To learn more about its adventurous trip since 2003, keep scrolling to the end
When Tesla’s flagship automobile, the Model S, was released in 2012, it brought Elon Musk, the company’s CEO, into the limelight.
Tesla’s release has not only been a hit with automobile customers, but it has also thrust the firm into the spotlight as one of the few successful independent automakers as well as a pioneer in the electric vehicle sector.
The Model S, a sleek luxury sedan with a starting price of $79,990, has earned high praise from the trade press and industry. When the Model S was first released in 2013, it made headlines when the trade press praised it. Consumer Reports gave the electric plug-in car a near-perfect score of 99 out of 100, calling it “the greatest car ever tested.”
With 2,500 sold by September 2014, the automobile set all-time sales records in the United States, and sales reached a new high of 10,030 in Q1 2015. It’s currently regarded a standard in the world of electric vehicles. As of May 4, 2020, the company’s market capitalization was $138.8 billion.
Tesla is no longer a start-up, but rather a pioneer in the electric car business, contrary to common assumption. Martin Eberhard and Marc Tarpenning, two Silicon Valley engineers, launched the firm in 2003 with the goal of “proving that electric automobiles may be superior than gasoline-powered cars,” according to the company’s website.
Tarpenning met Eberhard, a Wyse Technology engineer at the time, in 1990 and the two became fast friends. They shared many interests, including a desire to start businesses, and they quickly established NuvoMedia, which published the Rocket eBook in 1998. After going through a divorce and deciding to acquire a sports car, Eberhard developed an interest in automobiles. He put money into AC Propulsion, a small electric car startup, and wondered whether this was a market he might enter.
When Eberhard and Tarpenning heard Musk speak at a Mars Society event at Stanford University in 2001, they approached him and introduced themselves. Musk has a track record of launching successful businesses. He co-founded PayPal with Peter Thiel and Max Levchin. He founded Space X, which designs, manufactures, and launches advanced rockets and spacecraft, after gaining a fortune from his PayPal shares after the firm was sold to eBay in 2002.
After a few years, Eberhard and Tarpenning approached Musk and requested to meet with him to discuss their electric car concept. With Musk on board, the three got together to talk about the concept.
Tesla was founded in 2003 with the purpose of developing a powerful and stylish electric car that emits no pollution. JB Straubel (who was Tesla’s CTO until 2019) and Ian Wright, who left Tesla in 2004 to start his own firm, Wrightspeed, were also co-founders.
The company’s co-founders went through their first rounds of venture capital funding in 2004. Musk, a PayPal co-founder, joined the board of directors a year later after leading the company’s initial round of fundraising.
Elon Musk: The man who took Tesla to new heights
Elon Musk has become Tesla’s public face, and he is frequently confused for the company’s founder or co-founder. Musk was trained as an engineer and is a South African-born Canadian-American. From the University of Pennsylvania, he received a dual bachelor’s degree in Physics and Economics.
Musk started SpaceX, an outer-space exploration corporation, with the money he made from PayPal when he was younger. Musk became the chair of Tesla’s board of directors after a meeting and pitch with Eberhard and Tarpenning, and played a crucial role in the company’s fundraising. Friends and relatives as well as a slew of VC firms, including Valor Equity Partners, were among the company’s investors.
Tesla continued to develop and grow its first car, The Roadster, between 2004 and 2008. The business established a 5.5 million square foot manufacturing complex in Fremont, California, which was previously owned by Toyota and GM. Nummi is the name of the factory, which consists of two paint shops and 1.5 miles of assembly lines.
Musk was named CEO and product architect of the firm in 2008, and he still maintains those positions now. Tesla’s first car, the Roadster, was released the same year. “It’s not simply a car,” Car & Driver noted, “but one of the most powerful automotive statements ever.”
According to The Roadster’s Executive Summary, the firm has always prioritised the car’s mechanics over its appearance. According to the executive summary, “high performance” meant accelerating from 0 to 60 mph in less than 3.9 seconds and requiring no maintenance for up to 100,000 miles (save for tyres).
Tesla’s secret to success is that it continues to focus on developing electric vehicles and EV powertrain systems and components. The company operates 80 stores and galleries in North America, Europe, and Asia, as well as more than 100 charging stations in the United States.
Focusing on one product at a time is one of the company’s markers for success. While Tesla continues to focus on the Model S, it is also introducing additional models in order to broaden its consumer base. The Model X SUV, which began production in early 2015, is one of the new cars in the works.
In order to keep up with the trends, Tesla has endeavoured to introduce new products that are aimed at a broader audience. The Model E, a less expensive variant of the Model S, is also in the works, with a price tag of under $40,000.
Tesla Motors has increased its production presence in the Netherlands and Lathrop, California, in order to remain competitive in the niche market. Tesla and key strategic partners such as Panasonic have begun construction on a Giga factory in Nevada that will enable the production of a mass-market cheap vehicle, the Model 3, according to the company’s website, in order to keep lithium-ion battery pack costs low.
Luxury automakers such as Mercedes Benz and BMW are also venturing into the electric vehicle industry. According to analysts, total global sales of electric vehicles reached 320,000 units in 2014, and are expected to easily surpass 500,000 in 2015. Tesla’s long-term success, however, is unknown. Tesla plans to deliver 500,000 cars by 2020, but Morgan Stanley auto analyst Adam Jonas predicted the business would fall short by 40% in December 2014. According to reports, Jonas believes the aim is unrealistic and unattainable.
Final Words:
There are no guarantees in life or business, as with anything else. Tesla Motors has evolved from a start-up to an established industry player in the 12 years after its incorporation. What remains constant is its remarkable tale and position as a forerunner in the field of electronic vehicles.
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