Tesla: From a 2003 Startup to the Model 3, the Cybertruck and a Trillion-Dollar Brand

Tesla is an American company that designs and sells battery electric vehicles, home and grid-scale battery storage, and solar products. It began in 2003 as Tesla Motors and grew into one of the most valuable automakers in the world. Its line-up has run from the Roadster sports car to the Model Y crossover and the Cybertruck pickup.

When was Tesla founded and who started it?

Tesla was incorporated on 1 July 2003 by Martin Eberhard and Marc Tarpenning as Tesla Motors. The name honours the inventor Nikola Tesla. Elon Musk led the first funding round in February 2004 and became chairman, and he later claimed a co-founder role.

Eberhard wanted to build a car maker that was also a technology company, with the battery, software and motor at its core. Ian Wright joined a few months after incorporation, and J. B. Straubel became chief technical officer in May 2004.

The company raised US$7.5 million in February 2004. Of that, $6.5 million came from Musk, who had received $176 million from selling his PayPal interest two years earlier. A 2009 settlement later allowed five early figures to call themselves co-founders.

A 2003 start-up that proved electric cars could be desirable, then built a mass market around them.

How did the Roadster launch?

Production of the Roadster began in 2008 inside a former Chevrolet dealership in Menlo Park. The car was low volume, with fewer than 2,500 built, and it was priced above $100,000. The first-generation car was rebuilt from the Lotus Elise chassis and was produced until 2012.

In series production, the Roadster became an early highway-legal electric car running on lithium-ion cells. Its launch gave the company a credible product while it built the financial base for a mass-market car.

Leadership changed quickly in those years. Ze'ev Drori became chief executive in December 2007, and Musk took the job in 2008, a role he has held ever since.

How did Tesla become a public company?

Tesla went public on 29 June 2010 at $17 per share, raising $226 million on its opening day on the NASDAQ. It joined the NASDAQ-100 on 15 July 2013, a sign of how quickly its profile had grown after the listing.

The company has since been one of the most valuable companies by market capitalisation. It has been the world's most valuable automaker since July 2020, and it was a US$1 trillion company from October 2021 to March 2022.

When did the Model S and Model X arrive?

The Model S sedan began production in 2012, and the Model X SUV followed in 2015 with falcon-wing doors. The Model S won the 2013 Motor Trend Car of the Year, which helped establish Tesla as a serious luxury brand.

The Model X shares around 30 percent of its content with the Model S. On 28 January 2026 the company announced that it would discontinue both models to focus on its Optimus robot.

How did the Model 3 and Model Y change the company?

The Model 3 was Tesla's first mass-market vehicle. It was shown as a prototype in 2016 and deliveries began in July 2017, and it drew over 325,000 paid reservations within a week. It was the world's best-selling electric car from 2018 to 2021.

The Model 3 launch was rocky. Tesla invested heavily in robotics to assemble the car, but the automation slowed production, and the company described the period as production hell. By the end of 2018 those problems had been overcome.

The Model Y followed as a mid-size crossover based on the Model 3, and around 75 percent of its content carries over from that car. In the first quarter of 2023 it outsold the Toyota Corolla, becoming the world's top-selling car and the first electric model to hold that position.

What are the Cybertruck and the Semi like?

The Cybertruck is a full-size pickup with a body made from flat sheets of unpainted stainless steel. Its EPA range estimates run from 320 to 340 miles (510 to 550 km), depending on the model. Deliveries began in 2023 after a long run of delays.

The Semi is a Class 8 truck with a range of 500 miles (800 km). High-volume production started on 29 April 2026, after years of prototype and pilot work.

Tesla once planned far higher Cybertruck output, but as of 2025 it was selling around 20,000 units per year. That gap between plan and sales is one of the clearest examples of how the company's targets have shifted.

What battery formats does Tesla use?

As of 2023 Tesla uses four cell formats: 18650, 2170, 4680 and prismatic. The 2170 cell is 21 mm across and 70 mm high, while the newer 4680 cell is 46 mm in diameter and 80 mm high, which allows more capacity per cell.

BloombergNEF estimated Tesla's battery pack cost in 2021 at $112 per kWh, against an industry average of $132 per kWh. That cost advantage is central to the company's ability to sell cars at lower prices over time.

Tesla has also developed its own cells in-house. The 4680 is produced at Gigafactory Texas, while the company continues to buy cells from several suppliers for other models.

How does Tesla deliver software to its cars?

Tesla delivers software updates over the air, adding features or fixing problems without a workshop visit. Autopilot was announced in 2014, and the first hardware version began shipping with all new cars in September 2014.

Tesla makes both induction motors and IPM-SynRM motors, and it controls a large part of its electronics in-house. That tight integration lets the company decide which features each customer can use.

