JB Straubel wasn’t just Tesla’s CTO — he invented the carmaker’s core technologies

JB Straubel, Tesla Motors chief technical officer.Getty ImagesWhen Tesla CEO Elon Musk announced on Wednesday that technology chief JB Straubel is leaving, any close follower of the electric carmaker knew it represented more than the departure of a typical CTO.
In the first decade of Tesla's existence, Straubel, who's among the group of co-founders, invented or co-created many of the company's signature technologies. His name is on a majority of patents that Tesla filed, especially relating to electric vehicle batteries — safety, architecture, monitoring and power management.
“JB is absolutely brilliant,” said Gene Berdichevsky, employee No. 7 at Tesla, in an email. “When I started, we did some of the technical development in his garage! I think there would be no Tesla as it is today without JB.”
Straubel, who's now 43, lobbied early on for Tesla to pursue a supercharger strategy, instead of going down the road of battery-swapping. Today, that network of charging stations, available for Tesla drivers only, is a boon for the company because it can offer greater service to customers, while drivers of most other electric cars are relegated tocompete for time at generic chargers.
Musk delivered the news of Straubel's exit this week while issuing some disappointing financial results to Wall Street. It was tough timing for a company that's struggling to find a profitable model for building and selling cars as it'sinvesting in self-driving technology. Tesla recorded a quarterly loss of $408 million, and its automotive margins eroded as customers showed a clear preference for the lower-priced Model 3 sedans.
Drew Baglino, who Straubel recruited to Tesla in 2006 and was most recently vice president of technology, is now stepping into the role of CTO. The Straubel announcement coupled with the weaker-than-expected results pushed the stock down 14% on Thursday, marking the steepest drop of the year.
A Tesla spokesperson didn't respond to a request for comment.
Jeffrey Straubel, chief technical officer and co-founder of Tesla Motors Inc., center, speaks as billionaire Elon Musk, chief executive officer of Tesla Motors Inc., left, and Yoshihiko Yamada, consultant at Panasonic Corp., look on during a press event at Tesla's new Gigafactory in Sparks, Nevada, U.S., on Tuesday, July 26, 2016.Troy Harvey | Bloomberg | Getty ImagesMusk and Straubel met in 2003, when Straubel intended to pitch him on the idea of building an electric airplane. But their shared passion for electric vehicles led Musk to introduce Straubel to Tesla's founders, Martin Eberhard and Marc Tarpenning. Musk backed Tesla and joined the board in 2004, a month after Straubel joined, and became CEO in 2008.
In discussing Straubel on the earnings call, Musk said, “if we hadn't had lunch in 2003, Tesla wouldn't exist basically.”
Even before his Tesla days, Straubel was working on electric cars. Berdichevsky, who is now CEO of Sila Nanotechnologies, said he knew Straubel back when he was converting a classic Porsche into an electric vehicle. He also built and raced solar cars on a team at Stanford.
He “was always a true missionary and visionary for EVs well before the world truly cared,” Berdichevsky said.
More recent Tesla employees describe Straubel as well-respected and a gentler voice in the room next to the bombastic and outspoken Musk. He's an engineer at heart, a licensed pilot and father who wears khakis most of the time. His obsession was always to reduce costs per kilowatt hour — to make energy-dense vehicle batteries at a lower cost.
Straubel's focus at Tesla was on building technology, teams and partnerships, and he was more than willing to cede the limelight to Musk, one reason the two got along so well, former employees said.
He split his time between Tesla's car assembly plant and offices in California and the Gigafactory, which he helped plan and build in Sparks, Nevada. He practically lived in trailers amid the rocks, dirt and construction materials until the massive battery plant was up and running in 2016, according to people familiar with the matter.
At Straubel's urging, Tesla built charging capabilities into the Model S, before the Supercharger network was developed. He also led propulsion and software teams through the development of the Model S and Model X.
He also led the development of stationary energy products even before Tesla acquired SolarCity. Today, Tesla's Powerwall and Powerpack function as home batteries and utility-scale battery installations that make it possible to store and use solar and wind power.
Tesla cars at charging stations in Beijing, China.Meghan Reeder | CNBCOutside of Tesla, Straubel has a stealthy recycling start-up called Redwood Materials, which registered last year to do business in the state of Nevada.
“I can't wait to see what JB does next,” Berdichevsky said. “There are still so many adjacent problems to solve in energy and I'm sure that's what he's thinking about.”
In terms of his successor as CTO, Berdichevsky said, “if there's anybody from the early days who can step into the big shoes JB leaves behind, and carry on the technical vision, it's Drew.”
Gene Munster, a longtime Tesla bull, said the company is well-prepared to deal with Straubel's departure:
“The bad news is that JB Straubel was foundational to the company, and is leaving,” Munster said in an interview. “The good news is there's now a framework in place for other people to step in. He did the heavy lifting of getting them to where they are, and now it's done. They are in a position to capitalize on an undeniable truth around the growth of electrification and autonomy.”
WATCH: Tesla's 2nd quarter a disaster
VIDEO5:0005:00Tesla 2nd quarter 'a disaster,' Model 3 a 'lousy' car: HoffmanClosing Bell
Follow @CNBCtech on Twitter for the latest tech industry news.

