Business News

Tesla was a month earlier than chapter throughout Mannequin three manufacturing, Elon Musk Tweets

The always honest CEO exchanged views on social media again.

Grow your business, Not your inbox

Stay up to date and subscribe to our daily newsletter now!

November
3, 2020

2 min read

Tesla's financial struggles have been the subject of much news over the past few years, but founder Elon Musk shared Tuesday that the situation was worse than the public knew at the time. In a series of tweets, Musk revealed that Tesla was “about a month” from bankruptcy between mid-2017 and mid-2019 as it ramped up Model 3 production.

Related: Elon Musk's net worth passes Warren Buffett's after Tesla stock hits all-time highs

The next we came about a month. The Model 3 ramp was exposed to extreme stress and pain for a long time – from mid-2017 to mid-2019. Production and logistics hell.

– Elon Musk (@elonmusk) November 3, 2020

The two years of "Hell" came as Tesla tried to move the Model 3 from concept to mass production. And it turned out that this was not the only time Tesla nearly went bankrupt. In 2008, the company secured a $ 40 million loan that Musk said "last hour" when Tesla was about three days before bankruptcy.

This funding round was completed on Christmas Eve 2008 at 6 p.m. Last hour of last day possible as investors left town that night and we were 3 days before bankruptcy. I invested all the money, didn't own a house, and had to borrow money from friends to pay the rent. Hard time.

– Elon Musk (@elonmusk) November 3, 2020

I invested the last of my money even though I thought we were still going to fail. But for Tesla it was either that or certain death. It was extremely difficult to raise money for an electric car startup (which was considered super quirky at the time) while stalwarts like GM & Chrysler went bankrupt.

– Elon Musk (@elonmusk) November 3, 2020

Whatever it's worth, since both near-failures, Tesla's stocks (and Musk's net worth) have both hit all-time highs.

Related: 61 books Elon Musk thinks you should read

Related Articles