The Tesla Model S, the company’s first mass-produced sedan.
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In 2012, Tesla stopped production of the Roadster to concentrate on its new Model S sedan, which was acclaimed by automotive critics for its performance and design. It came with three different battery options, which gave estimated ranges of 235 or 300 miles (378 or 483 km). The battery option with the highest performance gave an acceleration of 0 to 60 mph (96 km/h) in slightly more than four seconds and a top speed of 130 mph (209 km/h).
Unlike the Roadster, which carried its battery system at the back of the car, the Model S had its underneath the floor, which gave extra storage space in back and improved handling because of its low center of gravity; this battery placement was used on later Tesla models. The Tesla Autopilot, a form of semiautonomous driving, was made available in 2014 on the Model S (and later on other models).
Beginning in 2012, Tesla built stations called Superchargers in the United States and Europe designed for charging batteries quickly and at no extra cost to Tesla owners. Later versions of those stations also had the capability of complete replacement of the Model S battery pack.
In 2015, Tesla unveiled the Model X, a crossover combining features of a sport-utility vehicle with those of a car. The Model X had a maximum battery range of about 340 miles (547 km) and could seat up to seven passengers.
Tesla Gigafactory
Tesla began building large factories it called Gigafactories to produce batteries and vehicles. The first such factory opened in 2016 outside Reno, Nevada; more were opened in Buffalo, New York (2017), Shanghai (2019), Austin, Texas (2021), and Berlin (2022).
A planned Tesla Gigafactory near Monterrey, Mexico, was put on hold in 2024 after then-presidential candidate Donald Trump pledged to impose tariffs on vehicles manufactured in Mexico. In 2025, Tesla opened a second factory in Shanghai, known as the Shanghai Megafactory, to produce Megapack battery systems for large-scale energy storage.
Giga-massive: A 2,500 acre plant along the Colorado River with over 10 million square feet of factory floor.
© John Mcadorey/Dreamstime.com
Because of demand for a more inexpensive vehicle, the Model 3, a four-door sedan with a range of up to 353 miles (568 km) and a price of $35,000, began production in 2017. The car had an all-glass roof, and most controls were on a 15-inch (38-cm) central touchscreen. The Model 3 became Tesla’s best-selling model and the best-selling electric car of all time, surpassing the Nissan Leaf.
The company also branched out into solar energy products. A line of batteries to store electric power from solar energy for use in homes and businesses was unveiled in 2015. Tesla bought the solar panel company SolarCity in 2016 and offered rooftop solar panels, a solar roof with energy-generating tiles, and a large battery called the Powerwall to store the power generated for use when the sun was not shining or as a backup in case of a power outage.
The Tesla buyout tweets and SEC settlement
In August 2018, Musk made a series of tweets about taking Tesla private, claiming that he had secured funding. In the following month, the U.S. Securities and Exchange Commission (SEC) charged him with securities fraud, alleging that his tweets were “false and misleading.” Later that month, Tesla’s board rejected a proposed settlement from the SEC, reportedly after Musk threatened to resign.
News of the rejected deal sent Tesla’s stock plummeting, and the board quickly accepted a less generous settlement. Under its terms, Musk agreed to step down as chair and was barred from returning to the position for three years. He also agreed to have tweets and other public statements containing potentially material information about Tesla preapproved by the company’s lawyers. Tesla and Musk were also fined $20 million each. Musk was permitted to remain CEO.
In 2022, a federal judge rejected Musk’s attempt to overturn the settlement, dismissing his arguments that the agreement violated his free-speech rights and that the SEC had used it to harass him.
In 2017, the company changed its name to Tesla, Inc., to reflect the expansion of its business beyond automobiles. Also that year, the company unveiled plans for a second-generation Roadster and began accepting reservations, with production initially expected in 2020. The launch was repeatedly postponed, first to 2022, then to 2023 and 2025, as Tesla prioritized other vehicles, including the Model Y and Cybertruck.
The Model Y, Cybertruck, and other EVs
Introduced in 2020, the Tesla Model Y is one of the company’s most popular vehicles.
© Roschetzky Photography/Shutterstock.com
In 2020, Tesla released the Model Y, a smaller and less expensive crossover than the Model X that shared many components with the Model 3. Sales soon rivaled those of the Model 3, and in 2023 the Model Y became Tesla’s best-selling vehicle worldwide.
