As of April 2026, Tesla sells four vehicle models: Model 3, Model Y, Semi and Cybertruck. Tesla no longer offers three vehicle models: the first-generation Roadster, Model S, and Model X. Tesla has announced plans for a second-generation Roadster, a Cybercab, and has shown a concept of a Robovan.
The Model 3 is a mid-size car with a fastback body style and either a dual-motor, all-wheel drive layout or a rear-motor, rear-wheel drive layout. The vehicle was designed to be more affordable than the luxury Model S sedan. A prototype Model 3 was first shown in 2016 and within a week, the company received over 325,000 paid reservations. Deliveries started in July 2017. The Model 3 ranked as the world's best-selling electric car from 2018 to 2021, and cumulative sales passed 1 million in June 2021. The vehicle has seen one major design refresh in September 2023, which revised the exterior and interior.
The Model Y is a mid-size crossover SUV offered in 5- and 7-passenger configurations with a single-motor, rear-wheel drive or a dual-motor, all-wheel drive layout. The vehicle was designed to be more affordable than the luxury Model X SUV. A prototype Model Y was first shown in March 2019, and deliveries started in March 2020. The Model Y shared around 75 percent of its content with the Model 3. In the first quarter of 2023, the Model Y outsold the Toyota Corolla to become the world's best-selling car, the first electric vehicle to claim the title.
The Tesla Semi is a Class 8 semi-truck by Tesla, Inc., with a tri-motor, rear-wheel drive layout. Tesla states that the Semi has approximately three times the power of a typical diesel semi truck, and a range of 500 miles (800 km). Two prototype trucks were first shown in November 2017 and initial deliveries were made to PepsiCo on December 1, 2022. High-volume production started on April 29, 2026.
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Cybertruck
The Cybertruck is a full-sized pickup truck. First announced in November 2019, pilot production began in July 2023, after being pushed back multiple times, and deliveries began on November 30, 2023. Three models are offered: rear-wheel drive, dual-motor all-wheel drive, and trimotor all-wheel drive, with EPA range estimates of 320–340 miles (510–550 km), depending on the model. The truck's exterior design, made from flat sheets of unpainted stainless steel, earned a notably polarizing reception from the media. Tesla initially planned for Cybertruck production capacity of more than 250,000 units, but as of 2025 the company is only selling around 20,000 units per year.
Cybercab
Tesla has taken steps to investigate the possibility of selling the Cybercab to third-party operators.
Roadster (second generation)
On November 16, 2017, Tesla unveiled the second generation Roadster with a purported range of 620 miles (1,000 km) with a 200-kilowatt-hour (720 MJ) battery pack that would achieve 0–60 miles per hour (0–97 km/h) in 1.9 seconds; and 0–100 mph (0–161 km/h) in 4.2 seconds, and a top speed over 250 mph (400 km/h). A "SpaceX Package" would include cold-gas thrusters. The vehicle would have three electric motors, allowing all-wheel drive and torque vectoring during cornering. The base price was set at $200,000. Initially scheduled to ship in 2020, the vehicle has been repeatedly delayed. In July 2024, Musk said that the Roadster should enter production in 2025. The reveal of the production version was also postponed several times, including a planned October 1, 2026 event that was called off due to severe weather. On October 15, 2026, at an event near Waco, Texas, Tesla showed a redesigned Roadster with a more angular two-seat body, which the company said drew inspiration from the SR-71 and F-35 aircraft. Tesla announced three trims: the Performance, which uses fans to create suction-based downforce; the Thrust, which adds rear-facing cold-gas thrusters; and the invite-only Rocket, a single-seat version with 10 thrusters fed by compressed-air tanks. In demonstrations with no one on board, the cars drove along an inverted ramp and used their thrusters to jump over other vehicles. Tesla claimed a range of 300 miles (480 km), a top speed above 230 mph (370 km/h) and a 0–60 mph time of 0.81 seconds, though the acceleration figure was not independently timed. Musk said production would begin in 2028. Tesla reopened reservations at $50,000 for the Performance and $250,000 for the Thrust, but did not announce a price.
Tesla next-generation vehicle
The Tesla next-generation vehicle is an announced battery electric platform. It would become the third platform for the company. Vehicles based on this platform are not expected before 2025. In July 2024, Musk said that the platform should be expected to become available in the first half of 2025.
Robovan
The Tesla Robovan is an electric autonomous van planned for future development by Tesla. Announced in October 2024, the vehicle is being designed to carry up to 20 passengers.
