Tesla, Inc.
All companies ↗Automotive · Energy · Written with AI

What actually happened atTesla, Inc.

Tesla began with Martin Eberhard and Marc Tarpenning, but five people ultimately gained the legal right to call themselves co-founders — and the best known of them joined after the company was incorporated.

First workearly 2003
FoundedJuly 1, 2003
OriginSan Carlos, California (initial offices; company incorporated in Delaware)
StatusPublic company (NASDAQ: TSLA) since June 29, 2010; renamed Tesla, Inc.
Sources13 items
On the record

Who actually founded Tesla?

Two people founded Tesla in 2003; those who joined later — including Musk — were investors and employees, not founders in the originating sense.

Martin Eberhard and Marc Tarpenning, 2023 · 2 sources

Musk considers himself a co-founder, emphasizing that his early-stage capital, product decisions, and later leadership were constitutive of the company that actually shipped cars.

Elon Musk, 2009 · 2 sources
This answer rests on
Martin Eberhard ↗
Founder · statement · 2023
Elon Musk ↗
Investor · statement · 2009
Reporting & filings
Documents cited · 4 items
The people

Who was actually there, and when

Martin Eberhard
Founder2003 — 2007
On record

Co-incorporated Tesla Motors, served as its first CEO, drove the early product vision for a desirable electric sports car, and led the company through its earliest fundraising and the Roadster program.

Marc Tarpenning
Founder2003 — 2008
No account

Co-incorporated Tesla Motors with Eberhard, led early electrical engineering and software, and served as VP of Electrical Engineering. Previously co-founded NuvoMedia with Eberhard.

Ian Wright
Founding Employee2003 — 2004
Invited

An early engineer (often described as Tesla's third employee) who joined soon after incorporation and left in 2004 to found Wrightspeed. Named as an allowable co-founder in the 2009 settlement.

Elon Musk
Investor2004 — later
On record

Led Tesla's first significant funding round in February 2004 with the large majority of the capital, became chairman of the board, and later became CEO (2008). Publicly the face of the company; his account emphasizes his role in product direction and survival financing.

JB Straubel
Early Employee2004 — 2019
Invited

Joined in 2004 and became long-serving Chief Technology Officer, central to Tesla's battery and powertrain engineering. Stayed the longest of the five recognized co-founders. Named as an allowable co-founder in the 2009 settlement.

Michael Marks
Executive2007 — 2007
No account

Former Flextronics CEO who served as interim CEO of Tesla after Eberhard was removed from the CEO role in 2007.

Ze'ev Drori
Executive2007 — 2008
No account

CEO of Tesla from late 2007 until Musk took over as CEO in October 2008.

Antonio Gracias
Investor2005 — later
No account

Founder of Valor Equity Partners; early investor and long-serving Tesla board member closely aligned with Musk.

Steve Jurvetson
Investor2006 — 2020
No account

Partner at Draper Fisher Jurvetson; led DFJ's investment and served on Tesla's board.

Sergey Brin
Investor2006 — present
No account

Google co-founder; angel investor in Tesla's Series C round.

Larry Page
Investor2006 — present
No account

Google co-founder; angel investor in Tesla's Series C round.

2 of 11 have put their version on the record.

The money

Who funded it, and who bought it

Daimler AG
Daimler AG
strategic · ~$50M · May 2009, board seat
VantagePoint Capital Partners
VantagePoint Capital Partners
Series C lead · ~$40M · May 2006, board seat
Elon Musk
Elon Musk
Series A lead · $7.5M · Feb 2004, board seat
Valor Equity Partners
Valor Equity Partners
Series B · 2005, board seat
Draper Fisher Jurvetson
Draper Fisher Jurvetson
Series C · 2006, board seat
Sergey Brin and Larry Page
Sergey Brin and Larry Page
Series C · 2006
Timeline

What happened, in order

19971 event
Full year

Eberhard and Tarpenning build and sell NuvoMedia

Before Tesla, Martin Eberhard and Marc Tarpenning co-founded NuvoMedia, maker of the Rocket eBook, which they sold to Gemstar in 2000. The venture established their partnership and capital base.

History of Tesla, Inc.
20033 events · 1 contested
Full year

AC Propulsion tzero inspires an electric sports car

Eberhard and Tarpenning, convinced there was demand for a desirable electric car, drew inspiration from AC Propulsion's tzero prototype and began developing the concept that became Tesla. First work on the idea predates incorporation.

History of Tesla, Inc.
Full year

Ian Wright joins as an early engineer

Ian Wright joins Tesla shortly after incorporation, often described as its third employee. He leaves in 2004 to start Wrightspeed. He is later named among the five allowable co-founders in the 2009 settlement.

