Tesla would have been very close to bankruptcy due to the Model 3. Word of Elon Musk. When the number one of the Palo Alto brand opens his mouth he always knows how to impress everyone and the same goes for his messages on Twitter. In this case, on the Twitter social network, the South African billionaire has revealed a background according to which the automaker specializing in electric vehicles would have been on the verge of the abyss last year, when the company increased production of the Model 3.
It was Elon Musk who revealed the critical moment, answering questions from some fans on Twitter. Asked by one user about how close Tesla was to bankruptcy at the time of mass production of the Model 3, Tesla’s eclectic founder confessed: “We’ve been missing almost a month. From mid-2017 to mid-2019 it was difficult, both from the point of view of production and logistics ”. A revelation that brings to mind an emblematic image posted by Musk himself, in which he appeared leaning against a Tesla holding a sign with the words “Bankruptcy”. At the time everything seemed a provocation but now that photo, mistaken for ironic, seems to be much more real.
I put in my last money, even though I thought we would still fail. But, it was either that or certain death for Tesla. Extremely difficult to raise money for an electric car startup (considered super quirky back then), while stalwarts like GM & Chrysler were going bankrupt.
— Elon Musk (@elonmusk) November 3, 2020
In early 2019, CNBC had pointed out how Tesla had received a large sum in aid from investors and supporters, billions of dollars obtained thanks to the promotion of autonomous driving projects speeded up during the Autonomy Day event. Musk he said the automaker would be able to finance its business needs with cash flows that existed at the time and that the fundraising was useful in raising finance in the event of a recession or weak global demand for vehicles.
It’s been almost two years and for Tesla the road to bankruptcy now seems largely over. Not only because the Model 3 has established itself as a global car but also because of its production, initially carried out in the Californian plant alone, it is now also produced at the Shanghai Gigafactory, which will come to have an assembly capacity of over 150,000 Model 3 per year.
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