Tesla Co-founder Eberhard Disappointed in Musk's $25K EV Cancellation

Tesla Co-Founder Critiques Company's Direction

Martin Eberhard, one of the original co-founders of Tesla, has expressed disappointment over Elon Musk's decision to discontinue the production of a low-cost electric vehicle program, which had aimed to provide a more affordable option for consumers. The abandoned program was initially positioned to create a $25,000 Tesla vehicle aimed at a broader market, a vision that has not materialized. Instead, Tesla has shifted its focus towards increasing the affordability of existing models like the Model Y and Model 3.

In a recent interview, Eberhard reflected on Tesla’s strategic decisions, expressing concern that the company's cancellation of its low-end car program contradicts the needs of consumers. He stated, “I am actually disappointed that Tesla canceled its low-end car program because that’s what the world needs – not a truck that looks like a dumpster.”

Moreover, Eberhard has conveyed skepticism about Tesla's future self-driving initiatives, specifically addressing the safety concerns surrounding autonomous systems. He remarked, “People are overlooking the failure of these autonomous systems too easily.” This is especially in regard to the rush that Tesla has been in to deploy prototypes that could pose risks to public safety.

Eberhard and Musk's Relationship

While many associate Elon Musk with Tesla solely due to his prominent role and large media presence, the company's foundation includes Eberhard and Marc Tarpenning, who initiated the company prior to Musk's involvement. Musk has gained the right to call himself a co-founder through a court settlement, which recognized him and four others—Eberhard, Tarpenning, Ian Wright, and JB Straubel—as co-founders. Throughout Tesla's initial years, Eberhard and Tarpenning played pivotal roles in leading the company, while Musk served primarily as an investor and chairman. Tensions arose between Musk and Eberhard during the challenging development of Tesla’s first vehicle, the Roadster, ultimately resulting in Eberhard's departure from the company as a significant shareholder.