Why did Tesla Motors survive

Why is it so difficult to run Tesla?

In July 2019, Tesla - manufacturer of electric vehicles - celebrated its 16th anniversary. In 2003, Elon Musk agreed to invest in Tesla Motors. During the three years, Tesla grew and developed its first car, the Roadster, and opened its own manufacturing facility in Fremont. In May 2006, the first prototype of a new racing electric car, EP1, was ready and on July 19, 2006 Tesla held a major presentation of the prototype The Roadster in Santa Monica.

Elon Musk has earned the fame of tough but very effective CEO, he's actually going to rebuild the entire Tesla control system. To save the company, Elon Musk invested tens of millions of dollars from his personal budget.

Earlier this month, after more than two years of work, Dyson abandoned plans to build its own electric car. Sir James Dyson concluded that building your own electric car was not "economically viable".

Another Nio company is also experiencing financial difficulties. Shares have fallen two-thirds in the past six months. The automaker suffers heavy losses and the recall of nearly 5,000 cars due to battery failures.

Last week, Jia Yueting, the founder of Faraday Future, another popular Chinese startup with an electric car, filed for bankruptcy.

Similar startups in the automotive industry keep losing. That is why most of the automotive companies founded in the last half century no longer exist.

Recent problems with Harley-Davidson have exposed problems with mass-produced electric vehicles.

As with any other company, Tesla has production issues on a regular basis. Because developing an electric car company is an incredibly difficult task. In addition, Tesla continually encounters large numbers of people spreading false information about the company.

But after 16 years, Tesla is still in the market and has taken a leadership position. During those years, most reputable companies didn't believe in Tesla, but now they realize that electric cars aren't just fads. Because despite the fact that all of these manufacturers have an advantage in global supply chains and dealer networks, many still don't have electric vehicles that could be placed in dealerships. The difficulties of Dyson, Nio, and others suggest that knocking Tesla out of its place will not be easy.

In 2006, Elon Musk published the first secret master plan on the Tesla blog:

"The overall purpose of Tesla Motors is to accelerate the transition from a hydrocarbon economy to a solar power economy, which I believe is the primary, but not exclusive, sustainable solution."

  1. Create a limited edition car that is sure to be expensive (We need an electric car with no compromise, so the Roadster is designed to beat other sports cars with a gasoline engine.) Done!
  2. Use this money to develop a medium-volume car at a lower price (According to the fast-growing tech company, all of its free cash flow will go back to research and development to reduce costs and bring its follow-on products to market like this As soon as possible. When someone buys the Tesla Roadster sports car, they are actually helping fund the development of the affordable family car.) Done!
  3. Use that money to create an affordable, high volume car. Done!
  4. Providing solar energy (Tesla Motors will jointly promote environmentally friendly energy products from other companies. For example, we will offer solar modules from SolarCity, among others). Done!

In 2016 the second secret master plan was published:

  1. Integrate energy generation and storage. Create a seamlessly integrated and beautiful battery solar roof product that just works and empowers the individual for their own benefit, then scale it around the world. An order experience, an installation, a service contact, a phone app. Done!
  2. Expand to cover major forms of land transport. Tesla plans to cover a large portion of the consumer market with a whole line of cars. The Roadster, Model S., Model X., Model 3 -Done!Model Y, Tesla Semi - Already presented! Tesla Truck will be presented in November 2019!
  3. Autonomy. When the technology matures, all Tesla vehicles will have the necessary hardware to be completely self-driving and inoperable. This means that a certain system in the car can break down and your car is still safe to drive itself. Done and constantly improved!
  4. Share. If true self-driving has been approved by regulators, it means you can summon your Tesla from just about anywhere. You can also add your car to the Tesla fleet by simply tapping a button on the Tesla phone app and use it to generate income for you while you are at work or on vacation. This significantly reduces the actual cost of ownership so almost anyone can own a Tesla. Tesla Smart Summon is already implemented and is constantly being improved!

Yesterday was presented Tesla Q3 results. The results of this report were impressive:

- GF3 in Shanghai is developing ahead of schedule

- Model Y prematurely

- Solar installs + 48% from the second quarter

- GAAP - profitable

- Positive free cash flow

Conclusions.

Starting an automobile manufacturing company, surviving the battle against automakers, and making the company successful is an incredibly difficult task. But Tesla did it. In the electric car market, Tesla is a leader that makes the most advanced and safest cars in the world. Elon Musk turned a fading sratrap into a successful business in which he invested part of himself.

About the author

Eva Fox

I'm a big fan of Tesla, as I worry about the future for my child and for future generations. Tesla's mission is to accelerate the world's transition to sustainable energy and I'm passionately striving for this goal. I'm tired of the daily deception from Tesla's haters against the company, so I strive to spread true information and the latest news about Tesla.