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Nicole Hardy · 2026-09-05T13:15:52.145Z

Where should the line fall between legitimate protest against Musk's politics and criminal vandalism targeting Tesla property and owners?

Tesla — news, coverage & facts — IJR

Global expansion and Model Y (2019–present)

From July 2019 to June 2020, Tesla reported four consecutive profitable quarters for the first time, which made it eligible for inclusion in the S&P 500. During 2020, its share price increased 740%, and by December 14, 2020, its market capitalization was more than the next nine largest automakers combined, and it became the sixth most valuable company in the US. Tesla was added to the S&P index on December 21, 2020; it was the most valuable company ever added, and was the sixth-largest member of the index immediately after it was added. It became the sixth US company to reach $1 trillion in market capitalization in October 2021.

In March 2019, Tesla introduced the Model Y mid-size crossover SUV, its second mass-market vehicle, based on the Model 3. Deliveries started in March 2020.

During this period, Tesla invested heavily in expanding its production capacity, opening three new Gigafactories in quick succession. Construction of Gigafactory Shanghai started in January 2019, as the first automobile factory in China fully owned by a foreign company (not a joint venture). The factory's first production vehicle, a Model 3, rolled out in December, less than one year after groundbreaking. Gigafactory Berlin broke ground in February 2020, and its production of the Model Y began in March 2022. Gigafactory Texas broke ground in June 2020, and its production of the Model Y began in April 2022. In March 2023, Tesla announced plans for a Gigafactory Mexico to open in 2025, but its groundbreaking has been delayed.

At the beginning of the COVID-19 pandemic, Tesla closed the Fremont Factory in March 2020 due to California state and Alameda county COVID restrictions. When California lifted restrictions, but the county did not, Tesla sued the county, and restarted production on May 11, 2020. The county lifted restrictions on May 13, 2020, and Tesla dropped its lawsuit. After the dispute with county officials, on December 1, 2021, Tesla moved its legal headquarters to Gigafactory Texas. However, Tesla continued to use its former headquarters building in Palo Alto, and over the next two years significantly expanded its footprint in California. The company opened its Megafactory to build Megapack batteries in Lathrop, California in 2022, and announced in February 2023 that it would establish a large global engineering headquarters in Palo Alto, moving into a corporate campus once owned by Hewlett Packard.

In early 2021, Tesla became a major investor in bitcoin, acquiring $1.5 billion of the cryptocurrency, and on March 24, 2021, the company started accepting bitcoin as a form of payment for US vehicle purchases. However, after 49 days, the company ended bitcoin payments over concerns that the production of bitcoin was contributing to the consumption of fossil fuels, against the company's mission of encouraging the transition to sustainable energy. After the announcement, the price of bitcoin dropped around 12%. Musk later noted that Tesla would resume bitcoin payments if there was confirmation of at least 50% clean energy usage by bitcoin miners. Despite later reaching this milestone, Tesla did not return to accepting bitcoin. By July 2022 Tesla had sold about 75% of its bitcoin holdings at a loss, citing that the cryptocurrency was hurting the company's profitability.

Between May 2023 and February 2024, almost all major North America EV manufacturers announced plans to switch to Tesla's North American Charging Standard adapters on their EVs by 2025, which is expected to be a stable source of recurring revenue for Tesla. In November, Tesla started shipping the Cybertruck, produced from Gigafactory Texas.

In April 2024, the company announced it was laying off 10% of its employees. In June, the company moved its incorporation from Delaware to Texas. In October, the company unveiled a concept version of two autonomous vehicles – the Cybercab and Robovan – and detailed that both would be an integral part of a Tesla ridehailing service called the Tesla Network, a future service it had previously teased in 2019.

In December 2024, a Delaware court rejected Musk's $56 billion pay package from Tesla, ruling that it was not properly approved by the company's board. The decision arose from a lawsuit by Tesla shareholders who claimed the compensation was excessive and not aligned with performance metrics.

By February 2025, Tesla saw large decreases in its stock price and sales across Europe widely attributed to Musk's political advocacy and embrace of far-right politics. Polling found that Musk's ties to United States President Donald Trump and his Department of Government Efficiency were strongly correlated to decreasing views of Tesla, and triggered multiple protests, vandalism, gunfire, and arson at Tesla stores and charging stations. By March 7, Tesla's stock had decreased every week for seven straight weeks since Musk joined the Trump administration, making it the longest losing streak for Tesla in 15 years as a public company. On March 29, over 200 protests against Tesla were held worldwide.

In July 2025, Tesla released a software update adding the artificial intelligence (AI) chatbot Grok to its vehicles. While the update provides in-car chatbot functionality, it does not give Grok control over vehicle functions. The same month, Tesla opened its first showroom in India at the Bandra-Kurla Complex in Mumbai, showcasing the Model Y as its debut offering. In August, Tesla integrated Deepseek and Bytedance's Doubao AIs into Chinese models. Unlike vehicles equipped with Grok, AI in Tesla's Chinese vehicles may be used to control vehicle functions, as well as act as a chatbot.

