Tesla Cofounder Martin Eberhard Used AC Propulsion's tZero to Attract Early Investors

Early Investor Outreach for Tesla Motors

In 2003, Tesla Motors cofounder Martin Eberhard sought to attract investors by demonstrating the potential of electric vehicles. He borrowed the tZero, an electric roadster built by Alan Cocconi at AC Propulsion, for this purpose. Eberhard conducted demonstrations for entrepreneurs and venture capitalists in Silicon Valley.

Demonstrations at Key Locations

Eberhard drove the tZero along Sand Hill Road and organized a demonstration at Buck's of Woodside, a restaurant frequented by tech entrepreneurs. The goal was to showcase the performance of an electric sports car. Tom Gage, Cocconi's partner at AC Propulsion, often accompanied Eberhard during these visits.

Showcasing Electric Performance

During the demonstrations, Eberhard highlighted the tZero's acceleration. He would ask venture capitalists riding in the car to touch the dashboard, then accelerate rapidly, making it impossible for them to reach due to the g-forces. This tactic aimed to prove the power of an electric drivetrain, surprising many who were accustomed to traditional sports cars.

Introduction to Elon Musk

Despite the impressive demonstrations, initial investor interest was limited. However, Google cofounders Sergey Brin and Larry Page, present at the Buck's demo, suggested an individual with liquid funds who had recently sold a startup stake and enjoyed fast cars. This individual was Elon Musk, leading to a pivotal connection for Tesla Motors.