Tesla

Tesla, " Tesla " is an American company, manufacturer of electric vehicles and solutions (see SolarCity) for energy storage.

The company was founded in July 2003 by Martin Eberhard and Mark Tarpenning, but the current management of the company names Elon Musk, Jeffrey Brian Straubel and Ian Wright as co-founders.

In 2019, Tesla became the largest electric vehicle manufacturer in the world. The Tesla Model 3 sedan became the best-selling electric car in history, breaking the 800 thousand mark.

On the Forbes Global 2000 list of the world's largest public companies for 2022, Tesla was ranked 151st. In the list of the largest US companies by revenue, Fortune 500 took 65th place. In 2021, Tesla took first place in terms of market capitalization among automobile companies, surpassing the Japanese automaker Toyota. By mid-2023, capitalization amounted to $820 billion.

The company was named after the American engineer, inventor in the field of electrical engineering Nikola Tesla.

History

Tesla (founded as Tesla Motors) was incorporated on July 1, 2003 by Martin Eberhard and Mark Tarpenning. Ian Wright was the third Tesla employee to join several months later. Among the company's investors were Google founders Larry Page and Sergey Brin, eBay founder and president Jeffrey Skoll, Daimler AG, Toyota (invested about $50 million) and Elon Musk. At the first stage, Elon Musk invested the most - $70 million, earned from the sale of his stake in PayPal. Musk became chairman of the board of directors and appointed Eberhard as CEO (he left the company in 2007). Tarpenning, who received the post of vice president and engineer, left in 2008.

Tesla's goal was to start with a premium sports car and then move on to more mainstream vehicles. The first Roadster model was introduced in 2008; it was capable of traveling 384 km without recharging and in most respects it was not inferior to sports cars with an internal combustion engine; its main drawback was the high price ($109 thousand).

In January 2010, Tesla received a $465 million loan from the US Department of Energy, which the company repaid in 2013. In May 2010, Tesla bought a plant in Fremont (California) for $42 million and began converting it to produce the Model S. The plant, called the Tesla Factory was opened in 1962 by General Motors, and in 1984 it was taken over by NewUnitedMotorManufacturing. Inc (a joint venture between General Motors and Toyota ).

On June 29, 2010, Tesla held an initial public offering ( IPO ) on NASDAQ, raising $226 million. Tesla became the first American car company to have an IPO since Ford Motor in 1956. In June 2012, Tesla began production of its second car, the Model S, to replace the Roadster ; Unlike the first model, the batteries were placed not at the back, but under the floor, which freed up the trunk and lowered the center of gravity ; this placement of batteries was also used in subsequent models. Since 2012, the company began creating a network of Superchargers charging stations in the USA and Europe. Since 2014, the company's cars began using the Tesla Autopilot  driver assistance system . In 2015, the Model X crossover was introduced . In July 2017, Tesla began selling the $35,000 Model 3 sedan, which became the most popular electric vehicle in the world; its success allowed the company to begin making a profit.

In 2016, SolarCity was purchased ; it was founded in 2006 in California with the participation of Elon Musk, and is engaged in the assembly and installation of solar energy systems . Due to the expansion of the scope of activity, the name Tesla Motors was changed to Tesla, Inc. in 2017. In 2018, Musk made statements about his intention to transform the company into a private company by purchasing its shares; in September of the same year, the Securities and Exchange Commission charged him with fraud and misleading investors, Musk and Tesla were fined $20 million and Musk had to resign as chairman of the board of directors.

In January 2017, a lithium-ion battery manufacturing plant in Nevada, dubbed "Gigafactory 1", began operations. The cost of the plant was about $5 billion; the Japanese corporation Panasonic took part in financing the construction and equipping the plant. Also in 2017, a second Gigafactory began operations, located in New York State; it was also built in collaboration with Panasonic and is engaged in the assembly of solar panels and the production of charging stations. In 2019, Tesla bought battery manufacturer Maxwell for a deal worth $218 million. On March 14, 2019, the new Tesla Model Y electric car was introduced .