In December 2025, Tesla's UK registrations fell by more than 29% year-on-year. UK sales also fell by 8.9% year-on-year.

In January 2026, the title of world's largest battery electric vehicle manufacturer was lost to Chinese competitor BYD after full year 2025 deliveries were reported by both companies (2,256,714 vs 1,636,129 BEV sales).

On January 28, 2026, Musk stated that Tesla would discontinue the Model S and Model X in the second quarter of 2026 to focus on manufacturing the Optimus robot.

In March 2026, Elon Musk unveiled a joint project between Tesla and xAI. The project pairs xAI's Grok large language model, acting as a high-level navigator with a Tesla-developed AI agent that processes real-time computer screen video and keyboard and mouse actions.

On March 21, 2026, SpaceX announced the project to build Terafab, a joint project with Tesla, SpaceX and xAI, to build a large semiconductor fabrication project centering on the construction of a vertically integrated "mega-fab" designed to produce more than one terawatt (one trillion watts) of artificial intelligence compute capacity per year, encompassing advanced logic chips, memory modules, and packaging technologies.

Available products

The Model 3 is a mid-size car with a fastback body style and either a dual-motor, all-wheel drive layout or a rear-motor, rear-wheel drive layout. The vehicle was designed to be more affordable than the luxury Model S sedan. A prototype Model 3 was first shown in 2016 and within a week, the company received over 325,000 paid reservations. Deliveries started in July 2017. The Model 3 ranked as the world's best-selling electric car from 2018 to 2021, and cumulative sales passed 1 million in June 2021. The vehicle has seen one major design refresh in September 2023 which revised the exterior and interior.

The Model Y is a mid-size crossover SUV offered in 5- and 7-passenger configurations with a single‐motor, rear-wheel drive or a dual-motor, all-wheel drive layout. The vehicle was designed to be more affordable than the luxury Model X SUV. A prototype Model Y was first shown in March 2019, and deliveries started in March 2020. The Model Y shared around 75 percent of its content with the Model 3. In the first quarter of 2023, the Model Y outsold the Toyota Corolla to become the world's best-selling car, the first electric vehicle to claim the title.

The Tesla Semi is a Class 8 semi-truck by Tesla, Inc., with a tri-motor, rear-wheel drive layout. Tesla states that the Semi has approximately three times the power of a typical diesel semi truck, and a range of 500 miles (800 km). Two prototype trucks were first shown in November 2017 and initial deliveries were made to PepsiCo on December 1, 2022. High-volume production started on April 29, 2026.

The Cybertruck is a full-sized pickup truck. First announced in November 2019, pilot production began in July 2023, after being pushed back multiple times, and deliveries began on November 30, 2023. Three models are offered: rear-wheel drive, dual-motor all-wheel drive, and trimotor all-wheel drive, with EPA range estimates of 320–340 miles (510–550 km), depending on the model. The truck's exterior design, made from flat sheets of unpainted stainless steel, earned a notably polarizing reception from the media. Tesla initially planned for Cybertruck production capacity of more than 250,000 units, but as of 2025 the company is only selling around 20,000 units per year.

Business strategy

At the time of Tesla's founding in 2003, electric vehicles were costly. In 2006, Musk stated that Tesla's strategy was to first produce high-price, low-volume vehicles, such as sports cars, for which customers are less sensitive to price. This would allow it to progressively bring down the cost of batteries, which in turn would allow it to offer cheaper and higher volume cars. Tesla's first vehicle, the Roadster, was low-volume (fewer than 2,500 were produced) and priced at over $100,000. The next models, the Model S and Model X, are more affordable but still luxury vehicles. The Model 3 and the Model Y, are priced still lower, and aimed at a higher volume market, selling over 100,000 vehicles each quarter. Tesla continuously updates the hardware of its cars rather than waiting for a new model year, unlike nearly every other car manufacturer.

Unlike other automakers, Tesla does not rely on franchised dealerships to sell vehicles. Instead, the company sells vehicles directly through its website and a network of company-owned stores. The company is the first automaker in the United States to sell cars directly to consumers since the widespread adoption of the franchised dealer model. Some jurisdictions, particularly in the United States, prohibit auto manufacturers from directly selling vehicles to consumers. In these areas, Tesla has locations that it calls galleries that the company says "educate and inform customers about our products, but such locations do not actually transact in the sale of vehicles." In total, Tesla operates nearly 400 stores and galleries in more than 35 countries. These locations are typically located in retail shopping districts, inside shopping malls, or other high-traffic areas, instead of near other auto dealerships.

