Siry Departed Tesla On Deposit Fraud Fears

siry departed tesla on deposit fraud fears

Gawker reports that Tesla spinmeister Daryl Siry left the Silicon Valley startup because CEO Elon Musk (above) was pushing to accept deposits on the Model S sedan. The Model S (a.k.a. WhiteStar) exists only as a prototype. Tesla has no factory or financing with which to build it. When Musk announced that the DOE would approve Tesla’s loan application (they haven’t and likely won’t) and decided to accept $40K Model S deposits (next month), Siry smelled fraud and bailed. Valleywag calls Musk “The New Preston Tucker,” revealing that Musk told a recent Tesla “town hall” meeting that Tesla deposits were not guaranteed. This despite earlier assurances that Musk would personally guarantee deposits. With reports of Tesla asking for up to $75K in unescrowed “reservation payments,” and difficulty reclaiming deposits as small as $5K, Siry’s fears were probably well-founded. Meanwhile, anecdotal evidence from Tesla forums indicates that the real winner here: the Fisker Karma.

Join the conversation
4 of 32 comments
  • Edward Niedermeyer Edward Niedermeyer on Feb 27, 2009

    It's pretty well understood that Roaster customers were investors. As Tesla Deathwatcher points out, Tesla has no factory or production capacity. Since Roadster production was to take place at Hethel from day one there was no question of deposits on Roadsters being used to create production infrastructure. The Type S is a different story. Tesla doesn't have some manufacturer lined up to build this thing. They need a factory. If Musk was planning to play the Type S project the way the Roadster was, Siry was right to get out while he could. Completely different vehicles, strategies and capital needs.

  • Areitu Areitu on Feb 27, 2009

    There's a Best and Brightest who has taken delivery from the Los Angeles dealership/retailer and has, in another thread, offered to show his car and give rides (don't remember if he also said "drive") to journalists and bloggers. There's also been a sighting by my significant other of a Tesla driving about on the 101.

  • Fallout11 Fallout11 on Feb 27, 2009

    Lest I remind you guys that Preston Tucker actually built and delivered a handful of prototype vehicles also....right up to the point he went belly up. Tesla has already spent the money paid them for as-yet-undelivered vehicles. As soon as the money in the pipe runs out, the game is over.

  • RetardedSparks RetardedSparks on Feb 27, 2009

    I'm with fallout11. It's a ponzi scheme insofar as NEW customers money is building OLD customers cars. Sooner or later someone, or a few, or dozens of customers will be last in line in with nobody new to fund their cars. Their deposits will be long gone... ask those folks whether or not they think they were victims of fraud.