An Update from Elon Musk

I'm a huge Elon Musk/Tesla/SpaceX fan, and have often felt it would be the ultimate opportunity to work at either company (Tesla would be my first choice, as automotive interface tech is one of my passions).<p>However, doing a quick bit of research earlier today, a search for "Tesla working environment" turned up more than a handful of reports by former and current employees that hint at an unpleasant company culture. Six to seven day workweeks, below average compensation, hyper-political management, management that is quick to fire, and a generally chaotic environment. These factors seemed to be reported even by folks who cited other benefits such as a high degree of autonomy and the opportunity to work with other highly passionate top level engineers on important emerging technologies. One additional oft-repeated concern was that the pace at which Tesla works its engineers is unsustainable, and will lead to burnout for lack of work-life balance.<p>Can anyone closer to the Valley than I am comment on whether these concerns ring true? And how does this compare to work at other highly innovative and passionate industrial startups?<p>Elon's explanation of the latest round of fundraising is welcome news, and personally I'm gunning for Tesla to become the Apple of the auto industry. (I plan on buying stock as soon as I'm able.) Is there anything we can infer from these employee reports about the health of Tesla's organizational core/DNA, and what effect that might have on the company's prospects for long term success? [Edited for clarity]

Musk's public statements are the nicest and most logical ones I've seen made by a modern CEO. No sense of spin. Always a pleasure to read.

I think people underestimate what an agile and lean startup like Elon seems to be running can accomplish. He's a super intelligent guy with a growing positive trackrecord. The vehicle industry has been waiting for disruption for 20+ years, and the giants finally have lost control and whatever unnatural advantages they tried to maintain. Technology for electric vehicles will only continue to improve, and costs will go down. Luckily for economies very attached to oil they can shift to systems like free re-fueling once a vehicle is purchased; That's pretty incredible and something I never even thought about or imagined possible, though it makes sense and works once the puzzle pieces are all in front of you. P.S. Elon's my new Man Crush.

What a timing - "Romney Calls Tesla a ‘Loser’" in first debate: <a href="http://www.wired.com/threatlevel/2012/10/romney-tesla-loser/" rel="nofollow">http://www.wired.com/threatlevel/2012/10/romney-tesla-loser/</a>

I've been 100% long TSLA since the beginning and really don't understand the reasoning behind the doubts people have - given how little they actually know about a) the car industry and b) electric batteries and c) the ability to think on first principles and not by analogy. But I guess everyone has the right to an opinion - even if most of them aren't a) warranted b) backed up or c) logically reasoned.<p>We are past peak oil. Battery tech will reach oil parity within the decade. Solar PV will reach grid base line within the next 2 decades. Fusion will be introduced within the next 3 decades. Electric engines already run 92% efficiency (vs the combustion engines 15%) and global warming externalities are finally being priced.<p>The electric car is a no brainer (it wasn't a decade ago, and it'll be too late a decade from now) just like the electrification of trains were. This company will electrify suburbia and reduce costs while they are at it.<p>Timing + skill = Very nice stock returns (timing is about 10x more important).<p>Disclaimer: Goes without saying - I am long TSLA and will continue to be long for the foreseeable future.

"Nonetheless, we have a duty at Tesla, having accepted this loan as a portion of our capital, to repay it at the earliest opportunity."<p>Not sure why Elon and a lot of SV entrepreneurs feel this way. You take a loan; if it reduces your weighted average cost of capital, you roll it and/or pay it slowly. As a Tesla shareholder, I hope such cheap financing remains in place as long as possible to maximize shareholder return on equity by keeping cost of capital as low as possible -- and by improving Tesla's cash position (helping it to operationally succeed) to boot.<p>Another guy thinking about buying Tesla stock.

As of last quarter, Tesla had $777M in assets and a whopping $715M in liabilities--leaving a net balance of only $64M.<p>Given that their balance sheet is decreasing by an extraordinary $30M a month, that would have left only two months until the company was insolvent. No wonder the U.S. government wants their $465M paid back more quickly than planned.<p>The company has lost over $850 million since being founded in 2003.

Exciting quote emphasized in post: "we expect Tesla to become cash flow positive at the end of next month."

Sarah Lacy did what I thought was a great hour-long "Fireside Chat" with Mr. Musk: <a href="http://pandodaily.com/2012/07/12/pandomonthly-presents-a-fireside-chat-with-elon-musk/" rel="nofollow">http://pandodaily.com/2012/07/12/pandomonthly-presents-a-fir...</a><p>It's well worth listening to.

&#62; we expect Tesla to become cash flow positive at the end of next month.<p>Never in my wildest dreams did I expect that to become a reality. We truly live in amazing times.

Hope some good news come on SpaceX, too. What's up with F-H with its so dubious payload figures, especially for high energy trajectories? How's the cross-feed system is coming along (if it haven't been dropped yet)? Where is the 'super efficient staged combustion methane engine' you mentioned a year back, any idea what thrust class it is and what is the fuel combination?

Not sure if anyone else noticed, but Romney made a crack about Tesla (in the same sentence as Solyndra) as a useless pet project that Obama subsidizes.<p>I wonder how this will play out politically, especially if Tesla gets into trouble financially. That story is already being spun.