Martin Eberhard's lawsuit against Tesla Motors and Elon Musk reads like the script to a daytime soap opera. But by accusing Musk of forcing him out of the company and attempting to "rewrite history" to claim credit for founding the company, Eberhard raises some interesting questions, not the least of which is, who really founded Tesla?
Having witnessed the drama first-hand for two years as Tesla's chief marketing officer, I suspect the real bone of contention between these two men is how they see their place in history -- and more importantly, how they want others see it.
Many commentators interpret this as a battle of egos, but that is a simplification of a much deeper human need to be attached to something meaningful that will persist long after you are gone from this Earth. This can be the only explanation for the jousting over the particulars of what transpired in the early days of Tesla Motors, complete with e-mails from the archives and arguments over who met whom first. Eberhard's lawsuitand Elon's recent blog post refuting Eberhard's claims provide a glimpse into each man's version of events, and many friends and colleagues have heard the unabridged versions.
But the truth is, the idea that led to the Tesla Roadster didn't come from Eberhard or Musk.
One thing most people will agree on is the story of Tesla Motors has gained historical importance, regardless of how you think that story will end. I say "most people" because there are still many in the media who are incredulous that so much attention is paid to a company they say has done so little. One prominent journalist recently told me, "given the lack of real success with the company, arguing over who came up with the idea is like arguing over who is the best ballerina in Galveston."
But having stepped back from the brink several times in the past year, and having recently closed a deal in which Daimler bought nearly 10 percentof Tesla and securing a $465 million federal loan to finance development of the Model S sedan, Tesla once again looks like it has legs. The challenge now is living up to the expectations it has set with a concept car that embodies Elon's perfectionist vision but is being touted at the unlikely yet Department of Energy-friendly price of $57,400. So for now, those itching to write the history of Tesla Motors must wait a few more years to see the final chapters unfold.
But if this fight truly is about each man's rightful place in history, it is interesting to note that neither Martin Eberhard or Elon Musk came up with the idea of an electric sportscar with excellent range and amazing acceleration. As is evident in some of the emails Elon presents on his blog, the credit rests with a company few outside EV circles has heard of.
AC Propulsion developed the idea, and both Eberhard and Musk initially approached the San Dimas, California, company to build the car. Tom Gage and Alan Cocconi had built the t zero, which is essentially the prototypical Tesla Roadster with a 0-60 time of 3.6 seconds and a range of more than 200 miles using commodity lithium-ion cells.
One way to look at this is the real technology visionaries were the folks at AC Propulsion, but they lacked the entrepreneurial vision to see just how big an idea it could become and the means to achieve it. Both Eberhard and Musk saw the importance -- and potential -- of what Gage and Cocconi had created. When Eberhard and Musk approached them individually to prod them into taking the next step and produce the vehicle, Gage opted instead to introduce Musk to Eberhard and get back to work creating the eBox, an electrified Scion xB that Gage considered more practical and economical.
Perhaps neither Eberhard or Musk realized just how right they were about how big the idea would become. If they had, they would have been more protective in the early days of Tesla Motors. Eberhard did not take the necessary precautions in giving away so much control of the company early on. And Musk didn't act sooner to replace Eberhard, either in the early days when one member of the management team sought his ouster or at the series C round of funding when a top-tier venture capitalist conditioned an investment offer on Eberhard's departure (In both cases, Musk backed Eberhard). Both men have privately, and sometimes publicly, regretted those decisions.
Since leaving Tesla, I have had several conversations with Gage in which I shared my feeling that he and Cocconi had an extraordinary brand and birthright as the fathers of the modern EV revolution and could use that to great advantage. Combine that with their under-reported role as the provider of the drivetrain in the Mini E and you would think AC Propulsion would be a bigger player in the ongoing rush toward the electrification of automobiles. But I get the sense it isn't in their DNA to reach for the golden ring. Maybe that's for the best. The reluctant visionaries may not achieve the commercial success or profile of Tesla, but history will afford them a richer legacy in the balance of time.
For now, they are only witnesses to the circus we will see in the months to come. The center ring will instead feature a battle royale between the immensely determined and resourceful Musk and the plaintive Eberhard, who feels he has nothing to lose and everything to gain to cement his role as the rightful founder of Tesla Motors.
The unfortunate thing is that everyone involved will emerge looking worse for wear, and it is likely that nothing meaningful will be gained by anyone.
In trying to win recognition as the rightful founder of Tesla, Eberhard has invited the company to expose what many will conclude is a none-too-flattering record as a chief executive, and he has given his arch enemy the opportunity to detail the circumstances of the company's founding that many will find ring all too true.
And in trying to finally crush Eberhard and convince everyone of his role as the relentless force behind Tesla -- and more importantly the electrification of automobiles -- Musk will continue creating needless distractions for the company just when it most needs to focus on execution. Potentially, we are witnessing the makings of a Pyrric victory for Elon in his consolidation of power and the legacy of Tesla.
As for Tom Gage and Alan Cocconi, you can probably find them hard at work in their shop in San Dimas. But you aren't likely to see them in the media.
Editor's note: Darryl Siry was the chief marketing officer of Tesla Motors from December 2006 until December 2008. He has founded a software startup and advises several companies in the clean tech space. You can read his blog here.
*Photo: Jim Merithew / wired.com
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