Tesla, Inc.

In 2019, as cars sold worldwide increased 50% from 2018, cars sold in the United States increased only 0.33%,[96] to 192,250 cars, leading to overall revenue in the United States falling by 15%, the first time there has been a decline in revenue in the United States since 2014.[97]

Tesla’s Model 3 was the 8th best selling car in the first quarter of 2020 in the United States.[98]

In 2010, Elon Musk predicted electric Tesla vehicles would sell well in Japan, being second only to the United States;[99] but in 2019, only 1,378 cars were sold in Japan.[100]

Tesla vehicle sales by quarter, based on table

Tesla deliveries vary significantly by month due to regional issues such as ship availability and registration. Tesla does not follow the former auto industry standard of monthly reporting.[138] GM and Ford changed from monthly to quarterly sales reporting in 2018 and 2019, and several other brands in the US auto industry had also switched by 2020.[139] Some monthly sales are estimated by media.[140] On March 9, 2020, the company produced its 1 millionth electric car, becoming the first auto manufacturer to achieved such milestone.[25]

Tesla gallery in Austin, Texas

Tesla operates stores and galleries[141][142]—usually located in shopping malls—in many U.S. states. However, customers buy vehicles only from the Tesla website.[143][144][145][146] The stores serve as showrooms that allow people to learn about the company and its vehicles. Some galleries are located in states with restrictive dealer protection laws that prohibit discussing price, financing, and test drives, as well as other restrictions.

Tesla's strategy of direct customer sales and owning stores and service centers is different from the standard dealership model in the global vehicle marketplace. Tesla is the first automaker that sells cars directly to consumers;[147] all others use independently owned dealerships,[148][149] although many provide online configuration and financing.[150][151][152] Forty-eight states have laws that limit or ban manufacturers from selling vehicles directly to consumers,[153][154][155] and although Tesla has no independent dealerships, dealership associations in multiple states have filed lawsuits over Tesla's sales practices.

Countries other than U.S. do not protect dealers. The Federal Trade Commission recommends allowing direct manufacturer sales,[156][157] which analysts believe would save consumers 8% in average vehicle price.[158][159]

In February 2019, Tesla announced that it would shut down the bulk of its stores and begin to sell cars exclusively through the internet.[160] The next month, the company reversed its decision, saying in a government filing that it would only close about half the number of showrooms it had originally intended to.[161]

Under a buyback program called the Resale Value Guarantee available in 37 U.S. states, a Tesla Model S sold new before July 1, 2016 included the right to return it after three years with reimbursement of 43% to 50% of its initial price. This reimbursement matched the trade-in values of competitive German luxury cars of that age. In addition to maintaining the resale value, Tesla hoped to secure a supply of used cars to refurbish and re-sell with warranty. According to Automotive News, the profit margin on used car sales in the U.S. is about triple that on new cars, and Tesla's direct sales would allow them to capture resale profits.[162] Tesla ended the program in 2016, although they retained the Residual Value Guarantee on leased vehicles.[163][164]

In May 2015, Tesla started selling refurbished Model S cars in the U.S.[165] and within a month sold 1,600 cars.[166] As of July 2017, over 80 used Model S and Model X cars were for sale, with either a four-year, 50,000-mile warranty[167] or a two-year, 100,000-mile warranty for vehicles above 50,000 miles.[168][169] As of September 2015, similar programs existed in Canada,[170] Austria,[171] Belgium,[172] Denmark,[173] France,[174] Germany,[175] Britain,[176] Netherlands,[177] Norway,[178] Sweden[179] and Switzerland.[180]

Tesla Supercharger in West Hartford, Connecticut

Unlike other automakers, Tesla does not use individual large battery cells, but thousands of small, cylindrical, lithium-ion commodity cells like those used in consumer electronics. Tesla uses a version of these cells that is designed to be cheaper to manufacture and lighter than standard cells by removing some safety features. According to Tesla, these features are redundant because of the advanced thermal management system and an intumescent chemical in the battery to prevent fires.[181] Panasonic is the sole supplier of the cells in the U.S., and cooperates with Tesla in the Giga Nevada's '21–70' cells.[182] Tesla's battery cells in China are supplied by Panasonic and CATL, and are the more traditional prismatic cells used by other automakers.[183]

In February 2016, Tesla battery cell costs were estimated at US$200 per kWh.[59] Tesla indicated later in 2016 that their battery cells cost less than US$190/kWh.[184] Still later that year Argonne Labs estimated US$163/kWh at a production rate of 500,000 packs per year.[185][186] In the 2018 Tesla shareholder meeting, Elon Musk stated battery cell cost could be US$100/kWh in 2018 and that 2020 would bring US$100/kWh Tesla battery pack costs (as opposed to battery cell costs).[187]

The batteries are placed under the vehicle floor. This saves interior and trunk (boot) space but increases the risk of battery damage by debris or impact. The Model S has 0.25 in (6.4 mm) aluminum-alloy armor plate.[188] Former Tesla CTO Straubel expected batteries to last 10–15 years,[189] and discounts using electric cars to charge the grid (V2G) because the related battery wear outweighs economic benefit. He also prefers recycling over re-use for grid once they reach the end of their useful life for vehicles.[190][191] Beginning in 2008, Tesla worked with ToxCo/Kinsbursky to recycle worn out RoHS batteries, which as of 2015, the company planned to be an integral part of all Gigafactories.[192][193][194]

Tesla has ongoing battery research and development work at Dalhousie University in Nova Scotia, Canada, featuring lead researcher Jeff Dahn.[195][196] Tesla acquired two battery companies in 2019: Hibar Systems and Maxwell Technologies. All three are expected to play an important role in Tesla's battery strategy.[197][198]

Tesla makes two kinds of electric motors. Their oldest currently-produced design is a three-phase four-pole AC induction motor with a copper rotor[199] (which inspired the Tesla logo), which is used as the rear motor in the Model S and Model X. Newer, higher-efficiency permanent magnet motors are used in the Model 3, Model Y, the front motor of 2019-onward versions of the Model S and X, and is expected to be used in the Semi.[200] The permanent magnet motors increase efficiency, especially in stop-start driving.[201]

Tesla designed autopilot mode not meant to be an alternative to driving; it was designed with the idea that the driver would be paying attention to the road to control the car if need be.[202]

In September 2014, Tesla Autopilot started providing semi-autonomous driver assist. Tesla upgraded its sensors and software in October 2016 (hardware version 2, or "HW2"); all Tesla cars built since then come standard with Autopilot hardware.[203] As of 2017, Autopilot included adaptive cruise control, lane departure warning, emergency braking, Autosteer (semi-automated steering), Autopark (parallel and perpendicular parking) and Summon (recalling the vehicle from a parking place).[204][205] HW2 includes eight cameras and twelve ultrasonic sensors, in addition to forward-facing radar.[206] HW2.5 was released in mid-2017, and upgraded HW2 with a second GPU and, for the Model 3 only, a driver-facing camera.[207] HW3 were first installed in the Model S and X in Q1 2019 and shortly thereafter in Model 3.

