Brief Overview of Tesla
As many of you may know, Tesla has become one of the world’s leading technological companies in recent years, with a market capitalization of approximately $576.97 billion. The company began operations in 2003 as an electric car company but has since evolved into a multinational technology and clean energy conglomerate. In addition to their fully electric sedans and SUVs, Tesla also offers solar panels, solar roof tiles, and home power storage solutions. This transition has allowed Tesla to grow unprecedentedly within the last decade, leading to their inclusion in the Fortune 500 companies list for the first time in 2017. Currently, Tesla is the most valuable car company in the world, surpassing notable competitors such as Ford and Volkswagen. Furthermore, Tesla has demonstrated its ability to dominate the automotive market, selling 1.31 million cars in 2022 and projecting to sell nearly 2 million cars by the end of 2023, contributing to 21 percent of the overall market share of purely electric vehicles. But how did Tesla achieve such success? In this next section, we will discuss Tesla’s meteoric rise from a small electric car making firm to one of the world’s largest technological and clean energy companies.
How Did Tesla Rise So High?
To understand Tesla’s historic rise, it’s essential to understand its roots. Martin Eberhard and Marc Tarpenning founded Tesla Motors in California on July 1, 2003, with a primary focus on electric car production and motor development. In 2004, Elon Musk became the company’s largest shareholder, investing $6.5 million. In 2008, Musk became the CEO of the company, a position he still holds today. Under Musk’s leadership, Tesla’s vision changed significantly. Tesla began developing electric cars and not just motors for electric vehicles. In 2008, Tesla launched its first vehicle, the Roadster, as a premium sports vehicle, with Musk’s aim being for the company to start with a high-end sports car and eventually produce more affordable electric vehicles while still maintaining technological advancements. As Tesla’s market capitalization increased through the sales of the Roadster, the company launched an Initial Public Offering (IPO) in 2010, making it a publicly traded company for the first time. Later in 2012, Tesla ceased operations on the Roadster and transitioned into designing and manufacturing its second luxury electric vehicle, the Model S, which won several awards globally for its unique features and technological advancements.
As the company grew, different vehicles were introduced to the public. By late 2016, Tesla expanded into the solar industry by acquiring SolarCity in an all-stock deal. This acquisition played a pivotal role in shifting Tesla’s focus from solely electric vehicles into technology, clean energy, and automotive production. As a result, in 2017, Tesla Motors changed its name to Tesla, Inc., to better reflect this transformation into an expanded, technologically focused company. In 2019, Tesla opened its first factory outside of the United States, in Shanghai, China, to manufacture vehicles at a faster and larger rate. In 2020, Tesla opened its second factory outside of the United States in Berlin, Germany, for similar purposes, as the company was producing the first models of its fifth electric vehicle, the Model Y crossover. Through this global expansion, Tesla began to grow exponentially at a rapid pace. In January 2020, Tesla became the highest valued American automaker, surpassing $86 billion in market capitalization. In December of the same year, the global technology conglomerate appeared in the S&P 500 Index for the first time in firm history. As of March 2023, Elon Musk and Tesla plan to open its newest factory in Monterrey, Mexico, focusing on automotive, solar, and storage manufacturing. Furthermore, the Model S was a pivotal figure in Tesla’s rise to the top of the automotive industry, receiving various global awards for its unique features and technological advancements. As the company grew, it introduced different vehicles to the public, and by late 2016, Tesla was ready to expand into the solar industry, acquiring SolarCity in an all-stock deal. This acquisition played a crucial role in Tesla’s shift from solely producing electric vehicles to also focusing on technology, clean energy, and automotive production. As a result, in 2017, Tesla Motors changed its name to Tesla, Inc. to better reflect this transformation into an expanded, technologically focused company.
Fast forward to 2019, Tesla opened its first factory outside of the United States, in Shanghai, China, to manufacture vehicles at a faster and larger rate. Shortly after, in 2020, Tesla opened its second factory outside of the United States in Berlin, Germany, for similar purposes, as the company was producing the first models of its fifth electric vehicle, the Model Y crossover. Through this global expansion, Tesla began to grow exponentially at a rapid pace. In January of 2020, Tesla became the highest valued American automaker, surpassing $86 billion in market capitalization. Later that year, in December, the global technology conglomerate appeared in the S&P 500 Index for the first time in firm history.
As of March 2023, Elon Musk and Tesla plan to open their newest factory in Monterrey, Mexico, with a focus on automotive, solar, and storage manufacturing. As of now, Tesla remains the most valuable car company globally, surpassing significant competitors such as Ford and Volkswagen. It has also demonstrated its ability to dominate the electric vehicle market share, selling 1.31 million cars in 2022, with projections to sell nearly 2 million cars by the end of 2023, contributing to 21 percent of the overall market share of purely electric vehicles.
Conclusion
In conclusion, Tesla’s meteoric rise from a small electric car company to one of the world’s largest technological and clean energy companies can be attributed to several factors, including the success of its first electric vehicle, the acquisition of SolarCity, and global expansion outside of the United States. These reasons created a unique and distinct market for Tesla, which few competitors have been able to access. Despite Tesla’s current success, it remains to be seen whether the company can sustain its worldwide success or if outside competition will eventually minimize its value.
