I love how he sued so that he could be called a co-founder
Founding (2003–2004)
The company was incorporated as Tesla Motors, Inc. on July 1, 2003, by Martin Eberhard and Marc Tarpenning.[8][9] They served as CEO and CFO, respectively.[10] Eberhard said that he wanted to build "a car manufacturer that is also a technology company", with its core technologies as "the battery, the computer software, and the proprietary motor".[11]
Ian Wright was Tesla's third employee, joining a few months later.[8] In February 2004, the company raised US$7.5 million (equivalent to $12 million in 2023) in series A funding, including $6.5 million (equivalent to $10 million in 2023) from Elon Musk, who had received $100 million from the sale of his interest in PayPal two years earlier. Musk became the chairman of the board of directors and the largest shareholder of Tesla.[12][13][10] J. B. Straubel joined Tesla in May 2004 as chief technical officer.[14]
A lawsuit settlement agreed to by Eberhard and Tesla in September 2009 allows all five – Eberhard, Tarpenning, Wright, Musk, and Straubel – to call themselves co-founders.[15]
Roadster (2005–2009)
Main article: Tesla Roadster (first generation)
Elon Musk took an active role within the company, but was not deeply involved in day-to-day business operations.[16] The company's strategy was to start with a premium sports car aimed at early adopters and then move into more mainstream vehicles, including sedans and affordable compacts.[17]
In February 2006, Musk led Tesla's Series B venture capital funding round of $13 million, which added Valor Equity Partners to the funding team.[18][13] Musk co-led the third, $40 million round in May 2006 which saw investment from prominent entrepreneurs including Google co-founders Sergey Brin and Larry Page, and former eBay President Jeff Skoll.[19] A fourth round worth $45 million in May 2007 brought the total private financing investment to over $105 million.[19]
In August 2007, Eberhard was asked by the board, led by Elon Musk, to step down as CEO.[20] Eberhard then took the title of "President of Technology" before ultimately leaving the company in January 2008. Co-founder Marc Tarpenning, who served as the Vice President of Electrical Engineering of the company, also left the company in January 2008.[21] In August 2007, Michael Marks was brought in as interim CEO, and in December 2007, Ze'ev Drori became CEO and President.[22] Musk succeeded Drori as CEO in October 2008.[22] In June 2009, Eberhard filed a lawsuit against Musk for allegedly forcing him out.[23] The case was dismissed in August 2009.[24]
Tesla began production of the Roadster in 2008 inside the service bays of a former Chevrolet dealership in Menlo Park.[25][26] By January 2009, Tesla had raised $187 million and delivered 147 cars. Musk had contributed $70 million of his own money to the company.[27]
In June 2009, Tesla was approved to receive $465 million in interest-bearing loans from the United States Department of Energy. The funding, part of the $8 billion Advanced Technology Vehicles Manufacturing Loan Program, supported the engineering and production of the Model S sedan, as well as the development of commercial powertrain technology.[28] Tesla repaid the loan in May 2013, with $12 million in interest.[29][30]