Tesla was founded in 2003 by Martin Eberhard and Marc Tarpenning before Elon Musk became an early major investor.
The company was originally incorporated as Tesla Motors in July 2003. Eberhard and Tarpenning established it to develop electric vehicles, drawing inspiration from the potential of lithium-ion batteries and the work of AC Propulsion. Elon Musk joined the company’s board after leading its 2004 Series A investment round.
Tesla’s first production vehicle was the Roadster, launched in 2008. It used a modified Lotus Elise chassis and demonstrated that a battery-electric sports car could achieve long driving range. Tesla later broadened its market with the Model S, Model X, Model 3, and Model Y.
A frequent misconception is that Musk founded Tesla personally. He was a crucial early investor, board member, and later chief executive, but the company predates his involvement. Another mix-up is calling the Roadster Tesla’s first mass-market car; that distinction belongs to the Model 3.