The year 1886 is regarded as the birth year of the modern car. In that year, German inventor Karl Benz built the Benz Patent-Motorwagen. Cars did not become widely available until the early 20th century. One of the first cars that was accessible to the masses was the 1908 Model T, an American car manufactured by the Ford Motor Company. Cars were rapidly adopted in the United States of America, where they replaced animal-drawn carriages and carts, but took much longer to be accepted in Western Europe and other less-developed parts of the world.
Cars are equipped with controls used for driving, parking, and passenger comfort and safety. New controls have also been added to vehicles, making them more complex. Examples include air conditioning, navigation systems, and in-car entertainment. Most cars in use today are propelled by an internal combustion engine, fueled by the deflagration of gasoline (also known as petrol) or diesel. Both fuels cause air pollution and are also blamed for contributing to climate change and global warming. Vehicles using alternative fuels such as ethanol flexible-fuel vehicles and natural gas vehicles are also gaining popularity in some countries.
Cars are equipped with controls used for driving, parking, and passenger comfort and safety. New controls have also been added to vehicles, making them more complex. Examples include air conditioning, navigation systems, and in-car entertainment. Most cars in use today are propelled by an internal combustion engine, fueled by the deflagration of gasoline (also known as petrol) or diesel. Both fuels cause air pollution and are also blamed for contributing to climate change and global warming. Vehicles using alternative fuels such as ethanol flexible-fuel vehicles and natural gas vehicles are also gaining popularity in some countries.
Road traffic accidents are the largest cause of injury-related deaths worldwide. The costs of car usage, which may include the cost of acquiring the vehicle, repairs and auto maintenance, fuel, depreciation, driving time, parking fees, taxes, and insurance, are weighed against the cost of the alternatives, and the value of the benefits – perceived and real – of vehicle usage. The benefits may include on-demand transportation, mobility, independence, and convenience. The costs to society of encompassing car use, which may consist of those of maintaining roads, land use, pollution, public health, health care, and disposing of the vehicle at the end of its life, can be balanced against the value of the benefits to society that car use generates. The societal benefits may include economic benefits, such as job and wealth creation, car production and maintenance, transportation provision, society well-being derived from leisure and travel opportunities, and revenue generation from tax opportunities. The ability of humans to move flexibly from place to place has far-reaching implications for the nature of societies.
The term motorcar has formerly also been used in electrified rail systems to denote a car that functions as a small locomotive but also provides space for passengers and baggage. Interurban and intercity railroad systems often used these locomotive cars on suburban routes.
It was estimated in 2010 that the number of cars had risen to over 1 billion vehicles, up from 500 million in 1986. The numbers are increasing rapidly, especially in China, India, and other N.I.Cs.
The term motorcar has formerly also been used in electrified rail systems to denote a car that functions as a small locomotive but also provides space for passengers and baggage. Interurban and intercity railroad systems often used these locomotive cars on suburban routes.
It was estimated in 2010 that the number of cars had risen to over 1 billion vehicles, up from 500 million in 1986. The numbers are increasing rapidly, especially in China, India, and other N.I.Cs.
The word "car" is believed to originate from the Latin word Carrus or Carrum ("wheeled vehicle"), or the Middle English word Carre (meaning cart, from Old North French). In turn, these originated from the Gulish word Karros (a Gallic chariot). The Gulish language was a branch of the Brythonic language which also used the word Karr; the Brythonic language evolved into Welsh (and Gaelic) where 'Car plug (a drag cart or sled) and 'car rhyfel' (war chariot) still survive. It originally referred to any wheeled horse-drawn vehicle, such as a cart, carriage, or wagon. "Motor car" is attested from 1895 and is the usual formal name for cars in British English. "Autocar" is a variant that is also attested from 1895, but that is now considered archaic. It literally means "self-propelled car".
The word "automobile" is a classical compound derived from the Ancient Greek word autós (αὐτός), meaning "self", and the Latin word mobiles, meaning "movable". It entered the English language from French and was first adopted by the Automobile Club of Great Britain in 1897. Over time, the word "automobile" fell out of favor in Britain and was replaced by "motor car". It remains a chiefly North American usage.
The word "automobile" is a classical compound derived from the Ancient Greek word autós (αὐτός), meaning "self", and the Latin word mobiles, meaning "movable". It entered the English language from French and was first adopted by the Automobile Club of Great Britain in 1897. Over time, the word "automobile" fell out of favor in Britain and was replaced by "motor car". It remains a chiefly North American usage.
The large-scale, production-line manufacturing of affordable cars was debuted by Ransom Olds in 1902 at his Oldsmobile factory located in Lansing, Michigan, and based upon the assembly line techniques pioneered by Marc Isambard Brunel at the Portsmouth Block Mills, England, in 1802. The assembly line style of mass production and interchangeable parts had been pioneered in the U.S. by Thomas Blanchard in 1821, at the Springfield Armory in Springfield, Massachusetts. This concept was greatly expanded by Henry Ford, beginning in 1914.
