By Bloomberg News Thu., Sept. 27, 2018 At this year’s Beijing Auto Show, a retired Chinese bureaucrat bent down to run his hands over the hood of a sleek sports coupe billed as the world’s fastest battery-powered car, and he smiled like a proud father. In a way, that’s exactly what he was. Two decades earlier, Wan Gang persuaded China’s State Council to throw its vast power behind the risky, unproven technology of electric cars. He advocated using government money, including subsidies, to help create a world champion industry that would surpass Western automakers. That coupe he was admiring at the April auto show? It was built by homegrown NIO Inc. Read more: Tesla is offering customers incentives in an end-of-quarter push Electric Audi e-tron makes range anxiety ‘thing of the past’ Article Continued Below Elon Musk made a name for himself promoting new-energy vehicles, but when the history of the electric car is … [Read more...] about Wan Gang is the world’s leading electric car visionary, not Elon Musk
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Is Elon Musk right to say that public companies are forced to focus on short-term gains? Alasdair McKinnon, manager of the Scottish Investment Trust, says YES. Elon Musk divides opinion: fast cars and a grand vision attracts an enthusiastic fan club, while his critics worry about short-term finances. As Tesla is unprofitable, Musk has to play to both galleries. It’s no wonder he’s under pressure – all public companies feel compelled to focus on easy wins, and all eventually succumb. Management teams are human and, like everyone, prefer plaudits to brickbats. The problems arise when the pursuit of short-term gains damages long-term prospects. It might seem profitable to pick up pennies in front of a steamroller, but we can all see where this eventually goes wrong. Take Kodak. It invented the digital camera but missed the long-term opportunities by allowing others to develop it, responding to the subsequent threat in the immediate term by increasing the price of its … [Read more...] about DEBATE: Is Elon Musk right to say that public companies are forced to focus on short-term gains?
Among Elon Musk’s many engineering miracles, we can now list another: the time machine. It’s not an actual Tardis-like contraption made up of metal and silicon, but a psychological one that means everything he does makes the rest of us feel we’re in the Stone Age. For years, the valuation of his Tesla business has made those not in the tech bubble feel like the 1950s characters witnessing the DeLorian in Back to the Future. How can a company which made only 100,000 vehicles last year possibly be worth more than General Motors, which made 9.6 million, we puzzle. His antics this week, though, stretch this mind-bending parallel universe effect to the limit. How can the chief executive of a $65 billion company announce a takeover of his firm in as frivolous a way as a tweet? How can he do it during market trading hours? How can he name a price and — most extraordinary of all — claim to have “funding secured” when — from his disclosures since … [Read more...] about Jim Armitage: We live in strange times in Elon Musk’s new world
Tesla CEO Elon Musk announced on Tuesday that he’s considering taking Tesla private. The financial world is unsure how he would do this, given that the deal will be enormous. But from where Musk and Tesla now sit, going private makes sense. Tesla CEO Elon Musk blew Wall Street’s mind on Tuesday when, just after the Financial Times reported that the Saudi sovereign wealth fund had invested $US2 billion in the company, he tweeted that he was considering taking the 15-year-old company private at $US420 per share. The total value of such a deal would be more than $US80 billion, including debt. Musk owns 20% of the company, so on the equity side he’d need to finance something in the $US50-billion ballpark. In an email to employees that appeared after trading in Tesla shares was halted on Tuesday, Musk outlined his thinking and concluded, “Basically, I’m trying to accomplish an outcome where Tesla can operate at its best, free from as much distraction and … [Read more...] about Elon Musk says he wants to take Tesla private — here are 5 reasons that makes sense
This is the second of the six-part “Inspired to Strive” series, in which business leaders of middle-market companies share their stories of success. “Inspired to Strive” is sponsored by CIT. See more Inspired to Strive >> Photo: Alex Davies Elon Musk, CEO of Tesla Motors, he has turned a pipe dream — an all-electric car company — into a viable business, in a high-risk, high-cost industry.Musk is also CEO of SpaceX, whose unmanned Dragon rocket successfully docked with the International Space Station for the second time, dropping off cargo per the company’s $1.6 billion contract with NASA. His intense ambition and self-confidence enable him to handle both jobs at the same time, despite the myriad challenges — like broken-down cars, economic collapses, and failed rockets — that come with changing the automotive and aerospace industries. It’s the combination of that ambition and business acumen that have made Musk what he … [Read more...] about How Elon Musk Is Revolutionizing Two Major Industries At The Same Time