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Tesla’s Origin Story in One Giant Infographic

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Priced at $17 per share just seven years ago, the Tesla IPO ended up being a total bargain for anyone lucky enough to get in.

However, this view comes with the benefit of plenty of hindsight – and even Elon Musk would tell you that it wasn’t always obvious that the company would be around in 2017. There were periods of time when layoffs were rampant, the company’s payroll was covered by credit cards, and Tesla was on the brink of bankruptcy.

Rise of Tesla: The History (Part 1 of 3)

Today’s massive infographic comes to us from Global Energy Metals, and it is the first part of our three-part Rise of Tesla Series, which will soon be a definitive source for everything you ever wanted to know about the company.

Part 1 deals with the origin story of the company, challenges faced by the first EVs, the company’s strategy and initial execution, and the Tesla Roadster’s development.

Part 1: Tesla's Origin StoryPart 2: From IPO and OnwardsVisualizing Elon Musk's Vision for the Future of Tesla

Tesla's Origin Story in a Giant Infographic
Part 1: Tesla's Origin StoryPart 2: From IPO and OnwardsVisualizing Elon Musk's Vision for the Future of Tesla

Tesla was initially conceived in 2003 out of the vision of two Silicon Valley engineers, Martin Eberhard and Marc Tarpenning. The partners had just sold their eReader company for $187 million, and were looking for their next big idea.

The infamous “death” of GM’s EV1 electric car that year ended up being a source of inspiration, and the two engineers started looking into ways to reduce the world’s reliance on Middle Eastern oil and to combat climate change.

The electric car pathway was not just better than the other choices that were out there – it was dramatically better.

– Martin Eberhard, Tesla co-founder

The company was bootstrapped until Elon Musk led the $7.5 million Series A round in February 2004 and became the controlling investor. He joined the board of directors as its chairman, and took on operational roles as well.

At this time, JB Straubel – who famously rebuilt an electric golf cart when he was only 14 years old – also joined the company as CTO.

Initial Strategy

Tesla’s initial strategy was to build a high performance sports car first, for a few reasons:

  • It would shed the existing stigma around EVs
  • Sports cars have higher margins
  • Fewer cars would need to be produced
  • High-end buyers are less price-sensitive

Instead of building the Tesla Roadster from scratch, the company aimed to combine an existing chassis with an AC induction motor and battery. And so, the company signed a contract with British sports car maker Lotus to use its Elise chassis as a base.

Roadster Debut

The Roadster made its debut at a star-studded launch party in Santa Monica. The 350-strong guestlist of Hollywood celebrities and the press were wowed by the 2-seater sports car with a $100,000 price tag.

This is not your father’s electric car.

– The Washington Post

What the audience didn’t notice?

The Roadsters had many issues that needed to be fixed – these and others would delay Tesla well beyond the planned Summer 2007 delivery date.

The Dark Years

Tesla’s original business plan was built on the idea that the auto industry had changed drastically.

Automakers now focused on core competencies like financing, engine design, sales and marketing, and final assembly – getting the hundreds of individual car parts, like windshield wiper blades or door handles, was actually outsourced.

This was supposed to make it easy for Tesla to get its foot in the door – to focus on the EV aspect and let Lotus do the rest. Instead, the company experienced an “elegance creep” phenomenon. They were able to keep making the car nicer, but it meant customizing individual parts.

Costs spiraled out of control, things got delayed, and the car began to take a very different shape than the Elise. By the time it was said and done, the Tesla Roadster was nothing like its Lotus cousin, sharing only 7% parts by count.

The Revolving Door

During this process, there was a revolving door of CEOs.

2007: Eberhart was forced to resign as CEO in August
2007: Early Tesla investor Michael Marks took the reins temporarily
2007: In November, Ze’ev Drori took over as CEO and President
2008: After less than a year of Drori’s run, Musk stepped in to take over the role in October

At this point, Musk had already invested $55 million in the company, and it was teetering towards bankruptcy.

I’ve got so many chips on the table with Tesla. It just made sense for me to have both hands on the wheel.

– Elon Musk

Some of Musk’s first moves:

  • He ended up cutting 25% of the workforce
  • He leaned on friends to help cover payroll, week-to-week
  • He raised a $40 debt financing round to escape bankruptcy
  • He formed a strategic partnership with Daimler AG, which acquired a 10% stake of Tesla for $50 million
  • He took a $465 million loan from the U.S. Dept. of Energy (He repaid it back ahead of the deadline)
  • He recalled 75% of the Roadsters produced between March 2008 and April 2009

Despite revamping the entire production process – and the company itself – Tesla made it through its most trying time.

The Roadster’s Run

The Roadster wasn’t perfect, but it helped Tesla learn what it meant to be a car company.

It is not just a car, but one of the strongest automotive statements on the road.

– Car and Driver

A total of 2,450 units were produced, and the specs were impressive for an EV. With a top speed of 125 mph and a 0-60 mph time of 3.7 seconds, the Roadster helped dispel many of the myths surrounding electric cars.

