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In January 2012, Tesla ceased production of the Roadster, and in June the company launched its second car, the Model S luxury sedan. The Model S won several automotive awards during 2012 and 2013, including the 2013 Motor Trend Car of the Year, and became the first electric car to top the monthly sales ranking of a country, when it achieved first place in the Norwegian new car sales list in September 2013. The Model S was also the bestselling plug-in electric car worldwide for the years 2015 and 2016.
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Tesla announced the Tesla Autopilot, a driver-assistance system, in 2014. In September that year, all Tesla cars started shipping with sensors and software to support the feature, with what would later be called "hardware version 1". In April 2015, Tesla entered the energy storage market, unveiling its Tesla Powerwall (home) and Tesla Powerpack (business) battery packs. The company received orders valued at $800 million within a week of the unveiling.
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Tesla began shipping its third vehicle, the luxury SUV Tesla Model X, in September 2015, at which time it had 25,000 pre-orders.
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In November 2016, Tesla acquired SolarCity, in an all-stock $2.6 billion deal, and entered the photovoltaics market. The solar installation business was merged with Tesla's existing battery energy storage products division to form the Tesla Energy subsidiary. The deal was controversial because at the time of the acquisition, SolarCity was facing liquidity issues of which Tesla's shareholders were not informed.
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In February 2017, Tesla Motors changed its name to Tesla, Inc., to better reflect the scope of its expanded business, which now included electric vehicles, battery energy storage systems, and solar power generation.
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That year Tesla also started its philanthropic effort. Tesla made multiple contributions of solar power to areas recovering from disasters in 2017, in particular installing a solar plus storage system to restore electricity at a hospital in Puerto Rico, following the destruction from Hurricane Maria. In July 2018, the company donated $37.5 million to kindergarten to 12th grade science, technology, engineering, and mathematics education in Nevada.
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Tesla began selling its fourth vehicle model, the Model 3 sedan, in July 2017. The Model 3 was a cheaper vehicle compared to previous Tesla vehicles, and was intended for the mass market. It was highly anticipated, which prompted the company to try to speed up production. By August 2017, there were 455,000 reservations for the Model 3. The rollout was plagued by delays and production problems. This increased pressure on the company, which at this time was one of the most shorted companies in the market.
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In August 2018, CEO Elon Musk briefly considered taking Tesla private. The plan did not materialize, and gave rise to much controversy and many lawsuits including a securities fraud charge from the SEC. By the end of 2018, the production problems had been overcome, and the Model 3 was the world's best selling plug-in electric car for the year.
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Tesla opened its first "Gigafactory" outside the United States in Shanghai, China, in 2019. Giga Shanghai was the first automobile factory in China fully owned by a foreign company, and was built in less than six months. The following year Tesla also started construction on a new Gigafactory near Berlin, Germany, and another in Texas, United States. In March 2020, Tesla began deliveries of its fifth vehicle model, the Model Y crossover.
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On January 10, 2020, Tesla reached a market capitalization of $86 billion, breaking the record for highest valuation of any American automaker. On June 10, 2020, Tesla's market capitalization surpassed those of BMW, Daimler and Volkswagen combined. The next month, Tesla reached a valuation of $206 billion, surpassing Toyota's $202 billion to become the world's most valuable automaker by market capitalization. On August 31, 2020, following this increase in value, Tesla had a 5-for-1 stock split.
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From July 2019 to June 2020, Tesla reported four profitable quarters in a row for the first time, which made it eligible for inclusion in the S&P 500. Tesla was added to the index on December 21, 2020. It was the largest company ever added, and the sixth-largest company in the index at the time of its inclusion. As investors tried to buy more shares as a result of this inclusion, some analysts, such as J.P. Morgan's Ryan Brinkman, suggested investors exercise caution as Tesla was "dramatically" overvalued. Throughout 2020, the share price of Tesla increased 740%, and on January 26, 2021, its market capitalization reached $848 billion, more than the next nine largest automakers combined and making it the 5th most valuable company in the US.
