Tesla, Inc.

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Tesla’s emphasis on robotics and automation mirrors CEO Elon Musk’s assertion that the company’s future lies as much in AI as in vehicles.

© CFOTO—Future Publishing/Getty Images

Tesla, Inc., headquartered in Austin, Texas, is an American manufacturer of electric automobiles, solar panels, and batteries for cars and home power storage. It was founded in 2003 by American entrepreneurs Martin Eberhard and Marc Tarpenning and was named after Serbian American inventor Nikola Tesla. It quickly became one of the most recognizable car brands in the world.

Although Tesla is best known for its electric vehicles, it also produces energy-storage systems and technology products. Its business is divided into two segments: automotive; and energy generation and storage.

Tesla’s largest segment includes electric vehicle sales, leasing, and software features such as Full Self-Driving, along with services such as vehicle maintenance, insurance, and charging. In 2025, the segment generated about $82.1 billion in revenue, including $12.5 billion came from services and other.

Tesla’s automotive segment also generated revenue by selling regulatory carbon credits to other automakers that needed them to meet emissions requirements. Those sales brought in $1.99 billion in 2025, down 28% from 2024, as changes in government regulations, including the One Big Beautiful Bill Act, restricted certain credit programs.

Tesla designs and installs solar energy systems and produces battery storage products like the Powerwall and Megapack. The segment generated about $12.8 billion in revenue in 2025.

Tesla Motors was formed to develop an electric sports car. Eberhard was Tesla’s chief executive officer (CEO) and Tarpenning its chief financial officer (CFO). Funding for the company was obtained from a variety of sources, most notably PayPal cofounder Elon Musk, who contributed more than $30 million to the new venture and served as chair of the company beginning in 2004.

In 2008, Tesla Motors released its first car, the completely electric Roadster. In company tests, it achieved 245 miles (394 km) on a single charge, a range unprecedented for a production electric car. Additional tests showed that its performance was comparable to that of many gasoline-powered sports cars:

The Roadster’s body was made of carbon fiber, the lightweight—but stronger than steel—material used in many of the world’s top supercars. Plus, the automobile produced no tailpipe emissions, as it did not use an internal-combustion engine. Its electric motor was powered by lithium-ion cells—often used in laptop computer batteries—that could be recharged from a standard electrical outlet. Despite a federal tax credit of $7,500 that applied to purchasing an electric vehicle, the Roadster’s cost of $109,000 made it a luxury item.

In late 2007, Eberhard resigned as CEO and president of technology and joined the advisory board of the company. He formally left Tesla in 2008 but remained a shareholder. Tarpenning, who was vice president of electrical engineering, supervising the development of electronic and software systems for the Roadster, also left the company in 2008. Musk took over as CEO. In 2010, Tesla’s initial public offering raised some $226 million.