The Tesla-Westinghouse Deal: A Genius Betrayed

 

The Tesla-Westinghouse Deal: A Genius Betrayed

Date: 1888–1897

Story:
When Tesla approached George Westinghouse with his AC motor patent, it changed the future of electricity.
Westinghouse, recognizing the brilliance, struck a deal: he’d pay Tesla $2.50 per horsepower of electricity generated by his motors.
This would’ve made Tesla one of the richest men in history as AC power expanded across America.
But during the financial panic of the 1890s, Westinghouse’s company nearly collapsed.
He begged Tesla to relinquish the royalty agreement to save the company.
Tesla, believing in the future and their friendship, tore up the contract.
This single act cost him hundreds of millions in future royalties.
While Westinghouse’s empire recovered, Tesla remained in financial limbo.
Later, Westinghouse gave Tesla a small pension, but the betrayal haunted Tesla’s legacy.
Many now see this as one of history’s greatest one-sided deals, a genius exploited in the name of corporate survival. 

Key Characters:

Nikola Tesla

George Westinghouse

Westinghouse Company executives

Investors during the panic of 1893

Reference:

Cheney, Tesla: Man Out of Time

Westinghouse Company Archives

U.S. Patent Office, 1888