HOW TO SERVE LEGAL PAPERS ON TESLA MOTORS

Tesla Motors

Undisputed Legal | California Process Service

Tesla Inc. (TSLA) mainly develops and produces completely electric high-performance cars. The electric car manufacturer also offers energy production and storage technologies and services for its products. Tesla was established in 2003. The objective was to create automobiles that would be less dependent on fossil fuels yet as fast and enjoyable to drive as gasoline-fuelled vehicles. The firm debuted its Roadster in 2008 and Model S, Model X, and Model 3 were followed. Tesla has extended its electric vehicle range over the past few years to include the Model Y SUV and two distinct kinds of trucks – the Tesla Semi and the Cyber car. 

Tesla is a very young business, but its fast development into the most valuable carmaker was backed by a number of significant acquisitions in recent years, in particular. The main purpose of these purchases was to increase production capacity, improve operating speed and efficiency and reduce costs. The corporation does not show how much profit or revenue each purchase generates now. 

BACKGROUND

Tesla, Inc. is a California-based electric car and renewable energy business headquartered in Palo Alto. Tesla develops and produces electric vehicles, household and grid-scale battery energy storage, solar panels, and solar roof tiles, as well as associated goods and services. Tesla sold the most battery-electric and plug-in electric cars in 2020. The business designs and installs solar systems in the United States via its subsidiary Tesla Energy. Tesla Energy is also a leading worldwide provider of battery energy storage systems, with plans to deploy 3 gigawatt-hours (GWh) by 2020.

Tesla Motors was founded in July 2003 by Martin Eberhard and Marc Tarpenning as a homage to inventor and electrical engineer Nikola Tesla. Elon Musk, the co-founder of X.com, became the company’s biggest shareholder and chairman in February 2004 with a USD 6.5 million investment. Since 2008, Musk has served as CEO. According to Musk, Tesla’s mission is to accelerate the transition to sustainable transportation and energy through electric cars and solar energy. Tesla started manufacturing the Roadster, the company’s first automobile, in 2009. Tesla Model S sedan was introduced in 2012, Tesla Model X SUV in 2015, Tesla Model 3 sedan in 2017, and Tesla Model Y crossover in 2020. 

Tesla has been involved in a number of lawsuits and disputes stemming from CEO Elon Musk’s comments and actions, as well as accusations of creative accounting, whistleblower retaliation, labor rights abuses, and unsolved and hazardous technical issues with their vehicles.

HOW DOES TESLA’S MODEL WORK

When Tesla was founded in 2003, electric cars were prohibitively costly.  Elon Musk said in 2006 that Tesla’s approach will be, to begin with high-priced, low-volume vehicles, such as sports cars, for which consumers are less price sensitive. This would enable them to gradually reduce the cost of batteries, allowing them to provide more affordable and high-volume vehicles.  Tesla’s first car, the Roadster, was manufactured in small quantities (fewer than 2,500 units) and was priced at more than USD 100,000. The Model S and Model X follow as more economical but still luxurious cars. The most current versions, the Model 3 and Model Y, are even more affordable and targeted at a larger market.  Each quarter, the company sells over 100,000 cars. In contrast to almost every other automaker, Tesla upgrades the hardware of its vehicles on a continual basis rather than waiting for a new model year.

Unlike other manufacturers, Tesla does not sell its cars via franchised dealerships. Rather than that, the business sells cars directly via its website and a network of company-owned locations. Certain countries, most notably the United States, ban automobile manufacturers from selling directly to customers. Tesla operates facilities dubbed galleries in these regions that, according to the firm, ‘teach and enlighten consumers about our products, but such venues do not engage in the selling of cars.’   Rather than being situated near other car dealerships, these sites are usually in retail shopping areas or inside shopping malls. Tesla does not promote directly.  The business informs clients via its showrooms located in malls and other high-traffic areas and sells its cars directly to consumers rather than through a traditional dealer network. The business is the country’s first to sell automobiles directly to customers.

Tesla has a high degree of vertical integration, having reached an all-time high of 80% in 2016.

