Despite being a leader in the electric vehicle market, Tesla’s biggest competition is not other EV manufacturers but those making cars with internal combustion engines. This is because Tesla’s ambitious production and sales targets cannot be achieved without taking market share from ICEs, which continue to dominate the global automobile market. However, if a competitor were to arise and challenge Tesla’s supremacy with a better product, Tesla CEO Elon Musk would reportedly not mind if the company went bankrupt.
During a talk at the World Government Summit on February 14, Tesla board member Hiromichi Mizuno told CNBC’s Dan Murphy that Musk had said he would accept Tesla’s bankruptcy if a rival launched a superior EV. While Mizuno disagreed with this sentiment, his comments raise interesting questions about Musk’s leadership style and philosophy.
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One reason why Mizuno’s comments are noteworthy is that they indicate Musk has made similar statements in the past. It’s unclear whether Musk’s comment is an indication of his confidence that no other company could surpass Tesla, or whether it’s simply a reflection of his willingness to take risks and embrace competition.
Regardless of Musk’s reasoning, his willingness to accept bankruptcy if a competitor launches a superior product underscores the importance of innovation and the need to continually improve. This philosophy has been a hallmark of Tesla’s approach since its inception, and has helped the company weather numerous challenges and emerge as a leader in the EV market.
Despite the challenges it has faced, Tesla has continued to push the boundaries of what’s possible in the EV market. This tenacity is something that Mizuno admires, and he has even joked about Musk’s seemingly boundless energy and productivity. As a board member of the company, Mizuno’s comments also highlight the need for Tesla to balance innovation with financial stability, ensuring that it can continue to lead the EV market for years to come.
