Tesla Success Story - Leading the Charge in Innovation and Sustainability

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Tesla, recognized as the world's most valuable automaker and maker of clean energy, is one of the most admired companies in the world for many reasons. Be it the unique features of Tesla vehicles, Tesla's Supercharger network that has simplified charging for electric vehicles, or because of its charming CEO, Elon Musk, Tesla has gained immense popularity.

In 2003, Tesla Motors was established by a group of visionaries, including Elon Musk, Martin Eberhard, JB Straubel, Marc Tarpenning, and Ian Wright. This groundbreaking company has since achieved remarkable milestones, including reaching a historic moment in 2021 when its market capitalization exceeded $1 trillion, making it an exclusive trillion-dollar company.

In this article, let's explore the story of Tesla, its founders, its business and revenue model, growth, and more.

Tesla - Company Highlights

About Tesla
Tesla - Industry
Tesla - Name and Logo
Tesla - Founders and Team
Tesla - Startup Story and History of Tesla Cars
Tesla - Mission and Vision Statement
Tesla - Business Model and Revenue Model
Tesla - Partnerships
Tesla - Subsidiaries
Tesla - Acquisitions
Tesla - Funding and Investors
Tesla - Investments
Tesla - Growth
Tesla - Competitors
Tesla - Challenges Faced
Tesla - Future Plans

About Tesla

Tesla, develops, produces, rents, and distributes electric automobiles, as well as energy generating and storage solutions, in the United States, China, and across the world. Automotive and Energy Generation and Storage are the company's two prominent segments. Tesla was founded in 2003.

The Automobile section sells automotive regulatory credits as well as electric cars. Tesla sells sedans and sport utility vehicles directly and through used car sales. With 45,000+ Superchargers, Tesla owns and operates the largest global, fast-charging network in the world. Tesla's automotive segment also offers buy-financing and leasing options. By downloading the Tesla app, Tesla vehicle owners can connect their smartphones to their cars and access a wide array of features. Through the Tesla app, one can access his Tesla vehicle and energy products from anywhere.

This segment also provides non-warranty after-sales automotive assistance, as well as the sale of used vehicles, retail merchandise, and vehicle insurance, as well as the sale of products to third-party customers through its subsidiaries, services for electric vehicles through company-owned service locations, and Tesla mobile service technicians, and vehicle limited warranties and extended service contracts.

Through its online platform, stores, and galleries, as well as a network of channel partners, the Energy Generation and Storage segment designs, manufactures, installs, sells, and leases solar energy generation and energy storage products and related services to residential, commercial, and industrial customers and utilities. This sector also provides servicing and maintenance for its energy product clients, including under warranty, as well as a variety of solar financing alternatives.

Tesla Motors, Inc. was the company's previous name until February 2017, when it changed to Tesla, Inc.

Tesla is unlike any of its peers. Tesla can address challenges differently than traditional automakers because it has done all of its software development in-house and has essentially grown up as a software and tech firm first, and an automotive second.

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Tesla - Industry

The international electric vehicle market is expected to increase at a CAGR of 26.8% from 4,093 thousand units in 2021 to 34,756 thousand units by 2030. Many companies are now manufacturing electric vehicles all over the world due to factors such as rising demand for low-emission transportation and governments encouraging long-range, zero-emission vehicles through subsidies and tax refunds. Countries throughout the globe have established emission reduction objectives based on their respective capabilities, which have resulted in increasing demand for electric vehicles all over the world.

Established firms such as Tesla (US), BYD (China), Volkswagen AG (Germany), BMW Group (Germany), and Nissan Motors(Japan) lead the electric vehicle market. These businesses also provide a wide range of products and services to the automobile sector. These corporations have extensive global distribution networks and invest extensively in R&D to generate new goods.

Tesla - Name and Logo

It has long been assumed that Tesla's logo symbolizes the cross-section of an electric motor initially conceived by the company's namesake, scientist, and inventor Nikola Tesla, rather than merely a fancy 'T.'

