Introduction

The video introduces Tesla and Elon Musk, highlighting how he led the company from a nearly bankrupt startup to a trillion-dollar automotive giant.

Tesla's Founding Team

• Tesla was founded by Martin Eberhard and Marc Tarpenning in 2003 with a focus on creating a modern technology-based automotive company.

• They raised $6.5 million in their Series A funding round, with almost all of it coming from Elon Musk.

• Elon continued to invest in Tesla through subsequent funding rounds, raising a total of $187 million before relying on other sources for capital.

• At IPO, Elon had a 28.4% stake in the company while the original founders were diluted into oblivion.

Why is Elon Musk the Only Billionaire?

• While all five founders are credited with founding Tesla, only one became a billionaire: JB Straubel at $1.3 billion (as of one year ago).

• Comparatively, Elon has daily net worth swings that are worth more than the cumulative net worth of all other founders combined.

• This can be explained by Elon's significant personal contributions to early funding rounds and his active role in developing the original Tesla Roadster.

Money Talks

This section delves deeper into how Martin and Marc's lack of money led them to rely heavily on outside investors like Elon Musk.

Funding Rounds

• Martin and Marc raised $6.5 million in their Series A funding round, with almost all of it coming from Elon Musk.

• Over time, they relied heavily on outside investors like Compass Technology Partners and Valor Equity Partners to raise additional funds.

• By 2008, they had raised a total of $187 million through four funding rounds led by Elon Musk.

Ousting of Founders

• Martin Eberhard was ousted as CEO in 2007, with Elon Musk taking over the role.

• Marc Tarpenning left Tesla shortly after and was replaced by Ze'ev Drori.

• The reasons for their ousting are unclear, but it is speculated that it was due to disagreements with Elon Musk.

Firing the Founders

This section explores the truth behind Martin and Marc's ousting from Tesla.

Reasons for Ousting

• Martin and Marc were hitting some brick walls in terms of fundraising and production issues.

• Elon Musk became increasingly frustrated with their progress and eventually took over as CEO in 2007.

• It is speculated that disagreements between Elon and Martin/Marc led to their ousting.

Impact on Founders' Wealth

• The original founders were essentially diluted into oblivion, especially because they weren't able to contribute much to subsequent funding rounds themselves.

• Neither Martin nor Marc have ever revealed details regarding their Tesla stake during this time period, but it was likely in the single digits.

The Feud Between Elon Musk and Martin Eberhard

This section discusses the feud between Elon Musk and Martin Eberhard, one of the co-founders of Tesla.

The Roadster Production Costs

• Martin allegedly misled investors regarding how much it would cost to produce the Roadster.

• Elon ordered a detailed cost breakdown of the car and found out that it was closer to $120,000.

• By the time they got past the first 100 units, materials alone were costing them $140,000 per car.

Firing Martin Eberhard

• Musk moved to fire Martin instead of setting up a meeting with him to discuss their differences.

• Elon decided to arrange a shareholder coup while Martin was attending a business meeting outside the country.

• When Martin heard about this, he too was triggered, which led to the great feud between them ever since.

Lawsuit and Settlement

• Both Martin and Marc would leave Tesla altogether at the beginning of 2008 and sue Elon for forcing them out.

• They eventually settled with an agreement that all of them would be credited as co-founders of Tesla.

• Ian had already left Tesla on his own will just one year after joining so he didn't have a very big stake in Tesla.

Aggressive CEO Compensation

This section discusses how Elon's aggressive CEO compensation has put him far ahead of other founders.

Compensation Plan

• Elon's latest compensation plan entailed getting an additional 1% of the company for every $50 billion increment in market cap.

• To unlock his entire compensation worth 12%, he has to hit a market cap of $650 billion, annual revenue of $175 billion, and an adjusted EBITA of $14 billion.

• Tesla has already achieved a market cap of $650 billion and an EBITA of $14 billion.

Shareholder Approval

• Elon's compensation plan was approved by Tesla's board because it was not that crazy compared to Tesla's growth.

• If Elon doesn’t hit his goals, shareholders don’t have to pay him.

• If he does hit his goals, both Elon and shareholders would have ridiculous gains.

JB Straubel

• JB Straubel is the only other co-founder left besides Elon Musk.

Elon Musk's Tesla Stake

This section discusses Elon Musk's investment in Tesla and how he maximized his stake in the company.

Maximizing His Stake

• When Elon was an investor, he led every single funding round and put in every penny he had into the company, maximizing his stake.

• When he became CEO, he slashed his salary to the absolute minimum so that he could maximize his stock compensation.

Net Worth

• Elon’s current Tesla stake only accounts for about half of his net worth. The rest of his net worth comes from SpaceX and potentially Twitter by the time you're watching this.

Other Founders

• The remaining Tesla founders never had the leverage of capital and/or they made some missteps along the way that pushed them out of the company altogether.

• Given their situation, they should’ve started a much cheaper business if getting rich was their goal.

• While they’re not billionaires and definitely not centibillionaires, they’re still extremely well off. And though they may not be as rich or as popular as Elon, there’s no doubt that their real-world impacts are far larger than what their net worth may suggest.

Conclusion

• Comment down below if you think Elon stole Tesla.

• Drop a like if you’re glad that Tesla is doing well.