Part 2/13:
Elon Musk has been candid about some of the early decisions and challenges faced during Tesla's formation. In recent reflections, he acknowledged that firing Martin Eberhardt was one of his worst decisions, citing fundamental flaws in Eberhardt's approach to business operations. Musk detailed how Eberhardt's decisions—such as outsourcing battery production to a barbecue factory in Thailand—were misguided. Furthermore, Musk highlighted a critical instance where Eberhardt lied about the cost and readiness of the Tesla Roadster, claiming the vehicle's costs could be much lower than reality. This dishonesty nearly derailed trust within the leadership team, prompting Musk to call for Eberhardt’s removal as CEO. The board's unanimous decision to fire Eberhardt—despite his own appointments—underscored the severity of these misjudgments.