Elon Musk revealed to a curious Twitter user that the Tesla logo is meant to reflect the cross-section of an electric motor. The primary body of the "T" appeared to depict one of the poles that protrude from a motor's rotor, with the second line on top symbolizing a part of the stator, according to Elon Musk.

Tesla - Founders and Team

Elon Musk, Martin Eberhard, JB Straubel, Ian Wright, and Marc Tarpenning founded Tesla in July 2003.

Elon Musk

Elon Musk co-founded Tesla and currently oversees its product strategy, which includes the design, engineering, and production of more and more economical electric automobiles for ordinary folks. Musk holds a B.A. in physics from the University of Pennsylvania and a B.S. in business from the Wharton School of the University of Pennsylvania. He has served as Tesla's Chief Executive Officer since October 2008 and has been a member of the Board since April 2004.

In addition to his role at Tesla, Musk has also been Chief Executive Officer, Chief Technology Officer, and Chairman of SpaceX, a rocket and spacecraft manufacturing company, since May 2002. He was Chairman of the Board of SolarCity Corporation, a solar installation company, from July 2006 until its acquisition by Tesla in November 2016. Furthermore, Elon Musk completed his acquisition of Twitter in October 2022 and served as its CEO until he stepped down from his role in June 2023, succeeded by Linda Yaccarino. During this period, Elon implemented several reforms and management transitions, notably renaming the platform from "Twitter" to "X" in July 2023.

He is also a founder of The Boring Company and Neuralink Corp. Prior to his endeavors at SpaceX, Musk co-founded PayPal and Zip2 Corporation.

JB Straubel

JB Straubel is the founder and CEO of Redwood Materials, a Nevada-based firm that is creating a sustainable future by developing circular supply chains, converting trash into profit, and preventing new product environmental consequences before they occur. JB spent 15 years with Tesla as a co-founder and CTO before launching Redwood in 2017.

JB established one of the greatest engineering teams in the world at Tesla, where he oversaw cell design, supply chain, and the original Gigafactory idea all the way through the Model 3 production ramp. From prototype automobiles to mass production and GWh-scale, JB was directly involved in R&D, team creation, and operational expansion. JB graduated from Stanford University with a Bachelor of Science in Energy Systems Engineering and a Master of Science in Energy Engineering.

Marc Tarpenning

Clearpath Robotics, a developer of autonomous vehicles for industrial research and development, has Marc Tarpenning on its advisory board. He also serves as an advisor to a number of other businesses. He was previously a mentor at Greenstart.

Marc is a Venture Partner at Spero Ventures. Before joining Greenstart, he was an entrepreneur in residence at Mayfield Fund. Prior to that, he co-founded Tesla Motors and served as its vice president of engineering. He also worked with Packet Design, NuvoMedia, and Gemstar-TV Guide as an executive. Tarpenning graduated from the University of California, Berkeley, with a bachelor's degree in computer science.

Martin Eberhard

Martin Eberhard is an engineer, a seasoned Silicon Valley entrepreneur, and a 17-patent inventor. Eberhard completed a BS in Computer Engineering and an MS in Electrical Engineering from the University of Illinois at Urbana-Champaign in 1982 and 1984, respectively. He was recently honored by The University of Illinois with the Distinguished Alumni Award and an Alumni Award for Distinguished Service. Tesla Motors was formed in 2003 by Eberhard and his colleagues, and Eberhard served as its CEO until November 2007.

Eberhard worked for Volkswagen for two years after leaving Tesla Motors as Director of EV Development. He has given talks all around the world about the reasons and ways for decreasing carbon emissions, the advantages of the electric drive over alternative automobile technologies, entrepreneurship, and the need for more young people to pursue science and engineering degrees and careers. He presently sits on the boards of directors and advisory boards of many early-stage Silicon Valley startups.

Ian Wright

Ian Wright is a New Zealander by birth. In 1993, he moved to California, where he lived next door to Tesla creator Martin Eberhard. Wright became one of the founders of Tesla. He worked with optical switching systems at Altamar Networks until the company went out of business, after which he chose to create his own.

