News
Tesla’s $40M loan that kept the lights on, and what it teaches all of us
Oftentimes, many of us forget to look around and realize how fortunate we are to have what we have. In times where tensions are relatively high based on the current election, a pandemic, and a string of bad luck that we have all seemed to adopt throughout 2020, there are a few appropriate moments that allow us to look back and realize how truly grateful we should be, even when things aren’t looking very promising.
A perfect example of this came earlier this week on November 3rd. On that day, just twelve short years ago, we were reminded that Tesla secured a $40 million loan that kept the lights on and gave the small and unlikely-successful automaker a chance to succeed. It was “the last hour of the last day possible,” CEO Elon Musk said on Twitter. “We were 3 days away from bankruptcy.”
The story of Musk and Tesla’s near destruction twelve years ago puts a lot into perspective. For me, it is reminiscent of an old saying, “It ain’t over until the fat lady sings.” While comical, it is true, and it shows that anything can happen while there is still time.
Musk and Tesla were trying to build a car company in arguably the most challenging time for American auto in the country’s history. Numerous companies were seeking government assistance to keep their doors open, jobs were disappearing, and the once-roaring American economy was crippled by the Financial Crisis of 2008.
Not only was it one of the worst times financially to start a car company, but Tesla wasn’t aiming to build a run-of-the-mill gas car. It wanted to completely change the tune of what a car was in the United States. Battery-powered cars were not popular, nor were they widely accepted. They were a dream of many, but never did anyone think they would be a successful passenger transportation source shortly.
Well, everyone but Elon Musk and his team of engineers at Tesla.
Musk acknowledges the hardships of the time head-on. “Extremely difficult to raise money for an electric car startup (considered super quirky back then), while stalwarts like GM & Chrysler were going bankrupt,” he added to his chain of Tweets regarding the situation. And while he was suffering to keep Tesla’s lights on, Musk concluded that the only way would be to put the last of his money into the failing company. “I put in my last money, even though I thought we would still fail. But, it was either that or certain death for Tesla.”
Fast forward a few years to 2017. Tesla is doing well, but it’s working to ramp up the mass-production efforts of the Model 3. Finally, an EV that can fit the budgets of many people worldwide, Tesla was working to create a battery-powered car that had good performance and acceptable range ratings. But it wasn’t easy, and it almost resulted in the company going bankrupt.
This is a preview from our weekly newsletter. Each week I go ‘Beyond the News’ and handcraft a special edition that includes my thoughts on the biggest stories, why it matters, and how it could impact the future.
A big thanks to our long-time supporters and new subscribers! Thank you.
When asked about the Model 3 ramp, Musk said that Tesla was “about a month” away from going broke once again. “The Model 3 ramp was extreme stress & pain for a long time — from mid-2017 to mid-2019. Production & logistics hell,” Musk added.
A few more years forward: let’s look at 2020.
Tesla is the most valuable car company in the world. It has recorded five straight profitable quarters. It is coming off of the most deliveries and production numbers for a quarter ever. It is building more Gigafactories.
Most importantly, Tesla is influencing the automotive industry. Companies that never believed in EVs are being forced to develop them. If they don’t, they’ll inevitably fall behind.
Through all the tough times and adversity that Tesla faced, it always came through. An unlikely competitor entering a market with new technology in a time when companies were hellbent on keeping their doors open by any means necessary, Tesla somehow survived.
In times where the country is almost equally divided on who they would like to run the United States for the next four years, conflicting opinions on a global pandemic are voiced regularly, and other social issues are talked about daily, it is always important to remember stories like these. With almost a negative chance of winning, Tesla somehow pulled through on two separate occasions. Patience, hard work, and a little bit of luck took the unlikely car company from the depths of Chapter 11 to superstardom in the car industry.
If this is the only bit of positivity you read this week, I truly hope it helps you realize how grateful you should be in the grand scheme of things. Sometimes, the cards just aren’t in your favor, and you have a few downswings that make you question whether what you are doing is the right thing. The dark times certainly are tough, but without darkness, then the light would mean nothing to us.
I use this newsletter to share my thoughts on what is going on in the Tesla world. If you want to talk to me directly, you can email me or reach me on Twitter. I don’t bite, be sure to reach out!
Tesla has apparently revised the policy it previously had listed for Full Self-Driving transfers on the newest All-Wheel-Drive Cybertruck that the company had sold for a steal price of just $59,000 earlier this year.
After initially stating that customers who bought the pickup would be able to transfer FSD purchases, Tesla recently changed the language in those terms and conditions to reflect that this would no longer be the case.
Tesla launches new Cybertruck trim with more features than ever for a low price
The adjustment in terminology has caused a handful of orderers to cancel their reservations due to the loss of FSD transfer:
Just cancelled my 59k CT order today. My screenshot from that day of order (feb 20th) clearly shows that it would be eligible.
Terms were retroactively modified. Our 2020 Y and 2023 S are just fine for now. pic.twitter.com/D9PFnId1B4
— Ryan Scanlan 👥 (@Xenius) June 8, 2026
Tesla said orders for the new Cybertruck AWD must be placed by March 31, 2026, to qualify for the FSD transfer. The language in the document from earlier this year explicitly states that they “may qualify” for the transfer program, but the date of March 31 is explicitly mentioned.
Additionally, Tesla Delivery Advisors reached out to some orderers of the AWD Cybertruck, who were told there was “an update to the eligibility of the Full Self-Driving (Supervised) transfer.” Tesla stated they could:
- proceed without the transfer,
- upgrade to a Premium or Cyberbeast trim and request an FSD Transfer
- cancel the order and be refunded the $250 order fee.
