Eberhard out as CEO (San Jose Mercury News)

[Brent]

http://www.mercextra.com/blogs/nauman/2007/08/11/tesla-to-replace-eberhard-as-ceo/

To be replaced by Flextronics' Michael Marks.

Maybe we'll get a better sense why tomorrow...

 

[tonybelding]

From the Horse's Mouth

Martin Eberhard a sent an email to Roadster buyers. I trust it should be okay for me to repost some of it here.

This week I move from the CEO position to become President of Technology, and I remain on Tesla’s board of directors. In my new job, I will focus on the final details of the Roadster and on advancing Tesla’s leadership in our core technology. I will also be able to spend more time with you, our customers. My passion is for creating technology that brings about meaningful change, and for the people who embrace such technology. As we move towards production and contemplate the choices ahead of us, we at Tesla need leadership with that same kind of passion and talent for operations – passion that will secure Tesla’s future as the next major automobile company.

I initiated an intense CEO search some time ago, but the board and I have yet to find the right person to fill this role – even as Tesla continues to grow and its operational needs become paramount.

We are incredibly fortunate that Michael Marks, former CEO of Flextronics, the world’s largest contract manufacturing company, has agreed to serve as CEO on an interim basis. Michael grew Flextronics from a small company to the 19 billion dollar powerhouse it is today. He is also an early investor in Tesla Motors and a customer. We could not ask for more able leadership during this transition. The Board and I will continue to search for a CEO to lead Tesla on a permanent basis.

He also goes into some detail about the status of the Roadster. The upshot is that they have more time-consuming crash testing and durability testing to conduct before they fire up the assembly line. Also noted:

Once we enter production, we will build the first cars very slowly – about one per week – accelerating as we gain experience. It takes about 5 weeks to ship the car from the U.K. to the U.S. So a September production start translates into an early November delivery of the first car to a customer.

That would mean the Founders Series cars get delivered before the end of this year, and the Signature One Hundred cars get delivered in the first quarter of 2008, and the rest following ever more rapidly, with a total production of about 1000 cars for the year. That's not a promise, that's just the way things look if no more hold-ups appear.

Also there was an oblique comment about range:

We’re waiting to publicly announce the results of our EPA range validation tests until all the results are in, but I’ll let you know in advance you will be pleased. You are going to love this car.

Will they actually hit 250 miles-per-charge after all? If they don't, the hints I've heard suggest they'll get pretty close to it. It really matters more from a marketing perspective than from a practical perspective. Those of you who were into the range discussions here already know that "your mileage may vary" -- a lot, depending on how you drive the car, and other factors.

 

[danny]

I unknowingly found out about this a week ago. How? Because I saw CEOswife register as X-CEOswife. At the time I didn't make much of it but now I know why she changed her name.

 

[WarpedOne]

>> .. CEO position to become President of Technology ..

Can someone clarify the disctintion? I come from a developing country where those terms doesn't mean a lot.

 

[danny]

CEO is the head of the company basically and President of technology I suppose would mean that hes in charge of the technological progress of the company.

 

[TEG]

>> .. CEO position to become President of Technology ..
Can someone clarify the disctintion? I come from a developing country where those terms doesn't mean a lot.

Read this for some good info

It seems like a demotion, but keep in mind that the company is growing rapidly in all directions so in a way only a small bit grew above Martin with the bulk coming below.

The main point it seems to me is that they want Martin to stay focused on the Roadster, and have someone else plan the future models. Perhaps in his new role Martin won't be able to stand in the way of something like the idea of an ICE for model 3.

This seems sad in a way, but probably shouldn't be too surprising considering how fast they have grown, and that the founders had no experience in this industry when they started.

Maybe the board thinks this is a necessary step in adding some outside credibility as they think about an IPO?

(on the other hand maybe I have no idea what I am talking about!)

 

[WarpedOne]

Thank you for clarifying it a little.

The main point it seems to me is that they want Martin to stay focused on the Roadster, and have someone else plan the future models. Perhaps in his new role Martin won't be able to stand in the way of something like the idea of an ICE for model 3.

I think you are going a little bit too far.

Martin:

In my new job, I will focus on the final details of the Roadster and on advancing Tesla’s leadership in our core technology.

The Roadster being almost a finished product that leaves him with "core technology". I guess anyone trying to bring in an ICE would had to have his blessings. I suppose Martin realized he is good at nursing new companies but somewhat lacking in general management tasks. So they will let him focus on what he is good at - developing new technologies. They will need them for Bluestar.

 

[Brent]

The press release has to be among the most mystifying things I've ever seen come out of TM. Its entirety (http://www.teslamotors.com/media/press_room.php?id=614 ):

San Carlos, Calif. – (August 13, 2007) -- Michael Marks, former CEO of Flextronics and an early investor in Tesla Motors, will take over as interim CEO of Tesla Motors. Michael’s extraordinary leadership and depth of experience in manufacturing, operations and logistics will be invaluable to Tesla as we prepare to start production of the Tesla Roadster and lay the foundation the next phase of growth for the company.

Martin Eberhard, founder and CEO of Tesla Motors, will remain with the company as President of Technology and focus on the success of the Roadster program as well as the advancement of our core technologies.

Martin and the board have been planning for CEO succession since early this year, and will continue the search for a permanent CEO to lead Tesla Motors.

On behalf of the board, I want to thank Martin for his leadership of Tesla since its founding in 2003.