Vaibhav Taneja

In August 2023, Indian-origin Vaibhav Taneja assumed the role of Chief Financial Officer at Tesla, succeeding Zachary Kirkhorn and further strengthening the company's exceptional leadership team. Before his appointment as Tesla's CFO, Vaibhav demonstrated his financial acumen as Tesla's Chief Accounting Officer. He has also significantly contributed as Corporate Controller and Assistant Corporate Controller at Tesla since February 2017. Prior to his tenure at Tesla, Vaibhav played a pivotal role in various finance and accounting capacities at SolarCity Corporation.

Vaibhav has a Bachelor of Commerce degree from Delhi University, and he also holds the esteemed designation of being a Certified Public Accountant.

Tesla - Startup Story and History of Tesla Cars

Martin Eberhard and Marc Tarpenning launched Tesla (as Tesla Motors) on January 1, 2003, in San Carlos, California. After General Motors recalled all of its EV1 electric cars in 2003, the founders were encouraged to create the firm. The AC Propulsion tzero, an electric sports car manufactured by the US-based company AC Propulsion, was the inspiration for the Roadster, the company's first automobile.

Ian Wright came on board as the third employee a few months later. In January 2004, the three started seeking funding and met Elon Musk, who provided US$6.5 million of the original (Series A) US$7.5 million round of investment and became chairman of the board of directors in February 2004. Eberhard was then named CEO by Musk. J.B. Straubel was hired as the fifth employee in May 2004. Eberhard and Tesla reached a court settlement in September 2009 that permits all five co-founders (Eberhard, Tarpenning, Wright, Musk, and Straubel) to use the term "co-founder."

Musk took an active part in the firm, overseeing the Roadster's product design in great detail. Musk was the one who insisted on a carbon-fiber-reinforced polymer body from the start, and he directed the design of components ranging from the power electronics module to the headlights and other aesthetics, according to Eberhard. Musk earned the Global Green 2006 product design prize, awarded by Mikhail Gorbachev, for his design of the Tesla Roadster. He also received the 2007 Index Design award for his design of the Tesla Roadster.

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Tesla - Mission and Vision Statement

Tesla's vision is to create the most compelling car company of the 21st century by driving the world's transition to electric vehicles, while its mission is “to accelerate the advent of sustainable transport by bringing compelling mass-market electric cars to market as soon as possible.”

Tesla - Business Model and Revenue Model

Tesla's business model was reinforced once the company established its brand and developed and delivered its prototype car to the market. Tesla's business model is built around a three-pronged strategy for selling, repairing, and charging its electric automobiles.

Tesla's business strategy prioritizes the installation of charging stations. That might be the most significant impediment to the widespread adoption of electric automobiles. Tesla's business model has been expanded to include energy storage devices for households and businesses. Tesla's sales and servicing are handled directly by the company, rather than via licensed dealerships.

Tesla sells directly to consumers, unlike other automobile manufacturers that sell through franchised dealerships. It has established an international network of company-owned showrooms and galleries, the majority of which are located in major cities. Tesla thinks that by owning the sales channel, it would be able to accelerate the development of its products. More significantly, it improves the purchase experience for customers. Tesla showrooms, unlike automotive dealerships, are free of possible conflicts of interest. Customers solely deal with Tesla sales and service representatives. The direct selling of its products to the customers, its international network of showrooms and galleries, and the development of innovative products that are fuel-efficient and future-proof are some of the reasons that can answer if you are wondering why Tesla is successful.

Tesla’s Business Model - How Does Tesla Make Money

Tesla works as a Direct-to-Consumer business model. Its car sales, services, and energy generation and storage make money for the company.

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Tesla - Partnerships

Panasonic is a prominent Tesla partner and the company's primary battery cell developer.

The following is a list of alleged main suppliers for Tesla's manufacturing production, as well as the components they provide:

• AGC Automotive: windshields
• Brembo: brakes
• Fisher Dynamics: power seats
• Inteva Products: instrument panel
• Modine Manufacturing Co.: battery chiller
• Sika: acoustic dampers
• Stabilus: liftgate gas spring
• ZF Lenksysteme: power steering mechanism

Tesla - Subsidiaries

Following are five major subsidiaries of Tesla

Solar City Corp.

SolarCity was created in 2006 by two cousins of Elon Musk, namely Peter and Lyndon Rive. Musk was the one who came up with the idea for the firm, as well as provided the initial operating money and served as its chairman. SolarCity produces, installs, and sells solar energy systems, as well as solar-generated power. Tesla announced in August 2016 that it has finalized an agreement to buy SolarCity, with the deal set to close later that year.

Maxwell Technologies Inc.

The business was established in 1965. It specializes in ultracapacitors, which are energy storage devices that can hold several times more energy than normal capacitors. Its products are utilized in transportation, industrial, and grid energy storage, among other applications. Tesla purchased Maxwell in May 2019. Musk has previously stated that ultracapacitors will be a game-changer in the manufacturing of electric automobiles.

Grohmann Engineering GmbH (renamed Tesla Automation)

Klaus Grohmann created Grohmann Engineering in 1963 in Germany. The firm specializes in automated manufacturing system design and development. When Tesla announced its acquisition of Grohmann in November 2016, the company had 700 workers and had grown at a 6% annual pace over the previous 20 years. In January 2017, Tesla paid $135.3 million for the company.

Perbix Machine Co. Inc.

Perbix is a company that specializes in developing and producing specialized, highly automated production equipment. It was formed in 1976. Tesla bought the company in 2017. Tesla had bought Grohmann Engineering, a German-based company in a similar field, earlier in 2017. With the purchase of Perbix, Tesla will be able to manufacture more of its car parts in-house, giving them greater control over auto manufacturing. The acquisition was another move in Tesla's drive to streamline and speed the production process of its electric vehicles, after the Grohmann acquisition.

Hibar Systems Ltd.

Hibar Systems was formed in 1974 in Canada. The firm specializes in high-precision dispensing pumps and filling systems, such as automated vacuum filling systems for lithium-ion batteries used in electric vehicles. Because Tesla made no statement about the transaction, it's unclear when it happened. According to multiple U.S. and Canadian outlets, In October 2019, Tesla showed Hibar as one of its companies in an October 2 file with the Canadian government. Tesla's interest in the company is very obvious. Hibar will enable the electric car manufacturer to develop its own battery cells. This decision will help Tesla reduce critical operational expenditures and reduce its reliance on Panasonic Corp., with which it owns and manages a Nevada-based battery manufacturing in partnership.

Tesla - Acquisitions

Below are the details of Tesla's acquisitions:

Tesla sold Wiferion to PULS on September 12, 2023, a supplier of DIN rail power supplies. Wiferion is a wireless charging firm that Tesla purchased in June 2023 for an undisclosed sum.

Tesla - Funding and Investors

Tesla has raised a total funding of $19.2B in funding over 36 rounds. Below are some recent rounds of funding raised by the company.

Tesla - Investments

Here are the details of Tesla's investments:

Tesla - Growth

Tesla has made quite a revolution in the automobile and vehicle industry. The Austin, Texas-based company designs and produces electric vehicles, batteries, solar panels, solar roof tiles, and numerous other related products and services.
In a significant growth moment, Tesla briefly joined the trillion-dollar club in October 2021, propelled by a 10% stock surge following exciting announcements. It is, therefore, hailed as one of the world's most valuable companies, along with being the most valuable automaker across the globe.

Tesla captured 23% of the battery-electric (purely electric) market and 16% of the plug-in market in 2020 by emerging as the company with the most worldwide sales of battery-electric and plug-in vehicles.  

Along with the cars that Tesla has developed, the company also developed the Tesla "Cybertruck", which is designed as the truck of the future.

Cybertruck is an upcoming all-electric battery-powered light commercial vehicle. Also known as Cybertruck, Cybertrk, or Tesla Truck, it is designed by Franz Von Holzhausen, the man behind the famous models of Tesla like the Tesla Model S, and Model X. Sahm Jafary was also involved in its design. Originally announced in 2019, Tesla Cybertruck aimed to roll off the production lines by late 2021, however, due to some delays, it has been pushed to late 2022. This super truck is expected to be launched in India by December 2023.  

