Ashlee Vance’s biography, “Elon Musk: Tesla, SpaceX, and the Quest for a Fantastic Future”, meticulously recounts Tesla Inc.’s tumultuous journey from the brink of bankruptcy in 2013 to its remarkable resurgence under the determined leadership of Elon Musk.
During this critical period, Tesla faced daunting challenges, including production woes and plummeting sales, imperiling the future of the pioneering electric car company.
Cause, culture and criticism
Despite the groundbreaking release of the Model S electric car in 2012, lauded for its innovative features, Tesla encountered harsh criticism for its perceived shortcomings, such as the absence of basic functionalities expected in its price range. The situation was exacerbated by a lack of transparency among Tesla’s executives, leaving Musk blindsided by the severity of the company’s predicament.
A total of $11 billion
With Tesla facing a precarious financial position, Elon Musk sought aid from Google co-founder Larry Page. Musk presented a proposal for Google to acquire Tesla for $6 billion, allocating an additional $5 billion for factory expansions.
The deal was contingent upon Google refraining from dismantling Tesla and Musk retaining leadership for eight years or until the production of a third-generation car. According to the biography, Page reportedly verbally consented to the terms.
However, Tesla’s fortunes began to shift dramatically as car sales surged, culminating in the company’s first-ever quarterly profit of $11 million. This newfound financial stability enabled Tesla to repay its debts and evade bankruptcy, prompting Musk to terminate discussions with Google.
Also read: Elon Musk Loses ‘World’s Richest Person’ Title To Bernard Arnault As Tesla Struggles
Since then, Tesla has flourished, expanding its presence globally and solidifying its position as a trailblazer in the automotive industry. The remarkable turnaround serves as a testament to Musk’s visionary leadership and unwavering determination to revolutionize transportation and energy.
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