Elon Musk, you rock!

Origins of Tesla

Many people think Musk founded Tesla. That’s not true. According to Encyclopaedia Britannica, the company was actually founded in 2003 by American entrepreneurs Martin Eberhard and Marc Tarpenning. As is commonly known, it was named after the Serbian American inventor, Nikola Tesla.

Eberhard was Tesla’s chief executive officer while Tarpenning was its chief financial officer. And Musk? Well, he was one of the funders of the business. He forked out more than $30 million (roughly R523,8 million) and he was also appointed Tesla’s chairman in 2004.

Incredibly, even Musk was dubious about the automaker’s chances. “I was actually always fairly pessimistic about the outcome of Tesla, all the way from the beginning. In those very early days, I thought, we have a maybe 10% chance of success,” Musk revealed on the “Ride the Lightning Tesla Motors Unofficial Podcast.”

Maybe the founders had their doubts too. Eberhard resigned as CEO in late 2007 while Tarpenning departed from Tesla in 2008. This paved the way for Musk to become CEO of the company.

From day one, the company made its intentions very clear: it would focus on electric vehicles.

First cars, then trucks

Its initial focus was on cars – with mixed success. Sales were sluggish, deliveries were problematic and there were production problems galore. Some doubts were cast over the brand’s self-driving technology. By the first quarter of 2019, Tesla was reporting massive losses – $702 million (around R12 billion) to be precise. By June 2019, Tesla’s stock was at a three-year low.

And then things all changed. While Tesla continued to sell cars, it turned its focus to trucks.

 

Semi followed by the Cybertruck

Musk revealed the Semi back in November 2017, saying that the trucks would be delivered to customers in 2019. That didn’t quite happen; production is now being planned for 2021. This didn’t stop the company from taking orders for the truck. Back in May 2018, Musk revealed that about 2 000 orders had been placed – with a deposit of anything from $5 000 (R86 318) to $200 000 (R3,4 million) depending on spec level and the timing of the order. It’s still possible to order the regular Semi now (an upfront payment of $20 000 or R345 272 is required) or the exclusive limited edition “Founders series” model, which requires the substantial $200 000 (R3,4 million) deposit. You can find more info on the truck and you can order one here.

 

 

However much of Tesla’s current success is believed to be due to another truck, namely the funky and futuristic Cybertruck, which Musk launched in spectacular fashion in November 2019. Incredibly, pre-orders for this truck stand at over 650 000. That’s quite something; according to Finbold.com, the company delivered 612 120 Model S, X and 3 electric cars in the whole of 2018 and 2019!

Customers ordering the “truck with more performance than a sports car” are paying a mere $100 (R1 726) to secure their vehicle. But that’s a cool $65 million (R1,1 billion) in revenue thus far!

 

The deposit is fully refundable. Customers can complete their configuration as the production of left-hand-drive models nears in late 2021 (single motor RWD production is expected to begin in late 2022). Orders can be placed and more information can be found here.

Shares soar

People sat up and took notice of the company’s sudden success! And Tesla’s shares suddenly started trading higher (after hitting a low of $211 or R3 642 in August last year, they were trading at $1 675 or R28 916 on July 20 this year).

 

The company’s success with its truck and share price have coincided with triumphs on the car front too. Tesla isn’t just currently the world’s biggest electric vehicle producer. It’s bigger than the next three biggest electric vehicle producers – Renault/Nissan, Volkswagen and BYD – combined.

Incredibly, Tesla isn’t just worth more than Toyota right now. It is also worth more than Volkswagen, General Motors, Honda, Fiat Chrysler and Ford put together.

Of course, Musk has achieved this while also sending rockets into space and getting astronauts to make the first US splashdown to earth in 45 years. Now that’s not bad for a South African boytjie.