motor all-wheel drive, and trimotor all-wheel drive. The Cybertruck’s exterior is made from flat sheets of unpainted stainless steel, which received mixed reactions from the media. Tesla initially aimed to produce over 250,000 units annually, but as of 2025, the company sells about 20,000 units each year.

The Tesla Cybercab is a two-passenger, battery-electric self-driving car being developed by Tesla. It is expected to be part of the Tesla Robotaxi service. A concept version of the Cybercab was shown in October 2024, with 20 prototypes giving short rides at the event. The concept had no steering wheel or pedals. Production of the Cybercab is planned to be fully autonomous and is expected to begin before 2027.

On November 16, 2017, Tesla unveiled the second-generation Roadster, which has a claimed range of 620 miles (1,000 km) using a 200-kilowatt-hour battery. It can accelerate from 0 to 60 mph (0–97 km/h) in 1.9 seconds and has a top speed over 250 mph (400 km/h). A "SpaceX Package" would include cold-gas thrusters. The Roadster has three electric motors for all-wheel drive and torque vectoring. The base price was $200,000. Initially planned for 2020, production has been delayed multiple times. As of July 2024, Elon Musk said production would start in 2025, but the current target is 2027.

The Tesla next-generation vehicle is a new battery-electric platform. It will be Tesla’s third platform. Vehicles using this platform are not expected before 2025. In July 2024, Musk said the platform would be available in the first half of 2025.

The Tesla Robovan is an electric, autonomous van planned for future development. It was announced in October 2024 and is designed to carry up to 20 passengers.

The first-generation Tesla Roadster was a two-seat sports car based on the Lotus Elise. It was produced from 2008 to 2012. The Roadster was the first highway-legal serial production electric car to use lithium-ion batteries and the first production all-electric car to travel over 200 miles (320 km) per charge.

The Model S is a full-size sedan with a liftback design and a dual-motor, all-wheel drive system. Development began before 2007, and deliveries started in June 2012. The Model S had two major design updates: one in April 2016, which changed the front end, and another in June 2021, which revised the interior. The Model S was the top-selling plug-in electric car worldwide in 2015 and 2016. Over 250,000 units were sold by December 2018.

The Model X is a mid-size luxury crossover SUV with 5-, 6-, or 7-passenger options and either a dual- or trimotor, all-wheel drive system. Its rear doors open vertically with a "falcon-wing" design. A prototype was shown in February 2012, and deliveries began in September 2015. The Model X shares about 30% of its parts with the Model S. It had one major design update in June 2021, which revised the interior.

As of January 22, 2026, Tesla has stopped offering the basic Autopilot driver-assistance feature for new vehicles in the United States and Canada. It now provides only Traffic Aware Cruise Control as the standard safety system. This change is part of a shift toward Tesla’s more advanced Full Self-Driving (FSD) system, which is now available only as a monthly subscription starting February 14, 2026.

Services

Tesla cars include "Standard Connectivity," which uses a cellular connection for navigation. For a fee, Tesla offers "Premium Connectivity," which adds live traffic updates, satellite maps, internet browsing, and media streaming to navigation.

Tesla’s service strategy focuses on fixing vehicle problems remotely first. If remote solutions fail, a mobile technician is sent or customers are directed to a Tesla-owned service center. As of October 2024, Tesla operates 1,306 retail stores, galleries, service centers, delivery locations, and body shops worldwide. Tesla states it does not aim to profit from vehicle servicing, which is typically a major revenue source for traditional auto dealerships.

In 2016, Tesla recommended inspecting vehicles every 12,500 miles or once a year, whichever came first. In early 2019, this guidance changed to state that Tesla vehicles do not require annual maintenance or regular fluid changes. Instead, periodic servicing of brake fluid, air conditioning, tires, and air filters is recommended.

"Supercharger" is the name Tesla uses for its high-voltage direct current fast chargers. The Supercharger network was launched on September 24, 2012, with six stations in California. As of November 2025, Tesla operates about 7,900 Supercharger stations globally, with over 75,000 connectors. Most are located in Asia Pacific (3,000 stations), North America (3,000), and Europe (1,500). Superchargers can currently deliver up to 500 kilowatts (kW) of power.

Tesla also has a network of "Destination Chargers," which are slower than Superchargers and designed for places where customers stay for several hours, such as hotels, restaurants, or shopping centers. Unlike Superchargers, Tesla does not own Destination Chargers. Property owners install the devices and set pricing. When the network launched in 2014, Tesla provided free charging equipment and covered installation costs. For example, Hilton Worldwide agreed in 2023 to install 20,000 Destination Chargers across 2,000 of its properties in North America by 2025.

Tesla has offered its own vehicle insurance in the United States since 2017 and became an independent insurance producer in 2021 as Tesla Insurance Services, Inc. This followed a 2017 report by the American Automobile Association (AAA), which raised insurance rates for Tesla owners due to higher crash rates and repair costs for Tesla vehicles. A 2018 study by the Insurance Institute for Highway Safety confirmed these findings.

