Silicon Valley – You may think why I mentioned this name, home for major Software giants as well as the Stanford University. Yes, it is all about semiconductor and software unless we consider Tesla Motors – the odd man, just like the electrical engineer and physicist ‘Nikola Tesla’, Tesla Motors is his namesake. Both share many things in common.
Tesla Motors formed in 2003, as two independent groups of designers decided to commercialize the T-Zero prototype electric sports car created by AC Propulsion (based in San Dimas, California, USA, founded in 1992 by Alan Cocconi that specialises in alternating current-based drivetrain systems for electric vehicles. Tom Gage is currently the company’s CEO.). They are Martin Eberhard, Marc Tarpenning and Ian Wright on the one hand, and Elon Musk and JB Straubel on the other. Tom Gage, then president of AC Propulsion, suggested that the two teams join forces to maximize the chances of success. They agreed to merge their efforts, with Musk becoming chairman and overall head of product design, Eberhard becoming CEO and Straubel becoming CTO.
Musk, from his college days had a dream of commercialising electric vehicles. He actively took part in product design of the Roadster, rather than in day to day business activities. He was the man behind the carbon fibre body of the cars as well as design of components ranging from the power electronics module to the headlamps and other styling cues. Musk has consistently maintained that Tesla’s long-term strategic goal is to create affordable mass market electric vehicles in order to have a material impact on oil consumption. Musk received the Global Green 2006 product design award for his design of the Tesla Roadster, presented by Mikhail Gorbachev, and he received the 2007 Index Design award for his design of the Tesla Roadster.
2006 was a major year of investment attraction. Tesla’s third round included investment from prominent entrepreneurs including Google co-founders Sergey Brin & Larry Page, former eBay President Jeff Skoll, Hyatt heir Nick Pritzker and added the VC firms Draper Fisher Jurvetson, Capricorn Management and The Bay Area Equity Fund managed by JPMorgan Chase. The fourth round in May 2007 added another US$45 million and brought the total investments to over US$105 million through private financing.
In December 2007, Ze’ev Drori took over charge of CEO from Musk. Under him 2008 was a major year of restructuring. Many key people were fired after a performance review. This was a part of reducing the company workforce by about 10 percent to lower its burn rate, which was out of control in 2007. In October 2008, Musk succeeded Ze’ev Drori as CEO. Drori became Vice Chairman. He left the company in December.
On May 19, 2009, Germany’s Daimler AG, maker of Mercedes, acquired an equity stake of less than 10 percent of Tesla for a reported US$50 million. In July 2009, Daimler announced that Abu Dhabi’s Aabar Investments bought 40 percent of Daimler’s interest in Tesla.
In June 2009 Tesla was approved to receive US$465 million in interest-bearing loans from the United States Department of Energy. The funding, part of an US$8 billion program for advanced vehicle technologies (Advanced Technology Vehicles Manufacturing Loan Program), supports engineering and production of the Model S sedan, as well as the development of powertrain technology that Tesla plans to sell to other automakers. The company announced in early August 2009 that it had achieved overall corporate profitability for the month of July 2009. The company said it earned approximately US$1 million on revenue of US$20 million.
On 29 January 2010, Tesla Motors filed Form S-1 with the U.S. Securities and Exchange Commission, as a preliminary prospectus indicating its intention to file an initial public offering (IPO) underwritten by Goldman Sachs, Morgan Stanley, J. P. Morgan, and Deutsche Bank Securities. In June 2010, it was reported that Tesla sold a total of US$12.2 million zero emission vehicle credits to other automakers, including Honda, up to March 31, 2010. On June 29, 2010 Tesla Motors launched its initial public offering on NASDAQ under the symbol TSLA. The IPO raised US$226 million for the company. It was the first American car maker to go public since the Ford Motor Company had its IPO in 1956.
Up to date Tesla sold over 1850 roadster in 31 Countries…


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: