Tesla Ipo Share Price

Tesla ipo share price

American automotive and energy company

This article is about the car and energy company.

Tesla ipo share price

For other uses, see Tesla.

"Tesla Motors" redirects here. For Nikola Tesla's motors, see induction motor and AC motor.

Tesla, Inc. (formerly Tesla Motors, Inc.), is an American automotive and energy company based in Palo Alto, California.[8] The company specializes in electric car manufacturing and, through its SolarCity subsidiary, solar panel manufacturing.[9] It operates multiple production and assembly plants, such as Gigafactory 1[10] near Reno, Nevada, and its main vehicle manufacturing facility at Tesla Factory[11] in Fremont, California.

As of 2019, Tesla sells Model S,[12]Model X,[13] and Model 3 cars.[14] It is accepting reservations for the Model Y,[15]Roadster (2020),[16], Cybertruck,[17] and Semi[18] vehicles. Tesla also sells Powerwall,[19]Powerpack,[20] and Megapack[21] batteries, solar panels,[22]solar roof tiles,[23] and some related products.[24]

Tesla was founded in July 2003, by engineers Martin Eberhard and Marc Tarpenning, under the name of Tesla Motors.

The company's name is a tribute to engineer Nikola Tesla. In early Series A funding, Tesla Motors was joined by Elon Musk, J.

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B. Straubel and Ian Wright, all of whom are retroactively allowed to call themselves co-founders of the company. Musk, who formerly served as chairman and is the current chief executive officer, said that he envisioned Tesla Motors as a technology company and independent automaker, aimed at eventually offering electric cars at prices affordable to the average consumer. Tesla Motors shortened its name to Tesla in February 2017.

After 10 years in the market, Tesla ranked as the world's best selling plug-in passenger car manufacturer in 2018, both as a brand and by automotive group, with 245,240 units delivered and a market share of 12% of the plug-in segment sales.[25][26][27] Tesla vehicle sales in the U.S.

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increased by 280% from 48,000 in 2017 to 182,400 in 2018,[28] and globally were up by 138% from 2017.[29] Tesla has never had a profitable year.[30] However, it has had several profitable quarters starting from the first quarter of 2013 when it posted an $11 million profit.


Main article: History of Tesla, Inc.

Tesla Motors was incorporated in July 2003 by Martin Eberhard and Marc Tarpenning who financed the company until the Series A round of funding.[31] The founders were influenced to start the company after GM recalled all its EV1 electric cars in 2003 and then destroyed them.[32] Elon Musk led the Series A round of investment in February 2004, joining Tesla's board of directors as its chairman.

Tesla's primary goal was to commercialize electric vehicles, starting with a premium sports car aimed at early adopters and then moving into more mainstream vehicles, including sedans and affordable compacts.[33]

Musk took an active role within the company and oversaw Roadster product design at a detailed level.[34] In addition to his daily operational roles, Musk was the controlling investor in Tesla from the first financing round, funding $6.5M of the Series A capital investment round of US$7.5 million with personal funds.[citation needed] Musk later led Tesla Motors' Series B, $9M of US$13 million, and co-led the third, $12M of US$40 million round in May 2006.

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Tesla's third round included investment from prominent entrepreneurs including Google co-founders Sergey Brin & Larry Page, former eBay President Jeff Skoll, Hyatt heir Nick Pritzker and added the VC firms Draper Fisher Jurvetson, Capricorn Management and The Bay Area Equity Fund managed by JPMorgan Chase.[35] The fourth round in May 2007 added another US$45 million and brought the total investments to over US$105 million through private financing.[36]

Tesla has been reporting net losses most quarters for many years.

In 3Q2019, Tesla surprised analysts, who had been anticipating a quarterly loss of approximately 40 cents per share, with adjusted earnings of US$1.61 per share, on total quarterly revenue of US$6.3 billion.[37]


Tesla's business strategy is to emulate typical technological-product life cycles and initially target affluent buyers, and then move into larger markets at lower price points.[33][38] The battery and electric drivetrain technology for each model would be developed and partially paid for through the sales of earlier models.[33][39] The Roadster was low-volume and priced at US$109,000.

