The Tesla Electric Light & Manufacturing was a company formed by Nikola Tesla in 1886. Located in Rahway, New Jersey, the company was formed after Tesla left Thomas Edison's employment, after a contractual disagreement. Tesla planned to sell and license his patent and innovations. Tesla invented an arc lamp of high efficiency; the carbon electrodes were controlled by electromagnets or solenoids and a clutch mechanism and had an automatic fail switch. The company earned money, but most of the capital gained went to the investors. Ultimately, financial investors disagreed with Tesla on his plan for an alternating current motor and eventually relieved him of his duties at the company.