As a result, Ford's cars came off the line in fifteen-minute intervals, much faster than previous methods, increasing productivity eightfold, while using less manpower (from 12.5 man-hours to 1 hour 33 minutes). It was so successful; paint became a bottleneck. Only Japanese black would dry fast enough, forcing the company to drop the variety of colors available before 1914, until fast-drying Duco lacquer was developed in 1926. This is the source of Ford's apocryphal remark, "Any color as long as it's black". In 1914, an assembly line worker could buy a Model T with four months' pay.
As a result, Ford's cars came off the line in fifteen-minute intervals, much faster than previous methods, increasing productivity eightfold, while using less manpower (from 12.5 man-hours to 1 hour 33 minutes). It was so successful; paint became a bottleneck. Only Japanese black would dry fast enough, forcing the company to drop the variety of colors available before 1914, until fast-drying Duco lacquer was developed in 1926. This is the source of Ford's apocryphal remark, "Any color as long as it's black". In 1914, an assembly line worker could buy a Model T with four months' pay.
The large-scale, production-line manufacturing of affordable cars was debuted by Ransom Olds in 1902 at his Oldsmobile factory located in Lansing, Michigan, and based upon the assembly line techniques pioneered by Marc Isambard Brunel at the Portsmouth Block Mills, England, in 1802. The assembly line style of mass production and interchangeable parts had been pioneered in the U.S. by Thomas Blanchard in 1821, at the Springfield Armory in Springfield, Massachusetts. This concept was greatly expanded by Henry Ford, beginning in 1914.
As a result, Ford's cars came off the line in fifteen-minute intervals, much faster than previous methods, increasing productivity eightfold, while using less manpower (from 12.5 man-hours to 1 hour 33 minutes). It was so successful; paint became a bottleneck. Only Japanese black would dry fast enough, forcing the company to drop the variety of colors available before 1914, until fast-drying Duco lacquer was developed in 1926. This is the source of Ford's apocryphal remark, "Any color as long as it's black". In 1914, an assembly line worker could buy a Model T with four months' pay.
Ford's complex safety procedures—especially assigning each worker to a specific location instead of allowing them to roam about—dramatically reduced the rate of injury. The combination of high wages and high efficiency is called "Fordism," and was copied by most major industries. The efficiency gains from the assembly line also coincided with the economic rise of the United States. The assembly line forced workers to work at a certain pace with very repetitive motions which led to more output per worker while other countries were using less productive methods.
In the automotive industry, its success was dominating, and quickly spread worldwide seeing the founding of Ford France and Ford Britain in 1911, Ford Denmark in 1923, and Ford Germany in 1925; in 1921, Citroen was the first native European manufacturer to adopt the production method. Soon, companies had to have assembly lines or risk going broke; by 1930, 250 companies that did not, had disappeared.
Development of automotive technology was rapid, due in part to the hundreds of small manufacturers competing to gain the world's attention. Key developments included electric ignition and the electric self-starter (both by Charles Kettering, for the Cadillac Motor Company in 1910–1911), independent suspension, and four-wheel brakes.
As a result, Ford's cars came off the line in fifteen-minute intervals, much faster than previous methods, increasing productivity eightfold, while using less manpower (from 12.5 man-hours to 1 hour 33 minutes). It was so successful; paint became a bottleneck. Only Japanese black would dry fast enough, forcing the company to drop the variety of colors available before 1914, until fast-drying Duco lacquer was developed in 1926. This is the source of Ford's apocryphal remark, "Any color as long as it's black". In 1914, an assembly line worker could buy a Model T with four months' pay.
Ford's complex safety procedures—especially assigning each worker to a specific location instead of allowing them to roam about—dramatically reduced the rate of injury. The combination of high wages and high efficiency is called "Fordism," and was copied by most major industries. The efficiency gains from the assembly line also coincided with the economic rise of the United States. The assembly line forced workers to work at a certain pace with very repetitive motions which led to more output per worker while other countries were using less productive methods.
In the automotive industry, its success was dominating, and quickly spread worldwide seeing the founding of Ford France and Ford Britain in 1911, Ford Denmark in 1923, and Ford Germany in 1925; in 1921, Citroen was the first native European manufacturer to adopt the production method. Soon, companies had to have assembly lines or risk going broke; by 1930, 250 companies that did not, had disappeared.
Development of automotive technology was rapid, due in part to the hundreds of small manufacturers competing to gain the world's attention. Key developments included electric ignition and the electric self-starter (both by Charles Kettering, for the Cadillac Motor Company in 1910–1911), independent suspension, and four-wheel brakes.
Since the 1920s, nearly all cars have been mass-produced to meet market needs, so marketing plans often have heavily influenced car design. It was Alfred P. Sloan who established the idea of different makes of cars produced by one company, so buyers could "move up" as their fortunes improved.