Analysts describe Tesla as vertically integrated, given how it develops many components in-house, such as batteries, motors, and software. The practice of vertical integration is rare in the automotive industry, where companies typically outsource 80% of components to suppliers and focus on engine manufacturing and final assembly.

Tesla generally allows its competitors to license its technology, stating that it wants to help its competitors accelerate the world's use of sustainable energy. Licensing agreements include provisions whereby the recipient agrees not to file patent suits against Tesla, or to copy its designs directly. Tesla retains control of its other intellectual property, such as trademarks and trade secrets to prevent direct copying of its technology.

On April 15, 2024, Tesla secured a deal with Tata Electronics to supply semiconductor chips, marking a significant step in Tesla's expansion into India's automotive market.

On May 2, 2024, Tesla announced that it had abandoned its plan for next-generation gigacasting, a cutting-edge manufacturing technique. Initially aiming to revolutionize production and reduce costs, Tesla has now opted for its more proven method of casting vehicle underbodies in three pieces. This strategic shift reflects the company's focus on self-driving vehicles and adjusting to market challenges.

Batteries

As of 2023, Tesla uses four different battery cell form factors: 18650, 2170, 4680, and prismatic.

Tesla purchases these batteries from three suppliers, CATL, LG Energy Solution, and Panasonic, the latter of which has co-located some of its battery production inside Tesla's Gigafactory Nevada. Tesla is also currently building out the capacity to produce its own batteries.

Tesla batteries sit under the vehicle floor to save interior space. Tesla uses a multipart aluminum and titanium protection system to protect the battery from road debris or vehicle crashes.

Business analysis company BloombergNEF estimated Tesla's battery pack cost in 2021 at $112 per kilowatt-hour (kWh), versus an industry average of $132 per kWh.

Tesla was the first automaker to use cylindrical lithium-ion battery cells. When it built the first generation Roadster, it used off-the-shelf 18650-type (18 mm diameter, 65 mm height) cylindrical batteries that were already used for other consumer electronics. The cells provided an engineering challenge because each has a relatively low capacity, so thousands needed to be bundled together in a battery pack. Electrical and thermal management also proved to be a challenge, requiring liquid cooling and an intumescent fire prevention chemical. However, the decision turned out to be pragmatic because there was already a mature manufacturing process that could produce a high volume of the cells at a consistent quality. Although the 18650-type cells are the oldest technology, they are used in the Model S and X vehicles. Tesla sources these batteries with a nickel-cobalt-aluminum (NCA) cathode chemistry from Panasonic's factories in Japan.

The next battery type to be used was the 2170-type (21 mm diameter, 70 mm height) cylindrical cell. The larger size was optimized for electric cars, allowing for a higher capacity per cell and a lower number of cells per battery pack. The 2170 was introduced for the Model 3 and Y vehicles.

For vehicles built at the Tesla Fremont Factory, the company sources 2170-type batteries with a nickel-cobalt-aluminum cathode chemistry from Panasonic's production line at Gigafactory Nevada. In January 2021, Panasonic had the capacity to produce 39 GWh per year of battery cells there. Tesla Energy also uses 2170 cells in its Powerwall home energy storage product.

For vehicles made at Gigafactory Shanghai and Gigafactory Berlin, batteries with a nickel-cobalt-manganese (NMC) cathode chemistry are sourced from LG Energy Solution's factories in China.

Tesla's latest cylindrical cell design is the 4680-type (46 mm diameter, 80 mm height) introduced in 2021. The battery was developed in-house by Tesla and is physically 5 times bigger than the 2170-type, again allowing for a higher capacity per cell and a lower number of cells per battery pack. The battery uses a "tabless" design for lower electrical resistance, less resistive heating, better ability to deliver high current, and potentially faster charging. The battery uses nickel-manganese-cobalt-aluminum (NCMA) chemistry. The battery is produced at Gigafactory Texas. The 4680 cells are used in the Cybercab, Cybertruck and Model Y built at Gigafactory Texas, and in the Semi built at Gigafactory Nevada.

Tesla also uses prismatic (rectangular) cells in many entry-level Model 3 and Model Y vehicles. The prismatic cells are a lithium iron phosphate battery (LFP or LiFePO4), which is a less energy-dense type, but does not contain any nickel or cobalt, which makes it less expensive to produce. Tesla sources these batteries from CATL's factories in China. As of April 2022, nearly half of Tesla's vehicle production used prismatic cells. Tesla Energy also uses prismatic cells in its Megapack grid-scale energy storage product.

Tesla invests in lithium-ion battery research. In 2016, the company established a 5-year battery research and development partnership at Dalhousie University in Nova Scotia, Canada, with lead researcher Jeff Dahn. Tesla acquired Maxwell Technologies for over $200 million – and sold in 2021. It also acquired Hibar Systems. Tesla purchased several battery manufacturing patent applications from Springpower International, a small Canadian battery company.

