Martin Eberhard comments on his departure from Tesla
Filed under: EV/Plug-in, Tesla Motors, Green Daily
Martin Eberhard's departure from active involvement in the operation of Tesla Motors came via a brief statement from the company late Friday evening after the Wall Street Journal broke the embargo on the story. When Martin was removed as CEO in August to focus on the getting the Roadster into production, he made a statement on the company blog about what was going on. This time around, all references to Martin were promptly removed from the management team listing on the Tesla site. As you might expect, Martin's contract with Tesla prohibits him from making disparaging remarks about the company. As a result Martin has made a discrete yet telling statement on the Tesla Motors Club discussion forum. Martin didn't leave voluntarily and wasn't too thrilled with the way things went down. In the comments from the previous post about Martin's departure it appears a number of other people have left recently. Hopefully this is not a sign of how things will be happening moving forward at Tesla. You can see Martin Eberhard's comment after the jump and follow the whole discussion thread at the Tesla Motors Club forum.
[Source: Tesla Motors Club]
But I am also not going to lie about it. I am not at all happy with the way I was treated, and I do not think this was the very best way to handle a transition - not the best for Tesla Motors, not the best for Tesla's customers (to whom I still feel a strong sense of responsibility), and not for Tesla's investors.
Silicon Valley has given us many examples of fast-growing startup companies that managed to find a home for its founders even as new management teams were brought in to manage the continued growth of the companies. Larry and Sergey over at Google are prime examples: they still drive the vision and technology of the company, and still define the public image of Google. But management of Google is now in the hands of seasoned professionals who know how to run and grow the company far beyond Larry and Sergey could have.
But as Michael Marks likes to say, it is what it is. I am now part of Tesla's rather informal Advisory Board, and make myself available to Ze'ev, should he wish to avail himself of my experience. We shall see.
Ze'ev is a bright and experienced guy. Unlike me, he's made a zillion dollars from his past ventures (MMI & Clifford) - so he has taken this position not for money. He's raced formula cars, and gets what a sports car should be. He seems to care a lot about global warming. As an Israeli, he is quite sensitive to the problem of oil dependency toward the Middle East. So I have reason to be hopeful, and I am motivated to see him succeed.
For my part, I am a free man. I will probably spend the next 6 months thinking about my next venture. I still care about the things that concerned me 5 years ago, so I will look for another opportunity to contribute to solving the dual problems of global warming and oil dependency.
Hopefully, I will begin posting my own blog at www.teslafounders.com. There's nothing up at that address yet, by maybe by New Years.
Thanks for your support, Tesla fans.
Martin
Martin Eberhard
Tesla Motors Founder












Reader Comments (Page 1 of 1)
12-02-2007 @ 12:58PM
Darryl said...
As the head of communications for the company I won't comment on personnel matters, in particular the CEO transition, beyond what we have already said, but as a frequent commenter here I feel the need to provide some other feedback.
I think people shouldn't read into this and start drawing secondary conclusions by connecting dots that really aren't connected. Yanquetino's list of all people who have left the execstaff is misleading. None of the changes he lists there have anything to do with Martin's recent departure. This is a startup, and there is normally a good deal of change in the execstaff (and in the leadership) as the company goes through growth and change. We also have never announced any executive changes, except for the CEO, via a press release or other mechanism, so when Yanquetino implies something dark when he says "without a word" I think it is exaggeration.
As for Martin's comments on teslamotorsclub.com - Martin has always been outspoken and as transparent as he can be. I would just encourage everyone to read the totality of his comments. There is no one rooting harder for Tesla and all the employees here, including the executive management, than Martin. Friday was a day of speeches and tear-filled tributes by employees honoring the positive impact Martin has had on the company. The common thread was a strong commitment to bring Martin's vision through the final stretch and deliver the car to the market.
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12-02-2007 @ 1:00PM
Darryl said...
One more thing - I think Yanquetino's comment about triple wages for running Sales, Marketing and Service is a very fine idea :)
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12-02-2007 @ 1:46PM
BlackbirdHighway said...
I look forward to hearing more positive news from Tesla, hopefully soon,
Something along the lines of "Validation testing is going well, production start is still on track for next year"
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12-02-2007 @ 2:20PM
WarpedOne said...
Darryl, it doesn't matter at all. You just DO NOT FIRE the founder.
I cannot trust people who are able to do that. Period.
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12-02-2007 @ 4:13PM
Yanquetino said...
Darryl:
For the record, whether or not any personnel dots "connect" is irrelevant: to potential customers they are disconcerting dots in and of themselves.
Also for the record, I agree with WarpedOne. Truth be told, the irony is so thick here that you could cut it with a knife. You'll have to forgive me, but from here on out I will refer to the company as "Edison Motors."
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12-02-2007 @ 5:00PM
Don A said...
Warped One: I agree totally!
I have followed every development and every blog posting at Tesla Motors since the day their web site appeared. Of course I wanted a Roadster but 100K is still a very large sum of money to me, especially for a car that I have never driven. It was Martin’s transparency and openness in his blog postings that earned my trust. I could relate totally with his vision of the future in transportation.
It was because of my trust of Martin and his vision that I decided to go ahead and place a deposit for a Roadster. I still felt it has lot of money to spend for a car but I viewed it as also supporting Martin in his vision (as well as my on) of the future.
At this point I have no trust of Tesla Motors management. I have no doubt that what Darryl says is true. I am sure there are many great people with vision at Tesla Motors. It is just management that I have absolutely no trust in and I have no desire to enrichen anyone that treats the Founder of the company in this manner!
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12-02-2007 @ 5:52PM
why not the LS2LS7? said...