In November 2020, Tesla, Uber and 26 other American companies established the Zero Emission Transport Association (ZETA), which will lobby for an increase in the number of electric vehicles in the United States. The association will advocate for national policy changes that will push the industry towards a full transition to electric vehicles in the light, medium and heavy-duty transport sectors by 2030.

The Tesla factory in Shanghai, the first outside the United States, officially opened in January 2020 (due to the coronavirus outbreak, the factory closed at the end of the month, but reopened on February 10). It is expected that the launch of production in Shanghai will allow the company to increase capacity from 150 to 250 thousand electric vehicles per year. On May 11, 2021, it became known that the company abandoned plans to purchase land in Shanghai to expand its plant in this city.

On March 24, 2021, Elon Musk announced that Tesla electric cars can now be purchased with Bitcoin. On July 21, 2021, Musk announced on Twitter that his company intends to make Tesla's network of fast charging stations also available for electric vehicles from other manufacturers.

At the end of October 2021, Tesla's capitalization exceeded $1 trillion for the first time; previously only 4 American companies (Apple, Microsoft, Amazon and Alphabet) had reached this mark. At the end of 2021, production of electric vehicles began at a plant in Texas, and the company's headquarters were moved there (previously it was located in California).

In March 2022, Tesla's second overseas plant " Giga Berlin " opened in Germany. Its construction began in May 2020 and cost more than 5 billion euros. At the first stages, the company began producing batteries and assembling Tesla Model Y crossovers for the European market. The nominal capacity of the plant is 500 thousand cars and 50 GWh of batteries.

In April 2023, Tesla announced the construction of a new Megapack battery plant in China, which will complement a similar factory in California. The planned production capacity of the future Megafactory will be 10 thousand units per year with an energy intensity of about 40 gigawatt-hours.

In July 2023, Elon Musk announced that the company would license its Full Self-Driving autopilot system to other automakers in the third quarter.

Owners and management

The company's shares have been listed on the Nasdaq exchange since 2010 . Institutional investors owned 43% of shares at the beginning of 2023, the largest of them were: The Vanguard Group (6.9%), BlackRock (5.6%), State Street Global Advisors (3.1%), Geode Capital Management (1.5%), Capital Group Companies (1.5%), FMR LLC (1.0%).

• Robyn Denholm ( born May 27, 1963 in Australia) has been Chairman of the Board of Directors since November 2018, and has been on the Board since 2014. Previously, she worked for the Australian branch of Toyota, the American companies Juniper Networks and Sun Microsystems, and the Australian telecommunications company Telstra .
• Elon Musk  is the CEO and largest shareholder (about 13% of shares), and the founder of several companies, including SpaceX and The Boring Company . As of 2022, he was considered the richest person in the world.

Activities

Main divisions as of 2022:

• Cars - production of passenger electric vehicles models 3, Y, S, X, as well as the Tesla Semi electric truck; leasing, purchase financing, car repairs; 95% of the company's revenue.
• Electricity generation and storage - production of lithium-ion batteries under the Powerwall and Megapack brands, sale, installation and connection of solar panels from third-party manufacturers; 5% of revenue.

The USA accounted for 50% of revenue in 2022, China - 22%.

Model range

Tesla Roadster

An electric sports car, the company's first car. The official presentation took place on July 19, 2006 in Santa Monica, California .

Tesla Motors held a competition to select the look of the planned two Tesla Roadsters issued by British sports car manufacturer Lotus. The cars have been received.

The first 1,000 Tesla Roadsters were made within one month. The price of one car was $100,000. Serial production began in March 2008.

This model was sold until 2012, as the contract with Lotus for the supply of 2,500 cars expired at the end of 2011. The company stopped accepting applications for the US market in August 2011. The next generation of this model was planned to be presented in 2019.

Tesla Model S

The concept car was unveiled on March 26, 2009 in Hawthorne, California. The five-door hatchback is being developed under the former Whitestar designation by the company's Detroit subsidiary. After completion of design work, the factory should produce initially 10,000, later 25,000,  cars of the model in California.

