Musk built Tesla — Now Watch him Burn it Down.

🌈 Abstract

The article discusses the potential decline of Tesla and the challenges facing its CEO, Elon Musk. It examines how the growing EV market, particularly in China, is posing a threat to Tesla's dominance, and how Musk's controversial persona and diversified business interests may be hindering Tesla's continued growth.

🙋 Q&A

[01] A Non-Tesla EV Market

1. What advantages do Chinese EV manufacturers have over Tesla?

• China's manufacturing efficiency and economies of scale give it a sharp edge over Tesla.
• There is strong collaboration between the Chinese government and private sector, as well as high levels of vertical integration among Chinese EV manufacturers across the supply chain.
• Chinese EV manufacturers are poised to roll out cars that can match Tesla's performance, quality, and price.

2. How does the EV market in China compare to the US?

• China's EV sales in 2022 were 6.7 times those of the US, despite having a population only 4.2 times larger.
• The Chinese EV market is growing at an absurd rate, accounting for 60% of global EV sales in 2022.

3. What happens when EV companies can match Tesla's performance and undercut its prices in a much larger market?

• Tesla's unique selling proposition (USP) will no longer be unique, and the company will face significant challenges.
• It is up to Tesla's leadership, particularly Elon Musk, to innovate and maintain their edge in the market.

[02] Musk's EV Impact

1. What is Elon Musk's role in the EV market?

• Musk and Tesla are largely responsible for developing the technology and spurring the world's adoption of EVs.
• Musk has been a disruptive innovator rather than a level-headed businessman, but he has built an extremely valuable brand image for himself and Tesla.

2. What are the potential downsides of the interconnected relationship between Musk and Tesla?

• Musk has become an extremely controversial figure, which could negatively impact Tesla's credibility and sales, especially among those who are not enamored by him.
• Musk's attention is divided across multiple companies (Tesla, Twitter, SpaceX, Neuralink, and xAI), which could be a detriment to Tesla's growth.

3. Should Elon Musk step down as Tesla's leader?

• The article suggests that while Musk was responsible for bringing Tesla to where it is today, he may no longer be the best person to lead the company's continued growth, and it may be time for him to consider stepping away.