finance

Who Really Founded Tesla and Why Is He Overlooked?

The Secret Architects Behind Tesla’s Electrifying Origins

Who Really Founded Tesla and Why Is He Overlooked?

Tesla has become one of the most recognized names in the automotive industry. Their cars’ sleek designs and vision for a renewable future have captivated the world. When you think of Tesla, Elon Musk is probably the first name that comes to mind. Known for his ambitious plans like colonizing Mars and building a hyperloop, Musk is often seen as the face of Tesla. But today’s tale isn’t about Elon. Surprisingly, few know about Martin Eberhard, the true founder of Tesla.

In 1997, Martin Eberhard, a seasoned electrical engineer, crossed paths with Marc Tarpenning. A shared passion, mixed with some “Magic: The Gathering” games, led them to their first business venture: an eBook reader. Their company, NuvoMedia, sold 20,000 e-readers within three years and netted a cool $187 million from the sale. Flush with success, the duo turned their sights towards electric sports cars.

The catalyst? Martin’s midlife divorce in 2000. Like many in his situation, he wanted a flashy sports car but couldn’t stomach the thought of owning a gas-guzzler. This dissatisfaction sparked the idea of an electric sports car, and he soon pitched it to Marc. By 2003, Tesla was born, and they embarked on creating their first vehicle, the Roadster. They opted for lithium-ion batteries, a groundbreaking decision at the time, given their experience with this technology from their eBook days.

Though their vision was clear, starting from scratch wasn’t feasible. They partnered with AC Propulsion for their motor technology and Lotus for the car body, specifically the Lotus Elise. They spent hours at the Los Angeles Auto Show persuading Lotus until they finally got the green light. Development was underway, but by mid-2004, funds were dwindling.

That’s when Elon Musk entered the scene. Fresh from selling PayPal to eBay, he invested $7.5 million into Tesla, followed by a total of $70 million by 2008. With Musk’s financial backing, Tesla made significant progress. Their first prototype, the “Mule,” was a modified Lotus Elise with AC Propulsion technology that amazed everyone with its performance. After two more years of R&D, the Roadster was officially unveiled in 2006, and despite its $100,000 price tag, people were eager to buy.

Behind the scenes, tensions flared. By August 2007, Martin got an unexpected call from Musk saying the board had decided to replace him as CEO. Feeling betrayed, Martin eventually resigned, followed by Marc. In 2009, Martin sued Tesla, claiming Elon was trying to rewrite history by portraying himself as the founder. Though the lawsuit settled out of court, the incident strained their relationship permanently.

Today, while Elon Musk is synonymous with Tesla, it’s crucial to remember Martin Eberhard and Marc Tarpenning. They laid the foundation that allowed Tesla to become an automotive giant. Without them, Tesla, as we know it, wouldn’t exist.



Similar Posts
Blog Image
The Controversial Comeback of Tontines: A Financial Gamble on Life and Death

Tontines: A historical investment scheme where members pool money, with survivors inheriting funds of deceased participants. Originated in 17th-century Europe as a government fundraising tool, tontines offered longevity insurance but faced controversy due to exploitation. They influenced modern insurance development and are being reconsidered for retirement challenges, despite ethical concerns about profiting from others' deaths.

Blog Image
Why Did Norway's Oil Make It Rich While Britain Struggled?

Norway's Oil Treasure: Sustainable Wealth vs. UK’s Short-lived Boom

Blog Image
Did A Yale Student's 'C' Grade Essay Really Turn Into The FedEx Empire We Know Today?

From Failed College Paper to Global Giant: The Wild Journey of FedEx

Blog Image
Did Richard Branson's Scrappy Spirit Really Beat British Airways' Dirty Tricks?

Sky-High Ambition: The David and Goliath Battle that Redefined Air Travel

Blog Image
Are You Ready to Make Your Retirement Savings Work Harder?

A Golden Nest Egg: How IRAs Can Turn Your Savings Into Retirement Magic

Blog Image
What Are the Safest Ways to Grow Your Money While Sleeping Easy?

Balancing Act: Navigating the Tightrope Between Safety and High Returns in the World of Investments