At the end of 2016, Tesla expected to demonstrate full autonomy by the end of 2017,[208][209] which was later expected by the end of 2019.[210] In April 2017, Musk predicted that in around two years, drivers would be able to sleep in their vehicle while it drives itself.[211]

In April 2019, Tesla announced that all of its cars will include Autopilot (defined as just Traffic-Aware Cruise Control and Autosteer) as a standard feature moving forward.[203][212] Full self-driving (Navigate on Autopilot (Beta), Auto Lane Change, Autopark, Summon, Smart Summon and future abilities) is an extra cost software option.[203]

On April 24, 2020, Tesla released a software update to its full self driving capability. With this update, cars recognize and automatically stop at stop signs. The cars also automatically slow down and eventually stop at traffic lights (even if they are green), and the driver indicates that it is safe to proceed through the traffic light.[213] Tesla acknowledges that the software is still in a beta phase and still far from being finished. [214]

Tesla is planning to release a subscription package for their self-driving software. On April 28, 2020, a hacker revealed on Twitter that there is already code in Tesla’s app for the subscription plan.[215]

In November 2016, the company announced the Tesla glass technology group. The group produced the roof glass for the Tesla Model 3 and for use in SolarCity roof tiles announced in October 2016.[216] The roof tiles contain an embedded solar collector, and are one-third lighter than standard roof tiles.[217]

The Model S is a five-door liftback sedan. Deliveries began on June 22, 2012.[219] The first delivery in Europe took place in August 2013.[220] Deliveries in China began in April 2014.[221] First deliveries of the right-hand-drive model destined for the UK, Australia, Hong Kong and Japan came in 2014.[222] As of April 2020, the Model S has two configurations: the Model S Long Range Plus, and the Model S Performance with EPA ranges of 391 miles (629 km), and 348 miles (560 km) respectively.[223]

Norway is the Model S' largest European market due to the country's incentives for the adoption of pure electric cars.

With an estimated 50,931 units sold in 2016, the Model S ranked was the world's best-selling plug-in car for the second year in a row.[78][79] As of September 2018, the Model S, with global sales of 250,000 units, listed as the world's second best selling plug-in electric car in history after the Nissan Leaf (over 350,000 units).[127][128][130][224][225]

As of September 2018, the United States listed as the world's leading Model S market with an estimated 136,542 units sold.[226] Norway ranked as the Model S' largest overseas market as of November 2016,[227] with 11,802 new units registered.[228][229][230] The Tesla Model S became the first electric car to top the monthly sales ranking in any country, when the electric car achieved first place in the Norwegian new car sales list in September 2013.[231][232][233]

In May 2010, Tesla purchased what would become the Tesla Factory in Fremont, California, for US$42 million,[234][235][236] and opened the facility in October 2010 where Model S would be produced.[235][237][238] For the European market, final assembly and European Distribution occur at the Tesla facilities in Tilburg, Netherlands. Cars are built and tested in Fremont; then the battery pack, the electric motor and parts are disassembled and shipped separately to Tilburg, where they are reassembled.[239]

Among other awards, the Model S won the 2019 Motor Trend "Ultimate Car of the Year",[240] 2013 "Motor Trend Car of the Year",[241] the 2013 "World Green Car",[242] Automobile magazine's 2013 "Car of the Year",[243] and Time magazine's Best 25 Inventions of the Year 2012 award.[244]

In February 2020, Tesla announced that the Model S Long Range Plus had an EPA range of 390 miles; an improvement of 17 miles over the previous Model S.[245]

Tesla Model 3 production model

The Model 3 (originally stylized as "☰"), a four-door sedan, is Tesla's third-generation car.[52] The car was originally intended to be called the Model E, but after a lawsuit from Ford that holds the trademark on "Model E",[246] Musk announced on July 16, 2014 that the car would be called "Model 3" instead. In July 2017, the standard Model 3 was expected to deliver an EPA-rated all-electric range of 220 miles (350 km), while the long range model was estimated to deliver 325 miles (523 km).[247]

On March 31, 2016, Tesla unveiled the car.[248] Potential customers began to reserve spots on March 31 with a refundable deposit. Tens of thousands were reported waiting to reserve their spot.[249] As of April 7, 2016, one week after the unveiling, Tesla reported over 325,000 reservations,[250][251] representing sales of over US$14 billion.[252] As of July 2017, Tesla reported about 500,000 reservations.[253] Bloomberg News claimed "the Model 3's unveiling was unique in the 100-year history of the mass-market automobile." Bloomberg compared it to the 1955 Citroën DS that took in 80,000 deposits over 10 days at the Paris Auto Show.[254]

First production Tesla Model 3 cars ready for the delivery event on July 28, 2017

Tesla expected to invest between US$2 billion and US$2.5 billion in capital expenditures to support Model 3 production.[118] Limited vehicle production began in July 2017,[118] with the first 30 units delivered at a special event on July 28.[247] Customer deliveries totaled 1,764 units in the U.S. in 2017.[123][126] In June 2018 production reached 5,000 per week.[255] In January 2019, Tesla announced it would cut its full-time workforce by 7% – equal to about 3,150 employees – in order to reduce the cost of the Model 3 from US$44,000 to US$35,000.[256] Musk explained that while the company had “made great progress, our products are still too expensive for most people … There isn’t any other way.”[257]

Global deliveries passed the 100,000 unit milestone in October 2018.[258] The Model 3 topped plug-in electric car sales in the U.S. in 2018,[259][260] marking the first time a plug-in car sold more than 100,000 units in a single year (139,782).[261] Also, it was listed as the best selling plug-in car in California in 2018 (51,293).[262][263] The Tesla Model 3 also ranked as the world's best selling plug-in electric passenger car in 2018, with 146,000 units delivered.[82]

In January 2019, the Model 3 passed the Model S to become the top selling all-electric car in the U.S. ever,[264] and, the next month, also passed the Chevrolet Volt to become the all-time best-selling plug-in electric car in the U.S.[265] On February 28, 2019, Tesla announced that they would begin to roll out the Standard Range base model starting at US$35,000.[266][267]

The Tesla Model 3 ended 2019 as the world's best selling plug-in electric car for the second consecutive year, with just over 300,000 units delivered.[82][84] The electric car also topped annual plug-in car sales in the U.S. (158,925) and California (59,514) markets for the second time in a row.[259][262][268][269] The Model 3 also ranked as the best selling plug-in car in Europe in 2019, with over 95,000 units delivered during its first year in that market.[270]

By early 2019, the Tesla Model 3 became the world's all-time best selling plug-in electric car.[26]

The Model 3 also set records in Norway and the Netherlands, listing in both countries not only as the top selling plug-in car but also as the best selling passenger car model in the overall market in 2019.[271][272] The sales volume achieved by the Model 3 in 2019 (15,683) is the third largest in Norwegian history.[273] The Model 3 also set a new record in the Netherlands for the highest registrations in one month (22,137) for any single plug-in vehicle in Europe.[274] The Model 3 also was the top selling plug-in car in Canada, Spain, Belgium, Denmark, Switzerland, Australia, New Zealand, Taiwan and Mexico.[275][276]

As of December 2019, 448,634 Model 3 cars have been delivered worldwide.[277] The Model 3 surpassed the Nissan Leaf in early 2020 to become the world's all-time best selling electric car, with more than 500,000 sold by March 2020.[26]

As of April 2020, the Tesla Model 3 has four trims: Standard Range Plus RWD, Dual Motor AWD Long Range, Performance and the off-the-menu US$35,000 standard range[278], with EPA ranges of 250 miles (400 km), 322 miles (518 km), 322 miles (518 km), and 220 miles (350 km) respectively.[279].