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From 2015 to 2020, Tesla acquired companies including Riviera Tool, Grohmann Engineering, Perbix, Compass Automation, Hibar Systems, and German ATW Automation to advance Tesla's expertise in automation, along with Maxwell Technologies and SilLion to add to Tesla's abilities in battery technology. Grohmann (renamed Tesla Grohmann Automation) and Maxwell would continue to operate as subsidiary companies, while the rest would be merged into Tesla. In July 2021, Musk acknowledged that Tesla had sold Maxwell to the former VP of sales for Maxwell.
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In January 2020, Tesla donated ($723,000 in 2020 dollars) to the Chinese Center for Disease Control and Prevention to fight the COVID-19 pandemic in mainland China.
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In October 2020, Tesla told "Electrek" that it had dissolved its public relations (PR) department (with the exception of a few PR managers representing Tesla's European and Asian markets), becoming the first automaker to do so.
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Tesla hit its goal of building 0.5 million cars in 2020. The company ended the year with over $19 billion of cash, compared to $6.3 billion at the end of 2019.
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In February 2021, Tesla revealed that it had invested $1.5 billion in bitcoin in 2020 and on March 24 the company started accepting bitcoin as a form of payment for vehicle purchases in the United States and stated that it would introduce bitcoin payment in other countries later that year. At the time, Musk tweeted that "Bitcoin paid to Tesla will be retained as Bitcoin, not converted to fiat currency." It was later revealed in financial documents that between January 1 and March 31, 2021, Tesla had made a $101 million profit on the sale of bitcoin. After 49 days of accepting the digital currency, the company reversed course on May 12, 2021, saying they would no longer take bitcoin due to concerns that "mining" the cryptocurrency was contributing to the consumption of fossil fuels and climate change. The decision resulted in the price of bitcoin dropping around 12% on May 13. During a July bitcoin conference, Musk suggested Tesla could help bitcoin miners switch to renewable energy in the future and also stated at the same conference that if bitcoin mining reaches, and trends above 50 percent renewable energy usage, that "Tesla would resume accepting bitcoin." The price for bitcoin rose after this announcement. In July 2022 it was reported that Tesla had sold about 75% of its bitcoin holdings. It was worth $936 million.
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After earlier disputes with California officials over COVID-19 restrictions, on December 1, 2021, Tesla moved its headquarters from Palo Alto, California, to its Gigafactory in Austin, Texas. However, Musk stated that Tesla would continue to operate its Fremont factory in the San Francisco Bay Area, and will continue to expand in California. In September 2021, Tesla broke ground on a new battery factory in Lathrop, California, and signed a lease in October 2021 for additional office space in Palo Alto.
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Also in October 2021, Tesla's market capitalization reached $1 trillion, the sixth company to do so in U.S. history, on news that car rental company Hertz had placed an order for 100,000 Tesla vehicles for its fleet.
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On March 22, 2022, Tesla launched its new car factory outside Berlin, with Chief Executive Elon Musk handing over the first deliveries to customers. The US carmaker's Giga Berlin plant is the largest for electric vehicles in Europe. On April 7, 2022, Tesla celebrated the public opening of the Giga Texas facility with its Cyber Rodeo event attended by an estimated 15,000 invitees.
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Musk said in an email sent to employees that he was reducing salaried headcount by 10 percent because the company had become "overstaffed in many areas", adding that "hourly headcount will increase." He also said in a tweet Tesla's total number of employees would increase over the next year, but said the number of salaried staff would remain "fairly flat".
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, Tesla offers four car models: Model S, Model 3, Model X and Model Y, and a semi-truck. Tesla's first vehicle, the first-generation Tesla Roadster, is no longer sold. Tesla has plans for a second-generation Roadster and a pickup called the Cybertruck.
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The Model S is a five-door liftback sedan. Deliveries began on June 22, 2012. The car became the first electric vehicle to top the monthly sales ranking in any country, when it achieved first place in the Norwegian new car sales list in September 2013. The Model S won the 2013 Motor Trend Car of the Year, the 2013 "World Green Car", "Automobile" magazine's 2013 "Car of the Year", "Time" magazine's Best 25 Inventions of the Year 2012 award, as well as the 2019 "Motor Trend" "Ultimate Car of the Year".
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The Model S was the bestselling plug-in electric car worldwide for the years 2015 and 2016, selling an estimated 50,931 units in 2016. By the end of 2017, it was the world's second best selling plug-in electric car in history (after the Nissan Leaf), with global sales of 200,000 units. In June 2020, Tesla announced that the Model S Long Range Plus had an EPA range of , the highest of any battery electric vehicle at the time.