Reflecting the rapid pace of change, makes shared parts with one another so larger production volume resulted in lower costs for each price range. For example, in the 1930s, LaSalle's, sold by Cadillac, used cheaper mechanical parts made by Oldsmobile; in the 1950s, Chevrolet shared hood, doors, roof, and windows with Pontiac; by the 1990s, corporate power trains and shared platforms (with interchangeable brakes, suspension, and other parts) were common. Even so, only major makers could afford high costs, and even companies with decades of production, such as a person, Cole, Dorris, Haynes, or Premier, could not manage of some two hundred American car makers in existence in 1920, only 43 survived in 1930, and with the Great Depression, by 1940, only 17 of those were left.
Reflecting the rapid pace of change, makes shared parts with one another so larger production volume resulted in lower costs for each price range. For example, in the 1930s, LaSalle's, sold by Cadillac, used cheaper mechanical parts made by Oldsmobile; in the 1950s, Chevrolet shared hood, doors, roof, and windows with Pontiac; by the 1990s, corporate power trains and shared platforms (with interchangeable brakes, suspension, and other parts) were common. Even so, only major makers could afford high costs, and even companies with decades of production, such as a person, Cole, Dorris, Haynes, or Premier, could not manage of some two hundred American car makers in existence in 1920, only 43 survived in 1930, and with the Great Depression, by 1940, only 17 of those were left.
Since the 1920s, nearly all cars have been mass-produced to meet market needs, so marketing plans often have heavily influenced car design. It was Alfred P. Sloan who established the idea of different makes of cars produced by one company, so buyers could "move up" as their fortunes improved.
Reflecting the rapid pace of change, makes shared parts with one another so larger production volume resulted in lower costs for each price range. For example, in the 1930s, LaSalle's, sold by Cadillac, used cheaper mechanical parts made by Oldsmobile; in the 1950s, Chevrolet shared hood, doors, roof, and windows with Pontiac; by the 1990s, corporate power trains and shared platforms (with interchangeable brakes, suspension, and other parts) were common. Even so, only major makers could afford high costs, and even companies with decades of production, such as a person, Cole, Dorris, Haynes, or Premier, could not manage some two hundred American car makers in existence in 1920, only 43 survived in 1930, and with the Great Depression, by 1940, only 17 of those were left.
In Europe, much the same would happen. Morris set up its production line at Cowley in 1924, and soon outsold Ford, while beginning in 1923 to follow Ford's practice of vertical integration, buying Hotchkiss (engines), Wrigley (gearboxes), and Oberton (radiators), for instance, as well as competitors, such as Wolseley: in 1925, Morris had 41% of total British car production. Most British small-car assemblers, from Abbey to Xtra, had gone under. Citroen did the same in France, coming to cars in 1919; between them and other cheap cars in reply such as Renault's 10 CV and Peugeot's 5 CV, they produced 550,000 cars in 1925, and Mors, Hurte, and others could not compete. Germany's first mass-manufactured car, the Opel 4 PS Laub Frosch (Tree Frog), came off the line at Russelsheim in 1924, soon making Opel the top car builder in Germany, with 37.5% of the market.
Reflecting the rapid pace of change, makes shared parts with one another so larger production volume resulted in lower costs for each price range. For example, in the 1930s, LaSalle's, sold by Cadillac, used cheaper mechanical parts made by Oldsmobile; in the 1950s, Chevrolet shared hood, doors, roof, and windows with Pontiac; by the 1990s, corporate power trains and shared platforms (with interchangeable brakes, suspension, and other parts) were common. Even so, only major makers could afford high costs, and even companies with decades of production, such as a person, Cole, Dorris, Haynes, or Premier, could not manage some two hundred American car makers in existence in 1920, only 43 survived in 1930, and with the Great Depression, by 1940, only 17 of those were left.
In Europe, much the same would happen. Morris set up its production line at Cowley in 1924, and soon outsold Ford, while beginning in 1923 to follow Ford's practice of vertical integration, buying Hotchkiss (engines), Wrigley (gearboxes), and Oberton (radiators), for instance, as well as competitors, such as Wolseley: in 1925, Morris had 41% of total British car production. Most British small-car assemblers, from Abbey to Xtra, had gone under. Citroen did the same in France, coming to cars in 1919; between them and other cheap cars in reply such as Renault's 10 CV and Peugeot's 5 CV, they produced 550,000 cars in 1925, and Mors, Hurte, and others could not compete. Germany's first mass-manufactured car, the Opel 4 PS Laub Frosch (Tree Frog), came off the line at Russelsheim in 1924, soon making Opel the top car builder in Germany, with 37.5% of the market.
