In the year 1895, William C. Anderson moved his decade-old carriage company from Port Huron Michigan to Detroit. Twelve years later, the Anderson Carriage Company entered the automotive age. By the end of 1907, Anderson had built over a hundred of his "horseless carriages."

Production in the following years escalated. In 1908 they quadrupled the previous years’ production. By 1909 Anderson was building well over 600 automobiles a year, and had purchased the Elwell-Parker Company of Cleveland, Ohio. Elwell-Parker had previously built electric motors for the Baker Electric Car Company.

Armed with batteries from Thomas Edison's company, Anderson was now ready to build every aspect of his automobiles except the tires and wheels. In 1910, production had risen to over 1,500 automobiles a year.

Developments abounded in the year 1911. The firm was officially renamed the Anderson Electric Car Company, and the “Chainless” Direct Shaft Drive was introduced to the public.

In a company sponsored test a Detroit Electric traveled over 200 miles on a single battery charge. Despite consistently achieving excellent performances in endurance runs the company always insisted that their product was not a touring car. It was marketed as an urban vehicle, and epically towards women drivers. It was with this market that Detroit Electric enjoyed great commercial success. Business boomed until the United States entered WWI.

In 1918 William Anderson retired, and was succeeded by an Elwell-Parker employee M.S. Towson. The company named was changed the next year to Detroit Electric Car Company, although body production was still under the name Anderson.

After WWI electric cars fell from public favor and Detroit Electric remained one of the few left. During the 1920s the company lessened its concentration on passenger car production and increased their focus on commercial production.

William Anderson, who had remained a strong advocate for the company, died in November of 1929. With the advent of the Great Depression production plummeted. Production eventually became on an individual-order basis. The company changed leadership again in the 1930s, but it never rebounded. Detroit Electric remained active until 1938. However, before the outbreak of WWII, the most successful and famous American electric car company ever ceased to exist.