Model S and Model X targeted the broader luxury market. Model 3 and the Model Y is aimed at a higher-volume segment.[40][41] This business strategy is common in the technology industry.[42] According to a Musk blog post, "New technology in any field takes a few versions to optimize before reaching the mass market, and in this case it is competing with 150 years and trillions of dollars spent on gasoline cars."[43]

Tesla's production strategy includes a high degree of vertical integration[44] (80% in 2016[45]), which includes component production and proprietary charging infrastructure.

The company operates large factories to capture economies of scale. Tesla builds electric powertrain components for vehicles from other automakers, including the Smart ED2 ForTwo electric drive (the lowest-priced car from Daimler AG), the Toyota RAV4 EV, and Freightliner's Custom Chassis Electric Van.

Vertical integration is rare in the automotive industry, where companies typically outsource 80% of components to suppliers,[46] and focus on engine manufacturing and final assembly.[47][48]

Tesla's sales strategy is to sell its vehicles online and in company-owned showrooms rather than through a conventional dealer network.


Moving towards an e-commerce strategy, customers are able to customize and order their vehicles online.[50][51]

Tesla's technology strategy focuses on pure-electric propulsion technology, and transferring other approaches from the technology industry to transportation, such as online software updates.[52] Tesla allows its technology patents to be used by anyone in good faith.[53] Licensing agreements include provisions whereby the recipient agrees not to file patent suits against Tesla, or to copy its designs directly.[54] Tesla retained control of its other intellectual property, such as trademarks and trade secrets to prevent direct copying of its technology.[55]

Tesla Human Resources VP Arnnon Geshuri committed to bringing manufacturing jobs "back to California".[56][57] In 2015, Geshuri led a hiring surge about which he said: "In the last 14 months we've had 1.5 million applications from around the world.

People want to work here."[58] Geshuri emphasizes hiring veterans, saying "Veterans are a great source of talent for Tesla, and we're going after it."[57][59][60]


Tesla delivered 367,500 cars in 2019, 50% more than in 2018 and more than triple the number sold in 2017.

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At the end of 2019, Tesla's global sales since 2012 totaled over 891,000 units.[61][62][29] Year over year Tesla U.S. vehicle sales from 2017 to 2018 increased by 280% from 48,000 to 182,400.[28] As of October 2018[update], Tesla's sales represented about 20% of the all-electric cars on the world's roads, according to Navigant Research.[63] In July 2017, Tesla said their vehicles had traveled 5 billion miles (8 billion km).[64]

Cumulative global sales of Tesla's electric vehicles by model up to December, 2019
Model/launch yearUnits delivered
Roadster (2008)

Model S+X (2012, 2015)

Model 3 (2017)

(In 2019, Tesla began combining sales figures for the Model S and Model X.)

In 2016 BYD Auto was the world's top selling plug-in car manufacturer with 101,183 units sold, followed by Tesla with 76,243.[65][66] However, Tesla revenues ranked first with US$6.35 billion, while BYD notched US$3.88 billion.[67] Also in 2016, Tesla sold US$1 billion worth of cars in China, the world's largest market for electric vehicles, and in October of the following year it reached an agreement with the Chinese government to build a factory in Shanghai.[68]

After ranking third by brand in 2017, behind BYD and BAIC,[69][70] Tesla ranked as the world's best selling plug-in passenger car manufacturer in 2018, both as a brand and by automotive group, with 245,240 units delivered, capturing a market share of 12% of all plug-in cars sold globally in 2018,[25][26][27] followed by BYD Auto with 227,152 plug-in passenger cars delivered.[27][71]

In August of 2015, Tesla launched a revamp of its stores to include interactive displays focused on safety, autopilot, charging network and motors.[72] As of October 2016[update], Tesla operated about 260 galleries or retail locations in the United States.[73] In June 2016, Tesla opened its first store-within-a-store: a small outpost within the Nordstrom department store at The Grove shopping mall in Los Angeles.[74] In 2017, Tesla opened retail locations in Dubai and South Korea.[75]

Foreseeing Germany as its second market after the U.S.

