Tesla Motors: The Early Years
From 2004 to 2008, Tesla grew substantially and developed its first automobile, The Roadster.8 The company opened its manufacturing plant in Fremont, CA, a 5.3 million square-feet factory that was previously owned by Toyota and General Motors.17 The factory is known as Nummi, which includes two paint facilities and 1.5 miles of assembly lines.18
In 2008, Musk became the company’s CEO and product architect, positions he still holds as of March 2022. That same year, Tesla released its first automobile, the Roadster sports car. “It is not just a car, but one of the strongest automotive statements on the road,” Car and Driver wrote.19
Tesla Motors Today
Tesla, as part of its secret to success, continues to focus on creating electric cars and making electric vehicle (EV) powertrain systems and components. As of 2021, the company has a network of 438 stores and galleries, 100 service centers, and more than 30,000 Superchargers (charging portals) in over 3,100 locations.
One of the company’s trademarks is to focus on one product at a time. And while Tesla continues making the Model S, it is rolling out new models to expand its customer base. Other models include the less expensive Model 3 sedan, the SUV-style Model X, and the crossover Model Y.23
Tesla Motors Strategy
To move with the changing times, Tesla focuses on launching new offerings that target a wider range of consumers. To stay competitive in the niche market, Tesla Motors has expanded its operations globally with locations in the U.S. and China.
To keep costs down on lithium-ion battery packs, Tesla and key strategic partners, including Panasonic, built a Gigafactory in Nevada that produces the Model 3, battery packs, and energy storage products.24
Tesla Motors: Looking Forward
The electric car market is growing, with luxury automakers like Mercedes Benz and BMW jumping into the space. Analysts forecast that the total global sales of electric vehicles will be approximately 29.5% of all new car sales by 2030.25
That said, Tesla’s long-term success is anyone’s guess. In December 2014, Morgan Stanley’s auto analyst Adam Jonas predicted that the company would fall short by 40% of its goal to produce 500,000 cars by 2020.26 However, Tesla produced more than 510,000 cars by the end of 2020, exceeding its goal by 2%.27
As with anything, there are no guarantees. The reality is that Tesla Motors has morphed from a start-up to an established industry player. What doesn’t change is its extraordinary story and its place as a pioneer in a frontier of electronic cars.