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The Tesla Model X is a mid-size crossover SUV. It is offered in 5-, 6- and 7-passenger configurations. The Model X was developed from the full-sized sedan platform of the Model S. The rear passenger doors open vertically with an articulating "falcon-wing" design.
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Deliveries started in September 2015. In 2016, after one full year on the market, the Model X ranked seventh among the world's bestselling plug-in cars. The United States is its main market, with an estimated 57,327 units sold through September 2018.
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The Model 3 is a four-door fastback sedan. Tesla unveiled the Model 3 on March 31, 2016. Potential customers began reserving spots earlier that day with a refundable deposit. One week after the unveiling, Tesla reported over 325,000 reservations. Bloomberg News claimed that, due to the number of reservations, "the Model 3's unveiling was unique in the 100-year history of the mass-market automobile." Limited vehicle production began in July 2017.
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Since March 2020, the Model 3 is the world's best selling electric car in history, and cumulative global sales passed the 1 million milestone in June 2021. The Model 3 has ranked as the world's best selling plug-in electric car for four consecutive years, from 2018 to 2021, and also as the best selling plug-in electric car in the United States since 2018. The Model 3 also set records in Norway and the Netherlands, as the best selling passenger car model in those countries in 2019.
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The Model Y is a compact crossover utility vehicle. The Model Y is built on a platform that shares many components with the Model 3. The car has up to three rows of seats (up to 7 people), of cargo space (with the second and third rows folded), and has an EPA range of up to .
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The Model Y was unveiled on March 14, 2019. Deliveries for the Model Y started on March 13, 2020. The Tesla Model Y is being manufactured at Tesla Factory in Fremont, California, as well as in Giga Shanghai in China. A version of the Model Y is also expected to be produced at Giga Berlin once the factory is open.
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The Tesla Semi is an all-electric Class 8 semi-trailer truck announced in November 2017. Musk confirmed that two variants would be available: one with and one with of range. The Semi will be powered by four independent 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. Musk also announced that the company would be involved in installing a solar-powered global network of Tesla Megachargers to make the Semi more attractive to potential long-haul customers. A 30-minute charge would provide of range.
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Musk initially said in 2017 that Semi deliveries would start in 2019 and be selling 100,000 trucks a year, but deliveries were later delayed to 2021 and then 2022. Part of the reason for the delays, according to Musk, is that the Semi includes five times more battery cells than their passenger cars, and the battery supply is not yet sufficient for both Tesla cars and the Semi.
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In October 2022, the company announced it would deliver its first all-electric semitrailer truck for PepsiCo in December, in what would be the first new model the company would give to consumers since the beginning of 2020, when it started delivering the Model Y crossover. At the time of the announcement, the trucks would support PepsiCo plants in Sacramento and Modesto, California.
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In a surprise reveal at the end of the event that introduced the Tesla Semi on November 16, 2017, Tesla unveiled the second generation Roadster. Musk said that the new model will have a range of with the battery pack and will achieve in 1.9 seconds; it also will achieve in 4.2 seconds, and the top speed will be over . The SpaceX Package will include cold air thrusters that will increase the speed even more. The vehicle will have three electric motors allowing for all-wheel drive and torque vectoring during cornering.
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At the time, the base price was set at $200,000, while the first 1,000 units (the Founder's series) will sell for $250,000. Reservations required a deposit of $50,000, and those who ordered the Founder's series paid the $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. Deliveries are expected to start in 2023.
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The Cybertruck is a pickup truck unveiled on November 21, 2019. Production has been delayed past 2022, and is rumored to be early 2023. The truck's design had a mixed reception, and some Wall Street analysts questioned whether American pickup truck buyers will have interest in the Cybertruck. On September 22, 2020, Musk revealed roughly 600,000 Cybertruck preorders. James Goodwin, chief executive of ANCAP, said in 2019 that the design of the Cybertruck could pose safety risks, saying that the front "would look like it's not very forgiving". After the Cybertruck's unveiling, Musk announced that the Tesla Cyberquad, an electric four-wheel quad bike revealed alongside the Cybertruck, would be an optional accessory for Cybertruck buyers.
