Tweak: Tesla CEO Elon Musk Reflects On Hardships After Apple Calls It Quits: ‘The Natural State Of A Car Company Is Dead’
Tesla Inc CEO Elon Musk, on Tuesday, reflected on the natural state of the car company after media reports that tech giant Apple Inc has pumped the brakes on its electric car project after about a decade.
What Happened: “The natural state of a car company is dead,” Musk said, reflecting on the hardships of making an auto company survive. The EV giant CEO was responding to an X user who opined that despite its significant cash pile, Apple couldn’t make a car company.
The user, also a Tesla enthusiast, further added that only two major automakers haven’t gone bankrupt to date- Ford and Tesla. While both companies have had hard times, particularly during the 2008 financial crisis, they have evaded bankruptcy thus far.
Musk has previously noted that the biggest hurdle for an auto company is not design but achieving volume production with positive cash flow.
“Prototypes are easy, volume production is hard, positive cash flow is excruciating,” the CEO said three years ago.
