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The Evolution Of Tesla From A Humble Startup To Becoming A Mainstream Brand

topspeed.com 2024/10/6
2008 Tesla Roadster in red color.
Tesla

Tesla is currently the most popular electric car brand in the U.S., but its success didn't come out of nowhere. The company kicked things off around 2003, and since then, it has experienced a long journey with many ups and downs. Like many of the newcomers today, Tesla was once a humble startup that has evolved into a global EV giant that rivals companies with more than 100 years of automotive experience.

Tesla's journey to the top is thanks to aggressive leadership, intelligent production and assembling methods, and substantial investments. The brand now has five compelling electric cars in its segment with new additions set to follow in the coming years. Tesla is also the only electric car manufacturer that's currently taking the fight to the expansive flurry of Chinese electric products. By looking at its history and current trajectory, it's clear as day that there's no stopping this monumental and class-leading company.

In order to give you the most up-to-date and accurate information possible, the data used to compile this article was sourced from Tesla's websites and other authoritative sources, including the EPA, the IIHS, and Consumer Reports.

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Tesla Before Elon Musk

Martin Eberhard and Marc Tarpenning are the two original engineers who founded Tesla Motors in 2003. Their goal was to create a series of electric cars that would completely dethrone gasoline as a preferred fueling method. Nikolai Tesla inspired the name because of their initial affinity for the AC motor technology, which some of its cars still feature. Eberhard and Tarpenning sought out major investors in order to make their dream a reality. Elon Musk, who had recently co-founded and sold PayPal during this time, was the most noteworthy investor, who allocated $6.5 million worth of Series A funding alone.

He was resultantly appointed the chairman of Tesla's board of directors, bringing with him an infamous and ambitious vision for sustainable energy and electric vehicles and power supply. Musk's brought the strategic direction that Tesla needed to push the company toward high-performance electric vehicles. Eberhard and Tarpenning were initially in charge of the company's day-to-day operations before departing in 2007. Musk then became the CEO in 2008, during which time the company struggled with financial stagnation.

Launching The 2005 Tesla Roadster

Front 3/4 view of a 2008 Tesla Roadster Signature 100
Gruber Motor Company

The first Tesla Roadster was developed from 2004 to 2008 and marked a significant milestone in the entire electric vehicle industry. With this trend-setting alternative product, Tesla showed the world that electric cars can be fast, stylish, highly exclusive, and aspirational.

The designers and engineers built this new-age roadster on the already accomplished Lotus Elise chassis. They fit the compact layout with a custom-designed electric powertrain that offers drivers a good balance of performance and efficiency. This was also one of the first cars to feature a lithium-ion battery pack, which resulted in it being able to achieve an EPA-estimated 200-mile range in between charges.

Tesla Roadster Performance Specs

Roadster Roadster 2.5
Battery 53 kWh 53 kWh
Horsepower 248 HP 288 HP
Torque 273 LB-FT 295 LB-FT
Range 200-250 miles 245 miles
Drivetrain Rear-wheel drive Rear-wheel drive
0-60 mph 3.9 seconds 3.7 seconds

The Roadster's development and production didn't come without challenges. Tesla struggles with battery management and finding a way to fit all the components into the British marque's tiny and compromised chassis. The end result was a handful of cars produced over a few years, with deliveries commencing in 2008. Pricing started at a hefty $109,000, but this included an impressive 4.0-second 0-60 MPH claimed time, proving its strength over substantially more expensive ICE supercars at the time. The model was once subject to plummeting values, but these are now starting to rise as the brand improves after-sales support, resulting in it becoming a noteworthy collector's item.

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Red Tesla Model 3 Highland parked
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The Tesla Model S And Model X Duo

Front thee-quarters shot of a black 2022 Tesla Model S Plaid
Bring-a-Trailer

The Tesla Model S and X luxury EV sedan and SUV duo are the two cars that put Tesla on the mainstream map, while maintaining an aspirational reputation. The Model S arrived on the market in 2012, bringing customers a combination of practicality, performance, and comfort. The initial mode's specifications are modest by today's standards, as it was only able to cover 265 miles on a single charge.

Like today's variation, the Model S features a minimalist interior design with a large portrait touchscreen infotainment system. This is a trend that almost every manufacturer has now adopted. The Model S set the trend across multiple criteria, having earned noteworthy accolades for safety, design, and performance.

Performance Specifications

Model S Model S Plaid
Motor Setup Dual Permanent-Magnet Motor Triple Permanent-Magnet And AC Induction Motors
Transmission Single-Speed Automatic Single-Speed Automatic
Horsepower 670 HP 1,020 HP
Torque 755 LB-FT 1,050 LB-FT
Driveline All-Wheel Drive All-Wheel Drive
0-60 MPH 3.1 Seconds 1.99 Seconds
Top Speed 130 MPH 200 MPH

Using the same platform, Tesla added the Model X to its catalog in 2015. This is around the same time when SUVs and crossovers started to become more standardized across different segments. This particular SUV features unique falcon-wing doors and advanced safety features, which attracted many high-profile customers wanting something spacious, safe, and fast. The brand's engineers have admitted that they experienced a level of difficulty with crafting the complex door mechanisms and ensuring robust battery performance to support the larger vehicle. Regardless, the brand was able to bring the car to market with a very positive reception.

