Friday, November 12, 2021
He Ought To Know
Elon Musk has spoken out about his competitor in electric trucks -- Rivian -- which just went public and soared on the exchange. Musk said the true test of the company is high production and breakeven cash flow. Musk ought to know. Tesla gushed money in its early days, losing billions before turning the corner. And, it had deep problems scaling production to the point where it had to build a tent outside its plant to finish cars coming off the line. Musk's comments strike one as forgetful of his own experience. On the other hand, he could be the voice of reality speaking from a position of having been there and made it through. His comment that Tesla was the only car company in the last 100 years to cross the divide between money loser and money maker is true but ignores the patience investors had with him as he struggled to turn the company around. Rivian may share some of the same fate as it grows. Musk should acknowledge that he was fortunate in his success.
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