Tesla: Cash Crunch | Elon Week
Elon was facing a tough time with Tesla. Tesla for there Research and Devlelopment was burning cash really fast. They had taken 80 million USD as booking amount for Tesla Roadster and were left with 9 million USD.
They were getting Roadster delayed by a year. And the ambitious cost they were targeting 80,000 USD cost and the cost was going to level more than twice. Tesla employees were leaving Tesla, for the fact that it was not able to deliver
Meanwhile Elon faced problems in his personal life. He had stated he would spend his last dollar for success of these companies. He even sold his luxuries like McLaren F1, and decided to live in Justine’s parent’s garage if needed. But that option died soon, due to tension in there relationship.
Musk had been too busy with SpaceX and Tesla that he could not givenenoigh time to Justine. He did not like to sharenhis problem with Justine Musk, and as a result Justine felt He had hidden some things with her. She as a result felt herself to be betrayed
Later Elon filed for divorce. After being divorced Justine could get more open with her relatipnship. She in her blogs started writting and criticizing Elon even more.
Added to this was ValleyWag the local bloging site of Silicom Valley that criticized Elon, for impossible promises.
Tesla needed urgent cash and added was Elon’ a!bition to provide high level of customizability to users. Which led to slower manufacturing. The software programing was also taking a lot of time, for the fact that nothing like this had been ever created
Also all the top command had to be extra cautious for safety. They needed to ensure batteries don’t catch fire while driving.
Burning through cash Tesla employees tried to attract more people to put 5000 USD to pre book a car
The car which was planned to be delivered in 2007 was now delayed to late 2008. And still the future was unclear.