Tesla Inc. holds the highest market capitalization among automobile manufacturers. The company engineers, assembles along with sells battery only passenger cars, heavy duty trucks in addition to energy storage systems. Service revenue arrives through company owned repair centers, collision shops next to the Supercharger network. The product line consists of mid size sedans, full size sedans, compact sport utility vehicles, and mid-size sport utility vehicles.
Martin Eberhard but also Marc Tarpenning incorporated Tesla Motors during 2003. Elon Musk purchased shares one year later and accepted the chairmanship. A confidential settlement of Eberhard’s lawsuit against Musk, filed after Eberhard’s removal as chief executive, granted both men, along with Tarpenning, early employee Ian Wright, and battery engineer J.B. The right to describe themselves as co founders. The firm began as a manufacturer of electric vehicles and related components – added photovoltaic panels, residential storage batteries, and utility-scale storage products. Tesla listed its shares on the Nasdaq exchange on June 29, 2010.
On August 5, 2022, the board declared a three-for-one stock split. The additional shares began to trade on August 25, 2022.
Recent Vehicle Recalls
On April 12, 2022, Tesla filed a recall covering 594,894 vehicles – Model Y, Model X, Model S units produced from 2020 through 2022, and Model 3 units produced from 2017 through 2022. The Boombox feature, which plays user selected audio through external speakers, must deactivate when the shift lever is not in Park so that federally mandated pedestrian warning tones remain audible.
On February 1, 2022, Tesla filed a recall covering 817,143 vehicles – Model S besides Model X units produced in 2021 and 2022, Model 3 units produced from 2017 through 2022, and Model Y units produced from 2020 through 2022. A software defect prevents the seat belt reminder chime from sounding under certain conditions.
Cybertruck Production Schedule
On August 7, 2021, Musk stated that Cybertruck deliveries would slip to 2022. Design revisions and pandemic-related supply shortages caused the delay. On April 7, 2022, Musk announced that production would start in 2023 at the new Gigafactory in Austin, Texas.
Bitcoin Policy
On May 12, 2021, Musk posted on Twitter that Tesla would suspend Bitcoin payments for vehicle purchases. The statement cited increased fossil fuel consumption by miners and transaction processors. On June 13, 2021, Musk tweeted that Tesla would resume Bitcoin payments once independent audits confirm that at least fifty percent of mining power derives from renewable sources and that the proportion continues to rise. On July 21, 2021, Musk repeated the fifty percent threshold at the B-Word conference.
Removal of Radar Hardware
In May 2021, Tesla removed radar sensors from Model 3 and Model Y vehicles built for North American customers. Consumer Reports withdrew its âTop Safety Pick+â designation. The National Highway Traffic Safety Administration removed check marks for forward collision warning, dynamic brake support, and lane-keeping assistance. On June 29, 2021, Consumer Reports and the Insurance Institute for Highway Safety restored top tier safety ratings after evaluating over-the-air software updates.
Securities and Exchange Commission Settlement
On August 7, 2018, Musk tweeted, âAm considering taking Tesla private at $420. Funding secured.â The Securities or Exchange Commission filed a civil complaint on September 27, 2018 – alleging that the tweet lacked factual support and that Tesla lacked controls to review Musk’s public statements. Tesla next to Musk settled on September 29, 2018. Musk resigned as board chair. Tesla appointed two new independent directors, established a committee to oversee Musk’s public communications, and paid a $20 million fine. Musk paid a separate $20 million fine.
On June 1, 2021, The Wall Street Journal reported that Musk had twice violated the settlement by posting tweets without prior legal review. On March 8, 2022, Musk filed suit in the Southern District of New York to terminate the pre approval requirement – claiming First Amendment infringement. On April 14, 2022 – during a live interview at the TED conference, Musk called SEC regulators âbastards.â
Shareholder Litigation over SolarCity Acquisition
Between July 12 and July 13, 2021, Musk testified in the Delaware Court of Chancery. Shareholders alleged that Musk, who held the chairmanship of both Tesla but also SolarCity, structured Tesla’s $2.6 billion all stock purchase of SolarCity in 2016 to rescue the solar panel installer from insolvency. Closing arguments took place on January 18, 2022. Plaintiffs requested that Musk return 22.9 million Tesla shares received for his SolarCity holdings, valued at approximately $13 billion on the January 2022 reference date. Vice-Chancellor Joseph Slights III had not issued a ruling as of April 21, 2022.
Stock Split History
Tesla executed a five-for-one split on August 31, 2020. A three-for-one split followed on August 25, 2022.
Dividend Policy
Tesla pays no dividend and retains all earnings for reinvestment.
Shares Outstanding
As of October 18, 2022, 3.16 billion shares of common stock were outstanding.
Chief Executive Officer
Elon Musk holds the title of chief executive officer. He invested $6.5 million during Tesla’s Series A funding round in February 2004. He replaced Zeâev Drori as chief executive in October 2008. In March 2021, the board added the ceremonial title âTechnoking of Tesla.â
Largest Shareholders
As of December 15, 2020, the largest beneficial owners of Tesla common stock were:
The Vanguard Group, Inc. – 58.6 million shares, 6.2 percent of shares outstanding.
BlackRock Institutional Trust Company – 50.7 million shares, 5.4 percent of shares outstanding.
Capital World Investors – 47.0 million shares, 5.0 percent of shares outstanding.
State Street Corporation – 40.3 million shares, 4.3 percent of shares outstanding.
Elon Musk – 227.4 million shares, 24.2 percent of shares outstanding – including 102.9 million shares issuable upon exercise of vested stock options.