History of Tesla, Inc.
Tesla Chief Musk, Co-Founder Eberhard Settle Lawsuit
Jul

Tesla Motors, Inc. is incorporated

Contested · 2 accounts

Tesla Motors, Inc. was incorporated on July 1, 2003 by Martin Eberhard and Marc Tarpenning. Elon Musk joined in February 2004 by leading the Series A round and became chairman of the board. Ian Wright (2003) and JB Straubel (2004) joined as early employees after incorporation. A 2009 legal settlement permits Eberhard, Tarpenning, Wright, Musk, and Straubel all to call themselves co-founders.

Unresolved: Whether 'co-founder' is historically accurate for individuals who joined after incorporation, or is a negotiated title.

Tesla Motors, Inc. Form 424B4 (IPO prospectus)
History of Tesla, Inc.
20042 events · 1 contested
Feb

Elon Musk leads the Series A and becomes chairman

Contested · 2 accounts

Tesla Motors, Inc. was incorporated on July 1, 2003 by Martin Eberhard and Marc Tarpenning. Elon Musk joined in February 2004 by leading the Series A round and became chairman of the board. Ian Wright (2003) and JB Straubel (2004) joined as early employees after incorporation. A 2009 legal settlement permits Eberhard, Tarpenning, Wright, Musk, and Straubel all to call themselves co-founders.

Unresolved: Whether 'co-founder' is historically accurate for individuals who joined after incorporation, or is a negotiated title.

Firsthand account — Elon MuskRecorded 2009

Musk's 2009 public account emphasizes that he provided the overwhelming majority of Tesla's early capital, set core product direction, and later led the company through crisis — the basis for his claim to co-founder standing. (Placeholder summary of his firsthand account; full text/citation to be attached.)

Version history · v1
Tesla Motors, Inc. Form 424B4 (IPO prospectus)
Tesla CEO Elon Musk Sets The Record Straight About Pending Lawsuit
May

JB Straubel joins; later becomes CTO

JB Straubel joins Tesla in 2004 and becomes its long-serving Chief Technology Officer, central to battery and powertrain engineering. He is later named among the five allowable co-founders.

History of Tesla, Inc.
Tesla Chief Musk, Co-Founder Eberhard Settle Lawsuit
20063 events
May

~$40M Series C led by VantagePoint

Tesla raises roughly $40M in a Series C round led by VantagePoint Capital Partners, with participation from DFJ, Valor, JPMorgan, and angels including Google co-founders Sergey Brin and Larry Page.

Tesla Motors, Inc. Form 424B4 (IPO prospectus)
History of Tesla, Inc.
Jul

Tesla Roadster unveiled

Tesla unveils the Roadster prototype at an invitation-only event in Santa Monica, California, generating major press for a Silicon Valley startup building a fast, desirable electric car.

History of Tesla, Inc.
Aug

Musk publishes 'The Secret Tesla Motors Master Plan'

Elon Musk publishes a blog post laying out a four-step strategy: build a sports car, use that money to build an affordable car, then an even more affordable car, and provide solar power along the way. The post becomes central to Tesla's public identity and to Musk's association with the company's vision.

The Secret Tesla Motors Master Plan (just between you and me)
20072 events · 2 contested
Aug

Eberhard removed as CEO

Contested · 2 accounts

Eberhard was removed as CEO in 2007 and left the company by the end of that year. The Roadster program was over budget and behind schedule at the time. Eberhard later publicly aired grievances and, in 2009, sued Musk and Tesla.

Unresolved: Whether performance issues alone, or a personal/power dynamic with Musk, drove the removal.

Martin Eberhard steps down as Tesla CEO
History of Tesla, Inc.
Dec

Eberhard leaves Tesla entirely

Contested · 2 accounts

Eberhard was removed as CEO in 2007 and left the company by the end of that year. The Roadster program was over budget and behind schedule at the time. Eberhard later publicly aired grievances and, in 2009, sued Musk and Tesla.

Unresolved: Whether performance issues alone, or a personal/power dynamic with Musk, drove the removal.

Firsthand account — Martin EberhardRecorded 2008

In his 'Tesla Founders Blog,' Eberhard documented departures and grievances following his removal, framing his exit as being pushed out of the company he founded. (Placeholder summary; archived posts to be attached.)

Version history · v1
History of Tesla, Inc.
Tesla Co-Founder Sues CEO Elon Musk For Slander And Breach Of Contract
20081 event
Oct

Musk becomes CEO during a cash crisis

Amid the 2008 financial crisis and a near-fatal cash shortage, Musk becomes CEO (succeeding Ze'ev Drori) and consolidates control of the company he had chaired and financed.

