[7] Tesla has been the subject of lawsuits, government scrutiny, and journalistic criticism, stemming from allegations of multiple cases of whistleblower retaliation, worker rights violations such as sexual harassment and anti-union activities, safety defects leading to dozens of recalls, the lack of a public relations department, and controversial statements from Musk including overpromising on the company's driving assist technology and product release timelines.

[18][13] Musk co-led the third, $40 million round in May 2006 which saw investment from prominent entrepreneurs including Google co-founders Sergey Brin and Larry Page, and former eBay president Jeff Skoll.

[55][56] The plan did not materialize and gave rise to much controversy and many lawsuits including a securities fraud charge from the SEC, which would force Musk to pay a $20 million fine and step down as the company's chairman, although he was allowed to remain the CEO.

The company opened its Megafactory to build Megapack batteries in Lathrop, California in 2022,[78] and announced in February 2023 that it would establish a large global engineering headquarters in Palo Alto, moving into a corporate campus once owned by Hewlett Packard.

For a fee, Tesla offers a subscription to "Premium Connectivity" which adds live traffic and satellite maps to navigation, internet browsing, and media streaming.

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.

[citation needed] 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.

[126] 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.

[127] As of January 2023[update], Tesla offers insurance in the U.S. states of Arizona, California, Colorado, Illinois, Maryland, Minnesota, Nevada, Ohio, Oregon, Texas, Utah and Virginia.

[170] 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.

[187] 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.

Owners may purchase or subscribe to Full Self-Driving (FSD) which adds semi-autonomous navigation that responds to traffic lights and stop signs, lane change assistance, self-parking, and the ability to summon the car from a garage or parking spot.

The company's stated intent is to offer fully autonomous driving (SAE Level 5) at a future time, acknowledging that technical and regulatory hurdles must be overcome to achieve this goal.

[71] 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.

However, as of July 2024[update], the company has 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.

In a statement to the Guardian, Tesla confirmed the company had terminated her employment, saying it had thoroughly investigated the employee's allegations with the help of "a neutral, third-party expert" and concluded her complaints were unmerited.

[321] In January 2019, former Tesla security manager Sean Gouthro filed a whistleblower complaint alleging that the company had hacked employees' phones and spied on them, while also failing to report illegal activities to the authorities and shareholders.

[152] The United States Federal Trade Commission ultimately disproved the associations' claims and recommended allowing direct manufacturer sale, which they concluded would save consumers 8% in average vehicle price.

Doing this, according to the company, would then set up a conflict of interest for the dealers since properly advertising the benefits of an electric car would disparage the gas-powered vehicles, creating a disincentive to dealership EV sales.

[152] Musk himself further contended that dealers would have a disincentive to sell electric vehicles because they require less maintenance and therefore would reduce after-sales service revenue, a large profit center for most dealerships.

[376][377] In January 2024, 25 California counties sued Tesla, accusing the company of violating state health and safety codes by illegally disposing of hazardous waste.

According to the state's Department of Fair Employment and Housing, the Fremont factory is a racially segregated place where Black employees claim they are given the most menial[385] and physically demanding work.

"[394] In July 2021, former employee Melvin Berry received $1 million in his discrimination case in arbitration against the company after he claimed he was referred to by the n-word and forced to work longer hours at the Fremont plant.

"[416] Tesla enjoyed special treatment and strong government support in China, including tax breaks, cheap financing, and assistance in building its Giga Shanghai factory at breakneck speeds.

[443][444] 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.

[453][454] 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, potentially increasing the chance of a crash.

[457] In September 2022, Tesla announced that they are 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.

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.

[491] 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.

[500] 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".