In 2023 Tesla broke ground on a $375 million lithium refining facility near Robstown, Texas in the US. The plant's process will eliminate the use of sulfuric acid in lithium processing, thereby eliminating the associated sodium sulfate waste product. Local concerns have been raised over the plant's water usage with initial estimates of 400,000 US gal (1,500,000 L; 330,000 imp gal) per day for normal operation, rising to a peak usage estimate of 8,000,000 US gal (30,000,000 L; 6,700,000 imp gal) per day.

North America

Tesla was founded in San Carlos, California in 2003. In 2008, the company opened its first production facility at a former Chevrolet dealership in Menlo Park, California. The original roadster was assembled inside the service bays until 2012 and used the company's showroom as a retail store. Another retail store was opened in Los Angeles the same year. In 2010, Tesla moved its corporate headquarters and opened a powertrain development facility in Palo Alto.

Tesla's first major assembly plant occupies the former NUMMI plant in Fremont, California, known as the Tesla Fremont Factory. The factory was originally opened by General Motors in 1962, and then operated by NUMMI, a joint venture of GM and Toyota from 1984. The joint venture ended when GM entered bankruptcy in 2009. In 2010, Toyota agreed to sell the plant to Tesla at a significant discount.

Tesla's first purpose-built facility was opened in Nevada in 2016. Gigafactory Nevada produces the Powerwall, battery cells in partnership with Panasonic, Model 3 drivetrains, and the Tesla Semi. The factory received substantial subsidies (abatements and credits) from the local and state government, that, in exchange for opening in their jurisdiction, allowed Tesla to operate essentially tax-free for 10 years, later extended to 20 years in exchange for expanding the factory to add a production line for the Tesla Semi and add additional battery manufacturing capacity.

As part of the acquisition of SolarCity in 2016, Tesla gained control of Gigafactory New York in Buffalo on the site of a former Republic Steel plant. The state of New York spent cash to build and equip the factory through the Buffalo Billion program. In 2017, the factory started production of the Tesla Solar Roof, but faced multiple production challenges. Since 2020, Tesla has also assembled Superchargers in New York. The plant has been criticized for offering little economic benefit for the state funding.

In 2018, Tesla assembled tension fabric buildings at the Fremont plant to meet production goals of 5,000 cars produced a month. The structure was assembled in two weeks and measured 53 feet high, 150 feet wide, and 900 feet long.

On July 23, 2020, Tesla picked Austin, Texas, as the site of its fifth Gigafactory, since then known as Gigafactory Texas. Giga Texas is the only factory that produces the Tesla Cybertruck and produces Model Y cars for the Eastern United States. On December 1, 2021, Tesla announced it relocated its legal headquarters from Palo Alto to the Gigafactory Texas site in Austin. However, Tesla has retained the Palo Alto building. On April 7, 2022, Tesla celebrated the opening of Gigafactory Texas in a public event.

Tesla acquired a former JC Penney distribution center near Lathrop, California in 2021 to build the "Megafactory" to manufacture the Megapack, the company's large-scale energy storage product. The location opened in 2022.

Tesla announced in February it would open a new global engineering headquarters in Palo Alto, moving into a corporate campus once owned by Hewlett Packard, located a couple of miles from Tesla's former headquarters building.

Tesla has announced plans to open a Gigafactory Mexico, the company's sixth Gigafactory, near Monterrey, Mexico. However, as of July 2024, the company had placed construction on hold until after the 2024 United States presidential election because former President Trump has pledged to add tariffs on cars made in Mexico.

Former partners

Daimler and Tesla began working together in late 2007. On May 19, 2009, Daimler bought a stake of less than 10% in Tesla for a reported $50 million. As part of the collaboration, Herbert Kohler, vice-president of E-Drive and Future Mobility at Daimler, took a Tesla board seat. On July 13, 2009, Daimler sold 40% of its acquisition to Aabar, an investment company controlled by the International Petroleum Investment Company owned by the government of Abu Dhabi. In October 2014, Daimler sold its remaining holdings for a reported $780 million.

Tesla supplied battery packs for Freightliner Trucks in 2010. The company also built electric-powertrain components for the Mercedes-Benz A-Class E-Cell, with 500 cars planned to be built for trial in Europe beginning in September 2011. Tesla produced and co-developed the Mercedes-Benz B250e's powertrain, which ended production in 2017. The electric motor was rated 134 hp (100 kW) and 230 pound force-feet (310 N⋅m), with a 36 kWh (130 MJ) battery. The vehicle had a driving range of 200 km (124 mi) with a top speed of 150 km/h (93 mph). Daimler division Smart produced the Smart ED2 cars from 2009 to 2012 which had a 14-kilowatt-hour (50 MJ) lithium-ion battery from Tesla.