Roadster (first generation)
The first generation Tesla Roadster was a two-seat sports car, rebuilt from the Lotus Elise chassis. It was produced from 2008 to 2012. The Roadster was the first highway-legal serial production electric car to use lithium-ion battery cells, and the first production all-electric car to travel more than 200 miles (320 km) per charge.
Model S
The Model S is a full-size car with a liftback body style and a dual motor, all-wheel drive layout. Development of the Model S began before 2007, and deliveries started in June 2012. The Model S has seen two major design refreshes, first in April 2016, which introduced a new front-end design, and again in June 2021, which revised the interior. The Model S was the top-selling plug-in electric car worldwide in 2015 and 2016. More than 250,000 vehicles have been sold as of December 2018 (when Tesla merged production numbers for the Model S and Model X).
Model X
The Model X is a mid-size luxury crossover SUV offered in 5-, 6-, and 7-passenger configurations with either a dual- or trimotor, all-wheel drive layout. The rear passenger doors open vertically with an articulating "falcon-wing" design. A prototype Model X was first shown in February 2012, and deliveries started in September 2015. The Model X shares around 30 percent of its content with the Model S. The vehicle has seen one major design refresh in June 2021, which revised the interior.
Discontinued vehicle features
As of January 22, 2026, Tesla has officially discontinued its basic Autopilot driver-assistance feature for new vehicles in the United States and Canada, replacing it with only Traffic Aware Cruise Control as the standard safety system. The move is part of a broader shift toward its more advanced Full Self-Driving (FSD) system, which is available only as a monthly subscription as of February 14, 2026.
Services
Connectivity services
Tesla cars come with "Standard Connectivity", which provides navigation using a cellular connection. For a fee, Tesla offers a subscription to "Premium Connectivity", which adds live traffic and satellite maps to navigation, internet browsing, and media streaming.
Vehicle servicing
Tesla's strategy is to service its vehicles first through remote diagnosis and repair. If a problem cannot be resolved remotely, Tesla dispatches a mobile technician or directs customers to a company-owned service center. As of October 2024, the company operates 1,306 retail stores, galleries, service, delivery and body shop locations globally. 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.
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.
Supercharger network
Supercharger is the branding used by Tesla for its high-voltage direct current fast chargers.
Destination charging location network
Tesla also has a network of "Destination Chargers", slower than Superchargers and intended for locations where customers are expected to park and stay for several hours, such as hotels, restaurants, or shopping centers. Unlike the Supercharger network, Tesla does not own the destination chargers; instead, property owners set up the devices and set pricing. When the network first launched in 2014, Tesla provided free charging equipment and covered installation costs. One of the largest providers is hotel chain Hilton Worldwide, which in 2023 announced an agreement with Tesla to install 20,000 chargers across 2,000 of its properties in North America by 2025.
Insurance services
Tesla has offered its own vehicle insurance in the United States since 2017 and has been acting as an independent insurance producer since 2021 as Tesla Insurance Services, Inc. It was introduced after the American Automobile Association (AAA), a major insurance carrier, raised rates for Tesla owners in June 2017 after a report concluded that the automaker's vehicles crashed more often and were pricier to repair than comparable vehicles. A study in 2018 based on data from the Insurance Institute for Highway Safety confirmed the findings.
The company says that it uniquely understands its vehicles, technology, and repair costs, and can eliminate traditional insurance carriers' additional charges. In states where allowed, the company uses individual vehicle data to offer personalized pricing that can increase or decrease in cost based on the prior month's driving safety score.
As of January 2023, Tesla offers insurance in the US states of Arizona, California, Colorado, Illinois, Maryland, Minnesota, Nevada, Ohio, Oregon, Texas, Utah, and Virginia. The company also offers insurance for non-Tesla vehicles owned by Tesla owners.
Robotaxi
Robotaxi is a ride-hailing service launched by Tesla in 2025. It currently operates in Austin, Texas. Robotaxis currently rely on human supervisors, with the intent of eventually allowing for fully autonomous rides.
Energy products
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. 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. In 2023, the company deployed 14.7 gigawatt-hours of battery energy storage products, an increase of 125% over 2022, but only deployed solar energy systems capable of generating 223 megawatts, a decrease of 36% over 2022.
Tesla Energy products include solar panels (built by other companies for Tesla), the Tesla Solar Roof (a solar shingle system), and the Tesla Solar Inverter. Storage products include the Powerwall (a home energy storage device) and the Megapack (a large-scale energy storage system).