History of Tesla, Inc.
20095 events · 4 contested
Full year

Elon Musk's claim

Claim — not established history

Musk asserts he is a co-founder of Tesla and central to its creation, arguing that the company as it exists — including the Roadster and Model S — would not have happened without his capital and product direction.

Claimed by Elon Musk, 2009
Response — Martin Eberhard

Eberhard maintains that he and Tarpenning founded the company in 2003 and that Musk was an investor and chairman who joined about seven months later, and objects to Musk being portrayed as an originator of the company.

Unresolved
Tesla CEO Elon Musk Sets The Record Straight About Pending Lawsuit
Tesla Chief Musk, Co-Founder Eberhard Settle Lawsuit
Full year

Martin Eberhard's claim

Claim — not established history

Eberhard asserts he was pushed out of the company he founded and then written out of its story, characterizing Musk's conduct as a campaign to take credit.

Claimed by Martin Eberhard, 2009
Response — Elon Musk / Tesla

Musk and Tesla attribute Eberhard's removal to the Roadster's cost overruns and delays and to management performance, and dispute that Eberhard's account is accurate.

Partially resolved
Tesla Co-Founder Sues CEO Elon Musk For Slander And Breach Of Contract
May

Daimler takes a stake in Tesla

Daimler AG acquires roughly a 10% stake (about $50M), a crucial vote of confidence that helped Tesla survive to its IPO.

History of Tesla, Inc.
May

Eberhard sues Musk and Tesla

Contested · 2 accounts

Tesla Motors, Inc. was incorporated on July 1, 2003 by Martin Eberhard and Marc Tarpenning. Elon Musk joined in February 2004 by leading the Series A round and became chairman of the board. Ian Wright (2003) and JB Straubel (2004) joined as early employees after incorporation. A 2009 legal settlement permits Eberhard, Tarpenning, Wright, Musk, and Straubel all to call themselves co-founders.

Unresolved: Whether 'co-founder' is historically accurate for individuals who joined after incorporation, or is a negotiated title.

Tesla Co-Founder Sues CEO Elon Musk For Slander And Breach Of Contract
Tesla CEO Elon Musk Sets The Record Straight About Pending Lawsuit
Sep

Settlement: five people may call themselves co-founders

Contested · 2 accounts

Tesla Motors, Inc. was incorporated on July 1, 2003 by Martin Eberhard and Marc Tarpenning. Elon Musk joined in February 2004 by leading the Series A round and became chairman of the board. Ian Wright (2003) and JB Straubel (2004) joined as early employees after incorporation. A 2009 legal settlement permits Eberhard, Tarpenning, Wright, Musk, and Straubel all to call themselves co-founders.

Unresolved: Whether 'co-founder' is historically accurate for individuals who joined after incorporation, or is a negotiated title.

Tesla Chief Musk, Co-Founder Eberhard Settle Lawsuit
Lawsuit Against Tesla Dropped
20101 event
Jun

Tesla goes public (NASDAQ: TSLA)

Tesla lists on NASDAQ at $17 per share, selling 13.3 million shares to raise about $226 million — the first IPO by an American automaker since Ford in 1956. Shares closed up roughly 40% on the first day.

Tesla Motors Raises $226 Million in First IPO of U.S. Carmaker in 54 Years
Tesla IPO Raises More Than $226 Million
Tesla Motors, Inc. Form 424B4 (IPO prospectus)
20231 event
Feb

Eberhard revisits his ouster publicly

In later interviews, Eberhard describes being ousted, the personal toll, and his continued disagreement with how Tesla's founding is popularly told — an example of the founding story being re-litigated years afterward.

Firsthand account — Martin EberhardRecorded Feb 2023

In 2023 interviews Eberhard reflected on being ousted, the two years he says he was 'basically unemployable' afterward, and his disagreement with how the founding is popularly narrated. (Placeholder summary; direct quotes to be attached.)

Version history · v1
Tesla cofounder Martin Eberhard, who Musk ousted, calls FSD too immature for the road
Tesla cofounder says he was 'basically unemployable' and out of money for 2 years after being ousted
Where are they now

The beginning reads differently once you know the end

Martin Eberhard

Ousted 2007; sued and settled 2009; recognized co-founder but estranged; later worked in EV/energy ventures and became an outside commentator.

Marc Tarpenning

Left ~2008; remained a recognized co-founder on good terms; later an investor/advisor.

Ian Wright

Left 2004 to found Wrightspeed; recognized co-founder via the 2009 settlement.

JB Straubel

Longest-serving; CTO until 2019; founded Redwood Materials; later returned to Tesla's board.

Elon Musk

Chairman (2004), CEO (2008–), and the person most publicly associated with Tesla.