The company was first founded in 2003 by Martin Eberhand and Marc Tarpenning, who had the vision of starting both a motoring and tech firm. The company is named after famed physicist Nikola Tesla, with the Roadster model actually using an AC motor which was directly descended from the scientist’s original 1882 design.

The company first gained attention following the 2008 release of the Tesla Roadster, the very first electric sports car. Following the Roadster was the Model S, a sedan, which has since become one of the world’s best-selling plug-in electric cars. As of 2021, the Model 3 is now the best selling plug-in electric car in the world, followed by the Wuling HongGuang Mini EV and the Tesla Model Y.

In 2010, the company was the first automaker to go public since Ford in 1956. Listing on the NASDAQ, the company raised $226 million.