For large-scale customers, Tesla Energy operates an online platform which allows for automated, real-time power trading, demand forecasting and product control. In March 2021, the company said its online products were managing over 1.2 GWh of storage. For home customers, the company operates a virtual power company in Texas called Tesla Electric, which utilizes the company's online platforms to manage customers' Powerwall devices, discharging them into the grid to sell power when prices are high, earning money for customers.
Business strategy
At the time of Tesla's founding in 2003, electric vehicles were costly. In 2006, 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 it to progressively bring down the cost of batteries, which in turn would allow it 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 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, unlike nearly every other car manufacturer.
Unlike other automakers, Tesla does not rely on franchised dealerships to sell vehicles. Instead, the company sells vehicles directly 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 since the widespread adoption of the franchised dealer model. 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.
Analysts describe Tesla as vertically integrated, given how it develops many components in-house, such as batteries, motors, and software. The practice of 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 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.
On April 15, 2024, Tesla secured a deal with Tata Electronics to supply semiconductor chips, marking a significant step in Tesla's expansion into India's automotive market.
On May 2, 2024, Tesla announced that it had abandoned its plan for next-generation gigacasting, a cutting-edge manufacturing technique. Initially aiming to revolutionize production and reduce costs, Tesla has now opted for its more proven method of casting vehicle underbodies in three pieces. This strategic shift reflects the company's focus on self-driving vehicles and adjusting to market challenges.
Technology
Tesla is highly vertically integrated and develops many components in-house, such as batteries, motors, and software.
Batteries
As of 2023, Tesla uses four different battery cell form factors: 18650, 2170, 4680, and prismatic.
Tesla purchases these batteries from three suppliers, CATL, LG Energy Solution, and Panasonic, the latter of which has co-located some of its battery production inside Tesla's Gigafactory Nevada. Tesla is also currently building out the capacity to produce its own batteries.
Tesla batteries sit under the vehicle floor to save interior space. Tesla uses a multipart aluminum and titanium protection system to protect the battery from road debris or vehicle crashes.
Business analysis company BloombergNEF estimated Tesla's battery pack cost in 2021 at $112 per kilowatt-hour (kWh), versus an industry average of $132 per kWh.
18650
Tesla was the first automaker to use cylindrical lithium-ion battery cells. When it built the first generation Roadster, it used off-the-shelf 18650-type (18 mm diameter, 65 mm height) cylindrical batteries that were already used for other consumer electronics. The cells provided an engineering challenge because each has a relatively low capacity, so thousands needed to be bundled together in a battery pack. Electrical and thermal management also proved to be a challenge, requiring liquid cooling and an intumescent fire prevention chemical. However, the decision turned out to be pragmatic because there was already a mature manufacturing process that could produce a high volume of the cells at a consistent quality. Although the 18650-type cells are the oldest technology, they are used in the Model S and X vehicles. Tesla sources these batteries with a nickel-cobalt-aluminum (NCA) cathode chemistry from Panasonic's factories in Japan.
2170
The next battery type to be used was the 2170-type (21 mm diameter, 70 mm height) cylindrical cell. The larger size was optimized for electric cars, allowing for a higher capacity per cell and a lower number of cells per battery pack. The 2170 was introduced for the Model 3 and Y vehicles.
For vehicles built at the Tesla Fremont Factory, the company sources 2170-type batteries with a nickel-cobalt-aluminum cathode chemistry from Panasonic's production line at Gigafactory Nevada. In January 2021, Panasonic had the capacity to produce 39 GWh per year of battery cells there. Tesla Energy also uses 2170 cells in its Powerwall home energy storage product.
For vehicles made at Gigafactory Shanghai and Gigafactory Berlin, batteries with a nickel-cobalt-manganese (NMC) cathode chemistry are sourced from LG Energy Solution's factories in China.
4680
Tesla's latest cylindrical cell design is the 4680-type (46 mm diameter, 80 mm height) introduced in 2021. The battery was developed in-house by Tesla and is physically 5 times bigger than the 2170-type, again allowing for a higher capacity per cell and a lower number of cells per battery pack. The battery uses a "tabless" design for lower electrical resistance, less resistive heating, better ability to deliver high current, and potentially faster charging. The battery uses nickel-manganese-cobalt-aluminum (NCMA) chemistry. The battery is produced at Gigafactory Texas. The 4680 cells are used in the Cybercab, Cybertruck and Model Y built at Gigafactory Texas, and in the Semi built at Gigafactory Nevada.
