Elon Musk and Tesla
Elon Musk, business magnate and investor, is popularly considered to be the founder of electric automotive giant Tesla. He is also the CEO and Chairman of the company. In reality, however, the real originators of Tesla are Martin Eberhard and Marc Tarpenning. It must be noted that Musk, even though he did not found Tesla, has since made huge contributions, financially and strategically, to the company’s growth and success.
Musk entered the scene in May 2004, making sizable investments in Tesla and leading the Series A round of funding. Musk’s initial keynote, ‘The Secret Tesla Motors Master Plan’ was extremely valuable to the industry. Soon after his contribution, he was appointed Chairman of the Board and became actively involved in the running of the operations. This was an unprecedented move, as usually investors are kept in the background, observing the company’s operations rather than becoming an integral part of it.
Musk was closely associated with the drafting of Tesla’s famous second Master Plan in August 2006. A year later, he became the CEO of the company, replacing Ze’ev Drori who in turn had replaced Eberhard. In 2013, Musk, a graduate of economics, engineering, and physical sciences marked his influence in the industry with Tesla Model S becoming the first vehicle on U.S’s scoreboard of the best financial investments in cars. With the announcement of Gigafactory 1 in 2013, the carmaker’s production has increased exponentially.
The story of Tesla is a promising one, changing the way the world looks at fuel and giving a major push to electric cars. It is now one of the most popular, most positive and important stories associated with the technology industry. Musk may not have founded the company, but his vision and determination in running the same and making it financially powerful is the success story behind Tesla.
The term ‘Elon Musk, founder of Tesla’ is used casually and often, likely because of the strong association between him and the brand. He could be considered an expert in scaling a business from the ground up, leveraging the power of digital marketing and consumer psychology. His team’s marketing efforts have converted Tesla from a relatively unknown company to a globally renowned brand.
The Reality of Tesla’s Struggles
To understand the impact of Musk’s involvement with Tesla, it is important to understand the reality of Tesla’s struggles before his entrée. During 2001–02, Tesla started with a factory with Eberhard as the company’s president and Tarpenning as the CFO. The two were responsible for entrepreneurship and investments in the company. Unfortunately, the company faced losses in its first years, unable to cover its ongoing costs. The company faced bankruptcy and a possible shutdown.
In 2003, they received a financial push from tech giants of Silicon Valley such as Google co-founder Sergey Brin and also venture capitalists such as Draper Fisher Jurvetson, a California-based venture capital firm. After the arrival of Musk in 2004 and the conduction of Tesla’s Series A round of funding. It was particularly during this time period that Musk helped set wheels in motion by authorizing the company to hire new members, focus on research and development, and pour in finances.
Musk’s Role in Using Innovative Strategies
It was Musk who, after recognizing the need of the hour, decided to call a halt to the production of Tesla’s first Roadster design and go forward with a completely new design. Although this was a risky decision from a business perspective, it paid off. He also became heavily involved in the regulation of the automotive industry, a first of its kind, working with local governments to compete with big brand automakers.
Musk focused on a broader approach to the automobile business, investing money in working on this idea of mobility. In the beginning, other large automobile manufacturing companies did not see the power that electric cars could wield and therefore did not give Tesla the kind of attention it needed. Musk is the one to blame for inspiring energy and courage in Tesla employees to stride ahead towards the future.
Tesla under Musk’s Leadership
Eventually, Tesla worked its way around to become a well-known brand not just inside tech circles, but also as an industry leader. With the launch of its first fully built zero-emission and autonomous Model S in June 2012, the company made its mark. This was succeeded by the successful launch of the Model X in 2015. Tesla today is one of the leading electric vehicle-manufacturing companies, with a fleet that currently consists of Model S, Model X, Model 3, and the recently launched Model Y.
Under Musk’s leadership, Tesla has grown as a company, which is reflected in the deluge of orders and interest from consumers around the world. Although some troublesome times and decisions have been made along the course of Tesla’s journey, Musk’s focus on innovation and the future set Tesla apart from its competitors. He is known for his ability to take risks and push the boundaries, often leading to success for Tesla.
The Contribution of Eberhard and Tarpenning
Eberhard, a graduate of Stanford University, with Tarpenning as his CFO were responsible for the formation of the company. Besides designing the first Tesla Roadster, they revolutionized Silicon Valley’s investment policies by accepting venture capital financing rather than raising money, like almost every other established global automaker did.
Eberhard and Tarpenning worked collaboratively to develop prototypes of the Tesla Roadster. They made several controversial decisions of their own, including refusing to finance and sell a design based on the Lotus Elise platform and opting to develop an entirely new version. By the end of 2007, Eberhard and Tarpenning had left the company altogether.
Comparing the Contributions of Musk and Eberhard-Tarpenning Duo
From raising funds to introducing radical changes, Musk and Eberhard-Tarpenning duo both have contributed significantly to the progress of Tesla, each in their own unique ways. Musk has provided enormous amounts of financial aid and served as the backbone of the company in dire times whereas Eberhard-Tarpenning duo have dedicated their time and efforts for the development of a unique Tesla product.
Musk, as the Chairman and CEO has taken numerous veracious risks, making the brand popular amongst technology enthusiasts worldwide and within the automotive industry. However, drawing deep connections between Musk and the founding of Tesla isn’t correct. It must be noted that the credit of giving birth to Tesla goes to Eberhard and Tarpenning, with their design and innovation prototypes.
Benefits of Tesla to Society
Tesla’s products have benefitted society in many ways, the biggest being its contribution to sustainability by producing zero-emission vehicles. Moreover, Tesla cars – equipped with sensors, LIDAR systems, and cameras – are an important step towards the future of transportation. Tesla cars are self-driven, eliminating errors associated with manual transportation, making it safer for the public.
In addition to this, Tesla has also introduced impeccable technology when it comes to vehicle design, such as an in-car 3G internet connection, providing passengers with the opportunity to access mobile applications. As the industry leader in electric vehicles, Tesla automobiles enable the public to reduce emissions alongside enjoying flexible pricing and wider options.
Criticism towards Tesla’s operations
Despite Tesla’s impressive accomplishments, the company is often subject to critique without fail. Several people have spoken out against the company’s practices saying that Tesla’s is more focused on branding rather than quality. The company has also been accused of benefiting from various subsidies and tax incentives. Critics are of the opinion that these incentives benefit well-off customers, rather than people in economic trouble.
Another area of criticism concerns Tesla’s manufacturing process which can be incredibly unsafe. Several reports from employees reveal the prevalence of recklessness, poor labor conditions, and unpredictability in operations. It must be noted that in its early days, regardless of its incoming funds, Tesla had failed to provide the necessary resources and safety measures to the staff, leading to serious accidents at its factory.
The Future of Tesla
The future of Tesla looks promising, considering its significant contributions in the area of sustainability and innovation in the automotive industry. The company enjoys considerable popularity amongst tech circles and it is up to Musk to properly channelize the brand’s growing influence and make it into a global leader. The challenge is whether Musk can continue to improve the design and functions of future Tesla vehicles.
In addition to improving its vehicle design and technology, Tesla must also look into its internal operations and increase the number of safety measures provided for its employees. If Tesla can adequately address these areas of improvement, the company will continue to experience remarkable feats.