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The only discontinued Tesla vehicle model is the original Tesla Roadster. The Roadster was a two-seater sports car, evolved from the Lotus Elise chassis, that was produced 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 per charge. It is also the first production car to be launched into space; Musk launched his Roadster into a Mars-crossing orbit on a SpaceX Falcon Heavy rocket test flight on February 6, 2018.
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On July 20, 2016, Musk detailed his new master plan for Tesla. It includes more affordable cars produced in higher volume, solar 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. Tesla's plan also indicated building a minibus on the Model X platform, but in May 2017, Musk indicated that he might favor a 10–12 passenger version of the Model X over a dedicated minibus design. Musk dashed hopes for a Tesla motorcycle, saying in 2018 "we're not going to do motorcycles".
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Also in 2016, Musk revealed Tesla's intention to produce a car cheaper than the Model 3. In 2018, Musk indicated a plan to enter a new market segment, offering a compact hatchback in "less than five years". In 2020, Musk said Tesla expects to have a $25,000 electric car within 3 years, which "will basically be on-par or slightly better than a comparable gasoline car".
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In April 2019, Musk announced Tesla's intention to launch an autonomous taxi service by the end of 2020 using more than 1 million Tesla vehicles. A year later, in April 2020, Musk stated Tesla would not make the end of 2020 deadline but said, "we'll have the functionality necessary for full self-driving by the end of the year."
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Tesla subsidiary Tesla Energy develops, builds, sells and installs solar energy generation systems and battery energy storage products (as well as related products and services) to residential, commercial and industrial customers.
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The subsidiary was created by the merger of Tesla's existing battery energy storage products division with SolarCity, a solar energy company that Tesla acquired in 2016.
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Tesla Energy's generation products include solar panels (built by other companies for Tesla), the Tesla Solar Roof (a solar shingle system) and the Tesla Solar Inverter. Other products include the Powerwall (a home energy storage device) and the Powerpack and Megapack, which are large-scale energy storage systems. Tesla Energy also develops software to allow customers to monitor and control their systems.
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In 2021, the company deployed solar energy systems capable of generating 345 megawatts, an increase of 68% over 2020, and deployed 3.99 gigawatt-hours of battery energy storage products, an increase of 32% over 2020.
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Tesla receives service revenue from its vehicle customers after their initial purchase; these revenues reached $1.47 billion in 2022 Q2. , those services include vehicle servicing, charging, insurance, software upgrades, and improved connectivity. In July 2021, Tesla made Full Self-Driving available as a monthly subscription. Future services which have been discussed include paying for a Wi-Fi hotspot in the car and the Tesla robotaxi network.
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In 2012, Tesla began building a network of 480-volt fast-charging Supercharger stations. , Tesla operates 36,165 Superchargers in 3,971 stations worldwide (an average of 9 chargers per station). The Supercharger is a proprietary direct current (DC) technology that provides up to 250 kilowatts (kW) of power. All Tesla cars except the first generation Roadster come standard with hardware to charge at Superchargers. The navigation software in Tesla cars can recommend the fastest route for long-distance travel, incorporating charging stops.
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Model S and X cars ordered before January 15, 2017, and between August 3, 2019, and May 26, 2020, received free unlimited supercharging. Model S and X cars ordered between January 15, 2017, and August 3, 2019, got of free Supercharging credits per year, which provides a range of roughly . Subsequent Tesla models never received free unlimited supercharging.
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In 2014, Tesla launched the "Destination Charging location" network by providing chargers to hotels, restaurants, shopping centers and resorts (and other locations where Tesla owners may spend an hour or more) to provide on-site vehicle charging at twice the power of a typical home charging station.
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Destination chargers are installed free of charge by Tesla-certified contractors; the locations originally were required to provide the electricity at no cost to their customers. , locations with six or more destination chargers may start charging for electricity. All destination chargers appear in the in-car navigation system.
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In November 2022, Tesla renamed its previously proprietary charging connector to "North American Charging Standard” (NACS), making the specs available to other EV manufacturers as an alternative to the standard Combined Charging System (CCS) connector used by competitors in North America.