While there are different types of fuel that may power cars, most rely on gasoline or diesel. The United States Environmental Protection Agency states that the average vehicle emits 8,887 grams of carbon dioxide per gallon of gasoline. The average vehicle running on diesel fuel will emit 10,180 grams of carbon dioxide. Many governments are using fiscal policies (such as road tax or the US gas guzzler tax) to influence vehicle purchase decisions, with a low CO2 figure often resulting in reduced taxation. Fuel taxes may act as an incentive for the production of more efficient, hence less polluting, car designs (e.g., hybrid vehicles) and the development of alternative fuels. High fuel taxes may provide a strong incentive for consumers to purchase lighter, smaller, more fuel-efficient cars, or to not drive. On average, today's automobiles are about 75 percent recyclable, and using recycled steel helps reduce energy use and pollution. In the United States Congress, federally mandated fuel efficiency standards have been debated regularly, passenger car standards have not risen above the 27.5 miles per US gallon (8.6 L/100 km; 33.0 mpg-imp) standard set in 1985. Light truck standards have changed more frequently and were set at 22.2 miles per US gallon (10.6 L/100 km; 26.7 mpg-imp) in 2007.
The manufacture of vehicles is resource-intensive, and many manufacturers now report on the environmental performance of their factories, including energy usage, waste, and water consumption.
The growth in popularity of the car allowed cities to sprawl, therefore encouraging more travel by car resulting in inactivity and obesity, which in turn can lead to increased risk of a variety of diseases.
Transportation (of all types including trucks, buses, and cars) is a major contributor to air pollution in most industrialized nations. According to the American Surface Transportation Policy Project, nearly half of all Americans are breathing unhealthy air. Their study showed air quality in dozens of metropolitan areas has worsened over the last decade.
Animals and plants are often negatively impacted by cars via habitat destruction and pollution. Over the lifetime of the average car the "loss of habitat potential" may be over 50,000 square meters (540,000 sq ft) based on primary production correlations. Animals are also killed every year on roads by cars, referred to as Roadkill. More recent road developments are including significant environmental mitigations in their designs such as green bridges to allow wildlife crossings and creating wildlife corridors.
Growth in the popularity of vehicles and commuting has led to traffic congestion. Brussels was considered Europe's most congested city in 2011 according to TomTom.
The manufacture of vehicles is resource-intensive, and many manufacturers now report on the environmental performance of their factories, including energy usage, waste, and water consumption.
The growth in popularity of the car allowed cities to sprawl, therefore encouraging more travel by car resulting in inactivity and obesity, which in turn can lead to increased risk of a variety of diseases.
Transportation (of all types including trucks, buses, and cars) is a major contributor to air pollution in most industrialized nations. According to the American Surface Transportation Policy Project, nearly half of all Americans are breathing unhealthy air. Their study showed air quality in dozens of metropolitan areas has worsened over the last decade.
Animals and plants are often negatively impacted by cars via habitat destruction and pollution. Over the lifetime of the average car the "loss of habitat potential" may be over 50,000 square meters (540,000 sq ft) based on primary production correlations. Animals are also killed every year on roads by cars, referred to as Roadkill. More recent road developments are including significant environmental mitigations in their designs such as green bridges to allow wildlife crossings and creating wildlife corridors.
Growth in the popularity of vehicles and commuting has led to traffic congestion. Brussels was considered Europe's most congested city in 2011 according to TomTom.
Safety is a state that implies being protected from any risk, danger, damage, or cause of injury. In the automotive industry, safety means that users, operators, or manufacturers do not face any risk or danger coming from the motor vehicle or its spare parts. Safety for the automobiles themselves implies that there is no risk of damage.
Safety in the automotive industry is particularly important and therefore highly regulated. Automobiles and other motor vehicles have to comply with a certain number of norms and regulations, whether local or international, in order to be accepted on the market. The standard ISO 26262 is considered as one of the best practice frameworks for achieving automotive functional safety.
In case of safety issues, danger, product defect, or faulty procedure during the manufacturing of the motor vehicle, the maker can request to return either a batch or the entire production run. This procedure is called product recall. Product recalls happen in every industry and can be production-related or stem from raw materials.
Product and operation tests and inspections at different stages of the value chain are made to avoid these product recalls by ensuring end-user security and safety and compliance with the automotive industry requirements. However, the automotive industry is still particularly concerned about product recalls, which cause considerable financial consequences.
Safety in the automotive industry is particularly important and therefore highly regulated. Automobiles and other motor vehicles have to comply with a certain number of norms and regulations, whether local or international, in order to be accepted on the market. The standard ISO 26262 is considered as one of the best practice frameworks for achieving automotive functional safety.
In case of safety issues, danger, product defect, or faulty procedure during the manufacturing of the motor vehicle, the maker can request to return either a batch or the entire production run. This procedure is called product recall. Product recalls happen in every industry and can be production-related or stem from raw materials.
Product and operation tests and inspections at different stages of the value chain are made to avoid these product recalls by ensuring end-user security and safety and compliance with the automotive industry requirements. However, the automotive industry is still particularly concerned about product recalls, which cause considerable financial consequences.
