Tesla

Elon Musk Went All-In on Tesla (TSLA) 12 Years Ago, Taking it from an Almost Bankrupt Startup to the Most Valuable Automaker

Elon Musk Went All-In on Tesla (TSLA) 12 Years Ago, Taking it from an Almost Bankrupt Startup to the Most Valuable Automaker
"As you know, the initial product of Tesla Motors is a high performance electric sports car called the Tesla Roadster. However, some readers may not be aware of the fact that our long term plan is to build a wide range of models, including affordably priced family cars. This is because the overarching purpose of Tesla Motors (and the reason I am funding the company) is to help expedite the move from a mine-and-burn hydrocarbon economy towards a solar electric economy, which I believe to be the primary, but not exclusive, sustainable solution," wrote Tesla CEO Elon Musk in The Secret Tesla Motors Master Plan (just between you and me) on August 2, 2006.

On February 1, 2008, the first Roadster was delivered and on March 17, 2008, the company entered into regular production. Nevertheless, the world crisis (of that time) began, and Tesla (NASDAQ: TSLA) felt its influence to the fullest. By November 2008, the company's financial position had deteriorated, and Tesla was on the verge of bankruptcy. To help the company and to accelerate the production of the Roadster, Tesla's board of directors approved $40 million in convertible debt financing.

This funding round ended at 6:00 pm on Christmas Eve, 2008. The company was three days away from bankruptcy. Musk also contributed all of his money, basically leaving him without a livelihood.
Investing in an electric car startup was a very risky endeavor. The situation was especially aggravated by the global financial crisis, due to which even the giants went bankrupt. Nevertheless, faith and striving for a better future for our planet prevailed. And supporters of Musk and his sustainable energy values have always rallied behind him, providing the strength to not give up--to keep moving towards the goal.

Twelve years after the company was on the brink of bankruptcy, Tesla has now become the most valuable automaker in the world, gathering an army of investors and fans around it, and once and for all changed the way we perceive transport.

At the moment, the company's market capitalization is more than $400 billion, but it was not an easy 12 years. It has been a difficult journey, riddled with obstacles and difficulties, sleepless nights, and constant efforts to achieve success. One of Tesla's main purposes, of course, has been to make the air on our planet cleaner. Another major long-term goal is to utilize proceeds for the creation of a settlement on Mars.

© 2020, Eva Fox. All rights reserved.

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Article edited by @SmokeyShorts, you can follow him on Twitter


About the Author

Eva Fox

Eva Fox

Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.

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