Delivery of vehicles to the United States began on June 22, 2012. Initially, two versions were offered: 60 and 85 kWh, equipped with one electric motor located on the rear axle. Then, on October 9, 2014, an option with electric motors on each axle appeared, and from April 8, 2015, the company completely abandoned the single-motor configuration and the 60 kWh version. From now on, all produced cars are equipped with two electric motors, all-wheel drive and in the basic version are equipped with a 70 kWh battery. Starting price starts at $75,750 in the US. Depending on the configuration, the car will be able to travel 442, 502 and 480 km without recharging.

On November 12, 2012, the car received the "Car of the Year" award from the American magazine Motor Trend.

Model S and X deliveries in 2015 and 2016:

On March 30, 2018, Tesla recalled about 123 thousand Model S vehicles that were produced before April 2016 to replace power steering parts. This was due to the fact that the power steering bolts are susceptible to corrosion in the cold season. This impact is due to salt, which is used to de-ice roads.

Tesla Model X

On February 9, 2012, the company presented a prototype of a new model - a crossover called Tesla Model X. At the same time, Elon Musk stated that production of the model is planned to begin in 2013. It was originally planned that small batches would be delivered at the end of 2014, and full production of the model would begin in 2015. However, in February 2014 it was stated that deliveries were expected to begin only in the second quarter of 2015. In November, the start of deliveries was again postponed, this time to the third quarter of 2015.

Compared to the Model S, the following changes have been made: a 3rd row of seats has been added, rear doors that open automatically upwards to allow passengers to enter the 2nd and 3rd rows, and the ability to order a model with two engines.

In the 1st quarter of 2016, 2,400 Tesla Model X were sold.

Model 3

Model 3 was originally called Model E and BlueStar, with the current name announced on July 15, 2014. Model 3 was introduced on April 1, 2016. In the first week, 325 thousand people reserved a car, making a deposit of one thousand dollars. According to Musk, such a significant volume of orders should have led to adjustments to the company's production plans.

Production started in 2017.  The price of the standard version is $35,000, the travel range in the base model is 350 km. The car is 20% more compact than the Model S.

Model Y

Mid-class electric crossover, introduced in March 2019. Serial production began at the Fremont factory  in January 2020, and deliveries to consumers began on March 13, 2020.

Tesla Cybertruck

On November 21, 2019, the company introduced the Tesla Cybertruck electric pickup truck. Five days after the presentation, the car collected 250,000 pre-orders.

It has a power reserve of 400-800 km, as well as air suspension that adjusts to the load. There is an option for sealing and sockets in the body for 110 and 220 volts.

Production was planned for late 2022. On July 20, 2022, Elon Musk announced that production of the Cybertruck would begin in the summer of 2023. The first copy of the Cybertruck pickup truck was released in July 2023.

Tesla Semi

On November 16, 2017, Tesla held a presentation of the Tesla Semi electric tractor, production of which will begin in 2023. The range of the electric truck is approximately 800 km (possibly 900 km) with a load of 40 tons.

Although the vehicle is sometimes referred to as the world's first electric truck, it was introduced later by the MFTBC E-Fuso Vision One.

Tesla Roadster (second generation)

Supercharger Network

Tesla is rolling out a network of “Superchargers” (Tesla Superchargers ) - charging stations for electric vehicles designed to enable Tesla cars to make long trips. Some stations use energy from solar panels (in the future, it is planned to transfer all stations to use solar energy; as of 2018, there are only 3 of them). All new cars have the ability to use stations, but some older 60 kWh models require the purchase of an additional module for $2,500. Charging is carried out with direct current voltage of 480 V.

Tesla's plans to deploy a charging network have been regularly delayed: for example, in 2018, there are still no Supercharger stations in North Dakota, Hawaii and Alaska. As of 2018, in Europe, the easternmost stations are located in Croatia, Hungary and Poland; traveling to Istanbul using only Supercharger stations is still impossible (the ability to travel from Lisbon to Istanbul using only Superchargers was announced at the end of 2016) .

As of April 2023, the Supercharger network included 4,927 stations, with 1,941 in North America (1,724 in the US), 2,013 in Asia-Pacific (1,628 in China), and 973 in Europe (164 in Germany and 142 in France).