I was at a company that fired the founder. It didn't go well, but that's beside the point. The point at which the founder is fired is generally the one where the real money behind the company wants to go one direction and the founders want to go another. The money people do not want the founder around influencing the company because they have so much at stake.
So to connect some dots that aren't connected, you can be sure this means big changes at Tesla. It could be one of several things. Perhaps the company was just going awry and they want to get it on track. Or it could be other things, perhaps the company is going to be sold to another company, either for strategic reasons or just to get working capital.
So, I think you can expect to see big things announced about Tesla soon. Either they'll announce they're being bought out/merging/forming an "alliance" or else they'll announce a big delay or other change in direction (perhaps even just higher vehicle prices, etc.)
It is possible we'll hear nothing, as Tesla is a private company and they don't have any responsibility to keep the public informed.
Is this a bad thing? Well, if you liked the company exactly as it was, then yeah, it's a bad thing. But for the rest of us it's less sure. This could lead to greater successes for Tesla. Or it could lead to surrender. We just don't know. Bet on change, but then again the smart money always does.
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12-02-2007 @ 6:12PM
Tony Belding said...
I think some of you are over-reacting. Of course nobody likes to see the founder of the company fired, that's not the way things are supposed to work out. However. . . Sometimes it happens, and sometimes it has to happen.
I was once into a project -- a much smaller project, but one that was pretty exciting for everybody involved at the time -- and after a couple of years I was the one who had to sack the founder. I had never imagined finding myself in that position, and I didn't like it. Nobody liked it, but the others team members backed me up. They knew we just couldn't continue the way things were going.
I still have high admiration for both Martin Eberhard and Elon Musk. It's a shame they couldn't resolve whatever differences they have, but you know. . . They're a couple of guys with big ideas and strong opinions. And in our society, ultimately, the guy who foots the bill is the guy who calls the shots.
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12-02-2007 @ 8:48PM
Chris M said...
As a consolation, Martin Eberhardt does get one of the "Founders Series" roadsters, and I imagine there was a nice severance package, too.
Of course, it might go like Apple and Steve Jobs, with Martin returning in triumph after a few years of exile...
What worries me is that Tesla Motors might now delay or even cancel their 2nd and 3rd models (whitestar, bluestar) so they can concentrate exclusively on high performance sportscars.
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12-02-2007 @ 9:32PM
RogerRed said...
Sounds like Tesla has the spin-cycle on overdrive here. I gotta wonder what Mr. Siry's speech was on Friday - that is if he even gave one or bothered to attend the event.
The public (and Tesla's customers) isn't stupid and neither is the VC community. Revisionist history leaves a bad taste in everyone's mouth.
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12-02-2007 @ 11:43PM
OhmExcited said...
Unfortunately, most board rooms in this country are filled with sociopaths and narcissists.
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12-03-2007 @ 4:52AM
vfx said...
Martin should be brought back as a Founder/Spokesman for the company. His ability to move mountains in favor of EVs is awe inspiring.
Or maybe GE who made a lot of money from inventions by Tesla (the man) should ask Martin to build them an Electic Car.
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12-03-2007 @ 6:28AM
kert said...
Oh, i wonder if mr. Musk can even sleep at nights right now. There is Tesla with ( supposedly still ? ) imminent product launch, and then there is his SpaceX Falcon I rocket launch coming up, early next year, which is viewed as make it or break it for the company ( they already failed two attempts )
Regardless of the spin put on it, mr. Musk was way overoptimistic in timetables of getting the respective technical projects complete, SpaceX is like two years behind the schedule and Tesla isnt doing too well either.
The man has a lot of vision, i hope both of these project work out for the best in the end. If any of these companies went public, i'd buy into both.
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12-03-2007 @ 12:20PM
Robert Kirsten said...
Good luck Martin in your future endeavors. Your tenure at Tesla has been a distinguished and visionary one. You deserved better but alas 'twas not to be.
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12-11-2007 @ 6:45PM
Brett said...
I have to echo what WARPED ONE said: YOU DON'T FIRE THE FOUNDER!! It's Martin's vision for why I plunked down 50k. My message to Mr Musk and/or Ze'ev or whatever his name his, you'd better explain yourselve(s)......FULLY while you still have time! There's many other places I could put that 50k:
Solar system on top of a building,
An electric car conversion facility,
A local organic farm of some sort,
Geothermal Heating/Cooling system,
Solar hot water/radiant system,
and so on..... and so on......
Actually, while I'm at it, if anyone else here would like to chime in with some ideas, it would be most appreciated and helpful in my decision as to whether or not I should follow through with final payment of the Roadster!!
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1-25-2008 @ 1:08PM
Honor Stability said...
Outside the white-wash of the poor actions of firing the founder of Tesla, and that of several other engineers and managers who had produced 'effectively' to date; it is clear that this will be the billionaires playboy car company, and will never see the original founder's vision of a 'widely publically available' series of models.
If you roll a rock over someone (in this case the founder), one day that rock will roll over you.
There is nothing 'chic' or 'profitable' in business by such heavy handed, and mis-calculating errors of character on the part of the CEO, and his co-conspirators who have invested in this company of recent terms.
Certainly, the 600 depositors have to be concerned. As well as those considering the company's products.
As for Martin, I would greatly encourage him to do exactly what he is doing; keeping the vision, and seeking an effective 'home' to produce the results of oil-less and environmentally profitable business launches.
Dear Martin, I would invite your contact in these regards. And would consider any big-auto player as an obvious poor choice if they make you offers.
Honor, transparency, confidentiality, vision and determination; have been clearly demonstrated by you as prev. CEO and President-founder. Thank you for such a positive example.
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