Bentley rolls out electric, eco-friendly EXP 100 concept car for 100th anniversary

Bentley EXP 100 GTSource: BentleyBentley is celebrating its 100th anniversary by unwrapping a new prototype, the EXP 100, an all-electric, eco-friendly concept car the British automaker calls “the physical embodiment of the future Bentley brand.”
“The Bentley EXP 100 GT represents the kind of cars we want to make in the future,” said design chief Stefan Sielaff, in a new release ahead of the EXP 100's formal debut Wednesday. “Like those iconic Bentleys of the past, this car connects with its passengers' emotions and helps them experience and safeguard the memories of the really extraordinary journeys they take.”
While it retains classic Bentley cues, starting with the “Flying B” hood ornament, the EXP 100 marks a significant shift from the sort of staid and heavy products long associated with the brand. For one thing, it adopts an all-electric powertrain with an estimated range of about about 440 miles per charge and can operate in either autonomous or manual mode. The concept car also introduces “leather-like” textiles, sustainable woods and paint made from recycled rice husks.
Bentley EXP 100 GTSource: BentleyBentley has undergone some massive changes since splitting off from long-time sibling, Rolls-Royce two decades ago. Now the pinnacle brand for parent Volkswagen, it's broadened its lineup with products such as the Flying Spur, Continental GT as well as the Bentayga, the SUV that is now its biggest seller.
Bentley sales are up nearly tenfold since 2003, selling 9,560 vehicles last year, although demand is down from the 2016 peak of 11,300. The EXP 100 is meant to set the stage for the sort of products that Bentley hopes will kick-start demand again.
Like other high-line luxury brands, it faces numerous challenges, including new global emissions and fuel economy mandates, such as China's New Energy Vehicle, or NEV, standard that encourages buyers in Bentley's largest market to shift to zero-emission vehicles. Bentley has only partly addressed that with the plug-in hybrid version of Bentayga.
Going forward, it's expected to invest heavily in battery propulsion, like the hybrid option package for Bentayga, as well as all-electric models. The EXP 100 gives a broad hint of the driveline system Bentley's next-generation sedans, coupes and SUVs will use. Motors on both the front and rear axles will provide an electric all-wheel-drive system with torque vectoring – a technology that helps a car steer through tight corners by shifting power to its outer wheels.
Bentley EXP 100 GTSource: BentleyThere's no pricing information for the EXP 100, but the cheapest Bentley on the market right now starts at just under $200,000 with higher-end models with all the upgrades pushing prices for some over $1 million.
By tapping into developments led by parent VW, Bentley anticipates its batteries will be lighter and more energy-dense, meaning greater range while also reducing the overall weight of the vehicle. It also plans to shift from heavy steel to aluminum and other lightweight materials that can further enhance both range and performance. The EXP 100 is estimated to have a top speed of 186 mph and to be able to launch from 0 to 100 kmh, or 62 mph, in just 2.5 seconds —which would make the concept its fastest street-ready model Bentley ever.
Though measures 228 inches, nose to tail, or nine inches longer than Bentley's current flagship vehicle, the Mulsanne, the EXP 100 is 1,800 pounds lighter at 4,180 pounds.
The EXP is intended to operate in both manual mode, “for when one wishes to enjoy the thrill of driving,” the carmaker said, or in fully autonomous mode. That technology is still in its infancy. Near-term, Bentley products — like those of other VW Group brands — are expected to begin phasing in more and more advanced, semi-autonomous driving systems.
Bentley EXP 100 GTSource: BentleyThe new Bentley concept, as much as anything, is intended to showcase new technologies, as well as the brand's shifting approach to interior design, company officials told CNBC. That includes using sustainable alternatives, like synthetics claimed to mimic the look and feel of traditional, luxury materials. That doesn't mean phasing out leather and wood entirely. The EXP 100 features Copper Infused Riverwood, “a sustainable wood from naturally fallen trees that has been preserved for 5,000 years in peat bogs, lakes and rivers,” Bentley noted.
The EXP 100 uses artificial intelligence in a number of ways, among other things, pairing it with biometric seat sensors that can control cabin temperature, seat position and even tell when a driver might be getting drowsy. Integrated into the car's Amazon Alexa-style voice assistant, the system can even track what a passenger is looking at and display information about what they're seeing outside the vehicle.
Though there are no plans to put the gull-winged EXP 100 into production, Bentley Chairman Adrian Hallmark noted that many features found on the concept vehicles will start appearing on next-generation models as they roll out over the coming decade.