Prismatic
Tesla also uses prismatic (rectangular) cells in many entry-level Model 3 and Model Y vehicles. The prismatic cells are a lithium iron phosphate battery (LFP or LiFePO4), which is a less energy-dense type, but does not contain any nickel or cobalt, which makes it less expensive to produce. Tesla sources these batteries from CATL's factories in China. As of April 2022, nearly half of Tesla's vehicle production used prismatic cells. Tesla Energy also uses prismatic cells in its Megapack grid-scale energy storage product.
Research
Tesla invests in lithium-ion battery research. 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 Maxwell Technologies for over $200 million and sold it in 2021. It also acquired Hibar Systems. Tesla purchased several battery manufacturing patent applications from Springpower International, a small Canadian battery company.
Lithium Refinement
In 2023 Tesla broke ground on a $375 million lithium refining facility near Robstown, Texas, in the US. The plant's process will eliminate the use of sulfuric acid in lithium processing, thereby eliminating the associated sodium sulfate waste product. Local concerns have been raised over the plant's water usage with initial estimates of 400,000 US gal (1,500,000 L; 330,000 imp gal) per day for normal operation, rising to a peak usage estimate of 8,000,000 US gal (30,000,000 L; 6,700,000 imp gal) per day.
Software
Tesla uses over-the-air updates to deliver updates to vehicles, adding features or fixing problems. This is enabled by tight integration between a few powerful onboard computers, compared to the way automakers had previously handled technology, by purchasing off-the-shelf electronic components for each subsystem that typically could not interface at the software level.
The system has also allowed Tesla to control which features customers have access to. For example, for ease of assembly, all Model 3 vehicles were built with heated rear seats, but only customers who purchased a premium interior could turn them on. However, Tesla has allowed customers who didn't pay for a premium interior to purchase access to the heated rear seats. Tesla uses a similar software lock feature for Enhanced Autopilot and Full Self-Driving features, even though all vehicles are equipped with the computers and cameras necessary to enable those features.
Motors
Tesla makes two kinds of electric motors: an induction motor, and an internal permanent magnet (IPM) motor with synchronous reluctance motor (SynRM) characteristics.
The older design is a three-phase four-pole alternating current induction motor (also called an asynchronous motor) with a copper rotor (which inspired the Tesla logo). These motors use electromagnetic induction, by a varying magnetic field to produce torque. Induction motors are used as the rear motor in the Model S and Model X, as the front motor in the Model 3 and Model Y, and were used in the first-generation Roadster.
Since the introduction of the Model 3 in 2017, Tesla has also been building IPM-SynRM motors. These motors use an iron rotor, with slots cut into the metal where magnets are inserted in the internal core. As an IPM motor, it produces excellent starting torque; however, performance declines at high speeds due to counter-electromotive forces. For high-speed operation, Tesla engineers used iron's reluctance property, which allows it to spin in synchronization with the magnetic field of the stator if channels are cut into the core. These channels were also an ideal internal location for the permanent magnets to be mounted. The IPM-SynRM motor is currently used as the rear motor in the Model 3 and Model Y, the front motor of 2019-onward versions of the Model S and X, and is expected to be used in the Tesla Semi.
North American Charging Standard
The North American Charging Standard (NACS) is an electric vehicle charging connector system developed by Tesla. It has been used on all North American market Tesla vehicles since 2012 and was opened for use by other manufacturers in 2022. Since then, nearly every other vehicle manufacturer has announced that starting from 2025, their electric vehicles sold in North America will be equipped with the NACS charge port. Several electric vehicle charging network operators and equipment manufacturers have also announced plans to add NACS connectors.
Glass
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.
Robotics
In preparation for Model 3 production, Tesla heavily invested in robotics and automation for vehicle assembly, and between 2015 and 2017, the company purchased several companies involved in automation and robotics including Compass Automation, Grohmann Automation, Perbix Machine Company, and Riviera Tool and Die. Musk later said that the robotics slowed production of the vehicles.
Subsequently, Tesla shifted towards using massive casting machines, known as Giga Presses. These machines streamline production by creating large, single-piece underbodies, leading to reductions in production time, labor costs, factory footprint, and the number of welding robots. Critics note that reducing the number of components makes the vehicles harder or more expensive to repair after an accident.
The company has been developing a humanoid robot called Optimus since 2022. Musk has stated that Optimus leverages the same core software powering Tesla's Full Self-Driving technology and has suggested that it could be used within Tesla's factories to mitigate labor shortages through the automation of repetitive tasks.
