As reported by the technology news website, the chief executive said that Tesla and Ford barely made it through the last recession and that Ford might not be so lucky the next time around.
“Ford and Tesla made it barely through the last recession. There’s a good chance Ford doesn’t make it in the next recession,” Musk said. He then went on to reveal how hard is it to create a successful car company,
“Making a car company successful is monumentally difficult. There have been many attempts to create a car company and they have all failed, even the ones that have had a strong base of customers, thousands of dealers, thousands of service centers, they’ve already spent the capital for the factories, like GM and Chrysler, still went bankrupt in the last recession,” said Musk.
He then went on to say that it is “absurd that Tesla is alive.”
During the financial crisis around 10 years ago, Daimler was one of the reasons the Tesla could survived as it invested nearly S$70 million into it. Daimler has since sold its investment in Tesla four years ago for a cool S$1.072 billion.