Introduction
Hello, active minds! We are going to look at the history of a company that was founded in 2003 by engineers Martin Eberhard and Marc Tarpenning in Silicon Valley and is currently making nearly 96 billion in revenue by 2024. In this post, we are going to see the initial period of this company and its development. In 2002, EB bought the PayPal company for about 1.5 billion US dollars. Of this, Elon Musk got about 180 million USD. Elon Musk invested his 180 million US dollars in 100 million in Space X company 60 million in Tesla and the remaining 20 million in a company called Solar City. In this post, we are going to see how he joined this company as an investor became a CEO, and developed this company.
Initial Stage of Tesla
Tesla company was started in 2003 by two engineers named Martin Eberhard and Marc Tarpenning in Silicon Valley. In 2004 Elon Musk became an important investor in Tesla and took on some other responsibilities. Tesla was planning a brilliant idea, Previously released GM car company used lead acid batteries in their car. However, Tesla used a lithium-ion battery because of the improvement of its performance and to increase it. Tesla first launched a type of high-performance electric car to allay public skepticism about the electric car and to woo more investors. The high-performance car they launched was the Roadster.
Problems Faced in the Initial Period
Tesla started making electric cars like this to make more people aware of sustainable development and autonomous driving systems. Thus they were fully automating their company to manufacture these cars. Thus, while automating their company, they faced a lot of financial problems, so the person who was the CEO at that time resigned from the job. It was during that period that in October 2008 he took over as the CEO of Tesla Company. Elon Musk is laying off about 25 percent of his workforce to address this economic crisis, and Roadster is recalling for $40 million. He partnered with a company called Daimler and borrowed nearly $465 million from the government. After doing this Tesla manufactures almost 2450 Roadster cars.
Tesla’s Growth Trajectory
As we’ve already seen, they used lithium-ion batteries to increase its efficiency to 244 miles making the car a huge success for them. Then 2010 they launch their IPO and Tesla becomes a publicly listed company. They raised $226 Million and Tesla Becomes 2nd Public Listed American car Company After Ford. But a small problem for them is that the cost of the lithium-ion battery is high because the manufacturing cost of this car increases when compared to petrol vehicles.
Elon Musk’s way of Approach
Elon Musk’s approach is that if he has a problem, he starts a company as a solution. He believes that if we have a problem and need a solution, others will too. This is how Russian aerospace scientists tell him, “Elon if we’re going to send people to space as you say, it’s going to require a very expensive rocket using existing rockets. Then he thought that if we use a reusable rocket it will not cost us so much. Thus the result is Space X. OK now let’s get back to Tesla.
Musk is starting Tesla Giga Factories to make lithium-ion batteries to minimize the cost of making electric vehicles comparable to gasoline vehicles. Not only the batteries but also all the spare parts needed to make Tesla cars are made from the same Giga factory. Due to this, they were able to reach a lot of milestones and they’re making semi-automatic vehicles. Then they launched Model S. Tesla has become a successful company and in 2018 Tesla surpassed Ford in market capitalization.
In 2019, Test started their Giga factory in Shanghai, China, which aims to manufacture cyber trucks. It is a completely electric vehicle that can cover a range of 400 to 800 kilometers. They launched this cyber truck in November 2023.
Conclusion
Tesla’s primary mission is to bring sustainable energy to people’s regular usage. For this, they have started to make solar roofs and panels. They aimed to use the power available from solar for the car, but gradually it became their vision to use that power for the whole house and to automate it. This post will tell you about the development of Tesla, Elon’s passion for it, and the ways he worked towards it. Similarly, if you also want to plan your dream, stop dreaming only and start taking action. And I hope this information is useful for you and if you like this information please share it with your friends. You can also follow us on YouTube and Instagram.
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