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The Model 3 Increases Market Appeal

Tesla Model 3
Tesla

The Model 3 is where Tesla really evolved into a mass market player, as it finally produced a car that was fairly competitive against similar premium ICE sedans like the BMW 3 Series. This mid-size option arrived in 2017 with a $35,000 starting price.

The engineers and designers focused on keeping the option efficient with an EPA-estimated 130 MPGe and 26 kWh per 100 miles combined consumption figure. It was also affordable and easily accessible thanks to the brand's mass production and leveraged technology from its larger siblings. Thanks to this, it was also able to fit the model with upgraded battery technology and the iconic central touchscreen system, which also acts as the instrument cluster.

Tesla Model 3 Performance Specifications

Rear-Wheel Drive Long Range Performance
Motor Setup Single Permanent-Magnet Motor Dual Permanent Magnet Motors Dual Permanent Magnet Motors
Transmission Single-Speed Automatic Single-Speed Automatic Single-Speed Automatic
Horsepower 271 HP 394 HP 510 HP
Torque 310 LB-FT 337 LB-FT 546 LB-FT
Driveline Rear-Wheel Drive All-Wheel Drive All-Wheel Drive
0-60 MPH 5.8 Seconds 4.2 Seconds 2.9 Seconds
Top Speed 125 MPH 125 MPH 163 MPH

Again, Tesla faced some challenges in putting this mass-production car together. Musk famously referred to its development cycle as a "production hell" by CEO Elon Musk, because of the ambitious targets and initial manufacturing bottlenecks.

Critics thought the task was impossible, but Tesla successfully got the Model 3 to market with over 400,000 pre-orders placed just weeks after it revealed the production model to the public. Just like the current model, it perfectly balances performance, efficiency, affordability, and mass market appeal. The current-generation model offers better performance at a substantially more affordable rate.

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2019 Tesla Model 3 Hatchback
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The Model Y Becomes A New Champion

2024 Tesla Model Y
Tesla

Tesla released the Model Y as a crossover alternative to the Model 3 in March 2020. This was the brand's official entry into the mid-size crossover segment, which is currently the most popular in both the EV and ICE markets. The Model Y hit the market so soon after the 3 because the launch model shares 75 percent of its cosmetic and mechanical components with the lower-riding alternative. This also helped the brand keep the Model Y's price at a very competitive mark, resulting in it very quickly rising to the top of the global electric vehicle sales charts.

Tesla Model Y Performance Specifications

Model Y Model Y Long Range Model Y Performance
Powertrain Single-permanent-magnet motor Front AC Induction and rear permanent-magnet motors Front AC Induction and rear permanent-magnet motors
Transmission Single-Speed Automatic Single-Speed Automatic Single-Speed Automatic
Horsepower 295 HP 384 HP 456 HP
Torque 310 LB-FT 376 LB-FT 497 LB-FT
Driveline Rear-Wheel Drive All-Wheel Drive All-Wheel Drive
0-60 MPH 6.6 Seconds 4.8 Seconds 3.5 Seconds
Top Speed 135 MPH 135 MPH 155 MPH
Towing Capacity 3,500 Pounds 3,500 Pounds 3,500 Pounds
Payload Capacity 1,188 Pounds 1,188 Pounds 1,179 Pounds

The Model Y benefits from a spacious interior, which you can transform into a convenient three-row seater. It also features all the brand's comprehensive and futuristic digital and safety systems. Production kicked off at its Fremont factory just before the Covid-19 pandemic, but it remained a resilient product thanks to the brand's tight and streamlined supply chain system. During this challenging period, Tesla leveraged the Model 3 and Y's success to climb further up the ranks while its rivals paused production due to a lack of semiconductors.

Launching The Cybertruck, Semi, And Other Upcoming Models

2024 Tesla Cybertruck
Tesla

Alongside its power-related products, Tesla has recently introduced products such as the Cybertruck and Semi. These are two products that showcase the brand's cutting-edge technology and design, but they aren't the most polished products. As a result, these two products haven't experienced the best market success.

Tesla Cybertruck Performance Specifications

RWD (2025) AWD Cyberbeast
Motor Setup Single-Permanent-Magnet Motor Dual-Permanent-Magnet Motors Triple-Permanent-Magnet Motors
Transmission Single-Speed Automatic Single-Speed Automatic Single-Speed Automatic
Horsepower 315 HP 600 HP 845 HP
Torque N/A 525 LB-FR 686 LB-FT
Driveline Rear-Wheel Drive All-Wheel Drive All-Wheel Drive
0-60 MPH 6.5 Seconds 4.1 Seconds 2.6 Seconds
Top Speed 112 MPH 112 MPH 130 MPH
Towing Capacity 7,500 Pounds 11,000 Pounds 11,000 Pounds
Payload Capacity N/A 2,500 Pounds 2,500 Pounds

Two cars that fans are deeply invested in are the more affordable Model 2 and the flagship Roadster. Musk has hinted that we could see both of these options arrive sometime in 2026, with the latter receiving a highly limited and exclusive run. The former is expected to launch itself right to the top of the sales charts, with its proposed $25,000 starting price. It will likely fill the gap that the now absent Chevrolet Bolt has left wide open.

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