Nikola Tesla. The name alone sparks images of lightning bolts, spinning coils, and futuristic genius. He was a visionary, an inventor, a man so far ahead of his time that even today, some of his ideas still seem cutting-edge. But while his inventions shaped the modern world, Tesla himself died broke and largely forgotten. Why?
The story of Nikola Tesla is a stark reminder that a good idea alone isn’t enough. To truly make an impact—and to profit from it—you need more than a brilliant mind. You need business skills. And that’s where Tesla fell short.
The Genius Who Changed the World
Tesla’s work with alternating current (AC) revolutionized how electricity was transmitted. Before AC, Thomas Edison’s direct current (DC) was the standard, but DC was inefficient over long distances. Tesla’s AC system, by contrast, could transmit electricity far more effectively. With the help of George Westinghouse, AC eventually became the dominant electrical system, powering our homes and businesses to this day.
He also invented the electric motor and even developed the foundational technology behind wireless radio. While Guglielmo Marconi is credited with inventing the radio, many historians agree that Tesla’s patents laid the groundwork for wireless communication.
So, if Tesla was responsible for so many world-changing innovations, why did he die alone in a New York hotel room, broke and largely discredited?
The answer: Tesla lacked the social and business skills necessary to protect and profit from his ideas.
In contrast, George Westinghouse—the businessman who backed Tesla’s AC system—knew how to negotiate contracts, secure funding, and scale innovation into real-world success. Guglielmo Marconi didn’t just tinker with radio waves—he marketed the radio, built partnerships, and commercialized the technology. Tesla? He gave away key patents and failed to capitalize on his ideas.
The Modern Entrepreneur’s Takeaway
Tesla’s downfall is a cautionary tale for today’s entrepreneurs, creators, and inventors. Creativity is only half the battle. If you can’t sell your idea, someone else will—probably for a fortune. And if you’re not careful, your name may be forgotten while others profit from your brilliance.
If you’re building a business or launching a product, it’s not enough to focus only on innovation. You also need to:
