Tesla

Background

Over the last 20 years, Tesla has grown from a niche electric vehicle startup to an automotive giant that now sells roughly 2 million electric cars each year.  But the company, led by CEO Elon Musk, is much more than a carmaker.

While it's one of the world’s leading electric vehicle manufacturers, the company has argued it should be viewed as a multifaceted technology organization working to accelerate the world’s transition to sustainable energy. Efforts range from battery storage solutions to renewable energy products, in addition to its EV offerings.

With nearly 20% of the global market share of new EV sales and half of US electric vehicle sales, Tesla has become one of the world's most valuable companies. Visit our Electric Vehicles topic page to learn more about the technology.

History

Tesla was founded in 2003 by Martin Eberhard and Marc Tarpenning. Musk joined in 2004 as an early investor and chairman of the board (see bio), taking over as CEO in 2008.

Other electric car startups have found success over the past few decades, like China’s BYD, which was founded in 1995 and sold 3 million electric and plug-in hybrid vehicles in 2023. But it was Tesla’s entry into the market that’s regarded as having helped change public perception of EVs in a major way.

The company was named in honor of inventor Nikola Tesla, famous for pioneering the development of alternating current electricity. The startup debuted its first product, the Roadster, in 2008.

It was a milestone for both the company as well as the electric car market (see stats). In addition to the Roadster demonstrating the viability of electric cars with its range of more than 200 miles per charge, it was also the first high-performance, highway-legal car to use more energy-efficient lithium-ion battery cells. 

The Roadster also paved the way for future Tesla models like the Model S, Model X, Model 3, and Model Y. 

Precise figures are difficult to pin down, but when Tesla was founded it’s estimated there were fewer than 10,000 EVs in circulation, compared to around 20 million today.

Tesla sold almost 1.8 million vehicles in 2023, or a little over 14% of the more than 14 million EVs sold globally that year. That’s also up from the 1.3 million vehicles Tesla sold annually in 2022 (which was the first year Tesla surpassed 1 million sales).

Tesla Today

As of early 2024, two of the top three bestselling EV vehicles on the global sales charts were Teslas, with the Model Y and the Model 3 in the No. 1 and No. 3 spots, respectively (check out the full Top 20 here). Since 2020, Tesla has also consistently turned a full-year profit.

As it’s matured, Tesla has expanded to include an ecosystem of related products and services that both complement and support its vehicles. Its fleet also includes the Cybertruck, a futuristic-looking all-electric pickup truck.

While it faces several competitors, including Rivian and Lucid Motors as well as legacy brands like Ford and General Motors, Tesla stands out on a number of fronts—including for its vertical integration, as well as its Supercharger Network of charging stations around the US that ensure its vehicles enjoy longer driving ranges compared to many rivals.

Future

Musk has steered Tesla through a number of challenges over the years, including production delays and quality control issues that have ranged from small defects to recalls stemming from safety and performance issues.

Eventually, Tesla envisions that its self-driving software will allow for cars that operate without any human intervention.

Tesla continues to build new factories in places like Mexico, Berlin, and Austin, with those factories a lynchpin of its ongoing push to scale production, and the company is continuing to scale its energy storage solution division—products of which include Powerwalls and Solar Roofs.