In May 2010, Tesla and Toyota announced a deal in which Tesla purchased the former NUMMI factory from Toyota for $42 million, Toyota purchased $50 million in Tesla stock, and the two companies collaborated on an electric vehicle.

In July 2010, the companies announced they would work together on a second generation Toyota RAV4 EV. The vehicle was unveiled at the October 2010 Los Angeles Auto Show and 35 pilot vehicles were built for a demonstration and evaluation program that ran through 2011. Tesla supplied the lithium metal-oxide battery and other powertrain components based on components from the Roadster.

The production version was unveiled in August 2012, using battery pack, electronics, and powertrain components from the Tesla Model S sedan (also launched in 2012). The RAV4 EV had a limited production run which resulted in just under 3,000 vehicles being produced, before it was discontinued in 2014.

According to Bloomberg News, the partnership between Tesla and Toyota was "marred by clashes between engineers". Toyota engineers rejected designs that Tesla had proposed for an enclosure to protect the RAV4 EV's battery pack. Toyota took over responsibility for the enclosure's design and strengthened it. In 2014, Tesla ended up adding a titanium plate to protect the Model S sedan's battery after some debris-related crashes led to cars catching fire. On June 5, 2017, Toyota announced that it had sold all of its shares in Tesla and halted the partnership.

Initial versions of Autopilot were developed in partnership with Mobileye beginning in 2014. Mobileye ended the partnership on July 26, 2016, citing "disagreements about how the technology was deployed".

Accidents, repairs, and safety violations

In June 2016, the National Highway Traffic Safety Administration (NHTSA) took issue with Tesla's use of nondisclosure agreements (NDAs) regarding customer repairs and, in October 2021, the NHTSA formally asked Tesla to explain its NDA policy regarding customers invited into the FSD Beta. Tesla has used NDAs on multiple occasions with both employees and customers to allegedly prevent possible negative coverage.

From 2014 to 2018, Tesla's Fremont Factory had three times as many Occupational Safety and Health Administration (OSHA) violations as the ten largest US auto plants combined. An investigation by the Reveal podcast alleged that Tesla "failed to report some of its serious injuries on legally mandated reports" to downplay the extent of injuries.

In January 2019, former Tesla security manager Sean Gouthro filed a whistleblower complaint alleging that the company had hacked employees' phones and spied on them, while also failing to report illegal activities to the authorities and shareholders. Several legal cases have revolved around alleged whistleblower retaliation by Tesla. These include the dismissal of Tesla safety official Carlos Ramirez and Tesla security employee Karl Hansen. In 2020, the court ordered Hansen's case to arbitration. In June 2022, the arbitrator filed an unopposed motion with the court stating Hansen "has failed to establish the claims… Accordingly, his claims are denied, and he shall take nothing".

The California Civil Rights Department filed a suit in 2022 alleging "a pattern of racial harassment and bias" at the Tesla Fremont factory. As of April 2023, the department is also conducting a probe of the factory based on a 2021 complaint and claims that Tesla has been obstructing the investigation.

According to Jalopnik, a 2024 study by iSeeCars found that Tesla had the highest fatal crash rate of any automaker in the United States.

A 2025 lawsuit in California alleged that Tesla odometers were falsely exaggerating their readings to prematurely void their warranty.

In 2025 in the US, Tesla faced a new federal investigation into possible safety defects in its FSD system. This followed 44 separate incident reports where Tesla drivers said the system caused them to commit safety violations, such as driving through red traffic lights.

Fraud allegations

There have been numerous concerns about Tesla's financial reporting. In 2013, Bloomberg News questioned whether Tesla's financial reporting violated Generally Accepted Accounting Principles (GAAP) reporting standards. Fortune accused Tesla in 2016 of using creative accounting to show positive cash flow and quarterly profits. In 2018, analysts expressed concerns over Tesla's accounts receivable balance. In September 2019, the SEC questioned Tesla CFO Zach Kirkhorn about Tesla's warranty reserves and lease accounting. In a letter to his clients, hedge fund manager David Einhorn, whose firm suffered losses from its short position against Tesla that quarter, accused Musk in November 2019 of "significant fraud", and publicly questioned Tesla's accounting practices, telling Musk that he was "beginning to wonder whether your accounts receivable exist."

From 2012 to 2014, Tesla earned more than $295 million in Zero Emission Vehicle credits for a battery-swapping technology that was never made available to customers. Staff at California Air Resources Board were concerned that Tesla was "gaming" the battery swap subsidies and in 2013 recommended eliminating the credits.

A consolidated shareholders lawsuit alleges that Musk knew SolarCity was going broke before the acquisition, that he and the Tesla board overpaid for SolarCity, ignored their conflicts of interest and breached their fiduciary duties in connection with the deal, and failed to disclose "troubling facts" essential to an analysis of the proposed acquisition. The members of the board settled in 2020, leaving Musk as the only defendant. In April 2022, the Delaware Court of Chancery ruled in favor of Musk, and its ruling was upheld by the Delaware Supreme Court in June 2023.

