Musk Reveals Model 3 Production Issues Left The Company With Only Weeks To Live

Elon-Musk

Earlier this year, Bloomberg reported that Tesla was running out of cash as the automaker was burning through more than $6,500 (£5,072 / €5,736) every minute.

That’s a massive amount of money and a number of people believed the automaker would run out of cash before the end of the year. While Tesla pushed back on the original report, it appears the story might not have been very far off.

In an interview with Axios, Tesla CEO Elon Musk confirmed problems with the Model 3 almost resulted in the death of the automaker. As he explained, Tesla was “bleeding money like crazy” and “if we didn’t solve these problems in a very short period of time, we would die.”

Musk went on to says the problems involving ramping up Model 3 production were “extremely difficult” to solve and the company only had “single digit” weeks to live. This put an incredible amount of pressure on Musk and he was working seven days a week and sleeping in the factory. The outspoken executive went on to describe this time as “very painful” as it hurt both his brain and his heart.

While the short clip doesn’t delve into many specifics, production problems with the Model 3 are widely known. The company overestimated their ability to get the car into mass production and this was compounded by bottlenecks which put the company into “production hell.”

The issues have largely been worked out, but there are still problems as Musk has previously noted the automaker went from “production hell to delivery logistics hell.”

 

  • PK

    Tesla is like a giant cockroach that just won’t go away. eventually they will.

    • Jason Miller

      Highly doubt it. They’re still a relatively new company, but they have lasted much longer than most startups that have come and gone in the last 10 years. Most new businesses have a rocky start. Over time they will get everything in place and cruise along.

      • TheBelltower

        Totally agree. Think about all of the EV companies that have come and gone. Even the GM EV1 bit the dust in spite of how much their owners loved them. Elon built a successful car company because he saw all of this and envisioned an entirely different energy/charging/dealership/supply-chain structure. These are all things that make the brand appear much more nimble and intelligent than conventional automakers… beyond just the vehicles. Do you think that the UAW would have been able to build cars underneath a massive wedding reception tent if they had to? No way. Elon deserves a nice vacation.

    • Dude

      How has Tesla made you this salty?

      • Dennis James

        Like everything that gets him out of his comfort zone does 🙂

    • EM1

      PK, let’s see you make a billion dollars and start a car company from scratch.

    • TheBelltower

      They won’t. Even if they get close to “going away,” they’d be acquired by any one of many potential buyers.

  • Six_Tymes

    OK, so, problems, problems, problems, are they all solved now?

    • Dude

      They’re having issues with delivery. Not sure how. That seems like the easy part.

      • Jason Miller

        I’m seeing Model 3’s all over the place, even 2 or 3 of them in my small town. They’re starting to spread fairly quickly.

  • Mike anonymous

    “Musk Reveals Model 3 Production Issues Left The Company With Only Weeks To Live”… And the Truth shall set you free

  • Dennis James

    Elon Musk does look tired. Hopefully everything will fall into place and things will become easier soon. Very few people realize the amount of work and the speedup for the human race evolution this guy did. And the best part is that he delivered. SpaceX flies its reusable rockets to the ISS and back, puts satellites into orbit, people can finally drive some no-joke electric cars. He deserves a lot of credit.

  • EM1

    People can make fun of Tesla as much as they want but none of you haters come close to any of his achievement. And no I don’t have any of his products and wish I could afford them.

  • TheBelltower

    Little did anyone know that, in spite of how dire things were, Elon’s company was much better situated than GM or Ford!

    • Bonni Gari Leksmana

      Agreed…

    • EXACTLY. ALL THE TESLA HATERS SHOULD BE CHEERING THEM ON, ESPECIALLY IF YOU’RE AMERICAN.

  • Elmediterraneo

    Tesla’s death will be the revelation about that EV scam sponsored by the biggest lie of our lifetime : the global warming.

    • TheBelltower

      People buy Teslas because, after driving one, everything else feels like a lawn tractor. The elimination of stink is just a wonderful bonus.

    • Jason Miller

      Your opinion of course. Nothing more.

    • Callanish

      What you don’t know compared to what you think you know could fill a very big warehouse.

    • Astonman

      While the rest of us work to save the planet, you will live off of our hard hard work. Not right.

    • Tell this to the NASA scientists that have decades long work and data on weather.

      • lagunas3ca

        NASA is too concerned with landing an $830 million shovel on Mars.

        • How is that related? NASA has been researching weather patterns for decades. They are confident that humans have sped up the weather changes on our planet. Why do ignorant people need to question this, especially for lame political reasons?

          • lagunas3ca

            It was a joke, relax.

    • GobbleUp

      D bag.

    • Stephen G

      What evidence do you have of a conspiracy and why do you think this is happening?

  • sidewaysspin

    Incredible he always pulls through at the last moment.

  • Mr. EP9

    That was kind of obvious at the time but thanks for confirming anyway.

  • Astonman

    I am so impressed with his so many accomplishments. I think this was his way of digging at all of the stock shorters to tell them they were so close, but no cigars.

  • stelvio

    What’s more amazing is when normal people lose their hair with too much stress, Elon actually grows more hair

  • Richard Alexander

    Because when a massive and long overdue recession hits what people are going to want is…..expensive cars with poor build quality.

    • OR GAS GUZZLING SUV’S OFFERED OVER AT FORD AND GM.

      • Mike anonymous

        I can’t really consider most fords ‘gas guzzlers’ anymore. With all of the hybrid and eco-boost variants. Plus their being to move their line to electric vehicles, and hybrid EV’s… as for GM,. I’m with you all the way.

        • I WAS JUST RESPONDING TO ^ SNIPE AT TESLA. I’M SURE GAS MILEAGE OF TODAY’S SUV’S ARE A LOT BETTER THAN IN THE PAST.

          • Mike anonymous

            No worries, I understand and get what you mean.

  • MEANWHILE AT GM, WHAT’S HER NAME IS CLOSING FACTORIES AND FIRING WORKERS ALL WHILE NOT OFFERING MANY COMPELLING PRODUCTS TO KEEP THE PUBLIC INTERESTED.

  • Blade t

    Even if tesla fails ,I think Elon will be OK with it. The company has done much more than I think he imagined. From that video clip I think he’s ready to move on to a bunch of other future ideas and projects. He seems burned out with the car industry..

  • Ary Wisesa

    Why don’t they turn to Toyota to get some advices on how to run excellent manufaturing? Toyota is famous for its Toyota Production System. Tesla can learn one thing or two from one of the best auto manufacturer in the world.

  • Enter Ranting

    I’m sure the rush to get the Model 3 on sale won’t affect the car’s reliability.

    • ONE OF THE MANY UNIQUE THINGS ABOUT TESLA IS THAT OWNERS GO ON YOUTUBE AND TELL ALL ABOUT THEIR ADVENTURES. A LITTLE CURIOSITY MAY SHOW YOU THAT THE BUILD QUALITY MAY NOT BE AS BAD AS THE GOSSIP SUGGESTS. THOSE WHO’S HAD QUALITY ISSUES HAVE TOLD OF HOW TESLA’S TRAVELING SERVICE HAVE COME TO THEIR HOMES OR WORK AND FIXED THEM ON THE SPOT. MARY BARRA AIN’T GONNA DO THAT, ELON WILL.

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