In 2008, Elon Musk pitched the $109,000 Tesla Roadster to an audience in a Hollywood living room, just about 12 days away from bankruptcy, and most attendees thought it was a joke.

He first discussed funding: Congress approved $25 billion for the construction of energy-efficient vehicles, and the three major automakers flew to Washington to request that the funds be used to maintain payroll for gas-powered models. Congress agreed, and Musk stated this would only allow them to last until around February.

Tesla applied for the same fund for its true purpose—developing cheaper models. He emphasized that Tesla would never pay dividends, and every penny from each $109,000 Roadster would be invested in the next lower-priced model.

Musk himself took only a minimum salary. He used a smartphone analogy: early smartphones were expensive, and one had to sell the expensive versions first to reach the cheaper versions. At that time, about 100 units had been produced, with the 100th set to be delivered on Tuesday, and he would personally hand over the keys.

He did not mention that the company had only a few days of cash left and that emergency financing had to be completed by Christmas Eve, or it would be over.

From a market mechanism perspective, high-end electric sports car buyers provided cash flow through high-priced orders, with all funds flowing back into the research and development of the next generation of mass-produced vehicles. Traditional automakers relied on government funds to maintain their existing gas vehicle businesses. The event-driven capital shifted from subsidizing traditional automakers to supporting new technological paths, giving Tesla a survival window while General Motors filed for bankruptcy six months later.

Supplementary data shows that Musk personally invested a large amount of his own funds to support the company and ultimately led Tesla through the crisis.

Source: Public Information