Elon Musk delivering one of the first six Model X Founders Series models

The Tesla Model X is a mid-size crossover SUV with a lightweight aluminum body.[280] Model X deliveries started in September 2015.[281] It is offered in 5-, 6- and 7-passenger configurations. The passenger doors are articulating "falcon-wing" designs that open vertically.

Production was rescheduled several times, from 2013 to late 2014,[282] to the second quarter of 2015,[283] to the third quarter of 2015.[284] In August 2015, user groups estimated around 30,000 X pre-orders, compared to 12,000 for the S.[285]

Deliveries of the Model X Signature series began on September 29, 2015. Model X sales totaled 2,400 units during the first quarter of 2016, rising to 4,638 in the second quarter of 2016. Global deliveries totaled 25,312 units in 2016,[78] and 46,535 in 2017.[78][119][120][122][124]

In September 2016, the Model X ranked as the top selling plug-in electric car in Norway.[286][287] Previously, the Model S had been the top selling new car four times.[286] Cumulative sales since inception totaled 106,689 units through September 2018.[78][119][120][122][124][127][128][130] The United States is its main market with an estimated 57,327 units sold through September 2018.[226]

Tesla Model Y

In August 2013, Tesla trademarked the name "Model Y".[288] In October 2015, Musk described a future "Model Y".[289] In August 2017, Tesla announced that the Model Y would use the Model 3 platform.[290]

In February 2018, Tesla announced that they would unveil Model Y production plans within the next 3–6 months[291] and posted open positions for Model Y production and design. In May 2018, Musk said that the Model Y will be built on a platform that shares many components with the Model 3, and that the Model Y will be in production at the earliest in early 2020.[292] In July 2018, Musk rescheduled the Model Y unveiling to be March 2019.[293] In March 2019, Musk tweeted, "Model Y unveil event on March 14 at LA Design Studio"[294] also adding that "the Model Y would be 10% bigger than the Model 3 so would cost 10% more".[295]

The Model Y unveiling occurred on March 14, 2019.[296] The car will have up to three rows of seats (up to 7 people), 66 cu ft (2 m³) of cargo space with the second and third rows folded, and will have a range of up to 300 miles (480 km).[296]

As of January 2020, the Tesla Model Y is being manufactured at Tesla Factory in Fremont, CA.[297] In the future, the Model Y is also planned to be built at Giga Shanghai (late 2020)[298], and the yet-to-be-built Giga Berlin, newly announced in November 2019.[299] Deliveries for the Model Y started on March 13, 2020.

Tesla Roadster 2020 prototype at the launch event in November 2017

Through a surprise reveal at the end of the event that introduced the Semi on November 16, 2017, Tesla unveiled the 2020 Roadster. Musk said that the new model will have a range of 620 miles (1,000 km) on the 200 kWh (720 MJ) battery pack and will achieve 0–60 mph in 1.9 seconds; it also will achieve 0–100 mph in 4.2 seconds,[300] and the top speed will be over 250 mph (400 km/h). The vehicle will have three electric motors allowing for all-wheel drive, and torque vectoring during cornering and the SpaceX Package which will include SpaceX cold air thrusters that will increase the speed even more.[301]

At the time, the base price was set at US$200,000 while the first 1,000 units, the Founder's series, would sell for US$250,000.[301] Reservations required a deposit of US$50,000, and those who ordered the Founder's series paid the US$250,000 in full upon ordering. Those who made a reservation at the event were allowed a test drive with a driver in the prototype.[302]

Tesla Semi truck

The Tesla Semi is an all-electric Class 8 semi-trailer truck first mentioned in the 2016 Tesla Master plan.[303]

The vehicle's official announcement was at a November 16, 2017 press conference where two prototypes were shown. Musk confirmed that two variants would be available: one with 300 miles (480 km) and one with 500 miles (800 km) of range, and that the 0–60 mph (0–97 km/h) time would be 5 seconds versus 15 seconds for a similar truck with a diesel engine.[304] The Semi will be powered by four electric motors of the type used in the Tesla Model 3 and will include an extensive set of hardware sensors to enable it to stay in its own lane, a safe distance away from other vehicles, and later, when software and regulatory conditions allow, provide self-driving operation on highways.[305] Musk also announced that the company would be involved in installing a solar-powered global network of the Tesla Megacharger devices to make the Semi more attractive to potential long-haul customers. A 30-minute charge would provide 400 miles (640 km) of range.[306][307]

Musk initially said that Semi deliveries would start in 2019, but Tesla later announced that it was delaying production and delivery of the Semi until 2021.[308]

Cybertruck

The Cybertruck was unveiled on November 21, 2019, with production set for late 2021.[309][310] Five days after the reveal, Musk tweeted that Cybertruck had more than 250,000 pre-orders, though customers only had to put down a $100 fully-refundable deposit.[311][312]

There will be three versions of Tesla’s Cybertruck. The most expensive and best-equipped Cybertruck will have the ability to travel 500 miles on a full charge, reach 60 mph (97 km/h) in 2.9 seconds, travel a quarter mile in under 10 seconds, have a top speed of 130 mph (210 km/h) and tow 14,000 pounds (6,400 kg).[313][314]

Tesla claimed that the Cybertruck's "Armor Glass" windows were virtually unbreakable, but two windows shattered when a Tesla executive threw a metal ball at them during the public unveiling.[315] Many online critics made fun of the truck's angular design, and questioned whether pickup truck buyers will have interest in the Cybertruck.[316][317][318] James Goodwin, chief executive of an Australian car safety organization, says that the angular design and steel construction of the Cybertruck may pose safety risks.[319] The Cybertruck prototype that was unveiled lacked features such as side mirrors, windshield wipers, headlights, and brake lights that are needed to be street legal.[320]

The Tesla Cybertruck appeared in May 2020 on the show Jay Leno’s Garage.[321]

The Tesla Roadster is a battery electric vehicle (BEV) sports car, evolved from the Lotus Elise chassis,[322] that was produced by Tesla Motors (now Tesla, Inc.) in California from 2008 to 2012. The Roadster was the first highway legal serial production all-electric car to use lithium-ion battery cells and the first production all-electric car to travel more than 320 km (200 miles) per charge. It is also the first production car to be launched into orbit, carried by a Falcon Heavy rocket in a test flight on February 6, 2018.[323]

In 2016, Musk indicated he hoped to one day produce a car cheaper than the Model 3:[324][325]

There will be future cars that will be even more affordable down the road . . . With fourth generation and smaller cars and what not, we'll ultimately be in a position where everyone can afford the car.