Tesla claims it understands its vehicles, technology, and repair costs better than traditional insurance companies, allowing it to eliminate extra fees. In states where allowed, Tesla uses data from individual vehicles to offer personalized insurance rates based on the driver’s monthly safety score.

As of January 2023, Tesla offers insurance in the U.S. states of Arizona, California, Colorado, Illinois, Maryland, Minnesota, Nevada, Ohio, Oregon, Texas, Utah, and Virginia. The company also provides insurance for non-Tesla vehicles owned by Tesla customers.

Robotaxi is a ride-hailing service launched by Tesla in 2025. It currently operates in Austin, Texas, and relies on human supervisors. The goal is eventually to allow fully autonomous rides without human oversight.

Energy products

Tesla Energy, a company that is part of Tesla, creates, builds, sells, and installs solar energy systems and battery storage products for homes, businesses, and industries. This company was formed by combining Tesla’s battery storage division with SolarCity, a solar energy company that Tesla bought in 2016. In 2023, Tesla Energy installed 14.7 gigawatt-hours of battery storage, which is 125% more than in 2022. However, the company installed solar energy systems that could generate 223 megawatts of power, which is 36% less than in 2022.

Tesla Energy offers solar panels (made by other companies for Tesla), the Tesla Solar Roof (a type of solar shingle), and the Tesla Solar Inverter. Its battery products include the Powerwall (a home battery) and the Megapack (a large battery system).

For large customers, Tesla Energy uses an online platform to help manage energy trading, predict energy needs, and control products. In March 2021, this platform managed over 1.2 gigawatt-hours of energy storage. For home customers in Texas, Tesla operates a service called Tesla Electric, which uses online tools to manage Powerwall batteries. These batteries can send energy back to the power grid during times of high energy prices, helping customers earn money.

Business strategy

When Tesla was started in 2003, electric vehicles were expensive. In 2006, Elon Musk said Tesla’s plan was to first make high-priced, limited-production cars, like sports cars, because buyers of these vehicles are less concerned about cost. This approach would help reduce battery costs over time, making it possible to later produce more affordable and widely available cars. Tesla’s first car, the Roadster, was made in small numbers (fewer than 2,500 units) and cost more than $100,000. Later models, the Model S and Model X, are less expensive but still considered luxury vehicles. The Model 3 and Model Y are even more affordable and are designed for larger markets, with over 100,000 units sold each quarter. Tesla regularly updates car features without waiting for new model years, unlike most other car companies.

Tesla does not use traditional dealerships to sell cars. Instead, it sells directly through its website and company-owned stores. This method is rare in the United States, where most car companies use franchised dealers. In some regions, laws prevent carmakers from selling directly to customers. In these areas, Tesla has “galleries” that provide information about its vehicles but do not complete sales. Tesla has nearly 400 stores and galleries in over 35 countries. These locations are often found in shopping malls or busy areas, not near other car dealers.

Experts say Tesla is vertically integrated, meaning it creates many parts itself, such as batteries, engines, and software. This is uncommon in the car industry, where most companies rely on outside suppliers for 80% of parts and focus only on building engines and final assembly.

Tesla allows competitors to use its technology through licensing agreements. These agreements include rules that prevent licensees from suing Tesla or copying its designs directly. Tesla keeps control of other intellectual property, like trademarks and trade secrets, to protect its technology.

On April 15, 2024, Tesla signed a deal with Tata Electronics to supply semiconductor chips, a step toward expanding in India’s car market.

On May 2, 2024, Tesla announced it would stop using next-generation gigacasting, a new manufacturing method. The company previously aimed to use this technique to improve production and lower costs but now plans to use a more tested method of casting car frames in three parts. This change shows Tesla’s focus on self-driving technology and adapting to market challenges.

Technology

Tesla builds many parts on its own, like batteries, motors, and software. As of 2023, Tesla uses four types of battery cells: 18650, 2170, 4680, and prismatic. These batteries come from three suppliers: CATL, LG Energy Solution, and Panasonic. Panasonic works inside Tesla’s Gigafactory Nevada to make some batteries. Tesla is also working to produce its own batteries.

Tesla places batteries under the vehicle floor to save space inside the car. A system made of aluminum and titanium protects the battery from road debris or crashes.

In 2021, a business analysis company found that Tesla’s battery cost was $112 per kilowatt-hour (kWh), compared to an average of $132 per kWh for other companies.

Tesla was the first car company to use cylindrical lithium-ion battery cells. When it made the first Roadster, it used 18650-type cells (18 mm wide, 65 mm tall), which were already used in other electronics. These cells had low capacity, so many were needed in each battery pack. Managing heat and electricity was challenging, requiring liquid cooling and fire-prevention chemicals. However, the 18650 cells were chosen because they could be made in large quantities with high quality. These cells are still used in the Model S and X. Tesla gets these batteries from Panasonic in Japan, using a nickel-cobalt-aluminum (NCA) cathode chemistry.