The business manufactures car components and also develops unique charging stations for clients’ automobiles. Vertical integration is uncommon in the automobile industry, as firms generally outsource about 80% of component production to suppliers and concentrate on engine manufacturing and final assembly.

Tesla usually licenses its technology to rivals, saying that it wants to assist competitors in accelerating the world’s adoption of sustainable energy. Licensing agreements include clauses requiring the receiver to promise not to sue Tesla for patent infringement or to directly duplicate its designs. Tesla maintains ownership of its other intellectual property, including trademarks and trade secrets, in order to protect its technology from direct imitation.

SUBSIDIARIES OF TESLA INC

TESLA, INC. WHICH WILL DO BUSINESS IN CALIFORNIA AS TESLA MOTORS, INC.

Tesla has officially changed its name to Tesla, Inc. from its prior official Tesla Motors, Inc. corporate name. The change of name probably reflects the expansion of its business as SolarCity owns, and develops battery packages for both residential and commercial applications, elements of the firm which Tesla’s CEO, Elon Musk, has stated, would become more important in its total operation.

In late 2016, Tesla, Inc. acquired SolarCity, a solar power business established by Musk’s cousins, where he was also the board chairman. Tesla also launched last year its Powerwall second-generation residential energy battery storage technology as well as its commercial solar power storage solution Powerpack 2.0. The firm has also disclosed plans to develop solar roof panels which appear as regular roof tiles and started delivering to consumers shortly thereafter.

Tesla Inc. is typified as a foreign stock corporation in California with the initial Department of State filing as done in Delaware being on 2nd September 2003, rendering it Delaware jurisdiction. The entity retains its address for California Process Service in Palo Alto, California.  California Process Service may be levied on a registered agent for accepting California Process Service, in this case, Corporation Trust Company functions as the registered agent for California Process Service. A Statement of Information is due every year beginning five months before and through the end of September.

A business entity can be formed in California by filing the applicable document or form (as described below) with the Secretary of State. 

TESLA ELECTRIC INC

Tesla Electric Inc. is a Californian domestic stock business company with the first filing on 8th January 2021 and does come under the jurisdiction of California. The entity retains an address in Glendale, California, and has retained Tadeh Alexander as a registered agent. 

A business entity can be formed in California by filing the applicable document or form (as described below) with the Secretary of State. It is thus necessary to file Articles of Incorporation and the forms must have been drafted to meet the minimum statutory and California Process Service requirements.

The company has to first qualify or register with the California Secretary of State prior to conducting intrastate business in California. California Corporations Code defines intrastate transactions as recurring and consecutive transactions of its activities in that state other than international or foreign trade.  It should be noted that a foreign corporation shall not be considered to be transacting intrastate business merely because its subsidiary transacts intrastate business. Once the business entity is formed or registered with the California Secretary of State it must obtain the necessary licenses and permits according to California Process Service requisites. However, the Secretary of State does not issue licenses or permits for business entities.

A Statement of Information is due every year beginning five months before and through the end of January. The Office of the Secretary of State cannot advise the entity whether the company has to qualify or register in California to do business.

TESLA ENERGY OPERATIONS, INC.

Tesla Energy Operations Inc. is typified as a foreign stock corporation in California with the initial Department of State filing done in Delaware. The entity was registered on 7th September 2006. Tesla Energy Operations Inc does not come under California jurisdiction, with the incorporation in Delaware specifying a General Domestic Corporation. However, the entity retains CT Corporation as their agent for California Process Service as well as retains their principal office in Palo Alto, California. California levies two taxes on companies that do business in the state or earn revenue there: [A.] the franchise tax and [B.] the income tax.

Additionally, a foreign company (a corporation, organization, or other legal body not organized in California) doing intrastate commerce in California must acquire a Certificate of Qualification to do business in California. Any company, regardless of where it is incorporated, that ‘carries on business in California’ or ‘derives revenue from sources inside California’ is usually liable to California’s tax rules.

Thus, foreign corporations that are either [A.] ’doing business in California or [B.] generate revenue from California sources are liable to California taxation. Additionally, if a foreign company earns revenue both inside and outside of California (for example, California, Texas, and Mexico), an income allocation between the states is required to determine the precise amount of the California tax.