— Elon Musk at the Future Transport Solutions conference in Oslo, April 21, 2016

Musk wanted the first three models to spell "SEX", but Ford owns the trademark to "Model E",[326] so he settled for "S3XY" by making the Model Y.[327]

On July 20, 2016, Musk detailed his new master plan for Tesla. It includes more affordable cars produced in higher volume, solar-power roofs, mid-size vehicles, SUVs and pickup trucks, as well as the refinement of autonomous vehicles and the creation of a sharing economy, in which cars can be active while the owner is not using them.[328] Tesla intends to build a minibus on the Model X platform.[329] In May 2017, Musk indicated that he might favor a 10-12 passenger version of the Model X over a dedicated minibus design.[330]

At the company's annual shareholder meeting in June 2018, Musk revealed Tesla's intention to enter a new market segment, offering a compact hatchback in "less than five years".[331][332] He provided no details, and dodged a question about also producing a subcompact. Musk also put to rest hopes for a Tesla motorcycle, saying "we’re not going to do motorcycles".[333] However, in November 2019 during the unveiling of the Tesla Cybertruck, Musk also unveiled a Tesla ATV that was capable of charging from the cargo bed of the Cybertruck.[334]

In April 2019, Elon Musk announced Tesla is going to launch an unmanned taxi by the end of 2020. The company plans to have more than 1 million unmanned vehicles by this time.[335]

Tesla Model S charging at a Supercharger station in Newark, Delaware

Tesla superchargers in Toronto, Canada

Tesla destination charger in North America

In 2012, Tesla began building a network of 480-volt fast-charging Supercharger stations. As of December 2019, there are 1,716 Supercharger stations operated globally with over 15,000 superchargers.[354] The Supercharger is a proprietary direct current (DC) technology that provides up to 340 hp (250 kW) of power.[355] The navigation software in Tesla cars can recommend the fastest route for long-distance travel, incorporating possible charging delays.[356]

Almost all Tesla cars come standard with Supercharging hardware.[357] Model S and X cars ordered before January 15, 2017 received free unlimited supercharging.[358] Model S and X cars ordered between January 15, 2017 and August 3, 2019 got 400 kWh (1,400 MJ) of free Supercharging credits per year, which provides a range of roughly 1,000 miles per year (1,600 km/a). Between August 3, 2019[359] and May 26, 2020,[360] all Tesla Model S and X cars ordered came with free unlimited supercharging again. Model 3 cars do not come with free unlimited supercharging.[361]

In December 2016, after a complaint sent to Musk via Twitter about abuse, Tesla started charging an "idle" fee (depending on percent occupancy of the Supercharger station[362]) for vehicles that remain plugged into Superchargers after they are fully charged.[363][364]

In 2014, Tesla discreetly launched the "Destination Charging Location" Network by providing chargers to hotels, restaurants, shopping centers, resorts and other full service stations to provide on-site vehicle charging at twice the power of a typical charging location.[365][366][367] On April 25, 2016, Tesla launched European destination charging, with 150 locations and more to be added later.[368] Destination chargers worldwide totaled over 23,900 in mid 2019.[369]

Chargers are installed free of charge by Tesla-certified contractors; the locations must provide the electricity at no cost to their customers.[370] All installed chargers appear in the in-car navigation system.[371]

New Tesla Model S cars at the Tesla Factory in 2012

Tesla was founded in San Carlos, California.[375] Tesla's first retail stores were in Los Angeles,[376] in Menlo Park, California[377] and in Manhattan's Chelsea art district, followed by others in major US cities.[62] In 2010, Tesla moved its corporate headquarters and opened a powertrain development facility in Palo Alto.[378]

As of 2018, Tesla has service centers in 25 states,[379][380] referring owners with shell damage to approved third-party body shops. In May 2020, after California's government had refused to let the Tesla factory reopen after a COVID-19 lockdown, Elon Musk said that he is going to move the company's headquarters from California to Texas or Nevada.[381]

Tesla's first assembly plant occupies the former NUMMI plant in Fremont, California.[382][383] It is known as the Tesla Factory.[384] As of 2016, the plant was not highly automated—it was expected to produce some 80,000 cars with 6,000 workers compared to a "typical" plant that might produce 250,000 cars with 3,000 workers.[385] The 370-acre (1,500,000 m²) site includes a 5,500,000-square-foot (510,000 m²) building complex.[386]

In 2015, Tesla acquired Riviera Tool & Die (with 100 employees in Grand Rapids, Michigan), one of its suppliers of stamping items.[387][388] They initially renamed the facility "Tesla Michigan",[389][390] and subsequently refer to the facility as Tesla Tool and Die.[391][392] In 2017, Tesla acquired Perbix Machine Company, a manufacturer of automated manufacturing equipment, that had been an equipment supplier for over three years.[393][394] In December 2017, Tesla acquired the factory automation firm Compass Automation of Elgin, Illinois, with expertise in automated assembly and inspection systems; by the end of 2018 the company was working exclusively for Tesla.[395]

By 2015, Tesla also occupied a second factory in Fremont. The building is more than 500,000 sq ft (46,500 m²). The location is next to a SolarCity facility, a few miles from the original Fremont plant.[396]

Giga Nevada—originally Gigafactory, and later Gigafactory 1—is located outside Reno, Nevada. As of January 2017, it occupied 1.9 million square feet (180,000 m²) with 4.9 million square feet (460,000 m²) of usable area across several floors.[397] It produces Powerwalls and Powerpacks[398][399] as well as battery cells[400] in partnership with Panasonic. It also produces Model 3 battery packs and drivetrains.[401] The factory received substantial subsidies from the local and state governments.[402]

Giga New York is located in Buffalo, New York, on the site of a former Republic Steel plant. It is operated by Tesla's SolarCity unit. The factory is a US$750 million, 1.2-million-square-foot (0.11 km²) facility that directly employs 500 workers. Tesla partnered with Panasonic to assemble photovoltaic panel modules. Tesla received incentives to locate the factory in Buffalo through the Buffalo Billion program.[403][404][405][406] As of August 2017, the factory added production of solar tiles for the Tesla Solar Roof.[407] In January 2018, Tesla announced, after testing on employees' roofs, that it would begin installing the Tesla Solar Roof on customers' homes "within the next few months".[408] Tesla announced Version 3 of the Solar Roof in October 2019, claiming that they achieved economic viability to be cost competitive for installations where a new roof is needed and residential solar power is desired. In March 2020, Tesla produced 4MW of Solar Roof in one week, enough for up to 1,000 homes (assuming 4kW per roof).[409] However, the "overwhelming majority" of the solar cells produced at the factory were being sold overseas, rather than being used in Tesla's Solar Roof.[410] In June 2020, Tesla began canceling Solar Roof orders after years of taking deposits.[411]

Golden Driller statue with Tesla branding during Tulsa, Oklahoma's bid for Gigafactory 5

For construction of Gigafactory 5 in the central United States Tesla picked Austin, Texas, and Tulsa, Oklahoma, as finalists during May 2020.[412] The new factory would build Tesla's Cybertruck and act as a site to build the Model Y small SUV for the East Coast of the United States.[412]

Tesla store in Toronto

Tesla's first "new design" store opened on November 16, 2012, in the Yorkdale Shopping Centre in Toronto, Ontario. As of March 2019, a total of nine Tesla stores/galleries operated in Montreal, Calgary, Toronto and Vancouver.

