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Tapping out capital is a "Musk equilibrium." If there's too much runway, he considers it inefficient use of available capital and invests that extra available c
by Robotbeat 9y ago
Tapping out capital is a "Musk equilibrium." If there's too much runway, he considers it inefficient use of available capital and invests that extra available capital in some new project.
He operates close to the edge intentionally. It's a risky strategy that could easily blow up in his face, but it has also paid off very well in the past.
If they somehow had a bunch of extra cash in the bank right now, you'd find Musk simultaneously pushing hard on, say, Model Y right now, too.
- simonsarris 9y agoIn other words, Elon Musk plays CEO like professional gamers play Starcraft. If you have resources, you should spend them. If you're flush with cash, you're losing.
- adventured 9y agoDepending on how you want to view Musk's ambitions, he wants/needs to get Tesla big before the EV market is flooded with large scale competition and or he's looking to accelerate a switch to renewable energy and away from the murderous fossil fuel, gasoline burning nightmare we're currently living with. Regardless of what one believes about Musk, speed is critical here. Tesla needs to get very large if it's going to compete with GM, Ford, BMW, Mercedes, Toyota, etc. long term in EVs. They need a certain minimum scale to survive as a meaningful volume independent auto maker.