GLG News Analyses of the following article:

Tesla ousts co-founder Eberhard: PRICEY ROADSTER'S DELIVERY DELAYS LEAD TO HIS EXIT

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Published at: origin.mercurynews.com

Mark FendleyContinuous Improvement ManagerBMW MANUFACTURING CO., LLC 
          What is a GLG Leader?|The Gerson Lehrman Group&reg; (GLG) Leader Program<sup>SM</sup> is our premium Member Program<sup>SM</sup>. Those identified as GLG Leaders are in the top 5% of GLG CouncilRank and have an exclusivity agreement with GLG.

What has happened to Tesla Motor's Eberhard is indicative of the struggle of creating a viable plug-in hybrid and a warning to others to be careful before you commit.

December 11, 2007

Tesla Motors struggles to develop a viable plug-in hybrid in indicative of deeper issues that have yet to be resolved with plug-in hybrid technology, specifically battery technology. The OEM's who are committing to a plug-in hybrid should be very careful in the commitments made to this product technology.

Jack Lifton, Co-founder and Director

Jack LiftonCo-founder and DirectorTechnology Metals Research, LLC 
          What is a GLG Leader?|The Gerson Lehrman Group&reg; (GLG) Leader Program<sup>SM</sup> is our premium Member Program<sup>SM</sup>. Those identified as GLG Leaders are in the top 5% of GLG CouncilRank and have an exclusivity agreement with GLG.

Is it possible today to build a high performance lithium battery powered car for a price that can be attractive to a large segment of the market for such vehicles? Probably not.

December 11, 2007

Is this a typical phase in the venture capitalist method of taking over a company, where, after a seemingly overgenerous initial investment that leaves the founders in charge a second round of financing gives the investors the leverage to oust the founder and replace him with professional management? Or, is this just a signal to the marketplace that Mr. Eberhard's statements to the effect that there is nothing special, or known only to Detroit, about building a car is, and was, foolish?

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