Tesla showroom in Munich, Germany

Tesla opened its first European store in June 2009 in London.[413][414] Tesla's European headquarters are in Amsterdam.[415] A 62,000 sq ft (5,800 m²) European service center operates in Tilburg, Netherlands, along with a 77,650 m² (835,800 sq ft) assembly facility that adds drivetrain, battery and software to the (imported) car body to reduce EU import tax.[416][417][418]

In late 2016, Tesla acquired German engineering firm Grohmann Engineering in Prüm as a new division dedicated to helping Tesla increase the automation and effectiveness of its manufacturing process.[419] After winding down existing contracts with other auto manufacturers, Grohmann works exclusively on Tesla projects.[420] As of February 2018, Tesla is building a small research and development office in Athens, Greece.[421][422]

In June 2014[423] Tesla announced, and again confirmed in November 2016, its long-term plans to build a car and battery Gigafactory in Europe.[424] Several countries have campaigned to host.[425] and in July 2018, it was reported that Tesla was exploring locating Gigafactory 4 in either Germany or the Netherlands.[426] A location and plans to begin construction near Berlin were announced in November 2019.[427] In 2020, after anti-Tesla protests and environmentalists' victory in the court, the car-maker was forced to temporarily stop preparations for the launch of a factory in Germany.[428]

Tesla Motor's showroom in Aoyama, Tokyo, which was the first showroom opened in the Japan.

Showrooms and service centers operate in Hong Kong,[429] Beijing and Shanghai.[430] Tesla opened its first Japanese showroom in Tokyo, Japan, in October 2010.[431] In South Korea, it opened two showrooms in March 2017[432] and a service center in late 2017.[433] In August, 2017, Taiwan opened its first service center and showroom.[434]

In July 2018, Tesla signed an agreement with Chinese authorities to build a factory in Shanghai, China, which is Tesla's first Gigafactory outside of the United States.[435] The groundbreaking ceremony was held on January 7, 2019.[436] The factory building was finished in August 2019, and the initial Tesla Model 3s were in production from Giga Shanghai in October 2019.[437]

Tesla opened a showroom and a service center in Dubai, United Arab Emirates, in 2017 as the first expansion of Tesla in the Middle East. Five ultra-fast superchargers were also built between cities with a planned 50 destination chargers in the United Arab Emirates by the end of 2017.[438] The Dubai Department of Economic Development stated that it will assist Tesla expansion across the United Arab Emirates as well as neighboring countries in the Middle East.[439] One of the first Tesla customers was Dubai's Roads and Transport Authority which ordered 200 Tesla Model S and Model X vehicles that were added to Dubai Taxi Corporation's fleet.[440] In May 2017 the service center and store in Amman Jordan was opened.[441] In January 2020 a "pop-up" store in Tel Aviv Israel was opened and an R&D center.[442]

Tesla opened a showroom in Sydney's Martin Place in 2010,[443][444] followed by a showroom and service center in Melbourne in 2015.[445] By 2019, Tesla had opened 4 service centers in Australia.[446]

In February 2020, several news sites reported that Tesla was negotiating with the Brazilian Minister of Science, Technology and Innovation, Marcos Pontes to build a Gigafactory in the state of Santa Catarina, Brazil.[447][448] The rumours were later confirmed by the Brazilian government.[449] Brazil wants to have Tesla in the country, not only selling its cars but also producing them there. Tesla vehicles could then be exported to other nearby markets, such as Argentina, Chile, Paraguay, Uruguay, Colombia, the Caribbean region, and even Mexico, a country with which Brazil has a free trade agreement. Brazilian president Jair Bolsonaro stated on his Twitter account that he will be going to the United States in March to visit one of Tesla's facilities, hoping to finalize the deal.[450]

Daimler AG and Tesla began working together in late 2007. On May 19, 2009, Daimler bought a stake of less than 10% in Tesla for a reported US$50 million.[452][453] As part of the collaboration, Herbert Kohler, Vice-President of E-Drive and Future Mobility at Daimler, took a Tesla board seat.[454] On July 13, 2009, Daimler AG sold 40% of its May acquisition to Aabar Investments PJSC. Aabar is an Abu Dhabi government investment vehicle.[455][456] In October 2014, Daimler sold its remaining holdings for a reported US$780 million.[457]

The Mercedes-Benz B-Class Electric Drive uses a battery pack developed by Tesla.[458]

Tesla built electric-powertrain components for the Mercedes-Benz A-Class E-Cell, an electric car with a range of 120 mi (200 km) and 214 lbf⋅ft (290 N⋅m) of torque. The 36 kWh (130 MJ) battery contained approximately 4,000 lithium-ion cells.[459] 500 cars were planned to be built for trial in Europe beginning in September 2011.[460][461]

Tesla produced and co-developed the Mercedes-Benz B250e's powertrain, which ended production in 2017.[462] The electric motor was rated 134 hp (100 kW) and 230 pound force-feet (310 N⋅m), with a 36 kWh (130 MJ) battery. The vehicle had a driving range of 200 km (124 mi) with a top speed of 150 km/h (93 mph).[463]

Tesla supplies battery packs for Freightliner Trucks' Custom Chassis electric van.[464]

Tesla partnered with Liberty Mutual Insurance Company to offer an auto-insurance plan designed specifically for its electric cars. The plan was made available to US customers In October 2017.[465]

Initial versions of Autopilot on HW1 were developed in partnership with Mobileye beginning around February 2014.[466] Mobileye ended the partnership on July 26, 2016.[467]

Smart ED2s had a 14-kilowatt-hour (50 MJ) lithium-ion battery and a powertrain from Tesla.[468]

On May 20, 2010, Tesla and Toyota announced a partnership to work on electric vehicle development, which included Toyota's US$50 million future conditional investment[469] in Tesla and Tesla's US$42 million purchase of a portion of the former NUMMI factory.[234][235][237][470] Tesla cooperated on the development of electric vehicles, parts, and production system and engineering support. In July 2010, the companies announced an agreement to develop a second generation compact Toyota RAV4 EV.[471] A demonstrator vehicle was unveiled at the October 2010 Los Angeles Auto Show.