UK authorities invest nearly $100 million into electric vehicle research

Charging an electric carMario Gutiérrez. | Moment | Getty ImagesThe U.K. government has announced £80 million ($99.7 million) of investment to develop the “next generation of electric vehicles” and, potentially, hybrid aircraft.
Authorities said Monday that the funding would, among other things, help to reduce carbon emissions from industries including transport, construction and energy.
Industry and academia are set to lead the development of the new technologies, which the government referred to as power electronics, electric machines and drives (PEMD). These are a range of products that can be used to convert fossil fuel-based systems into electric ones using batteries or other electrical sources.
The investment comes under the umbrella of something called the Industrial Strategy Future of Mobility Grand Challenge. Targets of this challenge include getting rid of diesel rolling stock from the U.K.'s railways by 2040 and delivering zero-carbon road transport by 2040.
“Driving the electric revolution will strengthen the U.K.'s capability to deliver next generation electric vehicles, hybrid aircraft and smart grids,” Mark Walport, the chief executive of U.K. Research and Innovation, said in a statement Monday.
“It will ensure these industries, both large and small, are rooted here in the U.K. attracting inward investment into our manufacturing base,” he added.
Elsewhere within the electric vehicle sector, Toyota has signed an agreement with China's BYD Company to jointly develop battery electric vehicles.
In an announcement Friday, Toyota said it would work with BYD to develop sedans and low-floor SUVs. The Japanese car giant said it wanted to launch the vehicles to the Chinese market, using the Toyota brand, “in the first half of the 2020s.”

America’s Sports Car, the Corvette, almost didn’t survive the Great Recession

Vice President Joe Biden’s 1967 Corvette SingrayCNBCChevrolet's official reveal of its eighth-generation Corvette in a splashy preview Thursday night near Los Angeles marks the culmination of a secret project that traces its roots back more than half a century.
But that's no surprise. Over the years, much of the work on the “'Vette” has been conducted out of sight — in some cases hidden even from the top brass at parent company General Motors which, at various points, have considered killing off what has come to be known as “America's sports car.”
From the very start, GM didn't quite know what to do with the Corvette. The original model was only intended to be a flashy concept vehicle, developed for the mobile Motorama car shows the automaker staged across the country, but the design proved so popular that GM rushed out plans to put it into production.
The first car, introduced in 1953 was a striking counterpart to the big sedans and station wagons that, at the time, dominated American highways. But the original Chevrolet Corvette featured a seriously underpowered six-cylinder engine, recalled Ken Gross, an author and automotive historian, and didn't really click with buyers, only 700 being built for 1955.
Things changed with the addition of a new, 283 cubic inch V-8 that, Chevy advertised, offered “one hp per cubic inch.” Sales took off and the Corvette quickly found a place in popular culture, among other things serving as a star in its own rite in the popular TV series, “Route 66.”
But it was the second-generation Corvette that really took off. Today, the 1963 version, with its distinctive “split” rear window, has become one of the most popular American-made cars of the era with collectors, according to experts. Originally listed at $4,257, buyers can expect to pay as much as $100,000 or more for one in good condition today, according to the National Automobile Dealers Association.
The 1963 Chevrolet Corvette is distinguished as the first year of second-generation (or “mid-year”) Corvette; only year with “split window” rear glass. It was also the first Corvette with hidden headlamps and independent rear suspension. Modern Day Successor:General MotorsThrough the mid-1980s, Chevy launched only two more complete Corvette makeovers, though it rolled out a procession of variants, each more powerful than the one before. But they also became heavier and more bloated and, by the early 1980s began to face stiff competition from import brands, like Porsche and Ferrari, which were rapidly gaining a foothold in the U.S. market.
It wasn't until 2004 — a year after the car's 50th anniversary that Chevy began to fight back with the sixth-generation Corvette. It was smaller, nimbler and, according to reviews of the day, better suited to a global audience. But it was the next model, which one executive dubbed “a world-beater,” that was intended to pose a real counter-punch to the imports. Unfortunately for GM, the Great Recession got in the way and, as it teetered ever closer to bankruptcy, it ordered the C7 development program shut down.
2020 Chevrolet Corvette StingraySource: General Motors “That version almost didn't happen,” recalled Tom Peters, the chief designer on the seventh-generation sports car. But Peters and much of the rest of the Corvette team refused to give up. Quietly, they kept working on the program in their off hours until GM emerged from Chapter 11 bankruptcy protection and could free up funding again.
Ironically, said Tadge Juechter, the chief engineer on both the sports car that came out in 2014 and the new C8, unveiled Thursday night in California, “It was a better car for the delay,” the team having more time – and, eventually, money – to do it right.
As for the 2020 Corvette, Chevy has been toying with the idea of shifting from a front to mid-engine layout since the 1960s and has done a number of prototypes over the years. Requiring major changes, not only to the design of the car, but to the Bowling Green plant, as well, GM has long been reluctant to approve the concept. But there was really no longer an alternative going forward, according to Mark Reuss, the automaker's president and a serious performance fan.
2020 Chevrolet Corvette StingraySource: General Motors “The traditional front-engine vehicle reached its limits of performance, necessitating the new layout,” Reuss said in a statement ahead of the new C8 launch.
While he says he will have to see, and then drive, the new model, “This is probably the best chance they've ever had to become a truly global competitor,” said author Gross.
Significantly, even after selling off its German-based Opel subsidiary two years ago, GM retained a small dealer network in Europe for the Corvette. It now hopes that with the 2020 model it will be able to take the battle for sports car dominance onto the home turf of some of its toughest competitors.

