Elon Musk knows that if oil becomes prohibitively expensive, then people will switch to electric cars. He wants to accelerate the process. Of course, that means crippling and mounting losses.
The point about the grand forecasts of Musk is undeniable.
For example: In early 2016, Tesla's production forecast for 2020 was 500,000 cars. That was quite an optimistic outlook since the amount of capital, infrastructure, and batteries needed would be staggering. But then, in May 2016, Elon Musk stated that Tesla will produce 500,000 cars in ... 2018!
Let's see the Tesla production numbers from the past few years.
- 2015: 51,095
- 2016: 83,922
- 2017: 101,027
Just a tiny 395% increase in production for the year should do it!
The original Tesla forecast for 2018 was 200,000 cars which Elon Musk bumped up to 500,000 cars! Now, even that initial projection looks wild. I guess those insanely optimistic numbers got him a lot of money but now that he has built up a record of delays and failures, the investors are going to fold their arms.