Panasonic Energy Company President Naoto Noguchi presented Tesla CTO JB Straubel with the first lithium-ion cells from Panasonic's facility in Suminoe-ku, Osaka, Japan.

Toyota built 35 of these converted RAV4s (Phase Zero vehicles) for a demonstration and evaluation program that ran through 2011. Tesla supplied the lithium metal-oxide battery and other powertrain components[472][473] based on components from the Roadster.[30][474] In August 2012, the production version was unveiled, with some battery pack, electronics and powertrain components being those used in the Tesla Model S sedan (also launched in 2012),[475] The RAV4 EV had a limited production run which resulted in just under 3,000 vehicles being produced.[476] The RAV4 EV left the market in 2014 and there are no known plans to revive the model.[477] On June 5, 2017, Toyota announced that it had sold all of its shares in Tesla and halted co-operation, as Toyota had created their own electric car division.[478]

On January 7, 2010, Tesla and battery cell maker Panasonic announced that they would together develop nickel-based lithium-ion battery cells for electric vehicles. Naoto Noguchi, President of Panasonic's Energy Company, said that the Japanese firm's cells would be used for Tesla's "current and next-generation EV battery pack."[479] The partnership was part of Panasonic's US$1 billion investment over three years in facilities for lithium-ion cell research, development and production.[480]

Beginning in 2010, Panasonic invested US$30 million for a multi-year collaboration on next generation cells designed specifically for electric vehicles.[481] In July 2014, Panasonic reached a basic agreement with Tesla to participate in Giga Nevada.[482] Tesla and Panasonic also collaborate on the manufacturing and production of photovoltaic (PV) cells and modules at Giga New York in Buffalo, New York.[407][483]

Tesla, according to a count provided by the legal advocacy website PlainSite, was party to 620 lawsuits in June 2019.[484] Ongoing cases include Musk's "Funding secured" tweet, CEO performance award, production numbers, the acquisition of SolarCity, and allegations of whistleblower retaliation.

On August 7, 2018, Elon Musk tweeted, "Am considering taking Tesla private at $420. Funding secured."[485] The tweet caused a furor on social media and in Tesla's investment circle.[486] Tesla's stock price rose quickly after Musk's statement, but crashed after it became clear that Musk's statements were untrue.[487] Musk did not have any funding secured for a possible buyout,[485] and the $420 price was a marijuana reference Musk chose to amuse his girlfriend.[488]

Musk settled fraud charges with the Securities and Exchange Commission over his false statements in September 2018. According to the terms of the settlement: Musk was removed from his chairman role at Tesla; Tesla and Musk paid civil penalties of $20 million each; two new independent directors were appointed to the company's board; and Musk agreed to have his tweets reviewed by Tesla's in-house counsel.[489] On October 16, 2018, the U.S. District Court for the Southern District of New York entered a final judgment approving the terms of the settlement.[490]

A civil class-action shareholder lawsuit over Musk's statements is pending in the U.S. District Court for the Northern District of California.[491] Tesla filed a motion to dismiss the case, but U.S. District Judge Edward Chen denied it in April 2020.[491] The judge determined that Musk's tweets were false and misleading, and noted Musk's long-standing animosity towards short-sellers (such as tweeting weeks earlier "short burn of the century comin [sic] soon") as potential motive for the tweets.[487]

Between October 17, 2018, and November 9, 2018, five derivative lawsuits were filed in the Delaware Court of Chancery against Mr. Musk and the members of Tesla's board of directors as then constituted in relation to statements made and actions connected to a potential going private transaction. These cases have been stayed pending resolution of the stockholder class action.[490]

On June 4, 2018, a purported Tesla stockholder filed a putative class and derivative action in the Delaware Court of Chancery against Mr. Musk and the members of Tesla's board of directors as then constituted, alleging that such board members breached their fiduciary duties by approving the stock-based compensation plan. The complaint seeks, among other things, monetary damages and rescission or reformation of the stock-based compensation plan.[490] The trial is set for June 2021.[492]

In September 2018, Tesla disclosed that it was under investigation by the FBI regarding its Model 3 production figures.[493] Authorities were investigating whether the company misled investors and made projections about its Model 3 production that it knew would be impossible to meet.[493] In July 2017, Elon Musk tweeted "Looks like we can reach 20,000 Model 3 cars per month in Dec",[494] but Tesla ended up producing only 2,700 Model 3s for all of 2017.[493]

A stockholder class action lawsuit related to Model 3 production numbers was dismissed in Tesla's favor in March 2019.[495]

In 2016, Musk urged investors to approve the SolarCity acquisition despite publicly recusing himself from involvement in the deal.[496] Musk revealed a solar roof tile in October 2016 during an event to gain investor support for the acquisition, but the tile later turned out to be fake.[497] Members of the Tesla skeptic group TSLAQ have cited Musk's solar roof tile reveal as a major point of contention and an impetus for organizing.[498]

Between September and October 2016, shareholders filed seven lawsuits in the Delaware Court of Chancery challenging Tesla's acquisition of SolarCity. The consolidated lawsuit alleges that Elon Musk knew SolarCity was going broke before the acquisition, that he and the board of directors overpaid for SolarCity, ignored their conflicts of interest and breached their fiduciary duties in connection with the deal, and failed to disclose “troubling facts” essential to an analysis of the proposed acquisition.[499] The lawsuit also alleges that SolarCity hid information from its auditors about two payments due to lenders that should have been used to determine SolarCity’s financial condition.[499] Tesla's directors later settled the lawsuit for $60 million in January 2020, leaving Musk as the lone defendant in the case.[500] The case was set for trial in March 2020,[490][501] but has been delayed until "concerns regarding COVID-19 have abated".[502]

In August 2019, Walmart filed a multi-million dollar lawsuit against Tesla, claiming that Tesla's "negligent installation and maintenance" of solar panels caused fires at seven Walmart stores going back to 2012.[503] According to the lawsuit, "Tesla had engaged in widespread, systemic negligence," and Walmart's inspections revealed numerous fire hazards associated with the solar panels, including hotspots, faulty connections, sharp points, exposed wires, and improper grounding.[504] Walmart noted that it had received inspection reports in which Tesla itself identified 48 "action items" that reflected conditions where sites were "unsafe or potentially unsafe."[504] Walmart reached a settlement with Tesla in November 2019, though terms of the settlement were not disclosed.[505]

In June 2018, a Tesla employee named Martin Tripp leaked information that Tesla was scrapping or reworking up to 40% of its raw materials at the Nevada Gigafactory.[506] After Tesla fired him for the leak, Tripp filed a lawsuit and claimed Tesla’s Security team gave police a false tip that he was planning a mass shooting at the Nevada factory.[507][508] According to Bloomberg, Musk "set out to destroy" Tripp and Tesla’s PR department "spread rumors that Tripp was possibly homicidal and had been part of a grand conspiracy."[506]

Also in June 2018, according to Reveal, a former safety official at Tesla filed a lawsuit alleging he was fired "in retaliation for reporting unsafe working conditions, such as chemical exposures and fires, and for refusing to go along with what he believed to be illegal practices."[509]

In August 2018, a former Tesla security employee filed a whistleblower complaint accusing Tesla of improperly spying on workers, and ignoring or covering up complaints of "rampant theft and drug dealing" at the Nevada Gigafactory, including the alleged theft of more than $37 million worth of copper and other raw materials.[510] The whistleblower later sued Tesla, claiming he was wrongfully fired from his job after filing the complaint.[511]

In January 2019, another former Tesla security manager filed a whistleblower complaint alleging that the company illegally hacked employees' phones and spied on them, and failed to report illegal activities to the authorities and shareholders.[508][512]

Outside of the courts, Tesla has been the subject of other public controversies, ranging from securities fraud allegations to product delays to workers safety complaints.