Next, Tesla used 2170-type cells (21 mm wide, 70 mm tall). These larger cells allowed for more energy per cell and fewer cells in each battery pack. The 2170 cells were used in the Model 3 and Y. For vehicles made at the Fremont Factory, Tesla gets 2170 cells from Panasonic’s Gigafactory Nevada. In 2021, Panasonic could make 39 gigawatt-hours (GWh) of battery cells there each year. Tesla Energy also uses 2170 cells in its Powerwall home storage product.

For vehicles made at Gigafactory Shanghai and Berlin, Tesla uses 2170 cells with a nickel-cobalt-manganese (NMC) cathode chemistry from LG Energy Solution’s factories in China.

Tesla’s newest cylindrical cell is the 4680-type (46 mm wide, 80 mm tall), introduced in 2021. This cell is five times larger than the 2170-type, allowing for more energy per cell and fewer cells in each battery pack. Tesla makes the 4680 cells itself. While the company has not shared the cathode chemistry, some studies suggest it uses a nickel-manganese-cobalt (NMC811) chemistry. Tesla has started making 4680 cells in Fremont, California, and plans to build more lines in Nevada and Texas. These cells are used in the Model Y and Cybertruck made at Gigafactory Texas.

Tesla also uses prismatic (rectangular) cells in some Model 3 and Y vehicles. These cells use lithium iron phosphate (LFP or LiFePO4) chemistry, which is less energy-dense but does not include nickel or cobalt, making them cheaper to produce. Tesla gets these batteries from CATL’s factories in China. By April 2022, nearly half of Tesla’s cars used prismatic cells. Tesla Energy also uses prismatic cells in its Megapack grid storage product.

Tesla invests in battery research. In 2016, it partnered with Dalhousie University in Canada for a 5-year battery research project led by Jeff Dahn. Tesla bought Maxwell Technologies for over $200 million (sold in 2021) and Hibar Systems. It also acquired battery patents from Springpower International.

In 2023, Tesla started building a $375 million lithium refining plant in Texas. This plant avoids using sulfuric acid in lithium processing, reducing waste. Some local groups are concerned about the plant’s water use, which could reach up to 8 million U.S. gallons (30 million liters) per day during peak times.

Tesla sends software updates to cars over the internet, adding features or fixing problems. This works because Tesla uses powerful onboard computers that connect well, unlike older systems that used separate parts.

Tesla also controls which features customers can use. For example, all Model 3 cars have heated rear seats, but only customers who bought a premium interior could use them. Tesla later allowed other customers to buy access to the feature. Similar software locks apply to Enhanced Autopilot and Full-Self Driving features, even though all cars have the hardware needed.

Tesla uses two types of electric motors: induction motors and internal permanent magnet (IPM) motors with synchronous reluctance motor (SynRM) characteristics.

The older induction motor uses electromagnetic induction to create torque. These motors are used in the rear of the Model S and X, the front of the Model 3 and Y, and the first Roadster.

Since 2017, Tesla has used IPM-SynRM motors. These motors use an iron rotor with magnets inserted into slots. They provide strong starting power but lose efficiency at high speeds. Tesla improved performance by using iron’s reluctance property, which allows the motor to spin in sync with the magnetic field. These motors are used in the rear of the Model 3 and Y, the front of the 2019-onward Model S and X, and are expected in the Tesla Semi.

The North American Charging Standard (NACS) is Tesla’s electric vehicle charging connector. It has been used in all North American Tesla cars since 2012. In 2022, other car companies announced plans to use NACS connectors in their vehicles starting in 2025. Many charging networks and equipment makers also plan to add NACS ports.

Tesla Autopilot is an advanced driver-assistance system (ADAS) that provides partial automation, classified as Level 2 automation by SAE International.

Facilities

The company operates seven large factories and about a dozen smaller factories around the world. As of December 2024, the company operates more than 1,350 retail stores, galleries, service, delivery, and body shop locations globally.

Tesla was founded in San Carlos, California in 2003. In 2008, the company opened its first production facility at a former Chevrolet dealership in Menlo Park, California. The original roadster was assembled inside the service bays until 2012 and used the company’s showroom as a retail store. Another retail store was opened in Los Angeles the same year. In 2010, Tesla moved its corporate headquarters and opened a powertrain development facility in Palo Alto.

Tesla’s first major assembly plant occupies the former NUMMI plant in Fremont, California, known as the Tesla Fremont Factory. The factory was originally opened by General Motors in 1962 and then operated by NUMMI, a joint venture of GM and Toyota from 1984. The joint venture ended when GM entered bankruptcy in 2009. In 2010, Toyota agreed to sell the plant to Tesla at a significant discount.

