Finance

Elon Musk: ‘good chance’ Ford doesn’t survive next recession

Published

6 years ago

November 2, 2018

Mark Matousek

Tesla CEO Elon Musk.Ringo H.W. Chiu / AP Photo

Tesla CEO Elon Musk said in an interview with Recode published on Friday that there’s a “good chance” Ford doesn’t survive the next recession.
“There’s a good chance Ford doesn’t make it in the next recession,” he said.
Musk did not explain his prediction further.
Tesla and Ford did not immediately respond to Business Insider’s requests for comment.

Tesla CEO Elon Musk said in an interview with Recode published on Friday that there’s a “good chance” Ford doesn’t survive the next recession.

Musk was discussing the difficulty of creating a successful auto company and how Tesla, Ford, General Motors, and Chrysler (now Fiat Chrysler) struggled during the 2008 recession.

“There have been many attempts to create a car company and they have all failed, even the ones that have had a strong base of customers, thousands of dealers, thousands of service centers, they’ve already spent the capital for the factories, like GM and Chrysler, still went bankrupt in the last recession. Ford and Tesla made it barely through the last recession,” he said.

Musk then said Ford may not survive the next recession.

“There’s a good chance Ford doesn’t make it in the next recession.”

Musk did not explain his prediction further. Tesla and Ford did not immediately respond to Business Insider’s requests for comment.

This was not the first time Musk has targeted Ford this year. In an interview with The Wall Street Journal published in June, Musk discussed the long-delayed production ramp-up of Tesla’s Model 3 sedan. He said he felt good about the “vibe” and “energy” at Tesla, comparing it favorably to his impression of the work environment at Ford.

“I think there’s a good vibe — I think the energy is good; go to Ford, it looks like a morgue,” Musk said.

Mark Truby, Ford’s vice president of communications, then responded to Musk on Twitter, alluding to the new production line Tesla built this summer under a temporary, tent-like structure and taking a veiled shot at Tesla’s production issues.

“No doubt the vibe is funky in that ‘makeshift tent,’ but it’s not bad either across the street at the #FordRouge plant where a high quality, high-tech F-150 rolls off the line every 53 seconds like clockwork. Come check it out @elonmusk,” he said.