The Ultimate Comeback: How Tesla Transformed from Bankruptcy to Global Domination

The Ultimate Comeback: How Tesla Transformed from Bankruptcy to Global Domination

Sometimes, there's a thin line between picking a promising tech start-up stock with the potential to reshape the market and a quirky company selling glittery dust. It can be incredibly difficult to keep faith in a product with a still non-existent market—almost as complex as creating a new market from scratch. After all, countless tech start-ups sank as investors abandoned ship and their products never saw the light of day.

The near-fatal Christmas Eve of 2008

You might not be familiar with the fact that December 2008 could have been the end for Tesla. Christmas Eve would have been the day the company ran out of money to cover the payments, and three days later, it would have to file for bankruptcy.

The "production hell" of mid-2017 to mid-2019

December 2008 would not be Tesla's last financial struggle; according to Musk himself, the period between mid-2017 and mid-2019 was also difficult for the company. Tesla went through a cash crunch as mounting losses accompanied production targets for its Model 3 sedan. Unlike its previous luxury vehicle models, the Model 3 was cheaper, and the company had a huge number of pre-orders. In an effort to hit their production targets faster and optimize the manufacturing process, Tesla put significant resources into robotics and automation. However, the move backfired as production encountered massive delays.

Tesla today

Today, Tesla, Inc. is a global technology company known as the world's most valuable automaker and one of the largest international suppliers of clean energy and battery storage systems. Additionally, it deals with areas related to its products, namely robotics and artificial intelligence. Founded in 2003 and headquartered in Austin, Texas, Tesla is a tech giant employing over 140,000 people worldwide. It is among the world's most valuable companies, boasts a worldwide recognized brand, and remains within the top ten companies by index weight in the S&P 500.

Although it may be hard to imagine Tesla as a tech start-up nearing bankruptcy, it happened twice. If it happened to Tesla, it could happen to any company. Next time you pick a penny stock claiming disruptive market potential, do the research twice: you might give up on a penny and miss a fortune!