TESLA INSURANCE SERVICES, INC.

Based in Palo Alto, California Tesla already sells car insurance in California and is in the process of obtaining approval from state authorities to do so in Illinois, Texas, and Washington. Musk said on Tesla’s October earnings call that insurance might eventually account for 30% to 40% of Tesla’s car revenue. He claims that Tesla is constructing ‘a major insurance company.’ Tesla’s chief finance officer, Zachary Kirkhorn, has said that the firm would ultimately provide countrywide car insurance.

Musk and Kirkhorn stated during last year’s earnings calls that Tesla’s car insurance would be directly linked to a Tesla vehicle, allowing the business to evaluate a motorist’s risk based on their driving history and then set monthly rates appropriately. This kind of insurance is referred to as pay-as-you-drive or usage-based insurance. Tesla, on the other hand, claims it presently sets tariffs using anonymized, aggregated data from its cars, not data based on an individual’s behavior. Tesla presently provides car insurance to purchasers of its vehicles exclusively in California. Tesla Model S, Model X, Model 3, Model Y, and Roadster owners are covered. Tesla began offering insurance in California in 2019. Tesla’s California insurance is underwritten by State National Insurance Co.

Tesla Insurance Services Inc is a domestic stock entity that is registered for California Process Service within the state of California. The entity is currently active in Fremont, California, and has registered for the same on 22nd June 2017, retaining the CT Corporation system as their registered agent for California Process Service. A Statement of Information is due every year beginning five months before and through the end of June.

DEEP SCALE

DeepScale, Inc. is an American technology company headquartered in Mountain View, California, that develops perceptual system technologies for automated vehicles. On October 1, 2019, the company was purchased by Tesla. Forrest Iandola and Kurt Keutzer co-founded DeepScale in September 2015. DeepScale received USD 15 million in Series A financing in 2018. In 2018, the company established key collaborations with Visteon and Hella Aglaia Mobile Vision GmbH, among others. On October 1, 2019, Tesla acquired the company, which specializes in driverless car technology.

MAXWELL TECHNOLOGIES INC.

Maxwell Laboratories Inc. was established in 1965. In 1983, it became public, and in 1996, the company changed its name to Maxwell Technologies Inc. The entity is a foreign stock company in California, coming under Delaware jurisdiction since its incorporation on 26th December 1986. However, the entity retains its principal office in Palo Alto, California with Corporation Trust Company as its registered agent for California Process Service.  The energy storage and power delivery solutions company specializes in ultracapacitors, which are devices that can store several times the energy of ordinary capacitors. Its products are utilized in a variety of industries, including transportation, manufacturing, and grid energy storage.

Tesla bought Maxwell in May 2019. Musk previously said that ultracapacitors will be a game-changer in terms of electric car manufacturing. He was particularly enthusiastic about Maxwell’s efficient method for manufacturing electric battery components, which may significantly decrease Tesla’s manufacturing costs.

As of December 2020, Tesla and Musk were named in over 1,000 lawsuits. Several of Tesla’s significant legal issues stem from Musk’s August 7, 2018 tweet, ‘I’m considering taking Tesla private at $420. Funding secured ‘, as the tweet first boosted the stock but then fell when it was proven to be fake. Musk resolved fraud charges with the United States Securities and Exchange Commission (SEC) in September 2018 for his misleading claims. Musk agreed to have his tweets examined by Tesla’s in-house counsel, was temporarily removed from his chairman position at Tesla, and two new independent members were added to the company’s board of directors. Tesla and Musk also paid USD20 million in civil fines. A civil class-action shareholder complaint was also filed against Musk and the members of Tesla’s board of directors as they were then constituted in connection with comments made and acts taken in connection with a possible going-private transaction.

Numerous questions have been raised regarding Tesla’s financial reporting. Bloomberg News questioned Tesla’s financial reporting in 2013 for allegedly violating generally accepted accounting principles (‘GAAP’) rules. Tesla was accused by Fortune magazine in 2016 of using clever accounting to demonstrate positive cash flow and quarterly profits. Analysts raised worry over Tesla’s accounts receivables level in 2018. Tesla CFO Zach Kirkhorn was questioned by the SEC in September 2019 regarding Tesla’s warranty reserves and lease accounting. David Einhorn, a hedge fund manager, accused Elon Musk of ‘serious fraud’ in November 2019 and publicly questioned Tesla’s accounting procedures, telling Musk he was ‘starting to doubt if your accounts receivable exist.’

