Editing AC Propulsion (section)

==Connection with Tesla Motors==
[[Martin Eberhard]] and [[Marc Tarpenning]] had both taken test drives in the lithium-ion battery powered revision of the [[AC Propulsion tzero]] before founding [[Tesla Motors]]. Martin Eberhard encouraged Tom Gage and Alan Cocconi to move their prototype tzero into production. When they declined, in favor of working on their electrified [[Scion xB]] called the [[AC Propulsion eBox|eBox]], Martin Eberhard and Marc Tarpenning incorporated Tesla Motors to pursue the idea of building an electric roadster in the spirit of the tzero.  [[Elon Musk]] later test drove the tzero as well, and he also encouraged AC Propulsion to commercialize the vehicle.  Tom Gage again deferred, but put Elon Musk in contact with Martin Eberhard which led to Musk becoming Tesla Motors' first major investor through Series A funding.<ref>{{cite web|last1=Siry|first1=Darryl |title=Will the Real Tesla Founder Please Stand Up?|url=https://www.wired.com/2009/06/tesla-founder/ |publisher=Condé Nast|date=2009-06-25 |archiveurl= https://web.archive.org/web/20190921032236/https://www.wired.com/2009/06/tesla-founder/ |archivedate=2019-09-21 |url-status=live |quote=...it is interesting to note that neither Martin Eberhard or Elon Musk came up with the idea of an electric sportscar with excellent range and amazing acceleration. As is evident in some of the emails Elon presents on his blog, the credit rests with a company few outside EV circles has heard of. {{br}} AC Propulsion developed the idea, and both Eberhard and Musk initially approached the San Dimas, California, company to build the car. Tom Gage and Alan Cocconi had built the t zero, which is essentially the prototypical Tesla Roadster with a 0-60 time of 3.6 seconds and a range of more than 200 miles using commodity lithium-ion cells. {{br}} One way to look at this is the real technology visionaries were the folks at AC Propulsion, but they lacked the entrepreneurial vision to see just how big an idea it could become and the means to achieve it. Both Eberhard and Musk saw the importance — and potential — of what Gage and Cocconi had created. When Eberhard and Musk approached them individually to prod them into taking the next step and produce the vehicle, Gage opted instead to introduce Musk to Eberhard and get back to work creating the eBox, an electrified Scion xB that Gage considered more practical and economical.}}</ref>

Before Tesla Motors developed its Roadster's proprietary [[powertrain]], the company licensed AC Propulsion's EV Power System design and Reductive Charging patent which covers integration of the charging electronics with the [[Inverter (electrical)#Electric vehicle drives|inverter]], thus reducing mass, complexity, and cost. Tesla then designed and built its own power electronics, motor, and other drivetrain components that incorporated this licensed technology from AC Propulsion.<ref name="Reductive">{{cite web|url=http://www.acpropulsion.com/technology/reductivecharging.htm |publisher=AC Propulsion |accessdate=2007-03-07 |title=Reductive Charging, AC Propulsion's Reductive Charger Integrated Charging for the Electric Vehicle |archiveurl=https://web.archive.org/web/20070206121745/http://www.acpropulsion.com/technology/reductivecharging.htm |archivedate=2007-02-06 |url-status=dead }}</ref><ref name="Interview with Musk, pt 2">{{cite web | url=http://www.autobloggreen.com/2008/06/24/autobloggreen-qanda-tesla-motors-chairman-elon-musk-part-2-tran/ | title=AutoblogGreen Q&A: Tesla Motors Chairman Elon Musk Part 2 – Transmission shifts | date=2008-06-24 | accessdate=2008-06-24 | author=Sam Abuelsamid | archive-date=2008-06-26 | archive-url=https://web.archive.org/web/20080626184604/http://www.autobloggreen.com/2008/06/24/autobloggreen-qanda-tesla-motors-chairman-elon-musk-part-2-tran/ | url-status=live }}</ref><ref name="TeslaWtoW">{{cite web|url=http://www.teslamotors.com/efficiency/well_to_wheel.php |title=Well-to-Wheel Energy Efficiency|last=Tarpenning|first=Marc |author2=Martin Eberhard |date=2007-08-24|publisher=[[Tesla Motors]]|accessdate=2011-02-25|quote=The AC Propulsion lithium-ion charging system (the basis for the design of the Tesla Roadster charging system)...|archiveurl= https://web.archive.org/web/20071011010258/http://www.teslamotors.com/efficiency/well_to_wheel.php |archivedate=2007-10-11|url-status=dead }}</ref> Given the extensive redevelopment of the vehicle, Tesla Motors no longer licenses any proprietary technology from AC Propulsion.<ref name="Soap Opera">{{cite web|url=http://www.teslamotors.com/blog2/?p=73 |title=Tesla Leadership |date=2009-06-22 |accessdate=2009-08-01 |author=Elon Musk |author-link=Elon Musk |publisher=[[Tesla Motors]] |archiveurl=https://web.archive.org/web/20090624221445/http://www.teslamotors.com/blog2/?p=73 |archivedate=June 24, 2009 |quote=Tesla Motors, Inc. consisted of Eberhard, Tarpenning and Wright, plus an unfunded business plan and they were looking for an initial round of funding to create a more advanced prototype than the AC Propulsion Tzero. While there was a basic corporation in place, Tesla hadn't even registered or obtained the trademark to its name and had no formal offices or assets. To save legal fees, we just copied the SpaceX articles of incorporation and bylaws for Tesla and I invested $6.35M (98%) of the initial closing of $6.5M in Series A funding. Eberhard invested $75k (approximately 1%). |url-status=dead }}</ref>