On January 28, 2026, Tesla announced it would stop manufacturing the Model S and Model X to focus efforts on Optimus. The goal is to produce 1 million robots per year at the Fremont facility.
Facilities
The company operates seven large factories and about a dozen smaller factories around the world. As of December 2024, the company also operates more than 1,350 retail stores, galleries, service, delivery, and body shop locations globally.
North America
Tesla was founded in San Carlos, California in 2003. In 2008, the company opened its first production facility at a former Chevrolet dealership in Menlo Park, California. The original Roadster was assembled inside the service bays until 2012 and used the company's showroom as a retail store. Another retail store was opened in Los Angeles the same year. In 2010, Tesla moved its corporate headquarters and opened a powertrain development facility in Palo Alto.
Tesla's first major 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 NUMMI, a joint venture of GM and Toyota from 1984. The joint venture ended when GM entered bankruptcy in 2009. In 2010, Toyota agreed to sell the plant to Tesla at a significant discount.
Tesla's first purpose-built facility was opened in Nevada in 2016. Gigafactory Nevada produces the Powerwall, battery cells in partnership with Panasonic, Model 3 drivetrains, and the Tesla Semi. The factory received substantial subsidies (abatements and credits) from the local and state government, that, in exchange for opening in their jurisdiction, allowed Tesla to operate essentially tax-free for 10 years, later extended to 20 years in exchange for expanding the factory to add a production line for the Tesla Semi and add additional battery manufacturing capacity.
As part of the acquisition of SolarCity in 2016, Tesla gained control of Gigafactory New York in Buffalo on the site of a former Republic Steel plant. The state of New York spent cash to build and equip the factory through the Buffalo Billion program. In 2017, the factory started production of the Tesla Solar Roof, but faced multiple production challenges. Since 2020, Tesla has also assembled Superchargers in New York. The plant has been criticized for offering little economic benefit for the state funding.
In 2018, Tesla assembled tension fabric buildings at the Fremont plant to meet production goals of 5,000 cars produced a month. The structure was assembled in two weeks and measured 53 feet high, 150 feet wide, and 900 feet long.
On July 23, 2020, Tesla picked Austin, Texas, as the site of its fifth Gigafactory, since then known as Gigafactory Texas. Giga Texas is the only factory that produces the Tesla Cybertruck and produces Model Y cars for the Eastern United States. On December 1, 2021, Tesla announced it relocated its legal headquarters from Palo Alto to the Gigafactory Texas site in Austin. However, Tesla has retained the Palo Alto building. On April 7, 2022, Tesla celebrated the opening of Gigafactory Texas in a public event.
Tesla acquired a former JC Penney distribution center near Lathrop, California in 2021 to build the "Megafactory" to manufacture the Megapack, the company's large-scale energy storage product. The location opened in 2022.
Tesla announced in February 2023 it would open a new global engineering headquarters in Palo Alto, moving into a corporate campus once owned by Hewlett Packard, located a couple of miles from Tesla's former headquarters building.
Tesla has announced plans to open a Gigafactory Mexico, the company's sixth Gigafactory, near Monterrey, Mexico. However, as of July 2024, the company had placed construction on hold until after the 2024 United States presidential election because former President Trump has pledged to add tariffs on cars made in Mexico.
Europe
Tesla opened its first European store in June 2009 in London. Tesla's European headquarters are in the Netherlands, part of a group of Tesla facilities in Tilburg, including the company's European Distribution Centre.
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 manufacturers, the renamed Tesla Automation now works exclusively on Tesla projects and is expanding its operations in Germany through the acquisition of other manufacturing specialists.
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 opened with planned capacity to produce 500,000 electric vehicles annually as well as batteries for the cars.
Asia
Tesla opened its first showroom in Asia in Tokyo, Japan, in October 2010.
In July 2018, Tesla signed an agreement with Chinese authorities to build a factory in Shanghai, China, which was Tesla's first Gigafactory outside the United States. The factory building was finished in August 2019, and the initial Tesla Model 3s were in production from Gigafactory Shanghai in October 2019. In 2024, China accounted for 21% of Tesla sales revenue, and was the second-largest market for Tesla after the United States, which accounted for 48% of its sales. Tesla also sold 37% of its cars in China in 2024.
Tesla expressed interest in 2023 in expanding to India and perhaps building a future Gigafactory in the country. The company established a legal presence in the nation in 2021 and plans to open an office in Pune starting in October 2023.