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Tesla vehicles' software is regularly updated over-the-air when new software and firmware versions are released. This allows the cars to remain up to date and improve after purchase. Tesla also offers the option to unlock features in the car through over-the-air software upgrades after purchase. Available upgrades include basic Autopilot, Full Self Driving, acceleration boost (for Model 3 owners), and rear-heated seats (for Model 3 owners).
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All Tesla cars come with "Standard Connectivity" which provides navigation using a cellular connection, and the following only over Wi-Fi or Bluetooth: internet browsing, music streaming (with a paid subscription), and, when parked, video streaming and "caraoke". "Premium Connectivity" adds cellular access to those features and also provides live traffic and satellite maps for navigation.
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Tesla service strategy is to service its vehicles first through remote diagnosis and repair. If it is not possible to resolve a problem remotely, customers are referred to a local Tesla-owned service center, or a mobile technician is dispatched. Tesla has said that it does not want to make a profit on vehicle servicing, which has traditionally been a large profit center for most auto dealerships.
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In 2016, Tesla recommended having any Tesla car inspected every 12,500 miles or once a year, whichever comes first. 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.
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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. 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". The following year, an analysis of claim frequency and insurance cost data by the Insurance Institute for Highway Safety conducted by financial research provider 24/7 Wall St. found that the Tesla Model S and Model X were the two most expensive vehicles to insure. Musk stated that he expects these insurance rates will greatly decrease once driver-assist and self-driving technology become commonplace.
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Starting in October 2017, Tesla partnered with Liberty Mutual Insurance Company to offer US customers an insurance plan designed specifically for Tesla cars. In August 2019, this partnership was superseded by a partnership with State National Insurance, but was initially only available to Tesla owners in California. In July 2020, Musk, relying on data obtained through the partnership with State National Insurance, announced that Tesla was creating its own "major" insurance company. Tesla claims the insurance uses individual vehicle data to offer personalized pricing.
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As of July 2022, Tesla offers insurance in Arizona, California, Colorado, Illinois, Nevada, Ohio, Oregon, Texas and Virginia.
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At the time of Tesla's founding in 2003, electric vehicles were very expensive. In 2006, Elon Musk stated that Tesla's strategy was to first produce high-price, low-volume vehicles, such as sports cars, for which customers are less sensitive to price. This would allow them to progressively bring down the cost of batteries, which in turn would allow them to offer cheaper and higher volume cars. Tesla's first vehicle, the Roadster, was low-volume (fewer than 2,500 were produced) and priced at over $100,000. The next models, the Model S and Model X, are more affordable but still luxury vehicles. The most recent models, the Model 3 and the Model Y, are priced still lower, and aimed at a higher volume market, selling over 100,000 vehicles each quarter. Tesla continuously updates the hardware of its cars rather than waiting for a new model year, as opposed to nearly every other car manufacturer.
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Unlike other automakers, Tesla does not rely on franchised auto dealerships to sell vehicles. Instead, the company directly sells vehicles through its website and a network of company-owned stores. The company is the first automaker in the United States to sell cars directly to consumers. Some jurisdictions, particularly in the United States, prohibit auto manufacturers from directly selling vehicles to consumers. In these areas, Tesla has locations that it calls "galleries" that the company says "educate and inform customers about our products, but such locations do not actually transact in the sale of vehicles." In total, Tesla operates nearly 400 stores and galleries in more than 35 countries. These locations are typically located in retail shopping districts, inside shopping malls, or other high-traffic areas, instead of near other auto dealerships.
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Tesla has a high degree of vertical integration, estimated at 80% in 2016. The company produces vehicle components as well as building proprietary stations where customers can charge their vehicles. Vertical integration is rare in the automotive industry, where companies typically "outsource" 80% of components to suppliers and focus on engine manufacturing and final assembly. Tesla used low-cost strategy as a business approach, with which they can expand their business into a broader market by offering standard technology items.
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Tesla generally allows its competitors to license its technology, stating that it wants to help its competitors accelerate the world's use of sustainable energy. Licensing agreements include provisions whereby the recipient agrees not to file patent suits against Tesla, or to copy its designs directly. Tesla retains control of its other intellectual property, such as trademarks and trade secrets to prevent direct copying of its technology.