In August 2018, Musk tweeted, "Am considering taking Tesla private at $420. Funding secured." The tweet caused the stock to initially rise, but then drop when it was revealed to be false. Musk settled fraud charges with the US Securities and Exchange Commission (SEC) over his false statements in September 2018. According to the terms of the settlement, Musk agreed to have his tweets reviewed by Tesla's in-house counsel, he was removed from his chairman role at Tesla temporarily, and two new independent directors were appointed to the company's board. Tesla and Musk also paid civil penalties of $20 million each. A civil class-action shareholder lawsuit over Musk's statements and other derivative lawsuits were also filed against Musk and the members of Tesla's board of directors, as then constituted, regarding claims and actions made that were associated with potentially going private. In February 2023, a California jury unanimously found Musk and Tesla not liable in the class-action lawsuit.

In September 2018, Tesla disclosed that it was under investigation by the US Federal Bureau of Investigation (FBI) regarding its Model 3 production figures. Authorities were investigating whether the company misled investors and made projections about its Model 3 production that it knew would be impossible to meet. A stockholder class action lawsuit against Tesla related to Model 3 production numbers (unrelated to the FBI investigation) was dismissed in March 2019.

In May 2024, Reuters reported that US federal prosecutors were investigating whether the company committed securities or wire fraud by "misleading investors and consumers" about Autopilot and Full Self-Driving.

Racism

Tesla has faced numerous complaints regarding workplace harassment and racial discrimination, with one former Tesla worker who attempted to sue the employer describing it as "a hotbed of racist behavior." As of December 2021, three percent of leadership at the company were African-American. A former Black worker described the work environment at Tesla's Buffalo plant as a "very racist place." Tesla and SpaceX's treatment of Juneteenth in 2020 also came under fire. Approximately 100 former employees have submitted signed statements alleging that the company discriminates specifically against African Americans and "allows a racist environment in its factories."

Few of these cases against Tesla ever make it to trial as most employees are made to sign arbitration agreements. Employees are afterwards required to resolve such disputes out of court, and behind closed doors.

According to the state's Department of Fair Employment and Housing, the Fremont factory is a racially segregated place where Black employees claim they are given the most menial and physically demanding work. The accusations of racism culminated in February 2022 with the California Department of Fair Employment and Housing suing Tesla for "discriminating against its Black workers."

In July 2021, former employee Melvin Berry received $1 million in his discrimination case in arbitration against the company after he claimed he was referred to by the n-word and forced to work longer hours at the Fremont plant.

In October 2021, a jury verdict in the Owen Diaz vs. Tesla trial awarded the plaintiff $137 million in damages after he had faced racial harassment at Tesla's Fremont facility during 2015–2016. In a blog, Tesla stressed that Diaz was never "really" a Tesla worker, and that most uttering of the n-word were expressed in a friendly manner. In April 2022, federal judge William Orrick upheld the jury finding of Tesla's liability but reduced the total damage down to $15 million. Diaz was given a two-week deadline to decide if he would collect the damages. In June 2022, Diaz announced that he would be rejecting the $15 million award, opening the door for a new trial. In April 2023, Diaz was awarded $3.2 million in the new trial.

COVID-19 pandemic

Tesla's initial response to the COVID-19 pandemic in the United States has been the subject of considerable criticism. Musk had sought to exempt the Tesla Fremont factory in Alameda County, California, from the government's stay-at-home orders. In an earnings call in April, he was heard calling the public health orders "fascist". He had also called the public's response to the pandemic "dumb" and had said online that there would be zero cases by April. In May 2020, while Alameda County officials were negotiating with the company to reopen the Fremont Factory on the 18th, Musk defied local government orders by restarting production on the 11th. Tesla also sued Alameda County, questioning the legality of the orders, but backed down after the Fremont Factory was given approval to reopen. In June 2020, Tesla published a detailed plan for bringing employees back to work and keeping them safe, However, some employees still expressed concern for their health.

In May 2020, Musk told workers that they could stay home if they felt uncomfortable coming back to work. But in June, Tesla dismissed an employee who criticized the company for taking inadequate safety measures to protect workers from the coronavirus at the Fremont Factory. Three more employees at Tesla's Fremont Factory claimed they were laid off for staying home out of fear of catching COVID-19. This was subsequently denied by Tesla, which even stated that the employees were still on the payroll. COVID-19 cases at the factory grew from 10 in May 2020 to 125 in December 2020, with about 450 total cases in that time out of the approximately 10,000 workers at the plant (4.5%).

