Would it be wrong if I said that the history of the automobile industry has been divided into two parts, before Tesla and after Tesla, some might argue that I understand? But there is no doubt that Tesla has divided the history of the electric vehicle into two that is, before Tesla and after Tesla.
Story Of Tesla, Inc.
In this article, we are going to explore the thrilling story of Tesla Inc and how they changed the course of the history of Electric vehicles.
The Before Tesla Era
We know that before the ’20s electric vehicles were considered to be dull, boring and really dump. They were only used for internal requirements such as material handling, small scale commutators, distribution of commodities in a small network etc. They were not considered to be fit for what is expected from a conventional gasoline vehicle. Giant companies were paying no or very little attention in the electric vehicle market and they were still focusing on developing new IC engine-powered models.
- Electric vehicles were considered to be dull in the past
- They were only used in industries for material handling and transferring process
- They were considered to be unfit and unreliable
- No notable investments or efforts were made for the development of electric vehicles
But the story was about change forever.
The After Tesla Era
The image and common impression of Electric vehicles were re-written by the introduction of the Tesla Roadster in the year of 2008. Tesla Roadster proved that electric vehicles can be fun to drive, reliable, and can have the dashing looks of a sports car. Though the Roadster was not that much of a success as expected, owing to the huge charging time it still had along with a few other reasons Roaster really perception of an electric vehicle among the public.
- Tesla Roadster pawed the way for the revolution we are witnessing now
- Inspired by the huge success that Tesla had, automobile giants, started investing huge amounts of money and resources in the development and production of electric vehicles
- Tesla roadster proved that electric vehicles can be fun, thrilling, and be really curvacious as a Pagani or Mazarati
All though Tesla has a glorious present and is the market leader of electric vehicles, Tesla had really gone through hell and back numerous times in its short history of 18 years.
In this article, let’s discuss the thrilling and dramatic story of Tesla Motors and how did they survive through the challenging situations
The Beginning (2003)
Contrary to common belief, Elon Musk did not found Tesla. Yes, he founded SpaceX but not Tesla motors. Tesla motors were found by a group of passionate engineers who really wanted to show the world the power of electric vehicles and what can be done with them. Martin Eberhard, Marc Tarpenning the company’s first CEO and CFO respectively, started the company in 2003 and named it Tesla motors in the honors of Nikola Tesla a great inventor of all time and who changed the course of electrical technology with his A.C current.
- The founders were wise and bright enough that they knew their vision will only be successful if they could make the batteries and motors for their cars more efficient and reliable
- They focused and channeled all their resources on producing efficient and reliable batteries and motors which helped them to a great extent
Musk Joining The Venture (2004)
Musk invested 6.3 million dollars in the year 2004 and got to be the chairman of the board of directors. From then onwards the course of Tesla motors was to change forever. The company wanted to create an all-electric sports car.
They debuted the prototype for their Tesla Roadster in 2006, and it went into production in 2008. Tesla accomplished something no other company has ever done with an electric car. They created an all-electric vehicle with realistic requirements that could conceivably meet market demands and expectations.
Previous attempts in this area failed due to a lack of a battery strong enough to keep cars on the road and a cost-effective power train that could fit inside a consumer vehicle and propel it to highway speeds.
The Roadster could fulfil these requirements. The first model, released in 2008, could travel nearly 250 miles on a single charge, with acceleration and top speed rivalling that of many consumer-level sports cars.
Customers could recharge the Roadster’s conventional lithium-ion battery used in many electronic devices, and the car could be charged using a standard wall socket.
Fights For The Leadership
Tesla’s leadership team underwent significant changes in 2008. Eberhard stepped down as CEO of Tesla in 2007 but stayed on the company’s advisory board. Michael Marks, a Tesla investor who served as interim CEO, succeeded him first. In November, Ze’ev Drori took over as Eberhard’s permanent replacement.
- Drori is widely credited with transforming the Roadster from a concept to a commercially viable vehicle.
- When he took over in 2007, the project was behind schedule, and much of the attention on Tesla was on whether the company could produce its flagship (and only) product on time.
- Drori oversaw the Roadster’s successful launch in 2008.
- Co-founders Eberhard and Tarpenning left Tesla shortly before the company shipped its first car (Roadster Number 1 to Musk).
- Musk took over as CEO of the company shortly in October 2008 and made significant changes to the company structure. He fired 25% of the company employees.
Saga Of Survival
Despite the success of the Roadster, Tesla faced serious financial difficulties in 2009. The company had less than $10 million in cash on hand, which was likely insufficient to even deliver the cars it had already sold.
- Daimler AG (DDAIF) purchased a 10% interest in the firm for $50 million in May of that year.
- In June, the company received a $465 million loan from the Department of Energy, which provided the company with the working capital it needed to stay afloat.
- The company moved to its new headquarters in Palo Alto in August of the same year.
- When the company went public in 2010, it sought a more secure approach to its short-term capital issues. Tesla raised $226 million in its initial public offering, which began at $17 per share on the NASDAQ.
- In 2008, Tesla unveiled its first effort to reduce the cost of its goods, the Model S sedan, which would cost $76,000, or three-quarters of the Roadster’s price. When Tesla revealed the prototype of this vehicle in 2011, the company’s modern face was revealed.
- The Model S was a critical and commercial success. It was recognised by a number of automotive and environmental publications and, like the Roadster before it, set new standards for what an electric vehicle could accomplish. The Model S had a range of up to 300 miles and a faster charging time, among other notable features.
The Good Times
In 2008, Tesla unveiled its first effort to reduce the cost of its goods, the Model S sedan, which would cost $76,000, or three-quarters of the Roadster’s price. When Tesla revealed the prototype of this vehicle in 2011, the company’s modern face was unmasked.
The Model S was a critical and commercial success. It was recognized by a number of automotive and environmental publications and, like the Roadster before it, set new standards for what an electric vehicle could accomplish. The Model S had a range of up to 300 miles and a faster charging time, among other notable features.
Tesla also launched the first freestanding charging stations, known as Superchargers, in 2012. It started with six locations in California and has grown to over 1,000 locations worldwide at the time of publication. Tesla owners were given free charging at these sites, which was easier than using a standard wall socket.
The company made its first quarterly profit in 2013 and revealed its Gigafactory in Nevada the following year. This is the plant where the company manufactures the batteries that power its products, and it is critical to the company’s entire business model.
The expansion inspired by the success
Tesla’s aspirations have since grown. In 2015, the company unveiled a new range of solar energy goods that use rechargeable batteries to power homes and businesses.
- Tesla had changed its name from “Tesla Motors” to “Tesla, Inc.” by 2017 to reflect the expanded reach of its products.
- Tesla launched its Model 3 sedan in 2016, as part of its foray into the mass consumer market.
- Model 3 is the company’s first car aimed at the general public, with a price tag under $70,000.
Under Musk’s leadership Tesla, Inc is currently expanding its horizons at an exceptional pace. With the more affordable models in their vehicle line up, more and more fast-charging stations all over America followed by the entire world, their solar-powered power solutions for homes and offices, Tesla is going to impact us in ways that we wouldn’t be able to think of like google once did.
Lets firmly believe that these initiatives are for the development of mankind without hurting the planet which we call home.