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    Tesla Hires Gun, Will Shoot Its Way Out

    http://greenlight.greentechmedia.com/2008/05/16/tesla-hires-...
    49 days ago in Greentech Media: Green Light · Authority: 25

    Tesla Hires Gun, Will Shoot Its Way Out May 16, 2008 at 9:52 AM Tesla Motors has a couple of problems looming on the horizon. First, the EV company is involved in a handful of legal actions involving IP theft and broken contracts. In February, Magna Powertrain sued Tesla for breach of contract, alleging the EV company failed to pay it for design and engineering work it perform on Tesla’s always problematic transmission drivetrain. Tesla sued Fisker Automotive in April, alleging the Other EV Sports Car Company stole some of its engineering designs and used those plans to build its own EV roadster. Earlier this week Fisker filed a motion to remove the case to arbitration in Orange County, arguing the design contract between Henrik Fisker and Tesla contained an arbitration clause barring private rights of action. But this is the U.S., and companies suing the pants off each other is nothing unusual. Tesla’s real problem is that its production ramp is about as lame as my family’s old dog with leukemia and Addison’s disease. After two months of production, the company has only managed to fully complete five cars. Six and seven are in the pipeline, though company predicts a full ramp up by November, two months after its proprietary drivetrain gets delivered. That is, of course, if its able to figure out that pesky Magna lawsuit. So much for a car a week. The problem here is that mass production of such a technically complex vehicle is pretty ambitious - maybe too ambitious, and also incredibly expensive. Especially when you’re relying on third-party components, as Tesla is, and definitely when it looks like you might be running out of cash. Did somebody say IPO? With all this mess, what is a girl to do? Tesla’s decided to take a page out of the Magnificent Seven playbook and hire itself a mercenary in the form of Larry Sonsini, chairman of the legendary Silicon Valley law firm Wilson Sonsini Goodrich & Rosati. Tesla appointed Sonsini, whose particular skill set involves taking companies public, to its board of directors this week. Tesla chairman Elon Musk said “Larry Sonsini has played a role in building and advising some of the most successful companies in existence today. His guidance will be invaluable.” What guidance is that? Most likely one that extricates Tesla from their nasty legal problems, and probably one that guides the beleaguered, over-hyped EV company onto the public markets. Either way, Sonsini’s appointment may mean Tesla’s gearing up for an old-fashioned Sand Hill showdown. Best hide the women and children. Digg Sphere Del.icio.us