In the last decade, Tesla has emerged as a symbol of perseverance in the time of hardships. The company has survived despite the tremendous odds it faced. But can it withstand the tests of current time and succeed?
In the last two years, the Electric car maker has come under a lot of scrutiny by its investors because of consistently missing their targets. Tesla’s balance sheet continues to run in red and their war chest is nearly empty. Elon Musk’s eccentricities have found no favors with its major investors and a recent crash of Model 3 autonomous vehicle has put a question mark on the car’s safety.
The Electric car giant has big ambitions and thus is forced to endure massive hardships at every turn. The competition from established manufacturers like General Motors will eat a big slice of the affordable car market. GM’s Chevy Bolt is one of the biggest threat’s Tesla’s first mass-market car, the Model 3.
If the Electric car giant does not deliver on time, a lot of potential customers may walk over to the Bolt, a move that can hurt Tesla in a big way. The company is banking so heavily on Model 3 that if the competition eats up its market share, Tesla may go bankrupt for lack of funds.
Musk is spending 20 hours a day working in the factory and there are serious concerns about his mental health. He got into trouble with the SEC and the investors because of his unsuccessful attempt to take the company private. As a result, he was forced out of the Chairman’s role.
Musk has been burning on all cylinders for so long that it is only a matter of time before he collapses. But the hope is that Tesla can survive without his leadership if such a time comes.