Tesla was not working on "free" energy, although he had the altruistic but misguided idea that if you could transmit energy wirelessly it would be so cheap as to be nearly free. (Of course, since there is no way to meter electromagnetic energy, you really don't have any choice but to give it away.) What Tesla apparently didn't understand was the nearly insatiable demand for cheap energy. He also didn't know what we know today about the dangers of high-power electromagnetic radiation. (Or maybe he did, if the "Tesla Death Ray" stories are to be believed, and just chose to ignore the danger.)
Tesla also gave some of his patents to George Westinghouse, a move that guaranteed the success of ac power and made Westinghouse even richer than he already was, but ultimately cost Tesla millions of dollars in royalties. This was back in the days when workers made a buck a day and a million bucks went a very long way. Had he kept just some of the royalties, he would have had plenty of money to fund his research.
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