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Sources

1. Accounting for 16% of the plug-in market (which includes plug-in hybrids) and 23% of the battery-electric (pure electric) market

2. Last year the Firm updated its internet URL from Teslamotors.com to Tesla.com and defines itself on its formal ‘About’ page as ‘Not just a car manufacturer, but also a technology and design company focused on innovation in energy.’

3. Entity Mailing Address:

3500 DEER CREEK ROAD
PALO ALTO CA 94304

Entity Address:

3500 DEER CREEK ROAD
PALO ALTO CA 94304

4. THE CORPORATION TRUST COMPANY

CORPORATION TRUST CENTER 1209 ORANGE ST

WILMINGTON County: New Castle

DE Postal Code: 19801

302-658-7581

5. TADEH ALEXANDI
1164 ALLEN AVE APT 6
GLENDALE CA 91201

6. Required Articles of Incorporation:

    • Articles of Incorporation of a General Stock Corporation (Form ARTS–GS)
    • Articles of Incorporation of a Close Corporation (Form ARTS–CL)
    • Articles of Incorporation of a Professional Corporation (Form ARTS–PC)
    • Articles of Incorporation of a Nonprofit Mutual Benefit Corporation (Form ARTS–MU)
    • Articles of Incorporation of a Nonprofit Public Benefit Corporation (Form ARTS–PB–501(c)(3))
    • Articles of Incorporation of a Nonprofit Religious Corporation (Form ARTS–RE)
    • Articles of Incorporation of a Common Interest Development Association (Form ARTS–CID)

7. Entity Address:

1164 ALLEN AVE APT 6
GLENDALE CA 91201

Entity Mailing Address:

1164 ALLEN AVE APT 6
GLENDALE CA 91201

8. Entity Address:

3500 DEER CREEK ROAD
PALO ALTO CA 94304

Entity Mailing Address:

3500 DEER CREEK ROAD
PALO ALTO CA 94304

9. Egan, John. ‘Tesla Insurance Plans Surge into Three New States.’ Forbes, Forbes Magazine, 22 June 2021, www.forbes.com/advisor/car-insurance/tesla-insurance/. 

Tesla intends to ‘use the technology in vehicles to lower costs and improve the customer experience through automated underwriting, rating, and claims, including direct data, feeds with customer permission, that eliminate frictional costs and inefficiencies inherent in traditional insurance processes,’ according to a regulatory filing in Texas. ‘The digital approach to purchasing insurance by the consumer will streamline and enhance the user experience throughout the policy lifecycle; beginning with the quote through online bind, renewal, and in the event of a claim.’

10. Entity Address:

45500 FREMONT BLVD
FREMONT CA 94538

Entity Mailing Address:

45500 FREMONT BLVD
FREMONT CA 94538

11. 970 TERRA BELLA AVE #9
MOUNTAIN VIEW CA 94043

Entity Address:

970 TERRA BELLA AVE #9
MOUNTAIN VIEW CA 94043

Entity Mailing Address:

970 TERRA BELLA AVE #9
MOUNTAIN VIEW CA 9404

 
12. Entity Address:

3500 DEER CREEK ROAD
PALO ALTO CA 94304

Entity Mailing Address:

3500 DEER CREEK ROAD
PALO ALTO CA 94304

13. Osborne, Charlie. ‘The $40 million tweet: Elon Musk settles with SEC, Tesla bears the brunt. ZDNet.

14. Eidelson, Josh (September 27, 2019). ‘Tesla Labor Practices and Musk Tweet Broke the Law, Judge Rules. Bloomberg News.

15. Tully, Shawn. ‘Why Tesla’s Cash CRUNCH May Be Worse than You Think.’ Fortune, Fortune, 25 Apr. 2021, fortune.com/2016/09/02/elon-musk-tesla-cash-crunch-worse-than-you-think/. 

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