The North American Charging Standard has been used on Tesla vehicles since 2012. Several other manufacturers have since announced plans to adopt the connector, which has made it a rare case of a proprietary standard becoming a common one.

How has Tesla's business model worked?

Tesla sells its vehicles through its own website and company-owned stores rather than through franchised dealers. In places where direct sales are restricted, it operates galleries that inform customers but do not sell cars.

The company describes itself as vertically integrated, developing batteries, motors and software in-house. Most rivals outsource much of their component supply, which makes Tesla's approach unusual in the car industry.

What production milestones has Tesla reached?

Tesla produced its 1 millionth electric car on 9 March 2020 and sold its 2 millionth electric car in the third quarter of 2021. It produced its six millionth car in March 2024, a milestone that underlines how far output has grown.

Deliveries reached 1.8 million vehicles in 2023, a rise of 38%. In 2024 Tesla held a 17.6% share of the battery electric vehicle market, which made it the world's best-selling battery electric car maker that year.

The United States is Tesla's biggest market. It sold 674,000 vehicles there in 2023, and Germany was the third-largest market that year with 63,682 units.

Where are Tesla's factories?

Tesla runs seven large plants, plus about a dozen smaller sites, across several continents. The network has grown through a series of Gigafactories, each built to serve a regional market.

Gigafactory Berlin opened on 22 March 2022 with planned capacity of 500,000 vehicles a year. Gigafactory Texas opened on 7 April 2022 and produces the Cybertruck. Each site was chosen for its access to customers and supply chains.

Does Tesla sell energy products too?

Yes. Tesla Energy develops solar energy systems and battery storage products for homes, businesses and utilities. Its online platform handles power trading and demand forecasting for large customers.

For homes the company runs a virtual power company in Texas, which uses customers' Powerwall batteries to sell power back to the grid when prices are high. The storage side of the business has grown quickly in recent years.

What recent software and AI changes has Tesla made?

Basic Autopilot was discontinued for new vehicles in the United States and Canada on 22 January 2026, and it was replaced with Traffic Aware Cruise Control as the standard safety system. Full Self-Driving became available only as a monthly subscription from 14 February 2026.

The shift reflects a broader move toward more advanced driver assistance. Tesla's Robotaxi service, launched in 2025 in Austin, Texas, still relies on human supervisors while it works toward fully autonomous rides.

Who leads Tesla and how is Musk paid?

Elon Musk has been chief executive since 2008, and Robyn Denholm has chaired the board since November 2018. A Delaware court rejected a $56 billion pay package in December 2024, and in November 2025 Tesla approved a package worth $1 trillion over 10 years.

The board's composition has been criticised. Investors wrote in 2017 that most non-executive directors had ties to Musk, and the company later added independent directors to address those concerns.

What safety recalls has Tesla issued?

Tesla recalled 475,000 US vehicles on 30 December 2021, and in December 2023 it recalled 2,031,220 vehicles over Autosteer. The Autosteer recall followed a two-year investigation by the National Highway Traffic Safety Administration.

Door handles have been a serious concern. At least 15 people have died in US Teslas whose doors would not open after a crash, and some rear doors have no manual release, which regulators are now examining.

What legal disputes has Tesla faced?

Owen Diaz won a $137 million jury verdict in October 2021 over racial harassment at the Fremont factory. The award was later reduced and retried, and Diaz was awarded $3.2 million in a new trial in April 2023.

In September 2018 Musk settled SEC fraud charges over his statements about taking the company private, and he paid a $20 million fine. The episode shaped the board's composition and the company's approach to public statements.

What awards has Tesla won?

The Model 3 earned the Top Safety Pick+ Award in 2019, and the Model Y received the highest Euro NCAP safety score in 2022.

TIME named the Model S among the best inventions of the past 25 years in 2025. Those honours sit alongside the company's commercial record, which has made it one of the most recognised car brands on earth.

Tesla at a glance

The table gathers headline figures for the company, from its 2003 founding and Austin headquarters to its listing, sales, leadership and pay. It is a quick reference for the numbers that matter most.

Frequently asked questions

When did Tesla list on the NASDAQ?

The listing took place in June 2010, and the company joined the NASDAQ-100 on 15 July 2013.

Did Tesla join the S&P 500?

Yes. Tesla was added to the S&P 500 on December 21, 2020, and it was the most valuable company ever added to the index at that point.

How big is Cybertruck output?

Tesla is selling around 20,000 Cybertrucks a year as of 2025, far below its earlier plans for the model.

What is the Semi's range?

Tesla states that the Semi has a range of 500 miles (800 km) and that high-volume production began on 29 April 2026.

When did the Cybertruck arrive?

The Cybertruck pickup began in 2023, and it is the most recent pickup in the company's range.