A Brief History Of Tesla

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When Tesla went public in 2010, it became the first American car company to do so since Ford Motor Company in 1956. Since then, Tesla’s stock has soared as the company keeps rolling out new features and models while simultaneously capturing the imagination of a curious public. What follows is a brief history of Tesla starting at its founding not by Elon Musk, but Martin Eberhard and Marc Tarpenning in July 2003.

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Tesla

From founding to today

Founding

Tesla was founded not by Elon Musk, but rather by Martin Eberhard and Marc Tarpenning in July 2003. The two bootstrapped the fledgling auto company until Elon Musk led the company’s $7.5 million Series A financing round in February 2004, when Musk became the company’s Chairman of the Board.

Elon Musk to the rescue with more cash

In February 2005, Elon Musk again led another round of financing to inject $13 million more into the company during the development of the yet-announced Tesla Roadster. Then, in 2007, the company raised a $40 million Series C co-led by Musk and Technology Partners.

A deal with Lotus Cars

On July 11, 2005 Tesla signed a production contract for Lotus to manufacture complete cars minus the powertrain for what would become the Tesla Roadster.

The Roadster is unveiled

On July 19th, 2007 Tesla’s first production vehicle was unveiled by CEO Martin Eberhard and the company’s chairman Elon Musk at an invite-only event at the Santa Monica airport. Tesla is now a officially a car company.

Tesla changes leadership

Tesla is in a tough spot. The company is burning through money and in need of new leadership. In December 2007, Ze’ev Drori, a successful high-tech entrepreneur and proven chief executive, became CEO and President. Under Drori’s leadership, 10% of the staff was laid off but the company became profitable. Yet Drori wouldn’t last a year at Tesla.

The Elon Musk era begins

In October 2008, Musk succeeded Drori as CEO. Drori became Vice Chairman, but then left the company in December. By this time Musk had dumped $70 million of his own money into Tesla.

The Roadster

Tesla sold 2,250 Roadster models between 2008 and 2012. Yet it wasn’t easy. The company struggled to deliver orders on time while attempting to reassure potential buyers about its capability. The British car show “Top Gear” didn’t help.

Tesla vs "Top Gear"

On series 12, episode 7, “Top Gear” host Jeremy Clarkston drives the Roadster and gives it a scathing review, stating among other things, the car only had a 55 mile range. Tesla sued on the grounds of libel but lost.

Introducing the Model S

On June 30th, 2008, Tesla unveiled the Model S. With a starting price of $50,000 and seating for seven, the Model S was supposed to be Tesla’s “affordable” family sedan.

Tesla and Daimler AG

On May 19, 2009, Tesla enters into a strategic partnership with Daimler AG, which acquired a 10% equity stake in Tesla for a reported $50 million.

Tesla takes a loan from the US Government

In June 2009 Tesla took a $465 million loan from the United States Department of Energy. The company paid off the loan in May 2013, some nine years early.

Going public

On June 29, 2010, Tesla raised $26 million in its initial public offering becoming the first America car company to go public since Ford in 1956. Since its IPO, the company’s stock has risen 1,229%.

We drive Elon Musk's personal Roadster

We were given a special treat in September 2011 when we were handed the keys to Elon Musk’s personal Tesla Roadster sport during a tour of Tesla’s California facility.

The Model X SUV

Tesla unveiled its first SUV and AWD vehicle on February 9, 2012, the Model X, with delivery expected for early 2015. The stunning gullwing-type doors featured in the concept will be included in the production vehicle.

Tesla's secret sauce

In 2012 Tesla quietly began building a small network of electric car charging stations throughout California.  When the Superchargers were announced in 2012, there were six stations operational. There are now over 200 worldwide, and routes that allow Model S drivers to drive from coast to coast in the US.

The fires

By 2013, Tesla was cruising along nicely, but then it all started to unravel. Three Model S sedans caught fire following accidents. The company quickly addressed the issues and stated their cars are safe but not before its stock and public perception took a hit. Following the third vehicle fire, Tesla’s stock price dropped more than 20%.

Tesla in 2014

Following a tough 2013, Tesla found its groove in 2014. The stock price is soaring, up 47% from the low following the Model S fires. The company delivered its 28,500 Model S in July 2014 and are now charging forward with the introduction of new models.

The Model 3

On July 15, 2014, Telsa reveled that its next vehicle will be called the Model 3. It’s said to have a starting price of under $35,000.

What's next?

Tesla is set to unveil a new version of the Model S sedan on October 9th, 2014. It’s widely speculated that it will be an AWD version of the Model S. Tesla could also unveil its autonomous driving platform, which Elon Musk teased in late September 2014.

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