Tesla’s first purpose-built facility was opened in Nevada in 2016. Gigafactory Nevada produces the Powerwall, battery cells in partnership with Panasonic, Model 3 drivetrains, and the Tesla Semi. The factory received substantial subsidies (tax breaks and credits) from local and state governments. In exchange for opening in their jurisdiction, Tesla was allowed to operate essentially tax-free for 10 years, later extended to 20 years in exchange for expanding the factory to add a production line for the Tesla Semi and additional battery manufacturing capacity.

As part of the acquisition of SolarCity in 2016, Tesla gained control of Gigafactory New York in Buffalo on the site of a former Republic Steel plant. The state of New York spent cash to build and equip the factory through the Buffalo Billion program. In 2017, the factory started production of the Tesla Solar Roof but faced multiple production challenges. Since 2020, Tesla has also assembled Superchargers in New York. The plant has been criticized for offering little economic benefit for the state funding.

In 2018, Tesla assembled tension fabric buildings at the Fremont plant to meet production goals of 5,000 cars produced a month. The structure was assembled in two weeks and measured 53 feet high, 150 feet wide, and 900 feet long.

On July 23, 2020, Tesla picked Austin, Texas, as the site of its fifth Gigafactory, since then known as Gigafactory Texas. Giga Texas is the only factory that produces the Tesla Cybertruck and produces Model Y cars for the Eastern United States. On December 1, 2021, Tesla announced it relocated its legal headquarters from Palo Alto to the Gigafactory Texas site in Austin. However, Tesla has retained the Palo Alto building. On April 7, 2022, Tesla celebrated the opening of Gigafactory Texas in a public event.

Tesla acquired a former JC Penney distribution center near Lathrop, California in 2021 to build the "Megafactory" to manufacture the Megapack, the company’s large-scale energy storage product. The location opened in 2022.

Tesla announced in February it would open a new global engineering headquarters in Palo Alto, moving into a corporate campus once owned by Hewlett Packard, located a couple of miles from Tesla’s former headquarters building.

Tesla has announced plans to open a Gigafactory Mexico, the company’s sixth Gigafactory, near Monterrey, Mexico. However, as of July 2024, the company had placed construction on hold until after the 2024 United States presidential election because former President Trump has pledged to add tariffs on cars made in Mexico.

Tesla opened its first European store in June 2009 in London. Tesla’s European headquarters are in the Netherlands, part of a group of Tesla facilities in Tilburg, including the company’s European Distribution Centre.

In late 2016, Tesla acquired German engineering firm Grohmann Engineering as a new division dedicated to helping Tesla increase the automation and effectiveness of its manufacturing process. After winding down existing contracts with other manufacturers, the renamed Tesla Automation now works exclusively on Tesla projects and is expanding its operations in Germany through the acquisition of other manufacturing specialists.

Tesla announced its plans to build a car and battery factory in Europe in 2016. Several countries campaigned to be the host, and eventually Germany was chosen in November 2019. On March 22, 2022, Tesla’s first European Gigafactory named Gigafactory Berlin opened with planned capacity to produce 500,000 electric vehicles annually as well as batteries for the cars.

Tesla opened its first showroom in Asia in Tokyo, Japan, in October 2010.

In July 2018, Tesla signed an agreement with Chinese authorities to build a factory in Shanghai, China, which was Tesla’s first Gigafactory outside the United States. The factory building was finished in August 2019, and the initial Tesla Model 3s were in production from Gigafactory Shanghai in October 2019. In 2024, China accounted for 21% of Tesla sales revenue and was the second-largest market for Tesla after the United States, which accounted for 48% of its sales. Tesla also sold 37% of its cars in China in 2024.

Tesla expressed interest in 2023 in expanding to India and perhaps building a future Gigafactory in the country. The company established a legal presence in the nation in 2021 and plans to open an office in Pune starting in October 2023.

Partners

In January 2010, Tesla and Panasonic, a battery cell maker, announced they would work together to develop nickel-based lithium-ion battery cells for electric vehicles. Beginning in 2010, Panasonic invested $30 million for a multi-year project to create new battery cells designed for electric vehicles. In July 2014, Panasonic agreed to help Tesla produce batteries at Giga Nevada. Tesla and Panasonic also worked together to make photovoltaic (PV) cells and modules at the Giga New York factory in Buffalo, New York. This partnership started in mid-2017 and ended in early 2020. Panasonic stopped making solar products entirely in January 2021.

In March 2021, Panasonic’s outgoing CEO said the company planned to reduce its reliance on Tesla as the battery partnership changed.

Tesla has long-term contracts to supply lithium. In September 2020, Tesla signed an agreement with Piedmont Lithium to buy high-purity lithium ore for up to ten years, specifically from Piedmont’s North Carolina mineral deposit. In 2022, Tesla agreed to purchase 110,000 tonnes of spodumene concentrate over four years from Core Lithium’s mine in Australia’s Northern Territory.