Road traffic accidents are the largest cause of injury-related deaths worldwide. Mary Ward became one of the first documented car fatalities in 1869 in Parsons Town, Ireland, and Henry Bliss one of the United States' first pedestrian car casualties in 1899 in New York City. There are now standard tests for safety in new cars, such as the Euro NCAP and the US NCAP tests, and insurance-industry-backed tests by the Insurance Institute for Highway Safety (IIHS).
Worldwide, road traffic is becoming ever safer, in part due to efforts by the government to implement safety features in cars (e.g., seat belts, airbags, etc.), reduce unsafe driving practices (e.g., speeding, drinking and driving, and texting and driving) and make road design safer by adding features such as speed bumps, which reduce vehicle speed, and roundabouts, which reduce the likelihood of a head-on-collision (as compared with an intersection).
Worldwide, road traffic is becoming ever safer, in part due to efforts by the government to implement safety features in cars (e.g., seat belts, airbags, etc.), reduce unsafe driving practices (e.g., speeding, drinking and driving, and texting and driving) and make road design safer by adding features such as speed bumps, which reduce vehicle speed, and roundabouts, which reduce the likelihood of a head-on-collision (as compared with an intersection).
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The costs of car usage, which may include the cost of acquiring the vehicle, repairs and auto maintenance, fuel, depreciation, driving time, parking fees, taxes, and insurance, are weighed against the cost of the alternatives, and the value of the benefits – perceived and real – of vehicle usage. The benefits may include on-demand transportation, mobility, independence, and convenience. During the 1920s, cars had another benefit: "Couples finally had a way to head off on unchaperoned dates, plus they had a private space to snuggle up close at the end of the night."
Similarly, the costs to society of encompassing car use, which may include those of maintaining roads, land use, pollution, public health, health care, and of disposing of the vehicle at the end of its life, can be balanced against the value of the benefits to society that car use generates. The societal benefits may include economic benefits, such as job and wealth creation, car production and maintenance, transportation provision, society well-being derived from leisure and travel opportunities, and revenue generation from tax opportunities. The ability of humans to move flexibly from place to place has far-reaching implications for the nature of societies.
Similarly, the costs to society of encompassing car use, which may include those of maintaining roads, land use, pollution, public health, health care, and of disposing of the vehicle at the end of its life, can be balanced against the value of the benefits to society that car use generates. The societal benefits may include economic benefits, such as job and wealth creation, car production and maintenance, transportation provision, society well-being derived from leisure and travel opportunities, and revenue generation from tax opportunities. The ability of humans to move flexibly from place to place has far-reaching implications for the nature of societies.
Tesla, Inc. (formerly Tesla Motors, Inc.) is an American automotive and energy company based in Palo Alto, California. The company specializes in electric car manufacturing and, through its Solar City subsidiary, solar panel manufacturing. It operates multiple production and assembly plants, notably Gigafactory 1 near Reno, Nevada, and its main vehicle manufacturing facility at Tesla Factory in Fremont, California. As of March 2019, Tesla sells Model S, Model X, and Model 3 cars. It is accepting reservations for the Model Y, Roadster (2020), and Semi vehicles. Tesla also sells Power wall, Powerpack, and Megapack batteries, solar panels, solar roof tiles, and some related products.
Tesla was founded in July 2003, by engineers Martin Eberhard and Marc Tarpenning, under the name Tesla Motors. The company's name is a tribute to engineer Nikola Tesla. In early Series A funding, Tesla Motors was joined by Elon Musk, J. B. Straubel, and Ian Wright, all of whom are retroactively allowed to call themselves co-founders of the company. Musk, who formerly served as chairman and is the current chief executive officer, said that he envisioned Tesla Motors as a technology company and independent automaker, aimed at eventually offering electric cars at prices affordable to the average consumer. Tesla Motors shortened its name to Tesla in February 2017.
After 10 years in the market, Tesla ranked as the world's best-selling plug-in passenger car manufacturer in 2018, both as a brand and by automotive group, with 245,240 units delivered and a market share of 12% of the plug-in segment sales. Tesla vehicle sales in the U.S. increased by 280% from 48,000 in 2017 to 182,400 in 2018 and globally were up by 138% from 2017.
Tesla Motors was incorporated in July 2003 by Martin Eberhard and Marc Tarpenning who financed the company until the Series A round of funding. The founders were influenced to start the company after GM recalled all its EV1 electric cars in 2003 and then destroyed them. Elon Musk led the Series A round of investment in February 2004, joining Tesla's board of directors as its chairman. Tesla's primary goal was to commercialize electric vehicles, starting with a premium sports car aimed at early adopters and then moving into more mainstream vehicles, including sedans and affordable compacts.
