The co-founder of Tesla assures that Elon Musk is seriously wrong in his strategy


This is not the first time that Martin Eberhard, the former boss of Tesla, has criticized Elon Musk for his strategic choices for the company. This time, it’s the Model 2’s suspension that makes it react.

Martin Eberhard was ousted from Tesla Motors in 2007, he was one of the two historic founders of Tesla. He has always kept an eye on the evolution of the brand, but he never minces his words when it comes to criticizing Elon Musk’s obsessions and questionable decisions, especially when they could harm Tesla. This is how he considers “ ashamed » that Tesla is turning away from the Model 2 project, as he declared during an HSBC investor forum on April 9, according to Bloomberg.

The suspension of the Model 2 project, revealed by Reuters on Friday April 5, surprised everyone. Even though Elon Musk immediately accused Reuters of lying, Reuters had access to internal emails which prove the remarks.

Better opportunities for affordable cars

Martin Eberhard told Bloomberg: “ I think it’s a shame and they should think twice. Seems like a better deal than the gigantic truck they make. »

Tesla 2022 range // Source: Tesla
Tesla 2022 range // Source: Tesla

And this statement appears even more true with the commercial potential of a robotaxi in the current automobile market. Customers have been asking Tesla for an even more affordable electric car for years. It must be said that this is one of the promises made by Elon Musk for more than 5 years, even if it is a project that he hates.

The brand has long had an avenue ahead of it to bring its competitors to their knees in this niche. From now on, competition is one of the reasons which would justify the suspension of the Model 2: “ They don’t think they can compete with low-end Chinese cars » recalled Martin Eberhard.

Franz and the Tesla Robotaxi or affordable Tesla project // Source: AutohomeFranz and the Tesla Robotaxi or affordable Tesla project // Source: Autohome
Franz and the Tesla Robotaxi or affordable Tesla project // Source: Autohome

The entrepreneur also always criticizes Tesla for putting technology first: “ Tesla needs to focus on costs, instead of focusing on technology for technology’s sake “. Elon Musk shares an opinion diametrically opposed to that of Martin Eberhard. It is not for nothing that the subject is often the one on which the two entrepreneurs argue.

Competition delighted by this choice

If Tesla’s decision is confirmed, the American brand leaves the largest market share to foreign competition, and in particular Chinese which is already ready in this niche. However, this is a questionable strategy, because as Martin Eberhard reminds us: “ Automotive is not like Silicon Valley, where the winner takes all. We can have a dozen different car companies in the world making a dozen different types of cars, occupying different market positions, and all being successful. »

Renault 5 at the 2024 Geneva Motor Show // Source: RenaultRenault 5 at the 2024 Geneva Motor Show // Source: Renault
European competition can breathe // Source: Renault

Tesla doesn’t really like to share the pie, and that’s not exactly new. On the other hand, European manufacturers are not going to spit on this opportunity. Even if they have not yet spoken publicly on the subject, they must certainly be delighted with this excellent news. European manufacturers have an opportunity to shine, without the risk of Tesla coming to distract buyers’ attention, there is only Chinese competition to face.

Tesla’s recent decisions are enough to confuse all electric mobility experts. A topic to follow in our weekly Watt Else newsletter.


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