Elon Musk Not Really Bothered If Tesla Goes Bankrupt
Elon Musk wouldn’t lose too much sleep if Tesla went under, because he’s got bigger things on his plate. Well, kind of, anyway. He wants electric vehicles to be successful, even if the company he’s helped to build up is dissolved in the process.
Musk was recently interviewed for CBS’ 60 Minutes show. “If somebody comes and makes a better electric car than Tesla, and it’s so much better than ours that we can’t sell our cars and we go bankrupt, I still think that’s a good thing for the world.”
Not sure all the Tesla workers would agree, there.
And one of the company’s main rivals, General Motors, has just announced that it’s laying off thousands of workers as it looks to restructure. It’ll slash its salary books by 15% in a bid to go fully electric.
Tesla, of course, is testament to how difficult it is to build an electric empire. Amid production line woes, Musk’s unusual management style and build quality issues, the company has shafted money away like a waterfall. It’s made its first profit in two years, and one of amazingly few in its 15-year history. Reports from Goldman Sachs suggest that Tesla needs to face debts of nearly $9 BILLION. Whether it’ll manage that will decide its future.
And up until now, Tesla has been basically the only option if you want a desirable electric car with decent range for everyday life. The default choice. But in the space of a couple of years, Jaguar, Mercedes, Audi, BMW and Porsche have all created (or will create) EVs to challenge the best that Musky and his team has produced. Without Tesla’s well-documented quality issues.
Plus, mainstream manufacturers are putting all their efforts into EVs, and they’ll be better than a Nissan Leaf or Focus Electric. After Dieselgate, VW is sinking $50 billion into electric car development.
Tesla reportedly isn’t looking to fundraise to secure its future, even with its global expansion and potential future models. Hopefully its finances will snowball with more models and sales. It is, however, looking at pinching some of the factory space that GM will get rid of.
Will Tesla survive?
Let me know in the poll and the comments.