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Tesla’s 16-year anniversary: A tale of trials, tribulations, and grit that continues to this day

(Photo: Tesla)

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Sixteen years ago, engineer-entrepreneurs Martin Eberhard and Marc Tarpenning incorporated a company that was, for the most part, a legitimate long shot. Named Tesla Motors, the company occupied an office that had three desks and two small rooms in a decrepit building situated at 845 Oak Grove Avenue in Menlo Park, CA. The duo had a crazy business idea: they wanted to make electric cars, and they wanted to turn it into a business. At the time, the idea was practically insane, as EVs were not even part of any legitimate conversations in the auto market. Tarpenning and Eberhard had a concept for a Lotus-based electric sports car, but finding an investor who could pony up the $7 million required to build a prototype was insanely challenging. 

Tesla’s Roots

During this time, Elon Musk was still busy looking into the idea of sending mice on a journey into space. Fortunately for Eberhard and Tarpenning, they soon got word that Musk, a multimillionaire who started a private rocket company, was looking to invest in the electric vehicle sphere. The duo flew down to Los Angeles and met with the SpaceX founder on a Friday, and over the course of the following weekend, Musk peppered Tarpenning with a barrage of questions about Tesla Motors’ business model. By the following Monday, Tarpenning and Eberhard were back in LA for another meeting with Musk. At the end of the meeting, Musk simply informed the men, “Okay, I’m in.”

Musk was precisely what Tesla Motors needed. He had the engineering background to understand what the company was trying to build, and his funds from his Silicon Valley fortune were vast. Musk invested $6.5 million into Tesla Motors, making him the largest shareholder and the Chairman of the company. Not long after this, Musk contacted JB Straubel, particularly as Eberhard and Tarpenning were meeting challenges in their vehicle’s batteries. Musk and Straubel had previously formed a kinship after finding common ground in EVs, particularly with the latter’s interest in using lithium-ion batteries to power a car (Musk had also agreed to fund Straubel’s lithium-ion battery ideas). During his meeting with Eberhard and Tarpenning, Straubel told them that he was building the battery they were looking for, also using funding from Musk. “We agreed to join forces and formed this ragtag group,” Straubel said, recalling Tesla Motors’ earliest days. 

A lot has happened over the next 16 years. Tesla Inc., as the company is now called, has a market cap of around $40 billion, despite being one of the most shorted companies in the auto industry. The company has also expanded its operations to energy storage systems, a field that Straubel is still incredibly involved with. Elon Musk remains the largest shareholder and stands as the company’s CEO, though he has relinquished his Chairman role to board member Robyn Denholm following a run-in with the Securities and Exchange Commission. Today, Tesla is involved in what could only be described as a battle for the future of transportation, being the undisputed trailblazer in the electric vehicle market. So vast is the potential of the company that legendary investor Ron Baron has predicted that Tesla could eventually be a trillion-dollar company. 

A promotional image of the original Tesla Roadster. (Credit: Tesla)

From the Tesla Roadster to the Model 3

To say that it took a lot of effort for Tesla to get to this point is an understatement, particularly as every vehicle that the company has released was met with pushback and an immense amount of skepticism. The original Tesla Roadster, the car that Eberhard, Tarpenning, and Straubel were creating since the earliest days of the company, was released in 2008, right in the middle of the US financial crisis. Objectively speaking, a two-seater, all-electric sports car was not a practical purchase then. The original Tesla Roadster had its own fair share of production challenges as well, to the point where auto publication The Truth About Cars actually decided to do a Tesla Death Watch series. Though late, the Roadster became successful nonetheless, forcing the Tesla Death Watch to end and becoming prolific enough to usher in the WhiteStar project, which would eventually become the Model S.

Bringing the Model S to market was just as hard, if not more difficult than the Roadster’s already-painful production ramp. In 2007, Musk showed noted auto designer Henrik Fisker Tesla’s idea for the WhiteStar sedan, a vehicle that must haul a family and cost about half the Roadster’s price. Fisker had a reputation for creating stunning automobiles for Aston Martin, BMW, and Mercedes-Benz, but as noted by Ron Lloyd, the former vice president of Tesla’s WhiteStar project, the designs he submitted for Tesla’s family sedan were strangely substandard. When Musk pushed back, Fisker would blame the physical constraints that Tesla placed on the car. And in 2008, Musk and the Tesla team looked in shock as Fisker started his own car company, Fisker Automotive, and unveiled the Karma, a hybrid vehicle that had all the makings of a well-designed green vehicle. It wasn’t until an established designer from Mazda, Franz von Holzhausen decided to take a leap of faith that project WhiteStar started progressing. Working with Musk on every detail of the car, the results of von Holzhausen’s work was the Tesla Model S, a car that would redefine not just electric vehicles, but cars as a whole. 

