MUSK IN A RATNER MOMENT
Boss puts off buyers
The world’s richest man did a Gerald Ratner – recalling the moment the British jewellery boss branded his products “total crap”.
Musk said his Model 3 motor has been plagued with dodgy paint jobs.
And he added its welding was a “Frankenstein situation” because of teething issues with production.
The eccentric South African, 49, raised eyebrows as he agreed with industry analyst Sandy Munro, who blasted the vehicles.
Mr Munro compared the Model 3 to a “Kia in the ’90s” and said gaps in its exteriors left him thinking: “I can’t imagine how they released this.”
Musk, whose second Spacex prototype spaceship blew up this week, said: “I thought your criticisms were accurate. Prototypes are easy and fun, but reaching volume production with reliable parts and affordable price is excruciatingly difficult.”
He added: “Friends ask me, ‘When should I buy a Tesla?’
“And I’m like, ‘Well, either buy it right at the beginning or when the production reaches a steady state.’
“During that production ramp, it’s super hard to get everything right.”
The billionaire even slept in Tesla’s California factory while trying to make the Model 3 work.
His comments were likened to Gerald Ratner’s remarks in 1991 when he was asked how his products could sell at such a low price.
His reply wiped £500million off the company’s value.
Other bosses have made similar slips. Former Topman marketing chief David Shepherd once said: “Very few of our customers have to wear suits to work. They’ll be for his first interview or first court case.”
Keith Cochrane, former chief of Stagecoach called US customers “riff-raff”.
And John Pluthero, ex-uk chairman of Cable & Wireless, told staff: “Congratulations, we work for an underperforming business in a crappy industry.”