Welcome to Tesla Motors Club
Discuss Tesla's Model S, Model 3, Model X, Model Y, Cybertruck, Roadster and More.
Register
  • The latest TMC Podcast (#14) is now available on YouTube and all major podcast networks. We covered FSD Beta's exciting v11 update, Enhanced Autopilot coming to the U.S. and Canada, and more!

Tesla Motors - The Early Years

Arnold Panz

Model Sig 304, VIN 542
Apr 13, 2009
1,340
3
Miami, Florida
Yes, Delaware is very friendly to outside companies incorporating there. Microsoft is a Delaware company, even though they were founded and are still headquartered in Redmond, WA. Perhaps there is some logic to Tesla Motors - considered the software company of automakers - being incorporated in the same state as Microsoft and others.

Most companies, particularly big ones (public or intending to go public), incorporate in Delaware. The law is very favorable in Delaware, and because of its historial role as the place to incorporate, very well developed in the areas important to companies. Among other things, Delaware law provides tremendous leeway to management and the Board of Directors in terms of the "business judgment rule", which essentially allows the individuals who make decisions for the company to avoid having claims brought against them by shareholders if those decisions turn out to be poor ones. There were other benefits historically to incorporating in Delaware (taxes and such), but that is now one of the main reason companies continue to incorporate there even if they have no other relationship to the state.
 

neroden

Model S Owner and Frustrated Tesla Fan
Apr 25, 2011
14,676
63,886
Ithaca, NY, USA
Among other things, Delaware law provides tremendous leeway to management and the Board of Directors in terms of the "business judgment rule", which essentially allows the individuals who make decisions for the company to avoid having claims brought against them by shareholders if those decisions turn out to be poor ones.

The Delaware courts have had particularly "generous" interpretations of this rule, too, deciding that management self-dealing which doesn't pass the smell test is within the parameters of "business judgment". Stuff which German corporations would never get away with.
 
  • Helpful
Reactions: Brando

mikevbf

Active Member
Supporting Member
Feb 11, 2012
1,878
4,536
vermont
Wow, I am the first person to post to this sticky thread in almost 2 years! Anyway it seemed the most appropriate place to post this long yet completely engrossing history of Tesla by Marc Tarpenning who co-founded Tesla Motors with Martin Eberhard. See if you can watch this less than 5 minutes. I bet you can't:
Amplify Mentor Event: Marc Tarpenning (Tesla) - YouTube
 

lolachampcar

Well-Known Member
Nov 26, 2012
6,182
7,698
WPB Florida
This thread reminds me of the old saying "Different horses for different courses". It happens often that those with the ideas are not those that fulfill the potential of the idea. It seems from this thread that EM has a track record of inserting himself in an idea and fulfilling its potential (based on comments about PayPal and TM). Does this theory apply to SpaceX as well?
 
I read that Elon now refers to them as "two guys I hired to build a prototype".

Has he actually said anything along those lines? He rarely speaks about Tesla being a company before he came along, but i do remember an interview where he tells the story of when he wanted to bring the AC propulsion vehicle to market, that he was refered to those guys who had started Tesla and contacted them. Though I don't remember which interview that was and i cant confirm i remember it correctly:)

- - - Updated - - -


Here he quite clearly states his version of the history. He mentions the other guys but not that the name Tesla actually existed or that they already had a concept car and cooperation with Lotus or anything like that.
 
Last edited by a moderator:

TEG

Teslafanatic
Moderator
Aug 20, 2006
22,031
9,340
Very interesting that story. Seems mostly in line with what I know, but had a couple of thoughts:

#1: I thought JB had some involvement in the early Martin/Elon/ACP meet-up dealings, but that wasn't mentioned.
#2: It leaves off the story of other early contributors.
#3: Comparing Ian to Gandalf and Dundee seems like a peculiar stretch.
#4: Comparing Roadster design to LEAF wasn't relevant as LEAF came much later (and isn't really a sports car.)
#5: I had heard Lotus was (in effect) the only ones that would really talk to them, not necessarily the first choice of who to use as a partner.
 

mspohr

Well-Known Member
Jul 27, 2014
11,168
14,430
California
Great (long) article!
I particularly liked the early insight they had about the auto industry which is that the industry has outsourced everything except ICE engines, assembly and marketing so it was possible to buy all of the parts to make a car without having to design and build themselves.
This also leaves the ICE car companies at a disadvantage when it comes to electric. If they only core expertise you have in-house is ICE engines, you are screwed when it comes to electric cars.
 

Products we're discussing on TMC...

About Us

Formed in 2006, Tesla Motors Club (TMC) was the first independent online Tesla community. Today it remains the largest and most dynamic community of Tesla enthusiasts. Learn more.

Do you value your experience at TMC? Consider becoming a Supporting Member of Tesla Motors Club. As a thank you for your contribution, you'll get nearly no ads in the Community and Groups sections. Additional perks are available depending on the level of contribution. Please visit the Account Upgrades page for more details.


SUPPORT TMC
Top