Tesla also has smaller partnerships, such as installing destination chargers with Airbnb and hotel chains at selected locations. Another partnership involved working with Lemonade, an insurance company, to create an autonomous car insurance program.

Daimler and Tesla began working together in late 2007. On May 19, 2009, Daimler bought less than 10% of Tesla’s shares for $50 million. As part of the partnership, Herbert Kohler, a Daimler executive, joined Tesla’s board. On July 13, 2009, Daimler sold 40% of its shares to Aabar, an investment company linked to the government of Abu Dhabi. In October 2014, Daimler sold its remaining shares for $780 million.

In 2010, Tesla provided battery packs for Freightliner Trucks. Tesla also made electric-powertrain parts for the Mercedes-Benz A-Class E-Cell, with 500 cars planned for a trial in Europe starting in September 2011. Tesla helped design the Mercedes-Benz B250e’s powertrain, which stopped production in 2017. The car had a 36 kWh battery, a 134 hp motor, and a driving range of 200 km (124 miles) with a top speed of 150 km/h (93 mph). Daimler’s Smart division produced the Smart ED2 cars from 2009 to 2012, which used Tesla’s 14 kWh lithium-ion battery.

In May 2010, Tesla and Toyota agreed to a deal where Tesla bought Toyota’s former NUMMI factory for $42 million, and Toyota purchased $50 million in Tesla stock. The companies worked together on an electric vehicle.

In July 2010, they announced plans to develop a second generation of the Toyota RAV4 EV. The car was shown at the 2010 Los Angeles Auto Show, and 35 pilot vehicles were made for a test program in 2011. Tesla supplied the battery and other powertrain parts based on the Roadster’s design.

A production version of the RAV4 EV was unveiled in August 2012, using parts from the Tesla Model S sedan, which was also launched in 2012. The RAV4 EV had limited production, with about 3,000 vehicles made before it was discontinued in 2014.

According to Bloomberg News, the Tesla-Toyota partnership faced problems, including disagreements over battery design. Toyota engineers changed Tesla’s proposed design for the battery enclosure. In 2014, Tesla added a titanium plate to the Model S’s battery after some crashes caused fires. On June 5, 2017, Toyota announced it had sold all its Tesla shares and ended the partnership.

Early versions of Autopilot were developed with Mobileye starting in 2014. Mobileye ended the partnership on July 26, 2016, due to disagreements about how the technology was used.

Lawsuits and controversies

In 2008, Tesla gave two Roadsters to the British television show Top Gear for testing. Tesla may have confused the show with another program and suggested that the hosts could test the car. Top Gear evaluated the car as a performance sports car, focusing on humor and entertainment rather than providing an unbiased review of its intended use. The show criticized the car’s use in some ways but praised its performance and handling on the track. Tesla was angry about what it saw as unfair criticism. For example, Top Gear reported that the car’s battery would last 55 miles during performance tests, a number Tesla provided. Tesla claimed this number was false and sued, but it lost the case.

In 2025, when Tesla faced protests and vandalism due to Elon Musk’s political activities with the Trump government, former Top Gear presenter Jeremy Clarkson made comments about the vandalism. He said, “It’s not funny. But also, it’s kinda hilarious. Especially if you’re me.”

In 2021, seven women accused Tesla of allowing a culture of sexual harassment at its Fremont factory. They reported being subjected to unwanted attention, touching, and discrimination. One woman said she created barriers to protect herself from harassment. The women claimed the company failed to address their complaints, as supervisors were often involved. While Musk was not indicted, some women believed his behavior as CEO contributed to the harassment. They cited his crude remarks about women and dismissive attitude toward harassment reports. Tesla had previously fired another woman in 2017 for similar allegations, claiming the complaints were not valid after an investigation.

In May 2022, a California judge allowed the sexual harassment lawsuit to proceed in court, rejecting Tesla’s request for private arbitration.

Tesla has faced labor disputes in the United States, Germany, and Sweden, including an ongoing strike in Sweden. Tesla, an American company that makes electric cars and solar panels, employs over 140,000 workers globally as of January 2024. Elon Musk has opposed unions on social media, but a court ruled one of his tweets unlawful, though the decision was later overturned. Unionization efforts at Tesla’s factories in the U.S. have failed. In Germany, Tesla’s factories have elected works councils but have not signed union agreements. In Sweden, mechanics from a trade union have been on strike since October 2023, the longest strike in Sweden since 1938. The strike has spread to other countries.

In June 2016, the National Highway Traffic Safety Administration (NHTSA) criticized Tesla for using non-disclosure agreements (NDAs) to prevent customers from sharing repair information. In 2021, NHTSA asked Tesla to explain its NDA policy related to its FSD Beta program. Tesla has used NDAs with employees and customers to allegedly prevent negative publicity.

