Beyond the show — Tesla · Elon Musk · 2006
Your mission is a car for everyone. Your prototype is a two-seat sports car that will have to sell for around $100,000. What do you build first?
You are the chairman and largest shareholder of a three-year-old car company with about a hundred employees and no revenue. Martin Eberhard is the chief executive. The team has built a working prototype on a Lotus Elise chassis, powered by about 6,800 laptop cells, and it does 0–60 in under four seconds. Lithium-ion cells cost roughly $1,000 per kilowatt-hour, so the battery alone in a long-range car costs more than most new cars sell for. General Motors crushed its EV1 three years ago and the industry's settled view is that electric cars are golf carts with good publicity. The mission you have stated publicly is to move the world to sustainable transport, which means a car ordinary people can afford. You have raised around $60 million and will need a great deal more.
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§02 — More forks
- Lululemon · 1998You have one store, no ad budget, and a pair of yoga pants that costs four times what anyone pays today. How do you price it?
- Nike · 1984You can sign five established NBA players, or spend the whole basketball budget on one rookie who would rather sign with your competitor. Which?
- Amazon · 2000Do you let outside sellers compete with you, on your own product pages, for your own customers?
- Glossier · 2023The thing that made your brand special is the thing now capping its growth. Do you break your own rule?