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Tesla was the first automaker to use batteries containing 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.
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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 (see crashes and fires). After two vehicle fires in 2013 due to road debris, the Model S was retrofitted with a multi-part aluminum and titanium protection system to reduce the possibility of damage.
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In 2016, former Tesla CTO J.B. Straubel expected batteries to last 10–15 years, and discounted using electric cars to charge the grid with vehicle-to-grid because the related battery wear outweighs economic benefit. He also preferred recycling over re-use for grid once they reach the end of their useful life for vehicles. Tesla launched its battery recycling operation at Giga Nevada in 2019. Straubel independently founded battery recycling company Redwood Materials in 2017, which supplies recycled materials to Panasonic.
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Panasonic is Tesla's supplier of cells in the United States, and cooperates with Tesla in producing cylindrical 2170 batteries at Giga Nevada.
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In January 2021, Panasonic had the capacity to produce 39 GWh per year of batteries at Giga Nevada. Tesla's battery cells used in Giga Shanghai are supplied by Panasonic and Contemporary Amperex Technology (CATL), and are the more traditional prismatic (rectangular) cells used by other automakers.
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, nearly half of all Tesla's vehicles produced last quarter are using cobalt-free Lithium iron phosphate battery (LFP) made in China.
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Tesla invests in lithium-ion battery research. Starting in 2016, the company established a 5-year battery research and development partnership at Dalhousie University in Nova Scotia, Canada, with lead researcher Jeff Dahn. Tesla acquired two battery companies: Maxwell Technologies, acquired for over $200 million – but sold in 2021 and Hibar Systems.
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During Tesla's Battery Day event on September 22, 2020, Tesla announced the next generation of batteries, featuring a tab-less battery design to increase the range and decrease the price of Tesla vehicles. The new battery is named the "4680" in reference to its dimensions: wide by tall. Two weeks before Battery Day, Tesla paid a total of $3 to buy several battery manufacturing patent applications from Springpower International, a small Canadian battery company.
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Tesla predicted the new batteries could be up to 56% cheaper and allow the cars to have a 54% longer range. The company said this would be achieved by a more efficient production process, new battery design, cheaper resources for the anode and cathode, and better integration into the vehicle. Business analysis company BloombergNEF estimated Tesla's battery pack price in 2021 at $112 per kWh, versus an industry average of $132 per kWh. , BloombergNEF estimates the industry as a whole will reach $100 per kWh in 2024. The United States Department of Energy estimated in 2020 that battery prices of about $100 per kWh would cause electric cars to reach cost parity with their gasoline-powered counterparts, which in turn would accelerate sales of new electric cars.
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Tesla makes two kinds of electric motors. Its oldest design in production is a three-phase four-pole alternating current induction motor with a copper rotor (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 are expected to be used in the Tesla Semi. The permanent magnet motors increase efficiency, especially in stop-start driving.
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Autopilot is an advanced driver-assistance system developed by Tesla. The system requires active driver supervision at all times.
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Since September 2014, all Tesla cars are shipped with sensors (initially hardware version 1 or "HW1") and software to support Autopilot. Tesla upgraded its sensors and software in October 2016 ("HW2") to support full self-driving in the future. HW2 includes eight cameras, twelve ultrasonic sensors, and forward-facing radar. HW2.5 was released in mid-2017, and it upgraded HW2 with a second graphics processing unit (GPU) and, for the Model 3 only, a driver-facing camera. HW3 was released in early 2019 with an updated and more powerful computer, employing a custom Tesla-designed system on a chip.
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In April 2019, Tesla announced that all of its cars will include Autopilot software (defined as just "Traffic-Aware Cruise Control" and "Autosteer" (Beta)) as a standard feature moving forward. Full self-driving software (Autopark, Navigate on Autopilot (Beta), Auto Lane Change (Beta), Summon (Beta), Smart Summon (Beta) and future abilities) is an extra cost option.
