Back in 2013, Elon Musk was at a crossroads. He had established a start up for an electric car company, named Tesla in honor of Nikola Tesla. His project was not getting off the ground at the same time that his other venture, space age company SpaceX was floundering. He was on the brink of bankruptcy and was entertaining offers for the company and its products. Musk though, who has been said to be the inspiration for the movie version of industrialist Tony Stark in ?Iron Man?, held on to the company and soon his fortunes changed.
The account came from a new book to be released about the life of Elon Musk. The book entitled, ?Elon Musk: Tesla, SpaceX and the Quest for a Fantastic Future? was penned by Bloomberg reporter Ashlee Vance. An excerpt was recently released, as reported by QZ.com.
In the account, Musk was said to have reached out to Google CEO Larry Page. An outline of an agreement to sell Tesla for USD6 billion in cash was drafted, which included a provision where Google would put in another USD5 billion in investments for factory expansion as well as research and development. The deal would retain Musk at the helm of the company.
At the time, the cash flow to Tesla was only worth for two weeks of operations. The previous models had too many bugs in it and the company was in free fall. Amongst the major issues of the car, according to a report from TheGuardian.com, the price of GBP50,000 as well as lack of essentials such as parking sensors, glitches in programming and materials issues put the car in limbo for the buyer?s market.? Musk then completed a massive overhaul of the company, firing senior executives as well as improving repair centers.
The Executive Decision
Musk declared, ?If we don?t deliver these cars, we are f@@ked. So I don?t care what job you are doing. Our new job is delivering cars.?
Soon thereafter, as reported in Bloomberg.com, Tesla posted its first ever quarterly profit on May 8, 2013. This was the seminal moment where the fortune of Musk changed, making the Model S the car of the year amidst through the roof demand for the car. ?And the rest, as the said, is technological history.
Image courtesy of Creative Commons contributor Maurizio Pesce