My biggest takeaway from this article is that Tesla's very aggressive, forward-looking growth plan could be absolutely destroyed by a recession in the US economy.
Durant's companies ran fine with him as CEO until recession hit and he ran out of money.
What happens to Tesla if a recession hits? All of their products, while undoubtedly groundbreaking, are luxury goods purchased with discretionary income. Even the Model 3 - reliable, commodity transportation can be had for far less than $35,000.
How will Tesla handle the pool of buyers for a $75,000 sedan and $900/mo lessees shrinking dramatically?
Of course all auto manufacturers face this problem. But a company run by an aggressive, visionary CEO like Musk faces far more risk.
Durant's companies ran fine with him as CEO until recession hit and he ran out of money.
What happens to Tesla if a recession hits? All of their products, while undoubtedly groundbreaking, are luxury goods purchased with discretionary income. Even the Model 3 - reliable, commodity transportation can be had for far less than $35,000.
How will Tesla handle the pool of buyers for a $75,000 sedan and $900/mo lessees shrinking dramatically?
Of course all auto manufacturers face this problem. But a company run by an aggressive, visionary CEO like Musk faces far more risk.