VW pounds another nail in the coffin of the station wagon, drops Golf SportWagen and Golf Alltrack

Volkswagen Golf Sportwagen Alltrack seen at the New York International Auto Show at the Jacob K. Javits Convention Center in New York. (Photo by Michael Brochstein/SOPA Images/LightRocket via Getty Images)Michael Brochstein | LightRocket | Getty ImagesAs it gets ready to wrap up the 2019 model year, Volkswagen says it will drop both the Golf SportWagen and Golf Alltrack models from its lineup.
The move announced Wednesday comes as a major blow to station wagons, a body style that was ubiquitous in the years when baby boomers were still in knee pants, but which has all but vanished in today's SUV-crazed market.
“SUVs have definitely assumed the mantle of family haulers from the station wagons and minivans we remember from our childhoods,” said Scott Keogh, president and CEO of Volkswagen of America.
2018 Buick Regal Tour XSource: General MotorsNot a wagonThe list of wagons has grown steadily thinner over the last several decades, with only one now offered by the Detroit-based manufacturers that produced them by the millions in the 1950s, 1960s and into the 1970s. Buick has a station wagon it doesn't even call a wagon, hoping it can generate more enthusiasm by dubbing it the Regal TourX.
Volvo, a brand long associated with wagons, has taken the same approach with some of its models. If you want the V60 it announced last year, you will have to special order the compact wagon. It has had more success by taking some models, boosting their height, adding SUV-style cladding and dubbing them with names like the V90 Cross Country.
The luxury market was one of the last bastions for wagon fans. But even there, the market is fading out. BMW decided not to bring the new wagon version of its updated 3 Series to the U.S. this year, and Jaguar is widely expected to phase out its XF Sportbrake which got little momentum out of using the British term for wagon.
Demand tumblesVolkswagen had been intent on remaining in the segment but the sales numbers just couldn't support a sound business case.
For all of 2018, the German automaker sold a grand total of just 14,123 Golf SportWagens, a 47% decline. Demand tumbled another 36% for the first seven months of this year, averaging out to barely 750 of the wagons a month. The Alltrack faced a similar decline.
By comparison, U.S. sales of Volkswagen's various SUVs rose 12% through the end of July, despite the phaseout of the original Touareg model. And it is planning to add three more SUVs by 2021, including the five-seat Atlas Cross Sport, the all-electric ID. Crozz and a subcompact that has not yet been named.
“Consumers want utility vehicle and so, for the U.S. market, automakers are adding more of them while taking wagons away,” said Stephanie Brinley, principle auto analyst with IHS Markit.
The 2020 Subaru Outback is revealed at the 2019 New York International Auto Show in New York City, April 17, 2019.Shannon Stapleton | ReutersSubaru's committedThere still are some options for wagon fans, including the Buick Regal TourX, Volvo V90 and, for the moment, the Jaguar XF Sportbrake. Mercedes-Benz offers several versions of the E-Class, including the high-performance AMG E63 S Wagon. Porsche has a wagon version of the four-door Panamera, the Sport Turismo, and Mini offers the Cooper Clubman /S.
But no manufacturer remains more committed to the body style than Subaru, with three different models: the Outback, Crosstrek and Impreza.
With the vultures circling around the Jaguar, observers are wondering which of these current offerings might be the next to fall by the side of the road. Brinley doesn't see much life left in the segment, but she doesn't think automakers are ready to give up entirely.
They've tried coming up with more appealing names, like TourX and Sportbrake. But they've also been tinkering with hybrid designs that are meant to blend the best of wagon and utility vehicle. So far, that hasn't worked very well, with models like the Accord CrossTour, Acura ZDX, BMW 5-Series GT and Toyota Venza failing to click with consumers.
“They haven't found the right answer to that fill-in-the-gap question,” she said, “but they're likely to keep trying.”