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Elon Musk Can Change the World – But Will He Run Out of Money First?

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Elon Musk Can Change the World – But Will He Run Out of Money First?

Aidan Araoz, Reporter

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I hope that Elon Musk can change the world. In fact, everyone should be hoping that this visionary can make the world a better place. However, this hope may be as lofty and unattainable as the goals he has set for his company, Tesla.

The company has been financially unstable for its entire existence. In the year 2009, Tesla barely survived. Tesla narrowly escaped bankrupcy, only to be salvaged by government bailout. Steven Chu, the United States Secretary of Energy at the time, commissioned a loan of $465 million to Tesla. Still, that was not enough money to keep Tesla in business. An additional loan of $50 million was dealt by the company Daimler. Daimler is the parent company of Mercedes-Benz. Daimler received 10% of Tesla’s shares in exchange for the loan.

Even then, the company was still not out of danger. Business Insider has quoted Elon Musk as saying “Even as recently as early 2013, we were operating with maybe one to two weeks of money.” Even with numerous loans and 4 years of time, Tesla was not able to economically stabilize.

Some may argue that this was the past. Since then, the company has undergone reform and must surely be sustainable now. However, Tesla’s future is at stake once again with the production of the Model 3. The Model 3 is Tesla’s first affordable car. With the company on the line, it is essential for the car to meet its projected sales. For the Model 3 to succeed, a total of 500,000 cars must be sold yearly until 2020. If this goal is met, Tesla will, for the first time, no longer be financially unstable. The battery-powered Model 3 Long Range gets 310 miles per charge and starts at $44,000.

Whether the Model 3 will sell or not is anybody’s guess. If it does, it will be a monumental achievement for Tesla. The company will finally have the financial resources to do the work of Elon Musk – to pursue his ideas that will salvage our world from the troublesome fossil fuels. If the Model 3 sells, Tesla will make Earth’s future a much brighter one.

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Elon Musk Can Change the World – But Will He Run Out of Money First?