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on around the Smart car to see what it might be like as an electric vehicle. “Michael didn’t know about it, and he’s like, ‘Who is the CEO here?’” said Lyons. (The work on the Smart car eventually led to Daimler buying a 10 percent stake in Tesla.) Marks’s inclination was to try to package Tesla as an asset that could be sold to a larger car company. It was a perfectly reasonable plan. While running Flextronics, Marks had overseen a vast, global supply chain and knew the difficulties of manufacturing intimately. Tesla must have looked borderline hopeless to him at this point. The company could not make its one product well, was poised to hemorrhage money, and had missed a string of delivery deadlines and yet its engineers were still off doing side experiments. Making Tesla look as pretty as possible for a suitor was the rational thing to do. In just about every other case, Marks would be thanked for his decisive plan of action and saving the company’s investors from a big loss. But Musk had little interest in polishing up Tesla’s assets for the highest bidder. He’d started the company to put a dent in the automotive industry and force people to rethink electric cars. Instead of doing the fashionable Silicon Valley thing of “pivoting” toward a new idea or plan, Musk would dig in deeper. “The product was late and over budget and everything was wrong, but Elon didn’t want anything to do with those plans to either sell the whole company or lose control through a partnership,” Straubel said. “So, Elon decided to double down.” On December 3, 2007, Ze’ev Drori replaced Marks as CEO. Drori had experience in Silicon Valley starting a company that made computer memory and selling it to the chipmaker Advanced Micro Devices. Drori was not Musk’s first pick—a top choice had turned down the job because he didn’t want to move from the East Coast—and did not inspire much enthusiasm from the Tesla employees. Drori had about fifteen years on the youngest Tesla worker and no connection to this group bonded by suffering and toil. He came to be seen more as an executor of Musk’s wishes than as a commanding, independent CEO. Musk began making more public gestures to mitigate the bad press around Tesla. He issued statements and did interviews, promising that the Roadster would ship to customers in early 2008. He began talking up a car code-named WhiteStar—the Roadster had been code-named DarkStar—that would be a sedan possibly priced around $50,000, and a new factory to build the machine. “Given the recent management changes, some reassurances are in order regarding Tesla Motors’ future plans,” Musk wrote in a blog post. “The near term message is simple and unequivocal—we are going to deliver a great sports car next year that customers will love driving. . . . My car, production VIN 1, is already off the production line in the UK and final preparations are being made for importation.” Tesla held a series of town hall meetings with customers where it tried to fess up to its problems in the open, and it started building some showrooms for its car. Vince Sollitto, the former PayPal executive, visited the Menlo Park showroom and found Musk complaining about the public relations issues but clearly inspired by the product Tesla was building. “His demeanor changed the moment we got to this display of the motor,” Sollitto said. Dressed in a leather jacket and slacks, Musk started talking about the motor’s properties and then put on a performance worthy of a carnival strongman by lifting the hundred-or-so-pound hunk of metal. “He picks this thing up and wedges it between his two palms,” Sollitto said. “He’s holding it, and he’s shaking and beads of sweat are forming on his forehead. It wasn’t so much a display of strength as a physical demonstration of the beauty of the product.” While the customers complained a lot about the delays, they seemed to sense this passion from Musk and share his enthusiasm for the product. Only a handful of customers asked for theirPDF Image | SpaceX and the Quest
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