Cost of services for charging Tesla cars:

• Battery charging (up to 80% in 40 minutes for a 100 kWh battery) is included in the price of the vehicle (for Model S and X purchased before April 1, 2017). Model S, Model X, as well as Model 3 (Performance versions only), purchased through an affiliate program (referral), also received free lifetime charging, but in September 2018 this opportunity also disappeared. For Tesla car owners purchased since September 2018, use of the Supercharger charging network is paid, the cost depends on the price of electricity in the state/country, but in any case it is cheaper than filling up with gasoline for the same mileage. Tariffing occurs based on the amount of electricity consumed. Model S and X owners receive 400 kWh of free credits each year (enough for approximately 1,000 miles - 1,600 km), Model 3 owners pay for each Supercharger charge.

In addition to Supercharger fast charging stations, owners of Tesla electric vehicles can take advantage of the slow charging network (up to 22 kW) Destination chargers, which are usually located in hotels and restaurants (since slow charging of an electric vehicle usually occurs within a few hours).

For Model S and Model X electric vehicles, there is an adapter (costing about $600) that allows you to charge electric vehicles from charging stations with a CHADEMO connector (the most common standard for fast charging connectors for electric vehicles in the world) at speeds of up to 50 kW. This adapter did not work with the Model 3 due to software problems, which therefore did not have access to fast charging stations with a CHADEMO connector. Such access to CHADEMO for American Model 3 appeared in July 2019 at speeds up to 50 kW.

American Tesla electric vehicles cannot be compatible with charging stations with a CCS connector (an adapter appeared in 2019). European Tesla Model 3s use the CCS connector.

In March 2023, Tesla allowed owners of other electric vehicles to use part of Supercharger stations in 17 countries.

Business model

Unlike most automakers, Tesla does not sell vehicles through independent dealers. As a rule, Tesla showrooms are only demonstration areas; purchases are made directly through the Tesla website. This is somewhat similar to Apple's sales model . In most states in the United States, direct sales of vehicles from manufacturers and sales through manufacturer-owned dealers are limited or prohibited. Tesla has had to face lawsuits to ban direct sales. In some states (Virginia, Texas), the company lost cases, and sales of Tesla were prohibited.

Number of cars sold by quarter

Financial situation

• 5 states competed for the right to host a battery production plant (Texas, Arizona, New Mexico, Nevada and California). Of these, the best conditions (tax incentives in the amount of $1.3 billion for construction and work for a period of 20 years, construction of road infrastructure, etc.) were provided by Nevada. During the conclusion of the contract, a state representative said that the construction of the Gigafactory was the largest event since the Hoover Dam;
• In January 2010, the US Department of Energy allocated $8 billion for loans to automakers to develop innovative, advanced automotive technologies, of which Tesla received $465 million (while Ford received $5.9 billion under this program, and Nissan North America  - 1 .6 billion). In 2013, Tesla repaid this loan ahead of schedule almost 10 years earlier than planned;
• On March 7, 2019, the Industrial and Commercial Bank of China issued a targeted loan to Tesla in the amount of 4 billion yuan ($565.51 million) only for expenses related to the production of electric vehicles at the Tesla plant in Shanghai.

Part of Tesla Motors' revenue is tied to certain California regulations ( the ZEV program ), which require automakers to supply the state with a certain percentage of vehicles that do not directly create air pollution, such as electric vehicles. Since all Tesla cars are classified as such, the company resells part of its quota (“ZEV credit”) to manufacturers of gasoline cars.

The Wall Street Journal noted in 2016 that Musk used funds from SpaceX government contracts to finance Tesla and also issued loans in the amount of $475 million secured by his shares. According to the publication, this creates risks for other shareholders of his companies.

Problems and criticism

Technical problems

In November 2015, after an isolated case of an owner discovering that the front passenger seat belt buckle on a Model S was not secure (an incorrectly assembled bolt connection), despite the absence of a defect in 3,000 vehicles tested, the company recalled all 90,000 vehicles for inspection and correction, if found. defect, through authorized service stations.