Features and Dimensions

Dimensions:

• Length - 231.7 in (5,885 mm)
• Width-79.8 in (2,027 mm)
• Height - 75 in (1,905 mm)

Features:

• Cybertruck is a commercial vehicle. It is an M-segment {European Segments for passengers described as "multi-purpose vehicle") and large - pickup truck for North America.
• It has a rear-motor wheel drive, dual and tri-motor.
  Cybertruck has a full-width Led headlight bar, an auxiliary strip for off-road driving hidden at the top of the windshield.
• The body is constructed of a thick sheet of stainless steel, which has been cold-rolled 30 times. It is scratch and dent resistant and can withstand a 9 mm-firearm round.
• Cybertruck doesn't have a traditional hoop. It has a steering wheel model after the type of aircraft Yoke with grips at 9 and 3 '0 clocks.
• It offers a camping package that includes a polygonal tent to match its styling, a raised sleeping floor for the bed, and a slide-out electric stove, which runs off the battery pack.
• It has a three-across front seating and a center jump set that turns into an arrest when not in use.
  Cybertruck also has a covered bed with a trunk on the floor and a "frunk" under the hood, each of the rear roof butterness hides storage compartments beneath the doors.
• The powdered bed is very strong and one can walk over it. It fully retracts into the space between the bed and the cabin when it is opened.

Specifications:

• 250kW + supercharging capability
• Autopilot, Adaptive, and Air Suspension
• On-board 120 /240 VC
• 100 cubic feet of storage space
• 6.5 ft long cargo area

With 45,000+ Superchargers, Tesla owns and operates the largest global, fast-charging network in the world. Tesla was expected to launch in India somewhere between 2022-2024, where the company might have made around 5 of the Tesla cars - Model 3, Model Y, Model X, Model S, and Cybertruck, available in India. However, this plan of foraying into the Indian market has been put on hold, as per the reports dated May 17, 2022. This is because Tesla wanted the Indian government to lower the import taxes, which the government rejected. Tesla has also acknowledged some hurdles that are there in the way of Tesla's India launch. The Elon Musk-headed company is now looking to foray into Indonesia for manufacturing, reports reveal.  

In 2022, Tesla generated approximately $81.5 billion in total revenue, securing the 50th spot on the Fortune 500 list, a ranking based on US company revenues. This marked a notable increase of over 50% from the previous year.

The predominant share of Tesla's revenue originates from vehicle sales and associated features, including full self-driving upgrades. Notably, around 17.5% of their 2022 revenue, equivalent to $14.3 billion, stemmed from other sources. Automotive sales constituted a significant portion, amounting to $67.2 billion, encompassing various models like the Model S, Model X, Semi, Model 3, and Model Y, alongside access to FSD features, internet connectivity, and software updates.

Tesla's Plans to Launch in India

Tesla had planned to launch in India for quite some time now but the Elon Musk-headed company has had numerous disagreements with the Narendra Modi-led government. High import taxes was the first among the issues pointed out by Tesla. The company, thus, wanted to get the import taxes on its electric vehicles reduced. However, that was not the norm of the government and had also led to objections given by the Indian manufacturers of EVs, who mentioned that it would deter the Indian government's investment in domestic manufacturing. The Indian policy head Manuj Khurana also conducted closed-door meetings, where he argued on behalf of the company that the import taxes were very high. However, this went to no avail with Manuj Khurana finally resigning.

Another issue around which numerous rumors and arguments surfaced is whether Tesla would set up manufacturing plants in India. However, Musk previously cleared all the confusion associated with that by mentioning that Tesla would not step in to manufacture in India before it is allowed to sell and service imported cars in the country.      

Tesla - Competitors

Tesla's top competitors include:

• Ford Motors Co.
• Volkswagen
• General Motors Co.
• Nikola Corporation
• Canoo Inc.
• NIO
• Li Auto

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Tesla - Challenges Faced

Tesla has seen a range of lawsuits filed against the company. Besides, numerous statements against the brand, and controversies surrounding the Tesla CEO and his talks, circulate throughout the year. Creative accounting allegations, whistleblower retaliation, worker rights violations, and numerous unresolved, dangerous technical defects involving the Tesla vehicles are there still.