Vehicle product issues
Recalls
On April 20, 2017, Tesla issued a worldwide recall of 53,000 (~70%) of the 76,000 vehicles it sold in 2016 due to faulty parking brakes which could become stuck and "prevent the vehicles from moving". On March 29, 2018, Tesla issued a worldwide recall of 123,000 Model S cars built before April 2016 due to corrosion-susceptible power steering bolts, which could fail and require the driver to use "increased force" to control the vehicle.
In October 2020, Tesla initiated a recall of nearly 50,000 Model X and Y vehicles throughout China for suspension issues. Soon after in November, the NHTSA announced it had opened its investigation into 115,000 Tesla cars regarding "front suspension safety issues", citing specifically 2015–2017 Model S and 2016–2017 Model X years. Cases of the "whompy wheel" phenomenon, which also included Model X and the occasional Model 3 cars, have been documented through 2020.
In February 2021, Tesla was required by the NHTSA to recall 135,000 Model S and Model X vehicles built from 2012 to 2018 due to using a flash memory device that was rated to last only 5 to 6 years. The problem was related to touchscreen failures that could possibly affect the rearview camera, safety systems, Autopilot and other features. The underlying technical reason is that the car writes a large amount of syslog content to the device, wearing it out prematurely.
Also in February 2021, the German Federal Motor Transport Authority (KBA) ordered Tesla to recall 12,300 Model X cars because of "body mouldings problems".
In June 2021, Tesla recalled 5,974 electric vehicles due to worries that brake caliper bolts might become loose, which could lead to loss of tire pressure, increasing the chance of a crash.
On December 30, 2021, Tesla announced that it was recalling more than 475,000 US model vehicles. This included 356,309 Model 3 Tesla vehicles from 2017 to 2020 due to rear-view camera issues and a further 119,009 Tesla Model S vehicles due to potential problems with the trunk or boot. The Model S recall includes vehicles manufactured between 2014 and 2021. Around 1% of recalled Model 3s may have a defective rear-view camera, and around 14% of recalled Model S may have the defect. The recall was not linked to a contemporaneous issue regarding the "Passenger Play" feature, which allowed games to be played on the touchscreen while the car is in motion. After an investigation was launched by the NHTSA covering 585,000 vehicles, Tesla agreed to make changes where the feature would be locked and unusable while the car is moving.
In September 2022, Tesla announced that it was recalling almost 1.1 million US model vehicles because the automatic window reversal system might not react correctly after detecting an obstruction, increasing the risk of injury. To fix the problem, Tesla announced an over-the-air software update.
In February 2023, Tesla recalled its FSD software following a recommendation from NHTSA; the recall applied to approximately 360,000 cars. NHTSA found that FSD caused "unreasonable risk" when used on city streets. In March 2023, about 3,500 Model Y Teslas were recalled for a bolting issue concerning the cars' second-row seats.
In December 2023, following a 2-year investigation by the NHTSA, Tesla issued a wider recall on all vehicles equipped with any version of Autosteer, including 2012–2023 Model S; 2016–2023 Model X; 2017–2023 Model 3; and 2020–2023 Model Y, covering 2,031,220 vehicles in total. The NHTSA concluded that Autosteer's controls were not sufficient to prevent misuse and did not ensure that the drivers maintained "continuous and sustained responsibility for vehicle operation" and states that affected vehicles will receive an over-the-air software remedy.
Electrically operated door handles
In August 2026, Tesla began recalling vehicles in China due to difficulty escaping vehicles in life-threatening situations. Electrically operated door handles in the cars may fail to open after an emergency, and the cars lack a clear manual release. The recall will involve adding a warning label on the interior door and a software update to automatically lower the windows in a crash.
Starting January 1, 2027, China will also require a mechanical release on both the inside and outside of every door except the trunk, and Tesla will have to modify its door design to comply. Regulators in other countries are also investigating the issue.
At least 15 people have died in the United States in Teslas where the vehicle's doors would not open following a crash. Tesla vehicles use electrically operated door handles with a concealed manual release intended for use when electrical power is unavailable; however, the back seat doors in some Model 3 and Model Y vehicles do not have manual releases.
Fires
Tesla customers have reported the company as being "slow" to address how its cars can ignite. In 2013, a Model S caught fire after the vehicle hit metal debris on a highway in Kent, Washington. Tesla confirmed the fire began in the battery pack and was caused by the impact of an object. As a result of this and other incidents, Tesla announced its decision to extend its current vehicle warranty to cover fire damage. In March 2014, the NHTSA announced that it had closed the investigation into whether the Model S was prone to catch fire, after Tesla said it would provide more protection to its battery packs. All Model S cars manufactured after March 6, 2014, have had the 0.25-inch (6.4 mm) aluminum shield over the battery pack replaced with a new three-layer shield. In October 2019, the NHTSA opened an investigation into possible battery defects in Tesla's Model S and X vehicles from 2012 to 2019 that could cause "non-crash" fires.