(and the largest in Europe), in 2016 Tesla stated the Dutch (Dienst Wegverkeer) RDW-issued Whole Vehicle Type Approval (WVTA) should be accepted as a legal compliance document, with no need to seek specific national type of approvals in EU member states.[76] In 2017 Tesla had a US$52 million marketing budget and used a referral program and word of mouth to attract buyers.[77][78]

Production and sales by quarter[edit]

Model S
Model X
Model 3
In transit[c]Source
Q1 2013?5,000+4,9004,900[79]
Q2 2013??5,1505,150[80]
Q3 2013??5,500+5,500+[81]
Q4 2013~34,8516,5876,8926,892[82]
Q1 2014~41,4387,5356,4576,457[83]
Q2 2014~48,9738,7637,5797,579[84]
Q3 2014~57,736~7,0757,7857,785[85]
Q4 201464,81111,6279,8349,834[86]
Q1 201576,43811,16010,04510,045[87]
Q2 201589,24512,80711,53211,532[88]
Q3 2015102,33613,09111,5976 11,603[89]
Q4 2015116,37314,03717,272206 17,478[90]
Q1 2016131,88315,51012,4202,400 14,8202,615[91]
Q2 2016150,22818,3459,7644,638 14,4025,150[92][93]
Q3 2016175,41325,18516,0478,774 24,8215,065[94]
Q4 2016[d]200,29524,88212,7009,500 22,2546,450[95][96]
Q1 2017225,71325,418~13,450~11,550 25,051~4,650[97]
Q2 2017251,42125,708~12,000~10,000 22,026~3,500[98][99]
Q3 2017276,75725,33614,06511,86522226,1374,820[100][101]
Q4 2017301,32224,565~15,200~13,1201,54229,9673,380[102][103][104]
Q1 2018335,81634,49411,73010,0708,18229,9976,100[105]
Q2 2018389,15553,33910,93011,37018,44040,74015,058[106][107]
Q3 2018469,29780,14214,47013,19056,06583,72511,824[108][109]
Q4 2018555,85286,55513,50014,05063,35990,7002,907[110][62]
Q1 2019632,95277,10012,10050,90063,00010,600[111]
Q2 2019720,00087,04817,65077,55095,2007,400[112][113]
Q3 2019816,15596,15517,48379,70397,186[114]
Q4 2019921,046104,89119,45092,550112,000[61]

Tesla deliveries vary significantly by month due to regional issues such as ship availability and registration.

Tesla does not follow the former auto industry standard of monthly reporting; GM and Ford changed from monthly to quarterly sales reporting in 2018 and 2019.[115] Some monthly sales are estimated by media.[116]

US dealership disputes[edit]

Main article: Tesla US dealership disputes

Tesla operates stores and galleries[117][118]—usually located in shopping malls—in many U.S.


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However, customers buy vehicles only from the Tesla website.[119][120][121][122] The stores serve as showrooms that allow people to learn about the company and its vehicles.

Some galleries are located in states with restrictive dealer protection laws that prohibit discussing price, financing, and test drives, as well as other restrictions.

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Tesla's strategy of direct customer sales and owning stores and service centers is different from the standard dealership model in the global vehicle marketplace. Tesla is the only automaker that sells cars directly to consumers; all others use independently owned dealerships,[123][124] although many provide online configuration and financing.[125][126][127] 48 states have laws that limit or ban manufacturers from selling vehicles directly to consumers,[128][129][130] and although Tesla has no independent dealerships, dealership associations in multiple states have filed lawsuits over Tesla's sales practices.

Countries other than U.S. do not protect dealers. The Federal Trade Commission recommends allowing direct manufacturer sales,[131][132] which analysts believe would save consumers 8% in average vehicle price.[133][134]

In February 2019, Tesla announced that it would shut down the bulk of its stores and begin to sell cars exclusively through the internet.[135] The next month, the company reversed its decision, saying in a government filing that it would only close about half the number of showrooms it had originally intended to.[136]

Used vehicles[edit]

Under a buyback program called the Resale Value Guarantee available in 37 U.S.

states, a Tesla Model S sold new before July 1, 2016 included the right to return it after three years with reimbursement of 43% to 50% of its initial price.

