Tesla
esla, Inc. (/ˈtɛzlə/ TEZ-lə or /ˈtɛslə/ ⓘ TESS-lə) is an American multinational automotive and clean energy company. Headquartered in Austin, Texas, it designs, manufactures and sells battery electric vehicles (BEVs), stationary battery energy storage devices from home to grid-scale, solar panels and solar shingles, and related products and services.
| Gigafactory Texas, Tesla's headquarters, just outside of Austin, Texas | |
| Formerly | Tesla Motors, Inc. (2003–2017) |
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| Company type | Public |
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| ISIN | US88160R1014 |
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| Founded | July 1, 2003; 21 years ago in San Carlos, California, U.S. |
| Founders | Martin Eberhard
Marc Tarpenning (See § Founding) |
| Headquarters | Austin, Texas
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| Revenue | US$97.7 billion(2024) |
| Operating income | US$7.1 billion(2024) |
| Net income | US$7.1 billion(2024) |
| Total assets | US$122.1 billion(2024) |
| Total equity | US$72.9 billion(2024) |
| Owner | Elon Musk (13%) |
| Number of employees | 125,665 (2024) |
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| Website | tesla.com |
| Footnotes / referencesFinancials as of December 31, 2024.
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Tesla was incorporated in July 2003 by Martin Eberhard and Marc Tarpenning as Tesla Motors. Its name is a tribute to inventor and electrical engineer Nikola Tesla. In February 2004, Elon Musk led Tesla's first funding round and became the company's chairman; in 2008, he was named chief executive officer. In 2008, the company began production of its first car model, the Roadster sports car, followed by the Model S sedan in 2012, the Model XSUV in 2015, the Model 3 sedan in 2017, the Model Y crossover in 2020, the Tesla Semi truck in 2022 and the Cybertruck pickup truck in 2023.
Tesla is one of the world's most valuable companies in terms of market capitalization. Starting in July 2020, it has been the world's most valuable automaker. From October 2021 to March 2022, Tesla was a trillion-dollar company, the seventh U.S. company to reach that valuation. Tesla exceeded $1 trillion in market capitalization again between November 2024 and February 2025. In 2023, the company led the battery electric vehicle market, with 19.9% share. Also in 2023, the company was ranked 69th in the Forbes Global 2000.
Tesla has been the subject of lawsuits, boycotts, government scrutiny, and journalistic criticism, stemming from allegations of multiple cases of whistleblower retaliation, worker rights violations such as sexual harassment and anti-union activities, safety defects leading to dozens of recalls, the lack of a public relations department, and controversial statements from Musk including overpromising on the company's driving assist technology and product release timelines. Opponents of Musk have launched the "Tesla Takedown" campaign in response to the views of Musk and his role in the second Trump presidency.
2025 Stock Crash and Sales Decline
In early 2025, Tesla experienced a significant stock crash and a marked decline in vehicle sales, reversing gains from late 2024. After peaking at $479.86 per share on December 17, 2024, Tesla’s stock lost over 50% of its value by mid-March 2025, erasing approximately $800 billion in market capitalization.[1] The steepest single-day drop occurred on March 10, 2025, when shares fell 15%—the worst since September 2020—bringing the valuation below $1 trillion, a threshold it had briefly reclaimed in November 2024 following a post-election surge tied to CEO Elon Musk’s political alignment with U.S. President Donald Trump.[1] By March 26, 2025, the stock had partially recovered to $235 after a five-day rally, though analysts warned of ongoing volatility.[2]
The stock decline coincided with Tesla’s first annual sales drop in over a decade, with 1.79 million vehicles delivered in 2024 (down 1.1% from 2023), missing estimates of 1.806 million.[2] This trend worsened in 2025, with significant sales decreases across major markets. In Europe, January 2025 sales fell 45-50% year-over-year in the EU, UK, and EFTA, despite a 26-33% rise in overall EV sales; Germany saw a 60% drop, France 63%, and Spain 75%.[3] February continued this pattern, with a 40% decline in registrations across key markets like Germany (down 76%).[4] In China, Tesla’s second-largest market, sales dropped 11.5% in January and 50% in February, despite a Model Y refresh, as rival BYD surged 90% in February.[5] U.S. sales fell 11% in January, with California down 11.6% in Q4 2024, and the used Tesla market weakened, with prices dropping twice as fast as the average used car.[6]
Several factors fueled these declines. Analysts cited intensified competition from BYD, Volkswagen, and others, with BYD poised to overtake Tesla globally in Q1 2025 (projected 416,388 vs. Tesla’s sub-380,000 sales).[7] Tesla’s aging lineup—lacking a major new model since the Model Y in 2020—struggled against 76 competing EVs, while production hiccups during the Model Y "Juniper" transition disrupted supply.[4] Additionally, Musk’s high-profile role in the Trump administration as head of the Department of Government Efficiency (DOGE) sparked backlash, including boycotts and vandalism (e.g., arson at charging stations near Boston, shots fired at an Oregon dealership), particularly in Europe and Democratic-leaning U.S. regions.[3] His political stances, such as endorsing far-right parties in Germany, further alienated buyers, contributing to brand erosion.[8]
Financially, Tesla’s operating income fell 20% to $1.6 billion in 2024, with price cuts thinning margins.[7] The Cybertruck underperformed, selling 38,965 units in 2024 against Musk’s 250,000-unit goal.[7] Wall Street downgrades followed, with Goldman Sachs, Bank of America, and JPMorgan slashing price targets, forecasting an 8%+ Q1 2025 sales drop.[1] Investors debated Musk’s focus on autonomy (e.g., robotaxis slated for June 2025) versus immediate sales woes, with bulls like Wedbush ($550 target) betting on AI, while bears highlighted execution risks and Musk’s distractions.[2] Tesla’s Q1 2025 sales report, due April 2, 2025, was anticipated as a critical indicator.[2]
- ↑ 1.0 1.1 1.2 "Tesla shares plunge 15%, suffering steepest drop in five years". CNBC. 2025-03-10.
- ↑ 2.0 2.1 2.2 2.3 "Tesla's stock is making a comeback. But it's about to face a massive challenge". CNN Business. 2025-03-26.
- ↑ 3.0 3.1 "Tesla Stocks Tumble as Elon Musk's Political Role Grows More Divisive". The New York Times. 2025-03-11.
- ↑ 4.0 4.1 "Tesla (TSLA) sales crash continues in Europe, with Germany down 70%". Electrek. 2025-03-05.
- ↑ "Tesla Stock Price Crash Continues on BYD Battery Tech, RBC Downgrade". Business Insider. 2025-03-18.
- ↑ "Tesla shares slide as Wall Street is turning its back on Elon Musk". CNN Business. 2025-03-06.
- ↑ 7.0 7.1 7.2 "Tesla's stock has dropped by nearly half in three months". Reuters. 2025-03-10.
- ↑ "Tesla sales plummet as market competition and anger at Elon Musk grows". NPR. 2025-03-11.