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In 2020, Tesla released software updates where its cars recognize and automatically stop at stop signs and traffic lights. In May 2021, Tesla removed the radar sensor and radar features from its Model 3 and Model Y vehicles, opting instead to rely on camera vision alone. The "New York Times" reported in December 2021 that Musk "repeatedly told members of the Autopilot team that humans could drive with only two eyes and that this meant cars should be able to drive with cameras alone," an analogy some experts and former Tesla engineers described as "deeply flawed." Similarly, a statistical analysis conducted in "A Methodology for Normalizing Safety Statistics of Partially Automated Vehicles" debunked a common Tesla claim that Autopilot reduced crash rates by 40 percent by accounting for the relative safety of the given operating domain when using active safety measures.
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"Full Self-Driving" (FSD) is an optional extension of Autopilot promoted as eventually being able to perform fully autonomous driving. At the end of 2016, Tesla expected to demonstrate full autonomy by the end of 2017, which has not occurred. The first beta version of the software was released on October 22, 2020, to a small group of testers. The release of the beta has renewed concern regarding whether the technology is ready for testing on public roads. The National Transportation Safety Board (NTSB) has called for "tougher requirements" for any testing of Autopilot on public roads.
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Tesla's approach to achieve full autonomy is different from that of other companies. Whereas Waymo, Cruise, and other companies are relying on highly detailed (centimeter-scale) three-dimensional maps, lidar, and cameras, as well as radar and ultrasonic sensors in their autonomous vehicles, Tesla's approach is to use coarse-grained two-dimensional maps and cameras (no lidar) as well as radar and ultrasonic sensors. Tesla claims that although its approach is much more difficult, it will ultimately be more useful, because its vehicles will be able to self-drive without geofencing concerns. Tesla's self-driving software has been trained on over 20 billion miles driven by Tesla vehicles as of January 2021. Tesla also designed a self-driving computer chip that has been installed in its cars since March 2019.
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Most experts believe that Tesla's approach of trying to achieve full self-driving by eschewing lidar and high-definition maps is not feasible. In March 2021, according to a letter that Tesla sent to the California Department of Motor Vehicles about FSD's capability – acquired by PlainSite via a public records request – Tesla stated that FSD is not capable of autonomous driving and is only at Society of Automotive Engineers Level 2 automation. In a May 2021 study by Guidehouse Insights, Tesla was ranked last for both strategy and execution in the autonomous driving sector. In October 2021, the National Transportation Safety Board (NTSB) called on Tesla to change the design of its Autopilot to ensure it cannot be misused by drivers, according to a letter sent to Musk.
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In September 2022, Tesla revealed prototypes of its proposed humanoid robot Optimus, which Musk has stated uses the same core software as FSD. During the presentations at Tesla's AI Day 2022, Musk suggested that, among other use cases, the finalized version of Optimus could be used in Tesla's car factories to help with repetitive tasks and relieve labor shortages.
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In November 2016, the company announced the Tesla glass technology group. The group produced the roof glass for the Tesla Model 3. It also produces the glass used in the Tesla Solar Roof's solar shingles.
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The company operates six large factories. The company also operates showrooms and galleries around the world.
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Tesla was founded in San Carlos, California. In 2010, Tesla moved its corporate headquarters and opened a powertrain development facility in Palo Alto.
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Tesla's first retail store was opened in 2008 in Los Angeles, followed by others in major U.S. cities. , Tesla operates 196 stores and galleries in the United States, has stores and galleries in 34 other countries, and has 655 service centers globally.
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Tesla's first assembly plant occupies the former NUMMI plant in Fremont, California, known as the Tesla Fremont Factory. The factory was originally opened by General Motors in 1962, and then operated by a joint venture of GM and Toyota from 1984. The original factory was closed in 2010, and was acquired by Tesla the same year.
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The first major battery production facility was opened in Nevada in 2016. Gigafactory Nevada (originally Gigafactory 1) produces Powerwalls, Powerpacks and Megapacks; battery cells in partnership with Panasonic; and Model 3 battery packs and drivetrains. The factory received substantial subsidies from the local and state government, that, in exchange for opening in their jurisdiction, allowed Tesla to operate essentially tax free for 10 years.
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As part of the acquisition of SolarCity in 2016, Tesla acquired Gigafactory New York located in Buffalo, New York, on the site of a former Republic Steel plant. SolarCity had received incentives to locate its factory in Buffalo through the Buffalo Billion program. In 2017, the factory started production of solar shingles for the Tesla Solar Roof. Between 2017 and 2020 Tesla partnered with Panasonic to assemble photovoltaic modules at the plant.