Tesla’s next vehicles were no less challenging. The Model X was dismissed as an impossible vehicle to make due to its Falcon Wing Doors. While significantly delayed, the all-electric SUV nevertheless entered production, though it took extreme measures, such as Musk sleeping in the Fremont factory, to get the vehicle’s manufacturing underway. Fortunately for Tesla, it appears that the Model X became a lesson for the company, as evidenced by the more straightforward design of the Model 3, and later on, the Model Y. After coming to terms with its own hubris and creating what Elon Musk aptly described as the Fabergé egg of cars in the Model X, Tesla appears to have matured. This could be seen in the similarity of the company’s two mass-market vehicles. 

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Credit: Tesla

Into the Future

Led by arguably one of the most relentless innovators alive today, Tesla remains engaged in battle every step of the way. Yet, despite the emergence of competitors that are generously dubbed “Tesla Killers,” and despite the persistently negative narrative surrounding the company, the electric car maker continues to grow. Tesla has even expanded its operations in China, where Gigafactory 3 is being built at a record pace. Once that is completed, Tesla could tap into China’s lucrative electric vehicle market without any unnecessary restraints. Other vehicles in the company’s lineup, from the new Tesla Roadster to the Tesla Semi to the Tesla Truck, are expected to be just as disruptive as every other electric car that the company has released. 

Tesla’s electric cars are by no means the first EVs on the market. But they are the vehicles that forced the auto industry to recognize that there is a legitimate demand for compelling, well-designed electric cars. The presence of EVs such as the Porsche Taycan, which the German automaker expects will likely be practically as important as the 911, is proof that Tesla has and is succeeding in its mission to accelerate the world’s transition to renewable energy. A lot has happened in 16 years, but if Tesla’s character is any indication, it would seem that the company’s story is still just beginning. 

Watch a Tesla enthusiast’s tribute video to Tesla’s 16 years in the video below. 

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Elon Musk

How to use Grok Bot to block spam calls and texts

Musk told users to ask Grok Bot to scrub their phone numbers from spam lists.

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Elon Musk has a new use case for Grok Bot, and it is the spam call. On Thursday he replied to an X user named Arash with a short instruction: “Ask your @Grok @Bot to remove your phone number from spam call & text lists!” Arash had said he got tired of the calls, had an AI bot find his number on listing sites and file removal requests, and packaged the process as a free skill for others.

The skill is called Spam-Call Scrubber, which is described to find a phone number on people search sites and data brokers, submits the opt outs, completes the confirmation emails those sites send back, and rechecks on a schedule the user picks. Using it requires the Grok Bot app. The pitch is time saved, since most broker opt outs sit behind separate forms on separate sites.



Musk said Grok Bot now gives each bot its own email address, and that it can detect scam emails. On Thursday he also said SpaceX would make users whole if the bot botches a purchase or leaks a card, then told users to shop away from Amazon after the retailer blocked the agent, as Teslarati reported. The terms of service we reviewed at the time put responsibility for what an agent does on the user.

For Tesla owners, Grok Bot is not just a phone app. Tesla brought Grok Bot into its vehicles on September 22, and we argued earlier this week that the Cybercab’s real advantage may be the errands it runs during a ride. Every Cybercab and the rest of the Model Y Robotaxi fleet has it enabled. The more routine tasks like this one become, the more a rider has reason to hand over something personal in the back seat.

The new Spam-Call Scrubber skill can be downloaded for free and works on sites that honor removal requests, while noting that listings can reappear, and illegal robocallers do not check any registry. Whether Spam-Call Scrubber cuts anyone’s call volume is something the first wave of users will find out, and Musk’s endorsement guarantees that wave is coming.