Meanwhile, the Roadster’s lithium-ion battery also was the first step forward in an entire battery revolution. The 992 lb (450 kg) battery for the Roadster contained 6,831 lithium ion cells arranged into 11 “sheets” connected in series, and gave the car a range of 244 miles.

With the Roadster, Tesla would not only set itself up for future success, but also the transformation of an entire industry.

This was Part 1 of the Tesla Series. Parts 2 and 3, on Tesla as well as the future vision, will be released in the near future!

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Batteries

Animation: The Entire History of Tesla in 5 Minutes

Everything you need to know about the history of Tesla, including Elon Musk’s vision for the future of the iconic electric car company.

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How did Tesla accelerate from 0-60 mph in such a short period of time?

Today’s five-minute-long animation is presented in association with Global Energy Metals, and it tells you everything you need to know about the history of Tesla, including Elon Musk’s vision for the future of the iconic electric car company.

Watch the video:

The video primarily keys in on Tesla’s successes and the setbacks the company has faced along the way – it also shows that Tesla was able to pass Ford in market value just seven years after the company’s IPO.

The Rise of Tesla Series

The above video is the culmination of our Rise of Tesla Series, which also includes three full-length infographics that tell a more in-depth story about the history of Tesla, and what the company aspires to:

1. Tesla’s Origin Story (View infographic)

  • What was the vision behind the founding of Tesla?
  • Early hurdles faced by the company, including its near escape from the brink of bankruptcy
  • Elon Musk’s takeover of the company, and the dramatic actions taken to keep it alive
  • A timeline showing the development of the Roadster, and why this first car matters

2. Tesla’s Journey: How it Passed Ford in Value (View Infographic)

  • The company’s plan to parlay the Roadster’s success into a viable long-term company strategy
  • Introducing the Tesla Model S and Model X
  • How the company would use the Gigafactory concept to bring economies of scale to battery production
  • Other milestones: Powerwall, Autopilot, and Tesla’s growing Supercharger network
  • The announcement of the Model 3

3. Elon Musk’s Vision for the Future of Tesla (View Infographic)

  • Detailing Tesla’s ambitions for the future, including how it plans to productize the factory
  • Other vehicles Tesla plans to release, including the Tesla Semi and a future ultra low cost model
  • How Tesla plans to combine fully autonomous cars with the future sharing economy
  • Exploding demand for lithium-ion batteries, and why Tesla is planning on building additional Gigafactories

Part 1: TeslaPart 2: From IPO and OnwardsVisualizing Elon Musk

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Automotive

How Much Copper is in an Electric Vehicle?

Have you ever wondered how much copper is in an electric vehicle? This infographic shows the metal’s properties as well as the quantity of copper used.

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How Much Copper is in an Electric Vehicle?

Copper’s special relationship with electricity has been apparent since ship designers first regularly began installing copper to protect the masts of wooden ships from lightning in the early 19th century.

Today, of course, you might be more used to seeing copper’s electrical applications through the use of power lines, telephone wires, and wiring in practically every major home appliance you own.

Millions of tons get used for these applications every year, but it is still early days for copper’s use in electrification. That’s because copper will continue to be a critical component of the green energy revolution, thanks to the rising adoption of battery-powered vehicles.

Why Copper?

Today’s visualization comes to us from Canadian Platinum Corp., and it focuses on showing how much copper is in an electric vehicle, along with the properties that make it the ideal choice for an EV-powered future.

Here is why copper is a crucial component to vehicle manufacturers:

Cost
Copper costs roughly $0.20 per ounce, compared to silver ($15/oz) and gold ($1200/oz), making it by far the cheapest option for electrical wire.

Conductivity:
Copper is nearly as conductive as silver – the most conductive metal – but comes at a fraction of the cost.

Ductility:
Copper can easily be shaped into wire, which is important for most electrical applications.

It’s also important to note that temperature does not affect copper’s conductivity, which makes the metal ideal for automobiles in all climates.

Copper in Gas vs. Electric Vehicles

The UBS Evidence Lab tore apart a traditional gas-powered vehicle as well as an EV to compare the different quantities of raw materials used.

What they found was crucial: there is 80% more copper in a Chevrolet Bolt, in comparison to a similar-sized Volkswagen Golf.

The major reason for this is that at the heart of every EV is an electric motor, which is built with copper, steel, and permanent magnets (rare earths). Electric motors tend to be much simpler than gas-powered engines, which have hundreds of moving parts.

Incredibly, in an electric motor, there can be more than a mile of copper wiring inside the stator.

The More Electric, the More Copper

According to Copper.org, along the scale from gas-powered cars to fully electrical vehicles, copper use increases dramatically.

Conventional gas-powered cars contain 18 to 49 lbs. of copper while a battery-powered EV contains 183 lbs. Meanwhile, for a fully electrical bus, a whopping 814 lbs. of copper is needed.

With the rapidly increasing adoption of electric vehicles, copper will be an essential material for the coming electrification of all forms of ground transport.

Copper is at the heart of the electric vehicle and the world will need more. By 2027, copper demand stemming from EVs is expected to increase by 1.7 million tonnes, which is a number just shy of China’s entire copper production in 2017.

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