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In May 2020, after Alameda County had refused to let the Tesla factory reopen after a COVID-19 lockdown, Elon Musk threatened that he would move the company's headquarters from California to Texas or Nevada.
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On July 23, 2020, Tesla picked Austin, Texas, as the site of Gigafactory 5, since then known as Gigafactory Texas Giga Texas is planned to be the main factory for the Tesla Cybertruck and the Tesla Semi; it will also produce Model 3 and Model Y cars for the Eastern United States. On April 7, 2022, Tesla celebrated the public opening of the Giga Texas facility with its Cyber Rodeo event attended by an estimated 15,000 invitees.
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On December 1, 2021, Tesla officially relocated its headquarters to the Gigafactory site in Austin, Texas. Because of Texas regulations, the company offers to cover costs for out-of-state healthcare, which include abortion and gender affirmation procedures.
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Tesla acquired a former JC Penney distribution center near Lathrop, California, in 2021 to build a Megafactory to manufacture Megapacks. The location opened in 2022 and produces the next-generation Megapacks to use prismatic lithium iron phosphate batteries.
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Tesla opened its first European store in June 2009 in London. Tesla's European headquarters are in the Netherlands. Tesla operates facilities in Tilburg, including a European Distribution Centre and an final assembly facility that adds drivetrain, battery and software to imported car bodies to reduce import tax, which depends on the location of final assembly.
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In late 2016, Tesla acquired German engineering firm Grohmann Engineering as a new division dedicated to helping Tesla increase the automation and effectiveness of its manufacturing process. After winding down existing contracts with other auto manufacturers, the renamed Tesla Grohmann Automation now works exclusively on Tesla projects.
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Tesla announced its plans to build a car and battery factory in Europe in 2016. Several countries campaigned to be the host, and eventually Germany was chosen in November 2019. On March 22, 2022, Tesla's first European Gigafactory named Gigafactory Berlin-Brandenburg opened with planned capacity to produce 500,000 electric vehicles annually as well as batteries for the cars.
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Tesla opened its first Japanese showroom in Tokyo, Japan, in October 2010. By 2013, showrooms and service centers were operating in Hong Kong, Beijing and Shanghai. Two showrooms opened in South Korea in March 2017 and a service center opened there in late 2017. In August 2017, Taiwan opened its first service center and showroom.
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In July 2018, Tesla signed an agreement with Chinese authorities to build a factory in Shanghai, China, which was Tesla's first Gigafactory outside of the United States. The factory building was finished in August 2019, and the initial Tesla Model 3s were in production from Giga Shanghai in October 2019.
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In response to the Chinese military banning Tesla cars from entering military housing complexes, Elon Musk stated during the China Development Forum in March 2021 that the company would stop producing cars in the country if cars were being used to spy. The comment came shortly after a meeting of Chinese and U.S. diplomats in Alaska, in part over concerns of U.S. intervention in China's internal affairs.
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In 2021, China accounted for 26% of Tesla sales revenue, and was the second largest market for Tesla after the United States, which accounted for 45% of its sales.
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Tesla opened the first Australian showroom in Sydney in 2010, followed by a showroom and service center in Melbourne in 2015. By 2019, Tesla had opened 4 service centers in Australia. In 2012, Tesla opened its first store in Canada in Toronto.
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The first expansion of Tesla in the Middle East was with the opening of a showroom and a service center in Dubai, United Arab Emirates (UAE), in 2017. Five ultra-fast superchargers were also built between cities in the UAE, with a planned 50 destination chargers by the end of 2017. 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. In May 2017, a service center and store in Amman, Jordan was opened. In January 2020 a "pop-up" store in Tel Aviv, Israel was opened as well as a research and development center.
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In January 2010, Tesla and battery cell maker Panasonic announced that they would together develop nickel-based lithium-ion battery cells for electric vehicles. The partnership was part of Panasonic's $1 billion investment over three years in facilities for lithium-ion cell research, development and production.
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Beginning in 2010, Panasonic invested $30 million for a multi-year collaboration on new battery cells designed specifically for electric vehicles. In July 2014, Panasonic reached a basic agreement with Tesla to participate in battery production at Giga Nevada.
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