Musk took an active role within the company and oversaw Roadster product design at a detailed level. In addition to his daily operational roles, Musk was the controlling investor in Tesla from the first financing round, funding $6.5M in the Series A capital investment round of US$7.5 million with personal funds. Musk later led Tesla Motors' Series B, $9M of US$13 million, and co-led the third, $12M US$40 million round in May 2006. Tesla's third round included investment from prominent entrepreneurs including Google co-founders Sergey Brin & Larry Page, former eBay President Jeff Skoll, Hyatt heir Nick Pritzker and added the VC firms Draper Fisher Jurvetson, Capricorn Management, and The Bay Area Equity Fund managed by JPMorgan Chase. The fourth round in May 2007 added another US$45 million and brought the total investments to over US$105 million through private financing.
Tesla was founded in July 2003, by engineers Martin Eberhard and Marc Tarpenning, under the name Tesla Motors. The company's name is a tribute to engineer Nikola Tesla. In early Series A funding, Tesla Motors was joined by Elon Musk, J. B. Straubel, and Ian Wright, all of whom are retroactively allowed to call themselves co-founders of the company. Musk, who formerly served as chairman and is the current chief executive officer, said that he envisioned Tesla Motors as a technology company and independent automaker, aimed at eventually offering electric cars at prices affordable to the average consumer. Tesla Motors shortened its name to Tesla in February 2017.
After 10 years in the market, Tesla ranked as the world's best-selling plug-in passenger car manufacturer in 2018, both as a brand and by automotive group, with 245,240 units delivered and a market share of 12% of the plug-in segment sales. Tesla vehicle sales in the U.S. increased by 280% from 48,000 in 2017 to 182,400 in 2018 and globally were up by 138% from 2017.
Tesla Motors was incorporated in July 2003 by Martin Eberhard and Marc Tarpenning who financed the company until the Series A round of funding. The founders were influenced to start the company after GM recalled all its EV1 electric cars in 2003 and then destroyed them. Elon Musk led the Series A round of investment in February 2004, joining Tesla's board of directors as its chairman. Tesla's primary goal was to commercialize electric vehicles, starting with a premium sports car aimed at early adopters and then moving into more mainstream vehicles, including sedans and affordable compacts.
Musk took an active role within the company and oversaw Roadster product design at a detailed level. In addition to his daily operational roles, Musk was the controlling investor in Tesla from the first financing round, funding $6.5M in the Series A capital investment round of US$7.5 million with personal funds. Musk later led Tesla Motors' Series B, $9M of US$13 million, and co-led the third, $12M US$40 million round in May 2006. Tesla's third round included investment from prominent entrepreneurs including Google co-founders Sergey Brin & Larry Page, former eBay President Jeff Skoll, Hyatt heir Nick Pritzker and added the VC firms Draper Fisher Jurvetson, Capricorn Management, and The Bay Area Equity Fund managed by JPMorgan Chase. The fourth round in May 2007 added another US$45 million and brought the total investments to over US$105 million through private financing.
Tesla's business strategy is to emulate typical technological-product life cycles and initially target affluent buyers, and then move into larger markets at lower price points. The battery and electric drive train technology for each model would be developed and partially paid for through the sales of earlier models. The Roadster was low-volume and priced at US$109,000. Model S and Model X targeted the broader luxury market. Model 3 and Model Y are aimed at a higher-volume segment. This business strategy is common in the technology industry. According to a Musk blog post, "New technology in any field takes a few versions to optimize before reaching the mass market, and in this case, it is competing with 150 years and trillions of dollars spent on gasoline cars."
Robotic manufacturing of the Model S at the Tesla Factory in Fremont, California Tesla's production strategy includes a high degree of vertical integration (80% in 2016), which includes component production and proprietary charging infrastructure. The company operates large factories to capture economies of scale. Tesla builds electric powertrain components for vehicles from other automakers, including the Smart ED2 Fortwo electric drive (the lowest-priced car from Daimler AG), the Toyota RAV4 EV, and Freightliner's Custom Chassis Electric Van. 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's sales strategy is to sell its vehicles online and in company-owned showrooms rather than through a conventional dealer network. Moving towards an e-commerce strategy, customers are able to customize and order their vehicles online.
Tesla's technology strategy focuses on pure-electric propulsion technology and transferring other approaches from the technology industry to transportation, such as online software updates. Tesla allows its technology patents to be used by anyone in good faith. Licensing agreements include provisions whereby the recipient agrees not to file patent suits against Tesla, or to copy its designs directly. Tesla retained control of its other intellectual property, such as trademarks and trade secrets to prevent direct copying of its technology.
Tesla Human Resources VP Arnon Geshuri committed to bringing manufacturing jobs "back to California". In 2015, Geshuri led a hiring surge about which he said: "In the last 14 months we've had 1.5 million applications from around the world. People want to work here." Geshuri emphasizes hiring veterans, saying "Veterans are a great source of talent for Tesla, and we're going after it
Tesla's sales strategy is to sell its vehicles online and in company-owned showrooms rather than through a conventional dealer network. Moving towards an e-commerce strategy, customers are able to customize and order their vehicles online.