From 2014 to 2018, Tesla’s Fremont Factory had three times as many safety violations as the ten largest U.S. auto plants combined. A podcast investigation claimed Tesla failed to report serious injuries to hide the extent of harm.

In 2019, a former Tesla security manager filed a whistleblower complaint, alleging the company hacked employees’ phones and failed to report illegal activities. Legal cases involving alleged retaliation by Tesla include the dismissal of a safety official and a security employee. In 2020, the court ordered the security employee’s case to arbitration. In 2022, an arbitrator ruled the employee’s claims were not valid.

In 2022, the California Civil Rights Department sued Tesla, claiming a pattern of racial harassment at its Fremont factory. As of 2023, the department is investigating the factory based on a 2021 complaint and claims Tesla has obstructed the investigation.

A 2024 study by iSeeCars found Tesla had the highest fatal crash rate among U.S. automakers.

In 2025, a California lawsuit alleged Tesla odometers exaggerated mileage to void warranties early.

In 2025, Tesla faced a federal investigation into possible safety defects in its FSD system after 44 reports of drivers violating traffic laws, such as running red lights.

Concerns about Tesla’s financial reporting have occurred multiple times. In 2013, Bloomberg questioned whether Tesla’s financial reports violated accounting rules. In 2016, Fortune accused Tesla of using creative accounting to show profits. In 2018, analysts raised concerns about Tesla’s accounts receivable. In 2019, the SEC questioned Tesla’s CFO about warranty reserves and lease accounting. In 2019, a hedge fund manager accused Musk of “significant fraud” and questioned Tesla’s accounting practices.

From 2012 to 2014, Tesla earned over $295 million in credits for a battery-swapping technology it never offered to customers. California officials warned Tesla was “gaming” the system and recommended ending the credits.

A shareholder lawsuit claims Musk knew SolarCity was failing before its acquisition by Tesla, that the board overpaid for the company, ignored conflicts of interest, and failed to disclose key information. The board members settled the case.

Criticism

A Tesla car was the second product ever reviewed by the Mozilla Foundation that did not meet their privacy rules.

A Tesla owner started a legal case in 2023 after a news report by Reuters said Tesla workers shared "very private videos and photos taken by customers’ car cameras" with other employees.

In late 2023, a former Tesla employee named Lukasz Krupski shared large amounts of internal data with government groups and news organizations. This data showed Tesla had serious problems with protecting information. The data included details about Tesla workers, such as passport numbers, health records, and salaries, which were easily accessible to most employees. As of November 2023, the Netherlands’ Data Protection Authority was looking into whether Tesla’s weak security broke privacy laws.

TSLAQ is a group of people who are not confident in Tesla and bet against its stock. In January 2020, 20% of Tesla’s stock was bet against, the highest percentage at that time for any U.S. stock. By early 2021, short sellers had lost $40 billion as Tesla’s stock price rose. Michael Burry, a short seller featured in The Big Short, had previously bet against Tesla through his company, Scion Asset Management, but he stopped his bet in October 2021.

Automotive journalist Jamie Kitman reported that when several car company leaders asked Tesla for electric vehicle technology that Elon Musk said the company would share, they were instead offered the chance to buy credits that help companies meet environmental regulations. Kitman said this suggested Tesla might not be as supportive of the electric car movement as it claims.

In 2020, the New York State Comptroller released a report about the Giga New York factory project. The report found many warning signs, including poor planning and that the factory only created $0.54 in economic value for every $1 the state spent on it.

Elon Musk has faced criticism for delaying the production and release dates of Tesla products. In 2016, Musk missed 20 predictions. In October 2017, Musk said Tesla would make 5,000 Model 3 cars per week by December. A month later, he changed the goal to "sometime in March" 2018. Delivery dates for the Model 3 were also delayed. Other projects, like turning supercharger stations into solar-powered ones, also fell behind schedule. Musk explained in late 2018 that he is not very good at meeting deadlines, saying, "I’m not very good at being on time…I never made a mass-produced car. How am I supposed to know with precision when it’s gonna get done?"

Accolades

In 2019, the Model 3 received the Top Safety Pick+ Award from the Insurance Institute for Highway Safety. In 2022, the Model Y achieved the highest safety score among cars tested by Euro NCAP.

In 2022, Tesla won the S&P Global Automotive Loyalty Awards in seven categories.

In 2025, TIME magazine recognized the Model S as one of the best inventions of the past 25 years, calling it a "game-changing advance for electric vehicles."

Motor Trend listed the Cybertruck as a candidate for its 2025 Truck of the Year award, highlighting its steer-by-wire system and other technologies, while noting "the design's many compromises."

Vehicle product issues

On April 20, 2017, Tesla recalled about 53,000 of its 76,000 vehicles sold in 2016 because the parking brakes could get stuck and stop the cars from moving. On March 29, 2018, Tesla recalled 123,000 Model S cars made before April 2016 because the power steering bolts could corrode and make it harder for drivers to control the vehicles.

