Tesla: Startup Factories
Meet 220+ startups founded by former Tesla operators - who’ve raised over $40B - plus a look at 110+ founders building in stealth
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ABOUT STARTUP FACTORIES
Startup Factories spotlights the latest operators who’ve left their roles to start something new. The series explores which companies are consistently producing founders - and how successful those founders are in building the next wave of startups.
This edition highlights former Tesla operators who have gone on to launch their own ventures.
ABOUT TESLA
Tesla was founded in 2003 by engineers Martin Eberhard and Marc Tarpenning to prove that electric vehicles could outperform gasoline cars. Elon Musk joined soon after as an early investor and became a key figure in shaping the company’s vision. Tesla’s first car, the Roadster, launched in 2008, demonstrating that EVs could deliver sports car performance.
Since then, Tesla has become a global leader in electric vehicles and clean energy. Its lineup now includes the Model S, Model X, Model 3, and Model Y, along with energy products like solar panels and the Powerwall. With Gigafactories around the world, Tesla continues to innovate in battery tech and self-driving systems, aiming to accelerate the transition to sustainable energy.
THE COMPOUNDING EFFECT: THE NUMBERS
When founders leave established companies, some go on to raise millions in capital and build teams of hundreds. Looking at the data on Tesla operators turned founders, the numbers are especially striking. They include:
$40 billion has been raised by former operators turned founders.
Founders are mostly building in the U.S., followed by Germany, and Canada.
Many startups are raising beyond the Pre-Seed stage. Currently ~45% have raised at Series A and beyond.
The average Series A round is $24 million.
Y Combinator is the most active investor in the listed startups.
AI, Energy, and Health are key trends and categories that founders are building in.
The startups collectively employ over 24,000 people.
Let’s take a closer look at the type of startups founders are building.
NUMBER OF STARTUPS FOUNDED
Former Tesla founders have gone on to build 220+ startups, each raising at least $1 million from investors. We break down how many startups have been founded by year.
COUNTRIES FOUNDERS ARE BUILDING IN
The U.S. remains ahead of the pack, with Germany and Canada also being chosen as a destination for founders to build in.
Why Germany?
Germany is an ideal place to build a transportation startup thanks to its strong industrial base, access to top engineering talent, and a supportive ecosystem for innovation. Its central location in Europe, world-class infrastructure, and generous funding opportunities make it a perfect launchpad for mobility startups.
HOW WELL THE STARTUPS ARE PERFORMING
Current data indicates that while most startups remain at the Seed stage, a significant portion have advanced to later funding rounds. Notably, 45% of startups have successfully progressed to Series A and beyond, collectively raising $40 billion in total capital to date.
AVERAGE FUNDING ROUNDS
From our data and research, founders are currently raising the average amounts per round:
Pre-Seed: $3M.
Seed: $6M.
Series A: $24M.
WHO ARE THE FOUNDERS RAISING FROM?
Well, Y Combinator has invested in 26 startups - roughly 11% of the total. Other frequently named investors appearing on the cap tables include:
Collaborative Fund (9)
Climate Capital (8)
Sequoia (8)
General Catalyst (8)
Breakthrough Energy (7)
Energy Impact Partners (6)
Index Ventures (5)
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MEET A SELECTION OF STARTUPS ACROSS THE FOLLOWING CATEGORIES.
1. 🔋 Energy & Clean Tech
Moonwatt, Estes, PeakEnergy, Exowatt, NeonHealth, FormEnergy, WeaveGrid, Northvolt, MomentEnergy, LunarEnergy, Wattch.
2. 🧠 Artificial Intelligence / Machine Learning
Hamming, TryPear, Thinking Machines, MindTrip, Konko, EmbedChain, Flex, Matey, Industrial Next, Overview AI, Aperture Data, Avala, Ezra AI, Gradio, Nooks, Symbolica, Osmo, GetEnter.
3. 🧬 Health Tech & Bio / Med Devices
Lyrebird Health, Narrable Health, HealthBird, EmpoHealth, Stack Care, MedMe, Benchflow.
ACCESS THE FULL LIST OF 220+ FUNDED STARTUPS FOUNDED BY FORMER OPERATORS AT TESLA
As a paid subscriber of NEW ECONOMIES, you will also gain access to our entire data room of startups and templates.
As a paid subscriber of NEW ECONOMIES, you gain access to our complete data room - including a complete database of startups founded by alumni from Spotify, DeepMind, Revolut, Airbnb, Uber, Stripe, Nvidia, Instacart, LinkedIn, Palantir, and Tesla.
BONUS: MEET THE LATEST STARTUPS BUILDING IN STEALTH
In addition to the 220+ funded startups who have raised a minimum of $1 million, you can also discover the latest 110+ founders building in stealth. Some of these startups might just be the next breakout company.