Tesla's technology strategy focuses on pure-electric propulsion technology and transferring other approaches from the technology industry to transportation, such as online software updates. Tesla allows its technology patents to be used by anyone in good faith. Licensing agreements include provisions whereby the recipient agrees not to file patent suits against Tesla, or to copy its designs directly. Tesla retained control of its other intellectual property, such as trademarks and trade secrets to prevent direct copying of its technology.
Tesla Human Resources VP Arnon Geshuri committed to bringing manufacturing jobs "back to California". In 2015, Geshuri led a hiring surge about which he said: "In the last 14 months we've had 1.5 million applications from around the world. People want to work here." Geshuri emphasizes hiring veterans, saying "Veterans are a great source of talent for Tesla, and we're going after it
Tesla operates stores and galleries in many U.S. states, usually in shopping malls. However, customers buy vehicles only from the Tesla website. The stores serve as showrooms that allow people to learn about the company and its cars. Some galleries are located in states with restrictive dealer protection laws that prohibit discussing price, financing, test drives, and other restrictions.
Tesla's strategy of direct customer sales and owning stores and service centers is different from the standard dealership model in the global vehicle marketplace. Tesla is the only automaker that sells cars directly to consumers; all others use independently owned dealerships, although many provide online configuration and financing. 48 states have laws that limit or ban manufacturers from selling vehicles directly to consumers, and although Tesla has no independent dealerships, dealership associations in multiple states have filed lawsuits over Tesla's sales practices.
Countries other than the U.S. do not protect dealers. The Federal Trade Commission recommends allowing direct manufacturer sales, which analysts believe would save consumers 8% in average vehicle price.
In February 2019, Tesla announced that it would shut down the bulk of its stores and begin to sell cars exclusively through the Internet. The next month, the company reversed its decision, saying in a government filing that it would only close about half the number of showrooms it had originally intended to.
Tesla's strategy of direct customer sales and owning stores and service centers is different from the standard dealership model in the global vehicle marketplace. Tesla is the only automaker that sells cars directly to consumers; all others use independently owned dealerships, although many provide online configuration and financing. 48 states have laws that limit or ban manufacturers from selling vehicles directly to consumers, and although Tesla has no independent dealerships, dealership associations in multiple states have filed lawsuits over Tesla's sales practices.
Countries other than the U.S. do not protect dealers. The Federal Trade Commission recommends allowing direct manufacturer sales, which analysts believe would save consumers 8% in average vehicle price.
In February 2019, Tesla announced that it would shut down the bulk of its stores and begin to sell cars exclusively through the Internet. The next month, the company reversed its decision, saying in a government filing that it would only close about half the number of showrooms it had originally intended to.
Under a buyback program called the Resale Value Guarantee available in 37 U.S. states, a Tesla Model S sold new before July 1, 2016, including the right to return it after three years with reimbursement of 43% to 50% of its initial price. This reimbursement matched the trade-in values of competitive German luxury cars of that age. In addition to maintaining the resale value, Tesla hoped to secure a supply of used cars to refurbish and re-sell with a warranty. According to Automotive News, the profit margin on used car sales in the U.S. is about triple that on new cars, and Tesla's direct sales would allow them to capture resale profits. Tesla ended the program in 2016, although they retained the Residual Value Guarantee on leased vehicles.
In May 2015, Tesla started selling refurbished Model S cars in the U.S. and within a month sold 1,600 cars. As of July 2017, over 80 used Model S and Model X cars were for sale, with either a four-year, 50,000-mile warranty or a two-year, 100,000-mile warranty for vehicles above 50,000 miles. As of September 2015, similar programs existed in Canada, Austria, Belgium, Denmark, France, Germany, Britain, Netherlands, Norway, Sweden, and Switzerland.
In May 2015, Tesla started selling refurbished Model S cars in the U.S. and within a month sold 1,600 cars. As of July 2017, over 80 used Model S and Model X cars were for sale, with either a four-year, 50,000-mile warranty or a two-year, 100,000-mile warranty for vehicles above 50,000 miles. As of September 2015, similar programs existed in Canada, Austria, Belgium, Denmark, France, Germany, Britain, Netherlands, Norway, Sweden, and Switzerland.
Cars are a major cause of urban air pollution, with all types of cars producing dust from brakes, tires, and road wear, although these may be limited by vehicle emission standards. While there are different ways to power cars most rely on gasoline or diesel, and they consume almost a quarter of world oil production as of 2019. Both gasoline and diesel cars pollute more than electric cars. Cars and vans caused 8% of direct carbon dioxide emissions in 2021. As of 2021, due to greenhouse gases emitted during battery production, electric cars must be driven tens of thousands of kilometers before their lifecycle carbon emissions are less than fossil fuel cars; however, this varies considerably and is expected to improve in the future due to lower carbon electricity, and longer lasting batteries produced in larger factories. Many governments use fiscal policies, such as road tax, to discourage the purchase and use of more polluting cars; and many cities are doing the same with low-emission zones. Fuel taxes may act as an incentive for the production of more efficient, hence less polluting, car designs (e.g., hybrid vehicles) and the development of alternative fuels. High fuel taxes or cultural change may provide a strong incentive for consumers to purchase lighter, smaller, more fuel-efficient cars, or to not drive.