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This reimbursement matched the trade-in values of competitive German luxury cars of that age. In addition to maintaining the resale value, Tesla hoped to secure a supply of used cars to refurbish and re-sell with warranty. According to Automotive News, the profit margin on used car sales in the U.S.

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is about triple that on new cars, and Tesla's direct sales would allow them to capture resale profits.[137] Tesla ended the program in 2016, although they retained the Residual Value Guarantee on leased vehicles.[138][139][needs update]

In May 2015, Tesla started selling refurbished Model S cars in the U.S.[140] and within a month sold 1,600 cars.[141] As of July 2017, over 80 used Model S and Model X cars were for sale, with either a four-year, 50,000-mile warranty[142] or a two-year, 100,000-mile warranty for vehicles above 50,000 miles.[143][144] As of September 2015, similar programs existed in Canada,[145] Austria,[146] Belgium,[147] Denmark,[148] France,[149] Germany,[150] Britain,[151] Netherlands,[152] Norway,[153] Sweden[154] and Switzerland.[155][needs update]


As a vertically integrated manufacturer, Tesla has had to master multiple technology domains, including batteries, electric motors, sensors, and artificial intelligence.


Unlike other automakers, Tesla does not use individual large battery cells, but thousands of small, cylindrical, lithium-ion commodity cells like those used in consumer electronics.

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It uses a version of these cells that is designed to be cheaper to manufacture and lighter than standard cells by removing some safety features. According to Tesla, these features are redundant because of the advanced thermal management system and an intumescent chemical in the battery to prevent fires.[156]Panasonic is the sole supplier of the cells for Model S, Model X, and Model 3 and cooperates with Tesla in the Gigafactory 1's '21–70' cells.[157]

In February 2016, Tesla battery cell costs were estimated at US$200 per kWh.[47] Tesla indicated later in 2016 that their battery cells cost less than $190/kWh.[158] Still later that year Argonne Labs estimated $163/kWh at a production rate of 500,000 packs per year.[159][160] In the 2018 Tesla Shareholder meeting, Elon Musk stated battery cell cost could be $100/kWh in 2018.

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2020 would bring $100/kWh Tesla battery packs (as opposed to battery cell).[161]

The batteries are placed under the vehicle floor. This saves interior and trunk (boot) space but increases the risk of battery damage by debris or impact. The Model S has 0.25 in (6.4 mm) aluminum-alloy armor plate.[162] CTO Straubel expected batteries to last 10–15 years,[163] and discounts using electric cars to charge the grid (V2G) because the related battery wear outweighs economic benefit.

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He also prefers recycling over re-use for grid once they reach the end of their useful life for vehicles.[164][165] Since 2008, Tesla has worked with ToxCo/Kinsbursky to recycle worn out RoHS batteries, which will be an integral part of all Gigafactories.[166][167][168]


Tesla makes two kinds of electric motors.

Their oldest currently-produced design is a three-phase four-pole ACinduction motor with a copper rotor[169] (which inspired the Tesla logo), which is used as the rear motor in the Model S and Model X.

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Newer, higher-efficiency permanent magnet motors[clarification needed] are used in the Model 3, Model Y, Semi, and the front motor of newer (early 2019 and onward) versions of the Model S and X.[170]


Main article: Tesla Autopilot

See also: Autonomous car and Connected car

Tesla Autopilot provides semi-autonomous driver assist beginning in September 2014.

Tesla replaced its sensors and software in 2016 (Hardware version 2, or "HW2"). As of 2017, Autopilot included adaptive cruise control, lane departure warning, emergency braking, Autosteer (semi-automated steering), Autopark (parallel and perpendicular parking) and Summon (recalling the vehicle from a parking place).[171][172] HW2 includes eight cameras and twelve ultrasonic sensors, in addition to forward-facing radar.[173] HW2.5 was released in mid-2017 that upgraded HW2 with a second GPU and, for the Model 3 only, a driver-facing camera.[174] HW3 were first installed in Model S and X's in q1 2019 and Model 3 followed quickly

At the end of 2016, Tesla expected to demonstrate full autonomy by the end of 2017,[175][176] which is now expected in 2019.[177] In April 2017 Musk predicted that in around two years drivers would be able to sleep in their vehicle while it drives itself.[178]

In April 2019, Tesla announced that all cars, including the Tesla Model 3, will include autopilot moving forward.[179][180]


In November 2016, the company announced the Tesla glass technology group.

