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like $170,000 or something insane,” Musk said. “Of course, it didn’t much matter because about a third of the cars didn’t flat-out fucking work.” Eberhard made attempts to pull his team out of this mess. He’d gone to see a speech in which the famous venture capitalist John Doerr, who became a major investor in green technology companies, declared that he would devote his time and money to trying to save the Earth from global warming because he owed such an effort to his children. Eberhard promptly returned to the Tesla building and ginned up a similar speech. In front of about a hundred people, Eberhard had a picture of his young daughter projected onto the wall of the main workshop. He asked the Tesla engineers why he had put that picture up. One of them guessed that it was because people like his daughter would drive the car. To which Eberhard replied, “No. We are building this because by the time she is old enough to drive she will know a car as something completely different to how we know it today, just like you don’t think of a phone as a thing on the wall with a cord on it. It’s this future that depends on you.” Eberhard then thanked some of the key engineers and called out their efforts in public. Many of the engineers had been pulling all-nighters on a regular basis and Eberhard’s show boosted morale. “We were all working ourselves to the point of exhaustion,” said David Vespremi, a former Tesla spokesman. “Then came this profound moment where we were reminded that building the car was not about getting to an IPO or selling it to a bunch of rich dudes but because it might change what a car is.” These victories, though, were not enough to overcome the feeling shared by many of the Tesla engineers that Eberhard had reached the end of his abilities as a CEO. The company veterans had always admired Eberhard’s engineering smarts and continued to do so. Eberhard, in fact, had turned Tesla into a cult of engineering. Regrettably, other parts of the company had been neglected, and people doubted Eberhard’s ability to take the company from the R&D stage to production. The ridiculous cost of the car, the transmission, the ineffective suppliers were crippling Tesla. And, as the company started to miss its delivery dates, many of the once-fanatical consumers who had made their large up-front payments turned on Tesla and Eberhard. “We saw the writing on the wall,” Lyons said. “Everyone knew that the person who starts a company is not necessarily the right person to lead it in the long term, but whenever that is the case, it’s not easy.” Eberhard and Musk had battled for years over some of the design points on the car. But for the most part, they had gotten along well enough. Neither man suffered fools. And they certainly shared many of the same visions for the battery technology and what it could mean to the world. What their relationship could not survive were the cost figures for the Roadster unearthed by Watkins. It looked to Musk as if Eberhard had grossly mismanaged the company by allowing the parts costs to soar so high. Then, as Musk saw it, Eberhard failed to disclose the severity of the situation to the board. While on his way to give a talk to the Motor Press Guild in Los Angeles, Eberhard received a call from Musk and in a brief, uncomfortable chat learned that he would be replaced as CEO. In August 2007, Tesla’s board demoted Eberhard and named him president of technology, which only exacerbated the company’s issues. “Martin was so bitter and disruptive,” Straubel said. “I remember him running around the office and sowing discontent, as we’re trying to finish the car and are running out of money and everything is at knife’s edge.” As Eberhard saw it, other people at Tesla had foisted a wonky finance software application on him that made it tricky to accurately track costs. He contended that the delays and cost increases were partly due to the requests of other members of the management team and that he’d been up front with the board about the issues. Beyond that, he thought Watkins had made the situation out to be worse than it really was. Start-ups in Silicon ValleyPDF Image | SpaceX and the Quest
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