In April 2016, the company recalled 2,700 Model X vehicles due to a defect found during testing in the third row of seats, which could cause the seats to tip over with their occupants in the event of a frontal collision.

On May 7, 2016, near the town of Williston (Williston, Florida, USA), a Tesla S car collided with a semi-trailer that was towing a tractor. 40-year-old Joshua Brown, who was driving, died. According to Tesla, at the time of the collision the car was moving on autopilot, but neither the automation nor the driver began braking. This is the first case in history of a driver dying while driving a car driven by autopilot. The US National Highway Traffic Safety Administration began its own investigation into the accident. The investigation was completed in January 2017, the conclusion states that the autopilot of the Tesla car was operational and worked in full accordance with the specified algorithm. Explanations follow. A study of automatic braking systems conducted in 2007–2011 showed that they do not respond adequately to objects moving quickly in the transverse direction.

In February 2022, it became known that Tesla would recall more than 53 thousand cars due to Autopilot errors. The recalls will include 2016-2022 Model S and X, 2017-2022 Model 3, and 2020-2022 Model Y.

In November 2022, the company also recalled more than 80 thousand cars due to outdated software and problems with seat belts.

According to data provided by Tesla, the National Fire Protection Association and the U.S. Department of Transportation, from 2012 to 2018, there was one electric vehicle fire per 170 million miles driven. During the same period of time, internal combustion engine vehicles have one fire per 19 million miles driven.

Incidents

During the period from 2020 to 2023, at least 17 people died in 736 accidents with cars controlled by Tesla Autopilot, including 11 in 2022. Another 5 people were seriously injured. One of the reasons for the accidents may be that Tesla dismantled most of the radar sensors on cars, leaving only all-round cameras.

Lawsuits

In September 2021, a Chinese court ordered Tesla to pay $233,000 due to the company's sale of a used car that had been in a major accident and serious damage, and the company's failure to warn the buyer that an accident had occurred. The court awarded compensation despite the fact that Tesla eliminated the consequences of the accident.

In October 2021, a San Francisco court ordered Tesla to pay Owen Diaz, a former employee of the company's Fremont (California) plant , $136.9 million on grounds of racial discrimination. The amount was the largest amount awarded for racial discrimination in history.

In June 2023, the owner of a Tesla car from Belgium won a claim in the amount of 158.6 thousand euros due to frequent breakdowns of the car.

On July 18, 2023, a Delaware court, in a lawsuit filed by Tesla shareholders, ordered members of Tesla's board of directors to return $735 million in excess remuneration paid to them from 2017 to 2020. The decision became one of the largest court decisions on the demand of shareholders against top managers of companies.

Criticism of the project

The cancellation of tax breaks for the purchase of electric vehicles in Hong Kong has plunged Tesla sales in this country to zero. The government's decision took effect on April 1, 2017, and as a result, no new Tesla vehicles were registered in Hong Kong that month. As of May 2019, sales of new Teslas have not recovered, but sales of used electric vehicles continue. As a result, half of all electric vehicles registered in Hong Kong belong to the Tesla brand.

Steve Wozniak, one of the co-founders of Apple, criticized Tesla CEO Elon Musk in early 2018 for failing to deliver on public promises and for not taking responsibility for software products that are often released in beta versions, thus removing responsibility from the developer.

Scandal with stock quotes

On August 7, 2018, Elon Musk announced on Twitter his plans to take the company private by buying back shares at a price of $420. Against the backdrop of this statement, the company's shares rose significantly. However, on August 24, Elon announced that such a share buyback would not happen. Such actions led to investigations by the US Securities and Exchange Commission (SEC) and the US Department of Justice.

On September 29, the SEC and Elon reached a pre-trial agreement, under which Musk resigned from the post of chairman of the board of directors of Tesla and could not hold it for three years. Musk and the company also paid a $20 million fine, the board of directors included two independent members, and a committee was created to monitor Elon’s messages on social networks. On November 8, it became known that Robin Denholm, who had previously worked for the largest Australian telecommunications company Telstra, had become the new chairman of the board of directors.