In China, Tesla had what one executive described as "not a green light from the government to get back to work – but a flashing-sirens police escort." Tesla enjoyed special treatment and strong government support in China, including tax breaks, cheap financing, and assistance in building its Giga Shanghai factory at breakneck speeds. Musk has praised China's way of doing things, a controversial stance due to deteriorating US–Chinese relations, the persecution of Uyghurs in China, and alleged human rights abuses in Hong Kong.

Recalls

On April 20, 2017, Tesla issued a worldwide recall of 53,000 (~70%) of the 76,000 vehicles it sold in 2016 due to faulty parking brakes which could become stuck and "prevent the vehicles from moving". On March 29, 2018, Tesla issued a worldwide recall of 123,000 Model S cars built before April 2016 due to corrosion-susceptible power steering bolts, which could fail and require the driver to use "increased force" to control the vehicle.

In October 2020, Tesla initiated a recall of nearly 50,000 Model X and Y vehicles throughout China for suspension issues. Soon after in November, the NHTSA announced it had opened its investigation into 115,000 Tesla cars regarding "front suspension safety issues", citing specifically 2015–2017 Model S and 2016–2017 Model X years. Cases of the "whompy wheel" phenomenon, which also included Model X and the occasional Model 3 cars, have been documented through 2020.

In February 2021, Tesla was required by the NHTSA to recall 135,000 Model S and Model X vehicles built from 2012 to 2018 due to using a flash memory device that was rated to last only 5 to 6 years. The problem was related to touchscreen failures that could possibly affect the rearview camera, safety systems, Autopilot and other features. The underlying technical reason is that the car writes a large amount of syslog content to the device, wearing it out prematurely.

Also in February 2021, the German Federal Motor Transport Authority (KBA) ordered Tesla to recall 12,300 Model X cars because of "body mouldings problems".

In June 2021, Tesla recalled 5,974 electric vehicles due to worries that brake caliper bolts might become loose, which could lead to loss of tire pressure, increasing the chance of a crash.

On December 30, 2021, Tesla announced that it is recalling more than 475,000 US model vehicles. This included 356,309 Model 3 Tesla vehicles from 2017 to 2020 due to rear-view camera issues and a further 119,009 Tesla Model S vehicles due to potential problems with the trunk or boot. The Model S recall includes vehicles manufactured between 2014 and 2021. Around 1% of recalled Model 3s may have a defective rear-view camera, and around 14% of recalled Model S may have the defect. The recall was not linked to a contemporaneous issue regarding the "Passenger Play" feature, which allowed games to be played on the touchscreen while the car is in motion. After an investigation was launched by the NHTSA covering 585,000 vehicles, Tesla agreed to make changes where the feature would be locked and unusable while the car is moving.

In September 2022, Tesla announced that it is recalling almost 1.1 million US model vehicles because the automatic window reversal system might not react correctly after detecting an obstruction, increasing the risk of injury. In response, Tesla announced an over-the-air software fix.

In February 2023, Tesla recalled its FSD software following a recommendation from NHTSA; the recall applied to approximately 360,000 cars. NHTSA found that FSD caused "unreasonable risk" when used on city streets. In March 2023, about 3,500 Model Y Teslas were recalled for a bolting issue concerning the cars' second-row seats.

In December 2023, following a 2-year investigation by the NHTSA, Tesla issued a wider recall on all vehicles equipped with any version of Autosteer, including 2012–2023 Model S; 2016–2023 Model X; 2017–2023 Model 3; and 2020–2023 Model Y, covering 2,031,220 vehicles in total. The NHTSA concluded that Autosteer's controls were not sufficient to prevent misuse and did not ensure that the drivers maintained "continuous and sustained responsibility for vehicle operation" and states that affected vehicles will receive an over-the-air software remedy.

Autopilot crashes

A Model S driver died in a collision with a tractor-trailer in 2016, while the vehicle was in Autopilot mode; the driver is believed to be the first person to have died in a Tesla vehicle in Autopilot. The NHTSA investigated the accident but found no safety-related defect trend. In March 2018, a driver of a Tesla Model X was killed in a crash. Investigators say that the driver of the vehicle had his car in 'self-driving' mode and was using his phone to play games when the vehicle collided with the barrier in the middle of the freeway. Through investigation, the NTSB found that the Tesla malfunctioned due to the system being confused by an exit on the freeway.

According to a document released in June 2021, the NHTSA has initiated at least 30 investigations into Tesla crashes that were believed to involve the use of Autopilot, with some involving fatalities. In early September 2021, the NHTSA updated the list with an additional fatality incident and ordered Tesla to hand over all extensive data pertaining to US cars with Autopilot to determine if there is a safety defect that leads Tesla cars to collide with first-responder vehicles. In late September 2021, Tesla released an over-the-air software update to detect emergency lights at night. In October 2021, the NHTSA asked Tesla why it did not issue a recall when it sent out that update. In June 2022, the NHTSA said it would expand its probe, extending it to 830,000 cars from all current Tesla models. The probe was moved up from the Preliminary Evaluation level to Engineering Analysis. The regulator cited the reason for the expansion as the need to "explore the degree to which Autopilot and associated Tesla systems may exacerbate human factors or behavioral safety risks by undermining the effectiveness of the driver's supervision."

