Better Place CEO Shai Agassi ousted in surprise move

An earthquake shook the Israeli automobile industry on Tuesday: Shai Agassi, the charismatic founder and "face" behind electric car company Better Place, was unexpectedly ousted from his position as CEO by the company directorate.

The ambitious electric car company has struggled to get going, almost from the beginning. Since its inception five years ago, Better Place has raised nearly $750 million and in turn, has burned nearly half a billion dollars. In only the second quarter of this year, the company lost $65 million. Since the beginning of the year the company has lost $131.8 million — nearly double what it lost in all of 2011 (some $74 million). Its first-half earnings stood at a mere few million dollars. Therefore, what appears to be an unfeasible business model seems to have signaled the directorate's dramatic measure.

Better Place's business model forces its car owners to use the electric charging stations that it provides. The battery is good for between 120-180 kilometers (75-112 miles), and in actuality, forces the driver to fuss with recharging the car after almost every drive. According to estimations, the model still hasn't succeeded in enticing the public despite the promise of a pollution-free ride.

Other speculations regarding Agassi's surprise dismissal were raised on Tuesday, including the desire of Israel Corporation — controlled by Idan Ofer and the majority shareholder of Better Place — to see a much quicker turnaround in Better Place's infiltration of the Israeli market. Following the completion of dozens of quick battery-replacement stations across the country, the car's market infiltration is still slow.

In regards to other senior position holders in the company, such as Better Place Israel's CEO Moshe Kaplinsky, no further changes are expected. A company statement on Tuesday said there were no plans to take further measures. Agassi's replacement will be Better Place Australia CEO, Evan Thornley.

Agassi himself will still hold a seat on the directorate of the company that he helped found and will continue to hold a share in its stocks. The company denied Tuesday that Agassi was given the boot. "The time has come to move to the next stage," said one senior employee.

Agassi chose to bid farewell to the company's employees by way of a letter: "My heart will always be at Better Place, out of total identification with the vision and with the wonderful people who walked this new and fascinating path with me, beginning from the days when it was nothing but a dream. I owe you all so much, I will never forget you."

A statement from Better Place went on to say, "Over the past five years Agassi has led a revolution in the field of transportation and has made the electric car something comfortable, accessible and reasonably priced through innovative technology that allows unlimited driving range. What began as a vision on paper, to allow a country to operate without the need for oil, quickly became a reality."

Better Place Chairman Idan Ofer said, "Under Shai Agassi's leadership and through his innovative vision, the company successfully met its goals in the first stage of its life."

Agassi's Australian successor, Evan Thornley, 48, served as parliamentary secretary to the premier of Victoria and in the Victorian Parliament for the Labor party, until his resignation in 2008. Thornley holds degrees in law and commerce from the University of Melbourne. Prior to joining Better Place, he and his wife, Tracy, founded LookSmart Ltd., an Internet search advertising company.

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