Autopilot crashes
A Model S driver died in a collision with a tractor-trailer in 2016, while the vehicle was in Autopilot mode; the driver is believed to be the first person to have died in a Tesla vehicle in Autopilot. The NHTSA investigated the accident but found no safety-related defect trend. In March 2018, a driver of a Tesla Model X was killed in a crash. Investigators say that the driver of the vehicle had his car in 'self-driving' mode and was using his phone to play games when the vehicle collided with the barrier in the middle of the freeway. Through investigation, the NTSB found that the Tesla malfunctioned due to the system being confused by an exit on the freeway.
According to a document released in June 2021, the NHTSA has initiated at least 30 investigations into Tesla crashes that were believed to involve the use of Autopilot, with some involving fatalities. In early September 2021, the NHTSA updated the list with an additional fatality incident and ordered Tesla to hand over all extensive data pertaining to US cars with Autopilot to determine if there is a safety defect that leads Tesla cars to collide with first-responder vehicles. In late September 2021, Tesla released an over-the-air software update to detect emergency lights at night. In October 2021, the NHTSA asked Tesla why it did not issue a recall when it sent out that update. In June 2022, the NHTSA said it would expand its probe, extending it to 830,000 cars from all current Tesla models. The probe was moved up from the Preliminary Evaluation level to Engineering Analysis. The regulator cited the reason for the expansion as the need to "explore the degree to which Autopilot and associated Tesla systems may exacerbate human factors or behavioral safety risks by undermining the effectiveness of the driver's supervision."
A safety test conducted by the Dawn Project in August 2022 demonstrated that a test driver using the beta version of Full Self-Driving repeatedly hit a child-sized mannequin in its path, but there has been controversy over its conclusions. Several Tesla owners responded by conducting their own, independent tests using children; NHTSA released a statement warning against the practice.
In 2025, the California DMV filed a lawsuit against Tesla, claiming it had misled drivers about its vehicles' self-driving capabilities. The DMV sought to suspend Tesla's sales and manufacturing in the state of California for a minimum of 30 days.
Software hacking
In August 2015, two researchers said they were able to take control of a Tesla Model S by hacking into the car's entertainment system. The hack required the researchers to physically access the car. Tesla issued a security update for the Model S the day after the exploit was announced.
In September 2016, researchers at Tencent's Keen Security Lab demonstrated a remote attack on a Tesla Model S and controlled the vehicle in both Parking and Driving Mode without physical access. They were able to compromise the automotive networking bus (CAN bus) when the vehicle's web browser was used while the vehicle was connected to a malicious Wi-Fi hotspot. This was the first case of a remote control exploit demonstrated on a Tesla. The vulnerability was disclosed to Tesla under its bug bounty program and patched within 10 days, before the exploit was made public. Tencent also hacked the doors of a Model X in 2017.
In January 2018, security researchers informed Tesla that an Amazon Web Services account of theirs could be accessed directly from the Internet and that the account had been exploited for cryptocurrency mining. Tesla responded by securing the compromised system, rewarding the security researchers financially via its bug bounty program, and stating that the compromise did not violate customer privacy, nor vehicle safety or security. Later in 2019, Tesla awarded a car and $375,000 to ethical hackers during a Pwn2Own Model 3 hacking event.
In June 2022, Martin Herfurt, a security researcher in Austria, discovered that changes made to make Tesla vehicles easier to start with NFC cards also allowed for pairing new keys to the vehicle, allowing an attacker to enroll their keys to a vehicle.
Phantom braking
In February 2022, Tesla drivers reported a surge in "phantom braking" events when using Tesla Autopilot, which coincides with the automaker's removal of radar as a supplemental sensor in May 2021. In response, NHTSA opened an investigation the same month. In August 2022, a consumer class action was filed alleging that the Autopilot system in Tesla cars "contains a hazardous defect which causes the vehicle to suddenly and unintentionally brake". In November 2024, Tesla failed to persuade a US District Judge to dismiss the lawsuit. The next court date is January 7, 2025.