Tesla has been developing self-driving software that may be used not only in its own cars but also by other automakers that wish to include autonomous driving capabilities in their vehicles. One issue is that other businesses are developing extremely powerful self-driving technology, maybe even ahead of Tesla's software. Alphabet's autonomous driving software is one example. Also, that translation isn't yet apparent in terms of selling this technology to other automobile makers.

Tesla auto-pilot mode has already met with numerous accidents, most of which still remain under the cover. This is the reason why NHTSA ordered Tesla in September 2021, to submit all the data associated with the sold US vehicles that are fitted with the auto-pilot function. The National Highway Traffic Safety Administration has already been investigating traffic deaths involving the use of autopilot vehicles, which is what fueled this move.

Besides, competition is also growing for Tesla as more electric vehicle manufacturers are entering the market.

Tesla Layoffs

Tesla fired 229 employees from its autopilot team, as per reports dated July 14, 2022. The Autopilot team of Tesla consisted of 276 employees in total. Here, the remaining 47 employees, who will stay at the company, will be moved to the Buffalo Autopilot office of Tesla. These employees actually operated from the San Mateo, California office of Tesla. Andrej Karpathy, the Tesla director of AI, also quit his position without disclosing any specific reasons. Earlier in June 2022, around 500 employees of Tesla were fired from its Nevada office against which, the Tesla employees filed a lawsuit that alleged that Tesla's "mass layoff" violated federal laws because the company didn't give the employees advance notice. Tesla had to cut staff by around 10% then, as reported by Tesla chief Elon Musk in June 2022.

Tesla - Future Plans

Tesla is unquestionably more than a vehicle manufacturer. While Tesla's major focus remains on electric vehicles, Elon Musk and his excellent staff have been discreetly moving into other businesses.

Tesla also intends to produce a big number of automobiles. As expressed by Musk on Twitter, Tesla expects to produce 20 million cars per year by 2030, a quantity that would need "consistently superb execution." In a series of tweets, he predicted that the market for new electric vehicles will reach 30 million per year in five to seven years.

Musk has a big plan to get the globe to switch to sustainable energy. During his Battery Day talk, he explained how increased battery production might cover energy consumption and help the global shift to renewable energy sources. The idea is ambitious: switching all automobiles to electric would necessitate a 100-fold increase in output.

Moreover, Tesla is on course to double the output of its Berlin plant, envisioning a capacity of one million electric vehicles annually. This strategic move positions it as a major player in Europe's electric vehicle landscape, addressing challenges faced by German automakers in adapting to the electric revolution.

By January 2024, the Indian government hopes to expedite the approval process for Tesla's possible admission into the India.

FAQs

What does Tesla do?

Tesla, develops, produces, rents, and distributes electric automobiles, as well as energy generating and storage solutions, in the United States, China, and across the world.

Who is Tesla named after?

Tesla is named after the inventor and electrical engineer Nikola Tesla.

Who founded Tesla?

Elon Musk, Martin Eberhard, JB Straubel, Ian Wright, and Marc Tarpenning are the Tesla founders, who founded Tesla in 2003.

Who's the current CEO of Tesla?

Elon Musk is the current CEO of Tesla.

How does Tesla make money?

Tesla's business model is built around a three-pronged strategy for selling, repairing, and charging its electric automobiles.

Which companies do Tesla compete with?

Tesla's top competitors include Ford Motors Co., General Motors Co., Li Auto, Nikola Corp., Canoo Inc., Volkswagen, and BYD Company.

Who is the new Tesla CFO?

Indian-origin Vaibhav Taneja is the new CFO of Tesla. His appointment comes as the previous finance chief, Zachary Kirkhorn, announced his decision to step down.

Why is Tesla successful?

Tesla's success can be attributed to its innovative leadership, groundbreaking technology, and transformative impact on the electric vehicle market.