Tesla turning around and changing these terms will undoubtedly result in a handful of cancellations on the part of those who have placed an order for this truck. They could pay $99 per month for an FSD subscription, which is now the only option available, but having purchased the suite outright on another vehicle and being told the transfer policy would be upheld, only to have it cancelled, is a tough pill to swallow.
These moves were also made by Tesla just before deliveries were set to begin on the Cybertruck AWD configuration. Reservation holders have started receiving VINs for their trucks, and Tesla is preparing to hand over the first units.
It’s a disappointing move from Tesla that will undoubtedly make some of its fans who have bought the truck frustrated.
In the world of autonomous ride-hailing, there are only a handful of names. Among those few companies lies a strategy play by each to keep the opposition on their toes. Tesla, on the other hand, already tipped its hand at where it is headed next.
Tesla has signaled its next major push in the autonomous ride-hailing market by filing for an Autonomous Vehicle Network Company permit in Nevada (Docket 26-05015). Through Tesla Robotaxi, LLC, the company seeks approval to operate up to 5,000 robotaxis in Clark County, including high-traffic areas like Las Vegas and Henderson airports, within the first 12 months of launch.
This filing builds on Tesla’s earlier testing approvals from the Nevada DMV in September 2025 and preparations such as maintenance hubs in the Las Vegas area. Nevada represents a strategic expansion into a major tourist destination, where high visitor volumes could drive strong utilization and showcase the reliability of unsupervised autonomy to a broad audience.
We’d have to assume this means Tesla is targeting Las Vegas, and it’s a great move from a business perspective.
Vegas is such a melting pot of people from all around the country and the world. It will expose people from all corners of the globe to Tesla’s autonomy capabilities https://t.co/Qz3fQmhULF pic.twitter.com/Du5pj2RyWC
— TESLARATI (@Teslarati) June 6, 2026
Approval would mark a significant step toward commercial operations in a new state, following progress in Texas.
Tesla’s shareholder decks and earnings calls have clearly outlined these ambitions. In the Q4 2025 shareholder deck, the company listed planned Robotaxi coverage for the first half of 2026, explicitly naming Las Vegas alongside Phoenix, Miami, Orlando, and Tampa, with Dallas and Houston already advancing. Austin was noted as “ramping unsupervised,” while the Bay Area remained in safety-driver mode.
By Q1 2026, the deck updated statuses to reflect launches in Dallas and Houston, with “preparations underway” for the remaining cities, including Las Vegas. Paid Robotaxi miles nearly doubled sequentially in Q1, underscoring momentum even as broader timelines adjusted slightly for regulatory and operational readiness.
On earnings calls, CEO Elon Musk and executives have emphasized a phased rollout prioritizing safety. Unsupervised operations in Texas have shown strong results with no reported accidents or injuries in the program. Tesla continues groundwork in additional major U.S. metros through testing and permitting, positioning it to scale quickly once approvals clear.
This Nevada move aligns with Tesla’s vision of transforming from an EV maker into an AI and robotics leader. The forthcoming Cybercab, which started production at Giga Texas in April, is expected to eventually dominate the fleet, replacing many Model Y vehicles and driving down costs to enable affordable rides.
For investors and the industry, this signals Tesla’s intent to dominate key Sun Belt and tourist markets where weather, regulations, and demand favor rapid scaling. Success in Las Vegas could validate the model for denser urban and high-tourism environments, accelerating the shift toward a future where robotaxis generate meaningful revenue.
Las Vegas will also expand knowledge among the general public at Tesla’s capabilities, helping people experience driverless ride-hailing from several companies during their time on The Strip.
Investor's Corner
Tesla just did something in South Korea that no foreign carmaker has ever done
Tesla’s Model Y just became South Korea’s best-selling car, beating every domestic model in May.
Tesla did something last month that no foreign car has ever done in South Korea by outselling every vehicle in the country, domestic or imported, finishing the month with Model Y as the single best-selling car across the entire Korean market. According to data from the Korea Automobile Importers and Distributors Association released on June 4, the Model Y recorded 8,762 units sold in May, pushing the Kia Sorento into second place at 7,836 units and the Hyundai Grandeur into third at 5,183 units. It is the first time an imported vehicle has outsold every domestic model on a single-month basis.
Tesla imported 10,866 cars into South Korea in May, making it the top import brand for the fourth consecutive month. BMW followed at 6,555 units, less than two-thirds of Tesla’s total, while BYD registered just 1,032 units. The combined domestic sales of GM Korea, Renault Korea, and KG Mobility last month totaled just 7,019 units, meaning a single Tesla model outsold three Korean automakers combined.
Tesla FSD earns high praise in South Korea’s real-world autonomous driving test
South Korea has historically been one of the hardest markets for foreign automakers to crack. Hyundai and Kia together control close to 70% of the overall market and carry deep consumer loyalty built over decades. Tesla’s path into this market was an uphill battle due to high import duties, limited service infrastructure, and early skepticism about charging networks. In 2024, the Model Y was the best-selling imported car in South Korea with 18,717 units for the full year. By 2025, after the Juniper refresh, it cleared 50,000 units and took the top spot among all EVs.
Year to date, Tesla has a 250.8% increase in the country over the same period last year, and now holds a 30.8% share of the entire imported car segment for 2026. EVs as a category represented 48.6% of all imported passenger car registrations in May. As Teslarati has reported, the Juniper refresh brought meaningful improvements to range, interior quality, and ride refinement that addressed the most common criticisms of earlier Model Y versions. Those upgrades appear to be resonating in markets like South Korea where buyers compare Tesla directly against high end domestic competitors.
Tesla revises FSD transfer policy on new Cybertruck trim, causing cancellations
Tesla tipped its hand at where Robotaxi is heading next