In October 2020, Tesla recalled nearly 50,000 Model X and Y cars in China due to problems with the suspension. In November 2020, the National Highway Traffic Safety Administration (NHTSA) began an investigation into 115,000 Tesla cars, including 2015–2017 Model S and 2016–2017 Model X vehicles, because of front suspension safety issues. Reports of a "whompy wheel" problem, which also involved some Model 3 cars, were recorded through 2020.

In February 2021, the NHTSA required Tesla to recall 135,000 Model S and Model X cars made between 2012 and 2018 because the flash memory device used in the cars was not designed to last more than 5 to 6 years. This could cause touchscreen failures that might affect the rearview camera, safety systems, Autopilot, and other features. The issue happened because the car stored too much data on the device, causing it to wear out quickly.

Also in February 2021, the German Federal Motor Transport Authority (KBA) ordered Tesla to recall 12,300 Model X cars because of problems with the body moldings.

In June 2021, Tesla recalled 5,974 electric vehicles because brake caliper bolts might become loose, which could lead to tire pressure loss and increase the risk of a crash.

On December 30, 2021, Tesla announced a recall of more than 475,000 U.S. vehicles. This included 356,309 Model 3 cars from 2017 to 2020 due to rearview camera problems and 119,009 Model S cars because of possible trunk or boot issues. The Model S recall covered vehicles made between 2014 and 2021. About 1% of the Model 3 cars and 14% of the Model S cars had the defects. The recall was not related to the "Passenger Play" feature, which allowed games to be played on the touchscreen while the car was moving. After an NHTSA investigation of 585,000 vehicles, Tesla agreed to disable the feature so it could not be used while the car was moving.

In September 2022, Tesla recalled nearly 1.1 million U.S. vehicles because the automatic window reversal system might not work correctly after detecting an object, increasing the risk of injury. Tesla provided a software fix for this issue.

In February 2023, Tesla recalled its Full Self-Driving (FSD) software after the NHTSA found it created "unreasonable risk" when used on city streets. In March 2023, about 3,500 Model Y cars were recalled because of a problem with the second-row seat bolts.

In December 2023, after a 2-year NHTSA investigation, Tesla recalled all vehicles with any version of Autosteer, including 2012–2023 Model S, 2016–2023 Model X, 2017–2023 Model 3, and 2020–2023 Model Y. This affected 2,031,220 vehicles in total. The NHTSA said Autosteer’s controls did not ensure drivers remained responsible for operating the vehicle and required a software update to fix the issue.

Tesla customers have reported that the company was slow to address concerns about cars catching fire. In 2013, a Model S caught fire after hitting metal debris on a highway in Washington. Tesla said the fire started in the battery pack. After this and other incidents, Tesla extended its warranty to cover fire damage. In March 2014, the NHTSA closed its investigation into the Model S after Tesla improved battery protection. In October 2019, the NHTSA began an investigation into possible battery defects in Model S and X cars that could cause fires without a crash.

In 2016, a Model S driver died in a collision with a tractor-trailer while using Autopilot. The NHTSA found no safety-related defects. In March 2018, a Model X driver died in a crash while using the "self-driving" mode and playing games on the phone. Investigators said the car’s system was confused by a freeway exit.

In June 2021, the NHTSA started at least 30 investigations into Tesla crashes involving Autopilot, some of which involved deaths. In September 2021, the NHTSA added another fatality to the list and asked Tesla to provide data about Autopilot to check for safety defects. Tesla released a software update to detect emergency lights at night. In October 2021, the NHTSA asked

Vehicle sales

In 2024, Tesla was the top-selling maker of battery-powered electric cars worldwide, with 17.6% of the market. Tesla reported delivering 1.8 million vehicles in 2023, a 38% increase from 2022. In March 2024, Tesla produced its six millionth car. In the fourth quarter of 2023, a Chinese electric vehicle company called BYD became the top seller of electric vehicles, but Tesla regained the top spot in the first quarter of 2024. On January 2, 2026, BYD became the world’s best-selling electric vehicle maker and surpassed Tesla as the largest EV maker.

Tesla sold the most vehicles in the United States in 2023, with over 674,000 units. The company received $11.4 billion in government credits for following rules. The federal government once gave customers a $7,500 rebate. Tesla also received about $426 million from the Chinese government for cars made at its Shanghai factory. Germany was Tesla’s third-largest market in 2023, with 63,682 vehicles sold. Germany ended its EV subsidy program in December 2023, which had given buyers a €6,750 discount. Tesla paid €2,250 of this discount, but the company later said it would cover the full discount. In 2023, over 63,000 Teslas were sold in France, where buyers received up to €7,000 through a government program. France reduced its budget for EV support from €1.5 billion to €700 million in 2024. Canada was one of Tesla’s top five markets in 2023, with over 52,000 vehicles sold. In 2025, Tesla sold 8,600 vehicles in 72 hours in Canada before a government rebate program ran out of money. Tesla claimed 4,000 cars were sold in one weekend in Quebec City. The Canadian government suspended rebates and began an investigation in March 2025. It also said Tesla would not be eligible for future rebates as long as U.S. tariffs on Canadian products remained in place. Elon Musk, Tesla’s leader, has said he opposes government subsidies but will accept them if available.