By the early 2020s, Tesla had broadened its lineup plans to include the Semi and the Cybertruck. The Cybertruck, originally slated for production in 2021, was delayed two years by supply chain disruptions and design changes. Deliveries began in late 2023, with an estimated reservation backlog of about two million vehicles, though updated figures weren’t disclosed. Its bold, angular design drew both praise and criticism. Sales subsequently fell well short of Tesla’s expectations, and the vehicle was subject to multiple recalls.
The Tesla Semi entered limited production in 2022, with initial deliveries to customers including PepsiCo (PEP). In April 2026, Tesla began producing the electric truck on a high-volume assembly line at its Nevada factory, expanding deliveries to commercial customers later that year. The company said it eventually aimed to produce 50,000 Semis annually.
In May 2026, Tesla ended production of the Model S and Model X, its oldest vehicles after the original Roadster. The company planned to convert their production space at its Fremont, California, factory to manufacture Optimus humanoid robots.
In October 2026, Tesla unveiled its long-delayed second-generation Roadster, which incorporated technology from SpaceX (SPCX), another Elon Musk company. The prototype demonstrated the ability to hover using rocket thrusters, and Musk said production was expected to begin in 2028. In November 2026, Musk said Tesla would wind down Cybertruck production around mid-2027 after years of weak sales, allowing the company to increase production of its self-driving Cybercab.
Headquarters relocation and reincorporation in Texas
Tesla moved its corporate headquarters to Austin, Texas, from Palo Alto, California, in 2021, following disputes with state officials over COVID-19 restrictions that had temporarily closed the automaker’s Fremont plant. Musk criticized the state’s regulation and costs, saying Texas offered a better environment for expansion.
In January 2024, Delaware’s Chancery Court voided Musk’s $56 billion compensation package, ruling that the board’s process had been “deeply flawed.” Less than five months later, in June 2024, Tesla shareholders approved reincorporating in Texas from Delaware, with 63% support, and the change was completed that year. A Delaware court upheld the move’s validity the following year.
After reincorporation, Tesla adopted Texas corporate-law provisions that limit certain shareholder lawsuits, including a 3% ownership threshold to file claims alleging a breach of fiduciary duty. The changes drew concern from institutional investors and governance advocates.
Autonomous driving, robotics, and market pressures
By the mid-2020s, Tesla’s rapid growth had slowed as competition in the electric-vehicle market intensified and the company’s product lineup aged. The Model 3 and Model Y, which together accounted for most of its sales, had seen few major updates for several years. At the same time, consumer demand softened amid growing competition and public criticism of Musk. That scrutiny included his political activity, which several consumer surveys linked to reduced interest in the automaker.
In October 2025, Tesla debuted lower-priced versions of the Model 3 and Model Y. The models were listed at about $37,000 and $40,000, respectively, and included shorter driving ranges and fewer features than the premium versions. The pared-down models were aimed at cost-conscious buyers, and their introduction followed the September 30 expiration of a $7,500 federal EV tax credit.
Tesla expanded its efforts in autonomous driving and robotics during the mid-2020s. In 2025, the company began limited robotaxi operations in Austin and pursued development of Cybercab, a self-driving vehicle without a steering wheel or pedals. Tesla also developed Full Self-Driving, software that can handle vehicle steering, braking, and acceleration but requires drivers to remain attentive and ready to take control. The technology remained under regulatory scrutiny.
Tesla’s robotics efforts included Optimus, a humanoid robot. Musk said that artificial intelligence and robotics would eventually account for most of the company’s value, but investors and analysts remained divided about the pace and feasibility of those ambitions.
Revised compensation plan
In 2025, Tesla faced growing shareholder scrutiny over a proposed compensation package for Musk, concerns about executive succession, and his commitments outside the company. Some investors questioned whether Tesla’s board of directors was doing enough to ensure that its leadership remained focused on the automaker’s core businesses.
In November 2025, Tesla shareholders approved a new $1 trillion compensation plan for Musk, one of the largest in corporate history. Under the plan, he could receive stock awards worth up to that amount over the next decade if Tesla meets a series of ambitious performance targets, including increasing the company’s market capitalization to about $8.5 trillion—roughly six times its 2025 value—and expanding its robotics and autonomous-driving divisions.
The vote passed by a wide margin despite opposition from major pension funds and governance advocates. Supporters said the plan tied Musk’s compensation to long-term growth and innovation and underscored continued shareholder confidence in his leadership.
This article was most recently revised and updated by Barbara A. SchreiberThis article was most recently revised and updated by Erik GregersenThis article was most recently revised and updated by Doug Ashburn