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Lifestyle

Tesla Cybercab and Robotaxi’s real advantage won’t be the ride service

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Concept art of a Tesla Cybercab in Las Vegas Strip as rendered via Grok

For a century, the car has asked the same thing of its owner, which is basically to pay attention. Even the best ride-hailing app like Uber or Lyft only moved the problem into someone else’s hands. You stopped driving, but you still sat in a stranger’s car, while half listening, and wondering whether to take a phone call in the car without being rude. The Cybercab has no wheel, no pedals and no driver. With Grok @bot now live inside it, it becomes something else entirely, and I think that matters more than the fleet count that everyone is tracking.

Grok @bot is an agent, not a voice assistant. A rider signs in once, and from then on can say what they need and watch it happen. Order dinner from a favorite restaurant. Fill the grocery cart. Move money, answer email, adjust a calendar, push a work project forward. Tesla engineer Yun-Ta Tsai confirmed it is enabled across every Cybercab and the rest of the Model Y fleet, and Tesla’s own pitch is that Full Self-Driving handles the commute while Grok handles the errands.

Think about what that does to a thirty minute ride. Uber sells you a trip, while Waymo sells you the same trip in a more private setting. Tesla is selling the thirty minutes themselves, returned to you with an assistant attached. Errands that used to eat a Saturday get done between pickup and drop off. The ride stops being dead time between two places and becomes a place of its own.

Tesla integrates Grok Bot into its vehicles for the ultimate personal assistant

Best of all, your Bots follow you into any Cybercab, and presumably your own Tesla, then logs you out automatically when you step out. Anyone can bolt a chatbot onto a screen, but much harder to own the vehicle, the autonomy stack and the assistant at once. It also quietly ties SpaceX’s Super Intelligence business to Tesla’s fleet, after Tesla converted its xAI stake into SpaceX equity. The relationship between those two companies is getting harder to describe as separate.

This is also where the hard questions start, because an agent that can spend your money in a vehicle other people also ride in needs some answers. How does it handle a voice it shouldn’t trust? What gets recorded, who can see it, and for how long? What happens when a rider leaves halfway through a task?

If Tesla gets those answers right, the scoreboard changes. We have been counting Cybercabs and wait times. The more telling number may be what riders accomplish per trip. That is data almost no one else will ever have, and it is the real reason to watch Grok @bot.

What do you think? Leave me a comment.

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Lifestyle

Tesla’s mirrorless Cybercab will give riders a visibility upgrade

Tesla engineer confirms Cybercab update letting riders pull up rear and repeater cameras on demand.

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Tesla Cybercab camera visibility for passengers (Credit: Dan Burkland via X)
Tesla Cybercab camera visibility for passengers (Credit: Dan Burkland via X)

Tesla is working on a Cybercab update that would let passengers pull up the vehicle’s rear and side cameras on demand, and the request came straight from a rider.

The exchange played out on X late Friday. Cybercab rider Dan Burkland shared photos of the two-seater’s cabin screen after an evening ride, praised the UI team’s work, and left one request: let riders open the rear and repeater cameras whenever they want, “especially for peace of mind.” Tesla UI software engineer Evan (@CarCoder) answered with two words: “In development.”

The idea fits a pattern Teslarati has tracked since public rides began. Days after paid Cybercab service opened in Austin, Tesla sent riders a survey that asked them to rate the touchscreen, the app and the cabin, and to pick the features they wanted most. We reported on that survey in September, and a camera view is the kind of small software change Tesla can push quickly if riders keep asking.

It also speaks to something unique about the vehicle. With no steering wheel, no pedals and no driver, passengers have no mirror to check and no way to see behind them. The hardware is clearly built for camera awareness, from the repeater cameras to the rear camera. Letting a passenger look through those same cameras would give a nervous first time rider a way to confirm what is around the car.

The timing matters because the fleet is growing fast. Tesla’s Robotaxi account said on Saturday that more than 300 Cybercabs are now serving Austin, an eightfold increase in 30 days, and Tesla AI chief Ashok Elluswamy named Dallas as the next city. More cars and more cities mean more people riding in a driverless vehicle for the first time, which is exactly when small trust features carry weight.

For now, the feature is confirmed only as in development. If Tesla follows its usual pattern with Cybercab software, riders could see it appear in a point release without any announcement, and Teslarati will watch for it.

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