I saw this in Fortune magazine. If I recall correctly, Musk and his former partner were at odds of using particular types of materials to manufacture the automobiles. Musk was seeking the cheap route (and $109,000 per car being cheap), and his partner (I believe it was Marc Tarpenning) wanted to go the route of "a few well-built cars for a select few." There was a big falling out somewhere down the line. The whole company was in a mess, and this car could have been better produced if all this legal and financial red tape (not to mention in-house fighting) was resolved better.
I'll have to refer back to the article, but it isn't all roses and sunshine at Tesla Motors right now.
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