Elon Musk Has Advice for New EV Makers Trying to Follow Tesla’s Success

During a recent interview, Tesla CEO Elon Musk shared some advice to those who wish to get into the electric vehicle market. While speaking at the Financial Times‘ Future of the Car summit, Musk stated that many fledgling electric vehicle companies today are actually adopting the wrong approach.

“Tesla almost went bankrupt so many times I lost count. To start a car company is mega pain. It is not easy money. It is the furthest thing from easy money you could possibly imagine,” Musk said.

“What I see with some of these new car companies is that they’re jumping in at the deep end and trying to create a high-volume vehicle when they have never made a vehicle before. This is like not practicing your athletic sport and then going to the Olympics. You’re not going to win. This is crazy.”

“You really need to start out small, makes your mistakes at a small scale, make sure you’ve got a lot of reserved capital, and then gradually build up from the dumb things you do in the beginning and be less dumb over time,” Musk said.


Elon Musk’s advice for EV makers. What should new EV makers do. How to follow Tesla’s path. How can new EV makers follow Tesla’s success. Elon Musk talks about Tesla’s mistakes and success.

This is Armen Hareyan from Torque News. Please follow us at on Twitter and for daily automotive news.

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  1. Elon has always said that cars are not the real product but, the real product is the factories. This is what you need to be good at.

  2. It's actually good advice not biting off more than you can chew. Tesla struggled, and they did actually start off tiny, with the original Roadster, and later the Model S, and finally the Model 3, which was their biggest challenge, and yet brought their greatest reward. And real automotive industry change. But this is like having children who grow up comfortably, and think that they should start out where their parents are, and move up from there. But that discounts all of the great effort that their parents took to create all that they had achieved over decades. It looks attractive to see the huge stock value of Tesla, but many EV newcomers have zero understanding of all of the effort, blood, sweat and tears that the Tesla went through to keep their heads above water, and then to finally scale up production, with the media and short greedy short sellers against them. But slow and steady wins the race in the long run. And it's good that Elon Musk can look back now from a position of undeniable success, and give some perspective and wisdom to future EV automakers. Born from his failures and experience.

  3. Elon is not wrong, but when he started, they were blazing the way. A new maker can buy EV parts, and hire people with experience. Elon couldn't. Also, the market is taking off now. 10 years ago, people would wait, and accept problems, because there was no choice. Now there is choice. Of course supplies are tight too. So, I would not ignore Elon's advice, but it's a different time.

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