Tesla’s sales have been affected by Musk’s actions during the second Trump presidency. Sales dropped worldwide, especially in countries like France, Germany, the UK, Sweden, Norway, and the Netherlands. Musk’s public support for far-right political groups, such as Reform UK and AfD in Germany, and a controversy involving a Nazi salute, led to boycotts. German sales dropped 76% in February 2025 compared to February 2024.

Tesla’s stock price fell over 9% after sales in the EU and UK dropped nearly 50% in January 2025, making the company’s value less than $1 trillion for the first time since November 2024. While electric car sales in Europe increased, Tesla faced more competition, especially from Chinese companies. In May 2025, Tesla’s European sales dropped every month since the start of the year, including a 49% decline in April, from 14,228 to 7,261 vehicles. As of May 2025, Tesla had a 0.7% market share in Europe, down from 1.3% a year earlier.

Tesla’s vehicle deliveries change monthly due to issues like car carrier availability and registration. On March 9, 2020, Tesla produced its 1 millionth electric car, becoming the first carmaker to reach this milestone. In the third quarter of 2021, Tesla sold its 2 millionth electric car, another first. In the first quarter of 2023, the Model Y became the world’s best-selling car, surpassing the Toyota Corolla.

Finances

In the fiscal (and calendar) year 2021, Tesla earned a net income of $5.52 billion. The company’s total revenue for the year was $53.8 billion, which was 71% higher than the previous fiscal year.

Of the $53.8 billion in revenue, $314 million came from selling credits to other car companies to help them meet government pollution rules. This amount has been a smaller part of Tesla’s revenue in recent quarters.

At the end of 2021, Tesla had $17.6 billion in cash, which was $1.8 billion less than the amount it had at the end of 2020.

In February 2021, a 10-K filing showed that Tesla had invested about $1.5 billion in the cryptocurrency Bitcoin. The company said it would soon accept Bitcoin as a way to pay for goods. Some people criticized this choice because it might not support Tesla’s environmental goals. Tesla earned more profit from the 2021 Bitcoin investment than it did from selling cars in 2020, due to the rise in Bitcoin’s price after the investment was announced.

In the quarter ending June 2021, Tesla made a profit without relying on Bitcoin or regulatory credits. Between 2015 and 2024, one-third of Tesla’s profits came from government climate credits.

The main trends for Tesla are (as of the financial year ending December 31):

Corporate affairs

Tesla has had several people serve on its board of directors. From 2004 to 2007, Martin Eberhard was a board member. Ze'ev Drori served from 2007 to 2008. Elon Musk has been on the board since October 2008. Later, Elon Musk was a board member from 2004 to 2018. Robyn Denholm has been on the board since November 2018.

Tesla has faced criticism about the independence of its board members. In April 2017, a group of important Tesla investors, including the California State Teachers' Retirement System, wrote a letter asking Tesla to add two new independent directors who had no connections to Elon Musk. They noted that five of the six non-executive directors at the time had professional or personal ties to Musk, which might affect their ability to make unbiased decisions. At that time, the board included Brad Buss, who had worked as the chief financial officer at SolarCity; Steve Jurvetson, a venture capitalist who also sat on the board of SpaceX; Elon Musk’s brother, Kimbal; and Ira Ehrenpreis and Antonio Gracias, both of whom had invested in SpaceX. The letter encouraged Tesla to create a more independent board to prevent decisions based on shared thinking. Elon Musk initially responded on Twitter, suggesting the investors should buy Ford stock because "their governance is amazing." Two days later, he promised to add two independent board members. Kathleen Wilson-Thompson and Larry Ellison were added in late 2018. Ellison left the board in August 2022. J. B. Straubel, a former Tesla chief technology officer who left the company in 2019, joined the board in 2023.

Another concern is that many independent directors do not have experience in the automotive industry. The exception is Robyn Denholm, who worked in finance and corporate reporting roles at Toyota Australia from 1989 to 1996.

Other past board members included businessman Steve Westly, Daimler executive Herbert Kohler, Johnson Publishing Company CEO and Chairman Linda Johnson Rice, and United Nations Special Envoy Hiromichi Mizuno.

As of May 2023, the board members were:

The 10 largest shareholders of Tesla in March 2024 were:

As of 2026, Tesla said it did not owe taxes to the U.S. government for all but one of the past 20 years.