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Elon Musk gained control of Tesla by becoming an early investor in the company. He met the original founders, Martin Eberhard and Marc Tarpenning, after they had been developing a prototype for three years from 2001 to 2004. Musk's investment and involvement in the company eventually led to him taking control and serving as the CEO.
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Why do some companies, such as Airbnb, Facebook, and SpaceX, remain under the control of their founders, while others transition into the hands of their investors? Take Tesla, for instance: the original founders were Martin Eberhard and Marc Tarpenning. After three years of developing a prototype from 2001 to 2004, they met Elon Musk, an early investor who now controls and serves as the CEO. How and why do these shifts in control happen? What determines who ultimately controls a company?
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Ever wondered why some companies stay under the control of their founders, while others shift into the hands of their investors? Our Cap Table Templat...
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