IdeaBank.
Nikola Tesla at about 34, around 1890
Credit: Napoleon Sarony / Wikimedia Commons. License: Public domain.

Scientist · Austrian Empire (now Croatia) / United States

Nikola Tesla

He dug ditches for $2 a day, licensed his AC motor to Westinghouse two years later, and spent his old age leaving hotels with unpaid bills.

01 / At a glance

Born
10 July 1856, Smiljan, Austrian Empire (now Croatia)
Died
7 January 1943, alone in his room at the Hotel New Yorker, New York, aged 86
Education
Technical College in Graz; left in December 1878 without a degree
After Graz
Draftsman in Maribor, 60 florins a month
Lowest point
Ditch digger, $2 a day, 1886
Big deal
Westinghouse licence, July 1888: $60,000 in cash and stock plus $2.50 per horsepower
Known for
AC induction motor, polyphase AC system, Tesla coil
Biggest bet
Wardenclyffe Tower, Shoreham, New York (begun 1901; work stopped around 1905–06)
Honours
AIEE Edison Medal (1916); the SI unit of magnetic flux density named the tesla (1960)
The question his life answers
What is a great idea worth if you can't make it pay?

01 / Where he came from

Tesla's birth house and the church in Smiljan, Croatia
Credit: Julian Nyča / Wikimedia Commons. License: CC BY-SA 3.0.
  • Born on 10 July 1856 in Smiljan, a village in the Austrian Empire, now in Croatia. His father Milutin was an Orthodox priest.[1]
  • His mother Đuka never went to school but made her own tools and devices. "My mother was an inventor of the first order," he wrote.[1][2]
  • His father wanted him to join the clergy. "I longed to be an engineer but my father was inflexible."[2]
  • In 1873 he caught cholera and was in bed for nine months. Near death, he told his father: "Perhaps I may get well if you will let me study engineering." His father promised to send him to "the best technical institution in the world".[1][2]

02 / How he paid the bills

  • He went to Graz on a scholarship in 1875. The dean wrote to his father: "Your son is a star of first rank." By his third year he was failing, and he left in December 1878 without a degree.[1]
  • His family did not hear from him after he left. A classmate found him in Maribor in January 1879, working as a draftsman for 60 florins a month. His father died in April 1879.[1]
  • He then worked at the Budapest Telephone Exchange (1881) and Continental Edison in Paris (1882), and moved to New York in June 1884 to work at the Edison Machine Works.[1]
  • He quit after about six months. Why is unclear. In his autobiography he said the manager promised him $50,000 for redesigning machines, but "it turned out to be a practical joke". His diary note: "Good By to the Edison Machine Works".[1][2]
  • In 1886 the investors in his first company, an electric lighting firm, dropped it to run a utility instead. That left him penniless, and he lost control of the patents he had assigned to it. He took electrical repair jobs and dug ditches for $2 a day. He later wrote: "My high education in various branches of science, mechanics and literature seemed to me like a mockery".[1]

03 / The idea in the park and the Westinghouse deal

Model of the induction motor Tesla presented to the American Institute of Electrical Engineers in 1888
Credit: Nikola Tesla Museum / Wikimedia Commons. License: CC BY-SA 4.0.
  • Walking in Budapest's City Park and reciting Goethe, he later wrote, the idea for his motor "came like a flash of lightning". He drew the diagrams in the sand with a stick.[2]
  • Two businessmen, Alfred Brown and Charles Peck, set up the Tesla Electric Company with him in April 1887.[1]
  • He showed his AC induction motor to the American Institute of Electrical Engineers in May 1888.[1]
  • In July 1888 Brown and Peck negotiated a licence with George Westinghouse for the motor and transformer designs: $60,000 in cash and stock plus $2.50 for every horsepower it produced.[1]

04 / Giving up his royalty

Westinghouse generators at the Adams Power Plant, Niagara Falls
Credit: Westinghouse Electric & Manufacturing Company / Wikimedia Commons. License: Public domain.
  • The financial panic of 1890 hit Westinghouse. Its new lenders wanted the Tesla royalty cut, and Tesla agreed to drop it.[1]
  • Westinghouse later bought the patent outright for a lump sum of $216,000.[1]
  • Westinghouse lit the 1893 Chicago world's fair with AC. Tesla advised on Niagara Falls, and Westinghouse won the contract to build the generators there.[1]
  • On 13 March 1895 a fire destroyed his lab, with notes, models and demonstration pieces. "I am in too much grief to talk. What can I say?"[1]

05 / The tower that broke him

Wardenclyffe Tower at Shoreham, New York, in 1904
Credit: Unknown photographer / Wikimedia Commons. License: Public domain.
  • John Jacob Astor IV put in $100,000 for his wireless experiments. In March 1901 J. P. Morgan put in $150,000 for a wireless tower on Long Island.[1][3]
  • In December 1901 Marconi sent the letter S by radio from England to Newfoundland. Investors moved to Marconi, and Tesla's project stopped in 1905.[1]
  • He mortgaged Wardenclyffe to the owner of the Waldorf-Astoria to cover his bills at the hotel.[3]
  • He could not keep up the payments. From 4 July 1917 the tower was dynamited for scrap.[3]

06 / The last years in hotel rooms

The New Yorker Hotel in Manhattan, where Tesla lived from 1934
Credit: Kidfly182 / Wikimedia Commons. License: CC BY-SA 4.0.
  • By 1915 he was effectively bankrupt.[1]
  • Unpaid bills got him evicted from the St. Regis in 1923. He had to leave the Hotel Pennsylvania in 1930 and the Hotel Governor Clinton in 1934.[1]
  • From 1934 Westinghouse paid him $125 a month and covered his rent at the Hotel New Yorker.[1]
  • A taxi hit him in 1937 and he never fully recovered. He died alone in his room on 7 January 1943, aged 86.[1]
  • In 1960 the SI unit of magnetic flux density was named the tesla.[1]

Lessons

  • Keep hold of what you invent. He signed his first patents over to investors and lost them.
  • Get paid in a way that survives a bad year. His royalty could have made him rich, and he gave it up during one crisis.
  • Make sure the money lasts until it works. Wardenclyffe ran out of funding and never became operational.
  • Back up your work. One fire destroyed his early notes, research material and models.
  • A bad job is not the end. Two years after digging ditches, he was licensing his motor to Westinghouse.

Read more

Key sources

  1. Wikipedia: Nikola Tesla
  2. Nikola Tesla: My Inventions (1919 autobiography, Wikisource)
  3. Wikipedia: Wardenclyffe Tower

Watch

  • Tesla (2016) | Full Documentary | American Experience

    PBS America

    The full PBS American Experience film on his life (2016).

    Watch on YouTube
  • Tesla, Chapter 1

    American Experience | PBS

    First chapter of the PBS American Experience Tesla film, on PBS's own channel.

    Watch on YouTube
  • Idea and Illusion: The Rise and Fall of Nikola Tesla - W.B. Carlson - 11/12/2020

    caltech

    Tesla biographer W. Bernard Carlson's Caltech lecture on Tesla's rise and fall.

    Watch on YouTube
  • Tesla: Inventor of the Electrical Age | Bernard Carlson | Talks at Google

    Talks at Google

    Tesla biographer W. Bernard Carlson on his book about Tesla, at Google.

    Watch on YouTube