Business Wars Tesla vs Detroit | Survival Mode | 2
4 snips
Apr 13, 2022 
Elon Musk, the visionary CEO of Tesla and SpaceX, dives into the tumultuous journey of Tesla Motors in 2010. He shares insights from his secret visit to an old Toyota factory, unveiling his ambitious plans for the Model S. Musk tackles the fierce rivalry with traditional automakers and discusses Tesla's fight for direct sales in Texas, challenging the dealership norms. As production ramps up, he reflects on internal challenges and leadership shifts, all while navigating the electric vehicle revolution’s competitive landscape.
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Musk's Factory Tour
- In 2010, Elon Musk toured a former Toyota/GM factory in Fremont.
- He aimed to buy it for Model S production, despite having only $42 million compared to the factory's billion-dollar value.
The Deal
- Musk wore a fake blood-stained tie to a meeting with Toyota's president to lighten the mood.
- He successfully negotiated the factory purchase for $42 million, plus a $50 million Toyota investment in Tesla's IPO.
Detroit's Hesitation
- At the 2010 Detroit Auto Show, Electric Avenue showcased EVs and hybrids.
- Established carmakers acknowledged the growing EV trend but were hesitant due to the market dominance of gas vehicles.
