When we think of electric cars, we think of Tesla. And when we think of Tesla, we think of Elon Musk. Such has been the impact of Musk on the company that it’s hard to imagine Tesla without him. Yet, the company’s founder and CEO came close to losing his chairmanship after one of the investors of the company proposed to sack Musk from the position. However, the proposal didn’t get the approval of the board at the company’s annual meeting on Tuesday where the company announced the construction of the latest “Gigafactory” in Shanghai.
The company has been under the scanner after its results for the first quarter of 2018 came out, reporting a loss of over $700 million. Tesla’s major concern at this point is the production of the Model 3 which is way behind schedule. Some investors have misgivings about the company’s future if the process of production is not sped up as it is vital for the company’s survival in the long run. The production lines are currently producing 3500 Model 3 cars a week and the CEO is highly optimistic about reaching the goal of 5000 cars weekly.
Musk, himself, has been scrutinized for his refusal to answer questions from analysts, which he classified as “bonehead questions”. Getting emotional while speaking about the company, he said that unlike many other companies whose cars are built by marketing and finance people, Tesla makes its cars with a lot of passion and care and it’s the amount of work that has gone into the production that has made the last few months hellish for him.
Tesla’s stock prices have also been on a roller coaster owing to the company’s growth trajectory. The shares fell to a low of $252 in April but have recovered since and are currently at around $291. Notably, the shares have gone as high as $389 in the past. Tesla’s current valuation is still greater than that of Ford.