In May 2023, German business newspaper Handelsblatt published a series of articles based on a trove of internal Tesla data submitted to them from informants. The 100 gigabytes of data "contain[ed] over 1,000 accident reports involving phantom braking or unintended acceleration" as well as complaints about Tesla Autopilot. Dutch authorities responded by saying they were investigating the company for possible data privacy violations.
In February 2025, a German court declared Tesla Autopilot defective for normal use due to phantom braking issues.
In February 2025, a group of Australian buyers sued Tesla with a class action over multiple issues like battery range, driving assistance, and phantom braking.
In July 2026, the NHTSA ended its Tesla phantom braking probe as customer complaints fell.
Driving range performance
Tesla has received thousands of complaints from owners that the driving ranges of their vehicles did not meet the ranges advertised by Tesla or the projections of in-dash range meters. When service centers were overwhelmed with appointments to take care of these issues, Tesla established a diversion team to cancel as many appointments as possible. Customers were told that remote diagnostics had determined there was no problem, and their appointments were canceled. The company has been fined by South Korean regulators for its exaggerated range estimates.
Suspension failure risks
In 2026, the National Highway Traffic Safety Administration opened a preliminary investigation into Tesla over complaints of a suspension failure risk in 2018–2020 Model 3 and 2021–2023 Model Y vehicles. At the time, no crashes, injuries or fatalities had been reported.
Vehicle sales
In 2024, Tesla ranked as the world's best-selling battery electric passenger car manufacturer, with a market share of 17.6%. Tesla reported 2023 vehicle deliveries of 1.8 million units, up 38% from 2022. In March 2024, Tesla produced its six millionth car. In Q4 2023, Tesla's Chinese competitor BYD took over the top spot for EVs shipped, but Tesla regained the title in Q1 2024. On January 2, 2026, BYD became the bestselling electric vehicle maker across the globe and surpassed Tesla as the largest EV maker.
Tesla sells the most vehicles in the US (674,000+ in 2023) and has received $11.4 billion in regulatory credits from federal and state governments. The federal government previously provided a $7,500 rebate to customers. Tesla received around $426 million from the Chinese government for cars manufactured at its Shanghai facility.
Germany was Tesla's third-largest market in 2023, selling 63,682 units. Germany ended its EV subsidy program in December 2023. Under the program, a €6,750 discount was provided with Tesla paying €2,250. Tesla announced it would cover the entire discount going forward. In 2023, over 63,000 Teslas were sold in France with customers receiving up to €7,000 via the bonus écologique. The government decreased the budget for EV aid from €1.5 billion to €700 million in 2024.
Canada was in Tesla's top five markets in 2023 with over 52,000 vehicles sold. In 2025, Tesla was accused of having "a run on the bank" when it sold a historic 8,600 vehicles in 72 hours before Canada's EV rebate program's funds were depleted. Tesla claimed 4,000 vehicles alone were sold over one weekend in Quebec City. The Government of Canada announced on March 25, 2025, that it had suspended the rebates and was investigating. The government also declared Tesla would be ineligible for any future rebates as long as the US tariffs on Canadian products continued.
Musk has stated he is against government subsidies but will take them if they are available.
Sales have been negatively impacted by Musk's actions during the second Trump presidency. Tesla sales have decreased worldwide (the most in countries like France, Germany, the UK, Sweden, Norway, and the Netherlands) with his vocal support for far-right parties such as Reform UK and AfD in Germany along with his Nazi salute controversy leading to boycotts of his products and Tesla vehicles being nicknamed Swasticars, a portmanteau of swastika and car. German sales fell 76% in February 2025 compared to February 2024.
Tesla's shares dropped over 9 percent after its sales in the EU and UK declined by nearly half in January 2025, bringing its valuation below $1 trillion for the first time since November 2024. While European electric car sales surged, Tesla struggled against rising competition, particularly from Chinese automakers. In May 2025, it was reported that the company's sales in Europe declined every month since the start of the year, including in April where sales dropped 49 percent to 7,261 from 14,228 in April 2024. As of May 2025, the company has a 0.7 percent market share in Europe, down from 1.3 percent a year ago.
Production and sales by quarter
Tesla deliveries vary significantly by month due to regional issues such as availability of car carriers and registration. On March 9, 2020, the company produced its 1 millionth electric car, becoming the first auto manufacturer to achieve such a milestone. In the third quarter of 2021, Tesla sold its 2 millionth electric car, becoming the first auto manufacturer to achieve such a milestone. In the first quarter of 2023, the Model Y became the world's best-selling car, surpassing the Toyota Corolla.