In September 2019, the SEC questioned Tesla CFO Zach Kirkhorn about Tesla's warranty reserves and lease accounting.[513] Analysts have expressed concerns over Tesla's accounts receivable balance.[514] Hedge fund manager David Einhorn has accused Elon Musk of "significant fraud",[515] and publicly questioned Tesla's accounting practices, telling Musk in November 2019 that he was "beginning to wonder whether your accounts receivable exist."[516] Tesla has used many "fancy accounting gimmicks" to show positive cash flow and quarterly profits,[517] [518] and Bloomberg has questioned whether Tesla's financial reporting violates Generally Accepted Accounting Principles (GAAP) reporting standards.[517]

From 2012 to 2014, Tesla earned more than $295 million in Zero Emission Vehicle credits for a battery-swapping technology that was never made available to customers.[519] Staff at California's Air Resources Board were concerned that Tesla was "gaming" the battery swap subsidies and recommended eliminating the credits in 2013.[520][521] Tesla originally claimed that the battery swap would be fully automated, and could be done in just 90 seconds, but they never released details of how it would actually work.[522]

At the onset of and during the COVID-19 pandemic in the United States, Elon Musk repeatedly downplayed the risks of COVID-19. In March 2020 Musk tweeted that "the coronavirus panic is dumb",[523][524] and incorrectly predicted that new cases in the U.S. would be "negligible" by the end of April.[525][526][527] On an earnings call in April 2020, Musk called state and local stay-at-home orders "fascist."[528]

Later in May 2020, while Alameda officials were negotiating with the company to reopen the Fremont factory on the 18th, Musk defied local government orders by restarting production at the factory on the 11th[529], tweeting that he was doing so "against Alameda County rules."[530] This act was in non-compliance with the governor's order for the state of California during the crisis:[531][532] "Counties [emphasis added] can choose to continue more restrictive measures in place based on their local conditions, and the state expects some counties to keep their more robust stay at home orders in place beyond May 8."[533] Tesla also filed a lawsuit against Alameda County on the 11th[534] but later rescinded it after the Fremont factory was given approval to reopen.[535][536] Tesla published its detailed plan for bringing employees back to work and keeping them safe[537], but within days of reopening at least six workers at the factory tested positive for the coronavirus[538][539] and CNBC reported some employees continued to express concern over lax coronavirus precautions.[540]

In June 2020, Tesla served a termination notice to an employee who criticized the company for taking inadequate safety measures to protect workers from the coronavirus at the Fremont factory.[541]

Environmental violations and permit deviations at Tesla's Fremont factory have increased dramatically since 2018 with the production ramp of the Model 3.[542] Author Ed Niedermeyer warned that Tesla's "apparent disregard for environmental compliance has led to a pollution problem whose magnitude we may never fully understand."[543]

In June 2019, Tesla began negotiating penalties for 19 environmental violations from the Bay Area Air Quality Management District.[544] The violations centered on Tesla Fremont's paint shop, where there have been frequent fires since 2014.[543] Air quality inspectors found many potential fire risks at the facility, and cited Tesla for improper disposal of flammable materials.[543] The U.S. Environmental Protection Agency also investigated Tesla for violations of the Clean Air Act,[545] and fined Tesla for hazardous waste violations in April 2019[546][547], having found that Tesla failed to 'promptly clean up flammable paint and or solvent mixtures,' left two 55-gallon containers of hazardous waste open with 'no gasket or locking mechanism,' and violated air emission standards for three leaky transmission lines that the waste moved through.[548]

In June 2012, Tesla knew the battery cooling system in its Model S cars had a flawed design that made it susceptible to leaks, which could short the battery or cause a fire.[549] Tesla continued to sell Model S cars with this flawed cooling system through late 2012, even as employees found these parts leaking on the production line.[549]

In October 2019, the National Highway Traffic Safety Administration (NHTSA) began investigating Tesla's Model S and X vehicles for potential battery defects that could cause "non-crash" fires.[549][550] The NHTSA launched the investigation after receiving a defect petition asking them to look into the "alarming number" of fires in Tesla vehicles that have occurred worldwide.[550] Tesla released two over-the-air software updates in May 2019 that reduced the range in older Model S and X vehicles by as much as 50 miles.[550] Tesla claimed the updates were "designed to improve battery longevity," but the NHTSA is investigating whether they were actually made because of the fires.[550] According to consumer attorney Edward Chen, "Tesla is using over-the-air software updates to mask and cover-up a potentially widespread and dangerous issue with the batteries in their vehicles."[551]

According to former employees at Tesla's Fremont factory, Tesla has systematically denied medical care to injured workers, forced injured workers to return to the production line without relief, and insisted that seriously injured workers be sent to the emergency room in a Lyft rather than call 911.[552] An investigation by Reveal found that Tesla "failed to report some its serious injuries on legally mandated reports, making the company's injury numbers look better than they actually are."[553] Their factory injury rates are worse than the industry average, despite Musk claiming otherwise.[553][554]

From 2014 to 2018, Tesla's Fremont factory had three times as many Occupational Safety and Health Administration (OSHA) violations as the ten largest U.S. auto plants combined.[555] According to the Reno Gazette Journal, Tesla barred OSHA officers from conducting a comprehensive inspection of the Nevada Gigafactory for more than two months in 2019, "even denying entry when inspectors showed up with a sheriff's deputy and a warrant signed by a judge."[556] Former safety experts at Tesla believe that the factory was "extremely dangerous", and the risk of injury was too high.[553] They believe the factory lacked adequate yellow lane markings and caution tape because "Elon does not like the color yellow", and cut back on other standard safety signals such as warning signs and warning beeps on forklifts when backing up, because Musk disliked those as well.[553]

In September 2019, a California judge ruled that Musk and other Tesla executives have been illegally sabotaging employee efforts to form a union.[557]

As of March 2018, Tesla had issued two product recalls for the Roadster, six for the Model S and two for the Model X.[559]

On April 20, 2017, Tesla issued a worldwide recall of 53,000 (~70%) of the 76,000 vehicles it sold in 2016 due to faulty parking brakes which could become stuck and "prevent the vehicles from moving".[560][561]

