Tesla (TSLA) is one of the world's most important car manufacturers. And while it sold only 936,000 cars in 2021 out of 6,291,000 GM vehicles, Tesla's $ 1 billion market surpassed GM (GM), Honda (HMC), Ford (F), and Toyota (TM) combined.
But it was not easy for the company to reach that point. Tesla was assembled in 2003 by engineers Martin Eberhard and Marc Tarpenning. And despite the fact that CEO Elon Musk was undoubtedly the face of the automaker, he was not the real founder.
Musk actually joined Tesla in 2004, when he provided $ 6.35 million in the company's initial $ 6.5 million in Series A funding. With that investment, Musk became Tesla chairman while Eberhard served as CEO.
Eberhard stepped down in August 2007 following a power struggle behind Musk. Michael Marks, a former Tesla investor, was named interim CEO until November when Monolithic Memories founder Ze'ev Drori took over.
Tarpenning, meanwhile, left in 2008, the same year Tesla's first car, the Roadster, began production. In October 2008, Musk became CEO.
Stung by the recession, Tesla sold Daimler 10% and took out a $ 465 million government loan in 2009. However, he was able to release the Model S model that same year. The CEO drama is not over yet. In June 2009 Eberhard sued Musk. The case alleges that Musk fired Eberhard and tried to rewrite history to prove that he was the founder of Tesla.
But strangely enough, the two settled in September 2009 with Eberhard and Musk agreeing to share the founder’s title with three others including Tarpenning. Tesk Musk's official biography also calls him CEO and co-founder.
In 2010, the electric automaker went public with a $ 17 share, and in 2012 the Model S officially went on sale. Later that year, Musk unveiled the company's third car, the Model X. Filled with gullwing doors, the Model X added an open SUV to Tesla's growing lineup.
In 2014, Musk announced one of Tesla's most controversial features: its driver-assisted capabilities known as Autopilot. Critics however have pointed out that the Autopilot logo makes the technology sound like it can operate a car without installing a driver. While Tesla requires drivers to keep their hands on the wheel even on Autopilot, this feature is linked to crashes. That includes at least 11 fatal accidents.
The Model X, meanwhile, hit the road in 2015, and in 2016 Musk unveiled Tesla's entry-level Model 3.
Delays in shipping and production of the Model 3, combined with billions of dollars Tesla burned every quarter, sent the company's stock to collapse.
At the time, Musk said, he reached out to Apple CEO Tim Cook in an attempt to sell Tesla to a tech giant. Musk says he could not reach Cook.
In August 2018, Musk dismissed his infamous tweet saying he would receive a sponsorship deal with Tesla for $ 420 per share, which was a huge payment at the time. The Securities and Exchange Commission, however, said Musk had no funding to take the move and accused the CEO of fraud.
Musk settled the claim in September 2018 and paid a $ 20 million fine, while Tesla paid a separate $ 20 million fine. Musk was also ordered to step down as Tesla chairman. He has had a strong relationship with the SEC ever since.
The brush and the SEC did not prevent Musk from deleting the dispute over his social media account, which required everyone from a diver trying to save members of a Thai children's soccer team trapped in a cave for members of Congress.
In 2019, Musk unveiled the Modot Y and Cybertruck prototypes. The Model Y began production in 2020, but Cybertruck is experiencing significant delays, and it is now expected to begin production in 2023.
With U.S. factories, China, and a new factory in Germany, Tesla is loudly leading as the largest EV manufacturer in the World. But with the growing industry of rivals like Rivian and Lucid, not to mention the crash-crazed EVs, Tesla will need to continue to innovate as he did in the past to ensure he holds that crown in the future.
