Elon Musk's personal investments and efforts kept Tesla afloat during the 2008 financial crisis.
Elon Musk's story inspired actor Robert Downey Jr. and influenced the portrayal of Tony Stark in Iron Man.
Tesla's success with the Roadster laid the foundation for future innovations and expansion in the electric vehicle market.
Elon Musk took significant personal financial risks and became the CEO of Tesla, leading the company through challenging times.
Tesla's Model S received rave reviews as a game-changing, high-performance electric vehicle.
Deep dives
The Birth of Tesla: From Roadster to Survival
Tesla, a company aiming to produce electric vehicles, was founded by Martin Eberhard and Marc Tarpenning. Elon Musk became involved in the project and eventually became the CEO. The Roadster, the first production car, faced numerous challenges and delays, putting the company's survival at risk. Musk's personal investments and efforts to raise funds from friends kept the company afloat during the financial crisis of 2008. The Roadster, priced at $100,000, sold around 2,500 units, demonstrating the company's potential and laying the foundation for Tesla's future.
Iron Man and Elon Musk's Influence
During the production of the movie Iron Man, actor Robert Downey Jr. learned about Elon Musk's story and sought inspiration from him. Downey spent time with Musk to prepare for his role as Tony Stark, who later becomes Iron Man. The movie used a Tesla Roadster as a prop in Tony Stark's workshop as a tribute to Elon Musk and his innovative work. This interaction between Musk and Downey showcased the real-world impact of Musk's vision and solidified his position as a tech visionary.
Surviving the Financial Crisis
Tesla faced dire financial circumstances during the 2008 financial crisis, with the company burning through $4 million per month. Elon Musk took significant personal financial risks, borrowed money from SpaceX, and secured investments from friends to keep the company afloat. A last-minute debt deal allowed Tesla to survive and continue its operations. Musk ultimately became the CEO of Tesla, shaping the company's future direction and leading it through challenging times to achieve significant milestones.
The Roadster's Success and Tesla's Path Forward
Despite initial obstacles, Tesla's Roadster was successful, selling over 2,500 units and showcasing the potential of electric vehicles. This success provided Tesla with a foundation to continue its journey and develop future models. Tesla's survival and the Roadster's accomplishments solidified the company's position in the electric vehicle market and set the stage for future innovations and expansion.
Ramp up in Model S production and success of Model S
Tesla successfully ramps up production of the Model S, delivering just under 5,000 units in Q2 2013. The Model S receives rave reviews as a game-changing, high-performance electric vehicle.
Challenges with production and delivery of Model 3
Tesla faces challenges in meeting delivery promises for the Model 3 due to production issues. They need to significantly increase production levels to meet their targets and generate enough cash flow to pay off debt and fund future investments.
Financial challenges and options for raising capital
Tesla faces financial challenges, including a significant amount of debt and interest payments. They explore options for raising capital, including equity offerings and accessing the bond market, but face obstacles such as diluting existing shareholders and being limited by their junk bond rating.
Tesla's Ambitious Growth and Milestones
Tesla's Model S, Model X, and Model 3 have achieved significant sales milestones. In 2015, the Model S sold 100,000 units, and by the end of 2017, sales surpassed 200,000 units. In February 2018, Tesla reached over 300,000 total units across all vehicles. The company has ramped up production, with a rate of 25,000 to 35,000 units per quarter.
Challenges and Uncertainties for Tesla's Future
Tesla faces several challenges and uncertainties that could impact its future. The company competes with formidable rivals in the electric vehicle market, such as GM and BMW, who have a strong manufacturing and production capability. Additionally, Tesla's supply chain relies on around 350 sole-source suppliers, presenting potential challenges in meeting the demand for components. The company's financial position is also contingent on the stock price, as convertible notes and Elon Musk's personal loans are tied to the value of Tesla's shares.
Acquired kicks off Season 3 with a gangbuster two-hour extravaganza on America’s most successful automotive startup since The Ford Motor Company: Tesla. We cover everything, from founding to its 2010 IPO to all that’s happened since, including the question on the minds of superhero fans everywhere: who came first, Elon Musk or Tony Stark? (Spoiler: Elon)
