Understanding the Controversial Co-Founding History of Tesla Inc.

In the annals of electric vehicle manufacturing, the inception of Tesla Motors in 2003 was a landmark event. The company was initially incorporated by Martin Eberhard and Marc Tarpenning. However, due to a later lawsuit settlement, Elon Musk and two other individuals are also acknowledged as co-founders. Musk, a proactive investor in the electric vehicle market, assumed the position of chairman in 2004, long before Tesla sold its first car.

Martin Eberhard served as Tesla’s first CEO but was compelled to step down from his role in 2007 by the Musk-led board, eventually leaving the company in the following year.

The relationship between Musk and Eberhard has been fraught with controversy. According to Musk, Eberhard created a “false narrative” about Musk’s investment in Tesla. Musk publicly criticized Eberhard, calling him “the worst person I’ve ever worked with.” Eberhard, in turn, initiated a lawsuit against Musk for libel, slander, and breach of contract. This lawsuit led to the settlement that recognized Musk as a Tesla co-founder.