Enough about Bitcoin and Trump. Lets go back to Tesla…

We’ve been missing Elon Musk in the news recently. When Elon isn't sharing his fear of AI taking over the human race, he's losing hair again, worrying about the Model 3's upcoming production deadlines:


Mr. Musk has good reason to worry about Tesla. The auto maker is entering one of the most critical phases in its history, a make-or-break period in which Tesla must boost production of the Model 3 or possibly face severe financial consequences.

In April, Tesla will reveal whether it is on track to meet an ambitious second-quarter target of producing 5,000 Model 3s a week—a goal that it already twice delayed.

Missing or delaying the target again would be strike three: it could deal a killing blow to investor confidence. Given the way the company flies through cash, it is highly likely that Tesla will need to raise more money in the near future. Missing this target might make that, if not impossible, very unlikely.

In the past, Elon has been known for blurring the line between the possible and the impossible. From avoiding bankruptcy under the glare of bearish investors to sending an electric vehicle into space, Elon has been able to live up to his reputation as a true visionary. But we need to remember that Tesla is no longer a just another promising-looking startup that investors are willing to throw money at:


It is a 38,000-person company that is trying to compete with the world’s largest auto makers. Mr. Musk has eschewed operating profit and racked up debt as he chases his dream of making a mainstream electric sedan. He had earlier pledged to deliver 500,000 vehicles this year, about five times last year’s total.

Do you believe in Elon? Will he live up to his reputation by surprising the pessimists?

What do you think will happen if Tesla misses its production target? Will investors avoid Tesla like the plague when it starts begging for money?

Elon's original production goal of 500,000 vehicles by the end of 2018:

 

Soluta quas quas consequatur iure velit ratione. Aliquid necessitatibus error aut iste impedit rerum aut. Expedita similique quo magni cumque aspernatur temporibus autem fuga.

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
Secyh62's picture
Secyh62
99.0
5
kanon's picture
kanon
98.9
6
DrApeman's picture
DrApeman
98.9
7
dosk17's picture
dosk17
98.9
8
GameTheory's picture
GameTheory
98.9
9
CompBanker's picture
CompBanker
98.9
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”