If Elon and Martin have been "planning for CEO succession" for months, one wonders why the management shuffle had to come so suddenly, on the eve of the Roadster's release, and why it was Elon who announced it, rather than Martin.

Were I in Martin's shoes -- and assuming I was seeking other roles in the company -- I might have seen the car through to its first delivery, and then announced that I had decided to focus my energies elsewhere.

Martin is, after all, the company's co-founder. I can think of more benign explanations for the change, but on balance, this chain of events looks to me more like a board-ordered shakeup than Martin's choice.

It would be nice to see some sort of blog entry with more info.

 

[malcolm]

I think Martin is itching to get back to engineering. That Whitestar isn't going to happen by itself. The Roadster is all set to role apart from some last minute "tweakmanship". Getting a new face in as CEO during the launch will highlight the search for a new CEO and, hopefully bring in the resumes.

 

[TEG]

Some more details here

 

[DDB]

Why wouldn't Tesla have already selected the new CEO prior to the announcement? It's now almost like a hurry-up issue rather than appearing planned...makes me wonder.

 

[Michael]

X-CEOswife

I unknowingly found out about this a week ago. How? Because I saw CEOswife register as X-CEOswife. At the time I didn't make much of it but now I know why she changed her name.

I think the new name could also imply that she's no longer Martin's wife. Perhaps we could suggest using TechPresWife instead?

 

[donauker]

Why wouldn't Tesla have already selected the new CEO prior to the announcement? It's now almost like a hurry-up issue rather than appearing planned...makes me wonder.

Martin has made it clear in his communication to future owners that he initiated a CEO search many months ago. He also talks of his admiration of Michael Marks' capabilities and the appreciation for the advice and direction he gave Martin over the years. Martin also indicated that they decided to move quickly due to Michael's willingness and his sudden availability. Look for a new blog entry from Martin on this in the near future.

As a technical person & owner of a small business with only a few employees I can on a very limited scale imagine how much happier Martin might be without needing to fill the role of CEO in such a rapidly growing business. He can now spend much more time on what he loves doing and less time on frustrating BS!

 

[donauker]

I think the new name could also imply that she's no longer Martin's wife. Perhaps we could suggest using TechPresWife instead?

Actually her new name is correct as it is. The name to indicate that that she is no longer the CEOs wife would be CEOsX-wife not X-CEOswife

 

[TEG]

When people said "Martin for President!" this isn't what we meant!

 

[X-CEOsWife]

X-CEOsWife

I think the new name could also imply that she's no longer Martin's wife. Perhaps we could suggest using TechPresWife instead?

Just to set the record straight, Martin and I are still happily married.

My hope for the future is that history treats Martin fairly. I know that I have read several articles that have made Martin out to be a dolt and made it sound like he was a minor player in the founding of Tesla. Those articles really annoy me. I often wonder to whom the interviewer talked to gather his/her information.

Maybe someday, when Martin has retired from Tesla, I will press him into writing his biography. Unfortunately, until that time, I can not tell you guys everything I know. As you know, there is alway a story behind the story. Many are funny; some are maddening; and some are just down right interesting. As you can imagine, living with Martin does not allow for many dull moments around here.

In the mean time, thank you for your support. It has meant a lot to Martin and his team.

 

[TEG]

I don't understand why the sudden rush of gloom that seems to be popping up.
Is this just about some delays, and small shortcomings in range estimates? Those seem like minor issues for an undertaking like this. We are still on track for initial deliveries before the end of the year, right? I would think people would be celebrating considering all the pre-orders that have come in.

A real failure would have been if no one wanted to buy them, but the pre-order rate so far seems like a phenomenal success.

Even giant companies with a long history and massive resources have trouble meeting delivery targets. From what I see and hear, I assume Martin has a somewhat thick skin, so I hope this is just his way of apologizing for delays and taking some flack to deflect it from the rest of the company.

Or could this be the result of some sort of "battle of egos" going on behind the scenes?

I hope everything turns rosy again as the first roadsters reach customer's hands.

 

[WarpedOne]

I don't understand why the sudden rush of gloom that seems to be popping up.

It is necessary to look at where it is coming from. It is coming from the comunity that Tesla built around itself. In the eyes of this comunity the Tesla Motors and Marting Eberhard were almost one and the same. He appeared as the main speaker, the main thinker and also the CEO. CEOs are seen as the head of the companies. This CEO change apperas as the Martin is not in charge anymore, his views that so many of us share and bet and whish for them now appear as in jeopardy. We do not know this Michael Mark, his preferences, whishes, motives. He might be just the right person for the job but the comunity just doesn't know that.

I guess it would be wise if the next blog came from Michael. Explaing a little about his personal background and his views and ambitions in his new role. Sooner the better.

 

[DDB]

In the eyes of this comunity the Tesla Motors and Marting Eberhard were almost one and the same.

If that's the view, then good move by Martin in the interest of the company. Any HR person would tell you that you can't build a company based on a person but rather a position. People come and go, but positions are lasting. A change in position was inevitable, whether it be now or fifty years from now.

And I completely agree that thus far, Tesla has been a huge success. If it held an IPO tomorrow or sold to private equity, the current owners would make a fortune. From another standpoint, it's proven that EVs are viable alternatives in the U.S. I'm sick of petro and darn happy to see more contenders trying to measure up to Tesla, which has set the bar high.

 

[Michael]

To: X-CEOsWife: Congratulations to both you and Martin. I hope you now have some opportunity to enjoy a little more time as a family.

By making the decision he did, Martin strikes me as being incredibly intelligent and focused on ensuring the success of Tesla!