The lifetime of a car built in the 2020s is expected to be about 16 years, or about 2 million km (1.2 million miles) if driven a lot. According to the International Energy Agency, new light-duty vehicles' average fuel consumption fell by only 0.9% between 2017 and 2019, far smaller than the 1.8% annual average reduction between 2010 and 2015. Given the slow progress to date, the IEA estimates fuel consumption will have to decrease by 4.3% per year on average from 2019 to 2030. The increase in sales of SUVs is bad for fuel economy. Many cities in Europe have banned older fossil fuel cars and all fossil fuel vehicles will be banned in Amsterdam from 2030. Many Chinese cities limit licensing of fossil fuel cars, and many countries plan to stop selling them between 2025 and 2050.
The manufacture of vehicles is resource-intensive, and many manufacturers now report on the environmental performance of their factories, including energy usage, waste, and water consumption. Manufacturing each kWh of battery emits a similar amount of carbon as burning through one full tank of gasoline. The growth in popularity of the car allowed cities to sprawl, therefore encouraging more travel by car, resulting in inactivity and obesity, which in turn can lead to increased risk of a variety of diseases.
Cars often negatively affect animals and plants via habitat destruction and pollution. Over the lifetime of the average car, the "loss of habitat potential" may be over 50,000 square meters (540,000 sq ft) based on primary production correlations. Animals are also killed every year on roads by cars, referred to as roadkill. More recent road developments include significant environmental mitigation in their designs, such as green bridges (designed to allow wildlife crossings) and creating wildlife corridors.
Growth in the popularity of cars and commuting has led to traffic congestion. Moscow, Istanbul, Bogotá, Mexico City, and São Paulo were the world's most congested cities in 2018 according to INRIX, a data analytics company.
The lifetime of a car built in the 2020s is expected to be about 16 years, or about 2 million km (1.2 million miles) if driven a lot. According to the International Energy Agency, new light-duty vehicles' average fuel consumption fell by only 0.9% between 2017 and 2019, far smaller than the 1.8% annual average reduction between 2010 and 2015. Given the slow progress to date, the IEA estimates fuel consumption will have to decrease by 4.3% per year on average from 2019 to 2030. The increase in sales of SUVs is bad for fuel economy. Many cities in Europe have banned older fossil fuel cars and all fossil fuel vehicles will be banned in Amsterdam from 2030. Many Chinese cities limit licensing of fossil fuel cars, and many countries plan to stop selling them between 2025 and 2050.
The manufacture of vehicles is resource-intensive, and many manufacturers now report on the environmental performance of their factories, including energy usage, waste, and water consumption. Manufacturing each kWh of battery emits a similar amount of carbon as burning through one full tank of gasoline. The growth in popularity of the car allowed cities to sprawl, therefore encouraging more travel by car, resulting in inactivity and obesity, which in turn can lead to increased risk of a variety of diseases.
Cars often negatively affect animals and plants via habitat destruction and pollution. Over the lifetime of the average car, the "loss of habitat potential" may be over 50,000 square meters (540,000 sq ft) based on primary production correlations. Animals are also killed every year on roads by cars, referred to as roadkill. More recent road developments include significant environmental mitigation in their designs, such as green bridges (designed to allow wildlife crossings) and creating wildlife corridors.
Growth in the popularity of cars and commuting has led to traffic congestion. Moscow, Istanbul, Bogotá, Mexico City, and São Paulo were the world's most congested cities in 2018 according to INRIX, a data analytics company.
Mass production of personal motor vehicles in the United States and other developed countries with extensive territories such as Australia, Argentina, and France vastly increased individual and group mobility and greatly increased and expanded economic development in urban, suburban, exurban, and rural areas.
In the United States, the transport divide and car dependency resulting from the domination of car-based transport systems presents barriers to employment in low-income neighborhoods, with many low-income individuals and families forced to run cars they cannot afford to maintain their income. Dependency on automobiles by African Americans may result in exposure to the hazards of driving while black and other types of racial discrimination related to buying, financing, and insuring them.
In the United States, the transport divide and car dependency resulting from the domination of car-based transport systems presents barriers to employment in low-income neighborhoods, with many low-income individuals and families forced to run cars they cannot afford to maintain their income. Dependency on automobiles by African Americans may result in exposure to the hazards of driving while black and other types of racial discrimination related to buying, financing, and insuring them.