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The group produced the roof glass for the Tesla Model 3 and for use in SolarCity roof tiles announced in October 2016.[181] The tiles contain an embedded solar collector, and are one-third lighter than standard roof tiles.[182]

Vehicle models[edit]

"Tesla electric car" redirects here.

It is not to be confused with Nikola Tesla electric car hoax.

See also: Tesla Roadster (2008)

As of January 2019[update], Tesla offers three car models: the Model S, Model X and Model 3.

The firm's first vehicle, the first-generation Tesla Roadster is no longer sold.


Model S[edit]

Main article: Tesla Model S

The Model S is a five-door liftback sedan. Deliveries began on June 22, 2012.[185] The first delivery in Europe took place in August 2013.[186] Deliveries in China began in April 2014.[187] First deliveries of the right-hand-drive model destined for the UK, Australia, Hong Kong and Japan came in 2014.[188] As of August 2019, the Model S has two configurations: the Model S Long Range, and the Model S Performance with EPA ranges of 375 miles (604 km), and 345 miles (555 km) respectively.[189]

With an estimated 50,931 units sold in 2016, the Model S ranked was the world's best-selling plug-in car for the second year in a row.[65][66] As of September 2018[update], the Model S, with global sales of 250,000 units, ranks as the world's second best selling plug-in electric car in history after the Nissan Leaf (over 350,000 units).[105][106][108][190][191]

The United States is the world's leading Model S market with an estimated 136,542 units sold through September 2018.

Norway ranked as the Model S largest overseas market as of November 2016[update],[193] with 11,802 new units registered.[194][195][196] The Tesla Model S became the first electric car ever to top the monthly sales ranking in any country, when the electric car achieved first place in the Norwegian new car sales list in September 2013.[197][198][199]

In May 2010 Tesla purchased a stake in what would become the Tesla Factory in Fremont, California, for US$42 million,[200][201][202] and opened the facility in October 2010.[201][203][204] For the European market, a final assembly plant and European Distribution Center are part of the Tesla facilities in Tilburg, Netherlands.

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Cars are built and tested in Fremont; then the battery pack, the electric motor and parts are disassembled and shipped separately to Tilburg, where they are reassembled.[205]

Among other awards, the Model S won the 2019 Motor Trend "Ultimate Car of the Year",[206] 2013 "Motor Trend Car of the Year",[207] the 2013 "World Green Car",[208]Automobile magazine's 2013 "Car of the Year",[209] and Time magazine's Best 25 Inventions of the Year 2012 award.[210]

Model X[edit]

Main article: Tesla Model X

Tesla's financial performance
Tesla's paid-in capital makes up the accumulated deficit to maintain its operation
Tesla strategy of starting with low-volume high-priced cars and evolving to higher-volume lower-priced cars.[33]
  1. ^ abcEberhard and Tarpenning were the original founders and incorporated Tesla, while Musk, Straubel and Wright joined in a Series A round later on.

    A lawsuit settlement agreed to by Eberhard and Tesla in September 2009 allows all five to call themselves founders.[2]

  2. ^Sales are only counted as sold when delivered to end customer and all paperwork is correct
  3. ^Goods in transit are produced but not counted as sold until delivered. Tesla no longer reports in transit numbers.
  4. ^Sales by model do not add up to total, these were preliminary figures reported by Tesla.

    Only total sales is final figures are reported by Tesla, as breakdown by model is not typically provided.

Comparison of EPA-rated range for model year 2016 and 2017 electric cars rated up until July 2017.

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Tesla vehicles shown correspond to the variants with the longest and shortest range for each model (S, X and 3).[183][184]