Elon Musk reveals Tesla was ‘about a month away’ from bankruptcy
Elon Musk has revealed Tesla is “about a month away” from bankruptcy as the company struggles to ramp up production of the Model 3.
In a candid exchange with a Twitter follower, the billionaire explained that Tesla had been in “production and logistics hell” for about two years.
Musk was asked, “How close was Tesla to bankruptcy during the mass production of the Model 3?”
To which he replied: “The closest we got was about a month. The Model 3 amp was extreme stress and pain for a long time – from mid-2017 to mid-2019. Production and maintenance hell logistic.”
The Model 3 first went on sale in July 2017, but experts warned that to mass-produce the vehicle, the company would need more funding.
In 2019, Musk raised billions after promoting his self-driving cars at an Autonomy Day event, CNBC reports.
The closest we got was about a month. The Model 3 ramp was extreme stress and pain for a long time – from mid-2017 to mid-2019. Hell of production and logistics.
– Elon Musk (@elonmusk) November 3, 2020
And it looks like it was worth it in the end for Musk, at least, because he picked up a $700m (£567m) performance based compensation earlier this year.
The CEO’s payout was triggered after the company hit a few of its targets, including total revenue of $20bn (£16.2bn) for its last four quarters.
Musk opted out of having a base salary with the company, opting instead for heavily discounted Tesla stock.
The SpaceX founder has been one of the few winners from the coronavirus pandemic, seeing a whopping 55% increase in his wealth from the start of the year to July.
Speaking Speaking at a virtual ‘Humans to Mars’ conference in September, the 49-year-old said: “Getting to Mars, I think, is not the fundamental question.
“The fundamental problem is to build a base, to build a city on Mars that is self-sufficient.
“We’re going to build a thruster factory, a first Mars base – Mars Base Alpha – and then bring it to the point where it’s self-sufficient.
“I want focus on that it is a very hard and dangerous thing, difficult, not for the faint of heart.
“Good luck you die, it’s going to be tough, but it’ll be pretty glorious if it works.”
Yes, that sounds good, mate…