On March 29, 2018, Tesla issued a worldwide recall of 123,000 Model S cars built before April 2016 due to corrosion-susceptible power steering bolts, which could fail and require the driver to use "increased force" to control the vehicle.[562]

On October 1, 2013, a Model S caught fire after the vehicle hit metal debris on a highway in Kent, Washington. Tesla confirmed the fire began in the battery pack and was caused by the "direct impact of a large metallic object to one of the 16 modules within the Model S battery pack."[563] On November 6, 2013, a Tesla Model S on Interstate 24 near Murfreesboro, Tennessee, caught fire after it struck a tow hitch on the roadway, causing damage beneath the vehicle. Tesla said that it would conduct its own investigation,[564] and as a result of these incidents, announced its decision to extend its current vehicle warranty to cover fire damage.[565]

On January 4, 2014, a Tesla Model S in Norway caught fire while charging at one of Tesla's supercharger stations and was completely destroyed. No one was injured.[566]

On March 28, 2014, NHTSA announced that it had closed the investigation into whether the Model S was prone to catch fire, after the automaker said it would provide more protection to its battery packs.[567] All Model S cars manufactured after March 6 have had the 0.25-inch (6.4 mm) aluminum shield over the battery pack replaced with a new three-layer shield.[568]

A Model S driver died in a collision with a tractor-trailer on May 7, 2016, in Williston, Florida, while the vehicle was in autopilot mode. The driver is believed to be the first person to have died in a Tesla vehicle in autopilot mode.[569][570] The NHTSA investigated the accident and concluded: "A safety-related defect trend has not been identified at this time and further examination of this issue does not appear to be warranted."[571]

On May 8, 2018, two 18-year-olds, driver Barrett Riley and passenger Edgar Monserratt Martinez, died in a fire in Fort Lauderdale, Florida that started after crashing a Tesla Model S into a wall at 116 mph. Speed is believed to have been a factor in the crash.[572][573][574] Less than two months before the crash, it was reported that Riley's parents had a limiter installed to limit the speed to 85 mph, but it was removed at another Tesla service visit without the parents' knowledge. The removal of the limiter and alleged defective battery pack formed the basis of a lawsuit against Tesla by the estate of Edgar Monserratt Martinez. The lawsuit was filed on January 9, 2019.[575]

In March 2018, an Apple engineer had been killed in a crash in a Tesla Model X. Investigators say that the driver of the vehicle had his car in ‘self-driving’ mode and was using his phone to play games when the vehicle collided with the barrier in the middle of the freeway. Through investigation the National Transportation Safety Board found that the Tesla malfunctioned due to the system being confused by an exit on the freeway.[576]

On June 4, 2017, the American Automobile Association raised insurance rates for Tesla owners following a report from the Highway Loss Data Institute. The report concluded that the Model S crashes 46% more often and is 50% more expensive to repair than comparable vehicles. Similarly, the Model X was concluded to crash 41% more often and to be 89% more expensive to repair than similar vehicles. As a result, AAA raised insurance rates on Tesla cars by 30%. Tesla said that the analysis is "severely flawed and not reflective of reality", however, Tesla failed to provide any contradictory numbers.[577] Shortly thereafter, Russ Rader, the spokesman for the Insurance Institute for Highway Safety, confirmed the AAA's analysis and that "Teslas get into a lot of crashes and are costly to repair afterward".[578][579]

Tesla has been criticized for repeatedly over-promising and under-delivering. Delivery dates for new vehicles and new vehicle features slipped on the Roadster, Model S, Model X and Model 3. Advanced technologies like the prospect of a large network of solar-powered supercharger stations (first installation was in 2012; only a few were solar-powered as of mid 2019[580]) also lagged projections.[581]

In early October 2017, Musk had predicted that Model 3 production would be up to 5,000 units per week by December.[582] A month later, he revised that target to "sometime in March" 2018 due in part to difficulties with robots on the assembly line, but primarily due to problems with the battery module.[583] An analyst with Cowan and Company, a public relations firm, made this comment: "Elon Musk needs to stop over promising and under delivering".[584]

On September 24, 2018, Musk revealed on Twitter that Tesla will be building its own car carriers as the company is facing challenges due to logistics. Tesla is running into an acute shortage of car carrier trailers leading to a delay in the delivery.[585] In mid-November, with end-of-year buyer tax credits expiring in a little more than six weeks, Musk announced that the company was aggressively ramping up delivery capabilities with trucking contracts and even outright purchase of some trucking firms to deliver as many cars as possible before the deadline.[586]

In August 2015, two researchers said they were able to take control of a Tesla Model S by hacking into the car's entertainment system.[587] The hack required the researchers to physically access the car.[588] Tesla issued a security update for the Model S the day after the exploit was announced.[589]

In September 2016, researchers at Tencent's Keen Security Lab demonstrated a remote attack on a Tesla Model S and controlled the vehicle in both Parking and Driving Mode without physical access. They were able to compromise the automotive networking bus (CAN bus) when the vehicle's web browser was used while the vehicle was connected to a malicious Wi-Fi hotspot.[590] This was the first case of a remote control exploit demonstrated on a Tesla. The vulnerability was disclosed to Tesla under their bug bounty program[591] and patched within 10 days, before the exploit was made public.[592] Tencent also hacked the doors of a Model X in 2017.[593]

In January 2018, security researchers informed Tesla that an Amazon Web Services account of theirs could be accessed directly from the Internet and that the account had been exploited for cryptocurrency mining. Tesla responded by securing the compromised system, rewarding the security researchers financially via their bug bounty program, and stating that the compromise did not violate customer privacy, nor vehicle safety or security.[594][595]

In 2019, Tesla awarded a car and US$375,000 to ethical hackers during a Pwn2Own Model 3 Hacking Event.[596]

Tesla's stated philosophy is not to make a profit on service.[597] Tesla offers service at company-owned service centers and mobile technicians can also perform most inspections and repairs.[598] In 2016, Tesla recommended to have any Tesla car inspected every 12,500 miles or once a year, whichever comes first.[599] In early 2019, the manual was changed to say: "your Tesla does not require annual maintenance and regular fluid changes," and instead it recommends periodic servicing of the brake fluid, air conditioning, tires and air filters.[600]

The first units for each new model revealed design and manufacturing flaws, including the Model S and the Model X.[601][602] As the Tesla vehicle fleet grew, the number of service centers resulted in waiting periods for some owners.[603] Auto experts view the service delays as insignificant, as owners accept the challenges of servicing a new type of car.[603] Tesla does not provide service manuals except in jurisdictions that required them to do so.[604]

At the June 2018 shareholder meeting, Elon Musk confirmed that Tesla will soon start to open its first body shops in the top ten U.S. metropolitan areas, stocking some body parts, potentially allowing for same-day service.[605] As of June 2020, there are four Tesla-owned body shops in the US.[606]