A safety test conducted by the Dawn Project in August 2022 demonstrated that a test driver using the beta version of Full Self-Driving repeatedly hit a child-sized mannequin in its path, but there has been controversy over its conclusions. Several Tesla owners responded by conducting their own, independent tests using children; NHTSA released a statement warning against the practice.

In 2025, the California DMV filed a lawsuit against Tesla, claiming it had misled drivers about its vehicles' self-driving capabilities. The DMV sought to suspend Tesla's sales and manufacturing in the state of California for a minimum of 30 days.

Vehicle sales

In 2024, Tesla ranked as the world's best-selling battery electric passenger car manufacturer, with a market share of 17.6%. Tesla reported 2023 vehicle deliveries of 1.8 million units, up 38% from 2022. In March 2024, Tesla produced its six millionth car. In Q4 2023, Tesla's Chinese competitor BYD took over the top spot for EVs shipped, but Tesla regained the title in Q1 2024. On January 2, 2026, BYD became the bestselling electric vehicle maker across the globe and surpassed Tesla as the largest EV maker.

Tesla sells the most vehicles in the US (674,000+ in 2023) and has received $11.4 billion in regulatory credits from federal and state governments. The federal government previously provided a $7500 rebate to customers. Tesla received around $426 million from the Chinese government for cars manufactured at its Shanghai facility.

Germany was Tesla's third-largest market in 2023, selling 63,682 units. Germany ended its EV subsidy program in December 2023. Under the program, a €6,750 discount was provided with Tesla paying €2,250. Tesla announced it would cover the entire discount going forward. In 2023, over 63,000 Teslas were sold in France with customers receiving up to €7,000 via the bonus écologique. The government decreased the budget for EV aid from €1.5 billion to €700 million in 2024.

Canada was in Tesla's top five markets in 2023 with over 52,000 vehicles sold. In 2025, Tesla was accused of having "a run on the bank" when it sold a historic 8,600 vehicles in 72 hours before Canada's EV rebate program's funds were depleted. Tesla claimed 4000 vehicles alone were sold over one weekend in Quebec City. The Government of Canada announced on March 25, 2025, that it had suspended the rebates and was investigating. The government also declared Tesla would be ineligible for any future rebates as long as the US tariffs on Canadian products continued.

Musk has stated he is against government subsidies but will take them if they are available.

Sales have been negatively impacted by Musk's actions during the second Trump presidency. Tesla sales have decreased worldwide (the most in countries like France, Germany, the UK, Sweden, Norway, and the Netherlands) with his vocal support for far-right parties such as Reform UK and AfD in Germany along with his Nazi salute controversy leading to boycotts of his products and Tesla vehicles being nicknamed Swasticars, a portmanteau of swastika and car. German sales fell 76% in February 2025 compared to February 2024.

Tesla's shares dropped over 9 percent after its sales in the EU and UK declined by nearly half in January 2025, bringing its valuation below $1 trillion for the first time since November 2024. While European electric car sales surged, Tesla struggled against rising competition, particularly from Chinese automakers. In May 2025, it was reported that the company's sales in Europe declined every month since the start of the year, including in April where sales dropped 49 percent to 7,261 from 14,228 in April 2024. As of May 2025, the company has a 0.7 percent market share in Europe, down from 1.3 percent a year ago.

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History

Founding (2003–2004)

Roadster (2005–2009)

USDOE loan, IPO, Model S, Autopilot, and Model X (2010-2015)

SolarCity and Model 3 (2016–2018)

Global expansion and Model Y (2019–present)

Automotive products

Available products

In production but not yet available for purchase

Concept vehicles

Discontinued vehicles

Discontinued vehicle features

Services

Connectivity services

Vehicle servicing

Charging services

Insurance services

Robotaxi

Energy products

Business strategy

Technology

Batteries

Software

Motors

North American Charging Standard

Glass

Robotics

Facilities

North America

Europe

Asia

Partners

Panasonic

Other current partners

Former partners

Lawsuits and controversies

Failed lawsuit alleging unfair review

Sexual harassment

Accidents, repairs, and safety violations

Fraud allegations

Tesla US dealership disputes

Intellectual property

Misappropriation

Environmental violations

Property damage

Racism

COVID-19 pandemic

Right to repair

TeslaTakedown protests

Lawsuits against Tesla critics and vehicle malfunction complainants in China

Criticism

Data privacy

Short sellers

Tesla's mission

Giga New York audit

Delays

Accolades

Vehicle product issues

Recalls

Electrically operated door handles

Fires

Autopilot crashes

Software hacking

Phantom braking

Driving range performance