Elon Musk doesn't think Ford could survive another recession.
An economic recession is difficult for any company, some need to take out loans just to survive or, in many cases, they just go under and file for bankruptcy. Elon Musk, the CEO of the electric car manufacturer known as Tesla, knows this is a reality and feels that Ford would not survive the next economic downturn.
He spoke about how Ford, General Motors, and Chrysler, as well as Tesla, did not fare well in the 2008 recession that hit the world. He even mentioned that GM and Chrysler both went bankrupt while Tesla and Ford barely made it through the woods, but next time, it could be different.
"There's a good chance Ford doesn't make it in the next recession," says Musk.
According to Business Insider, he did not explain the prediction in detail, but it's likely just some back and forth that he and Mark Truby, the Ford Vice President of Communications have done over the years. In June, Musk basically said that the vibes at Tesla were better than the morgue-like ones at Ford. Truby responded by saying "No doubt the vibe is funky in that 'makeshift tent'," this was a clear reference to Tesla's tent factory as it's now known.
Despite this possibly just being banter, there is some good reason to assume that Ford might have some hard times coming its way if another recession hits. There is a market shift, seeing more consumers invest in electric cars. There's also the reality that many drivers have been trying to make their lives more environmentally friendly in any way possible.
Recently, Tesla released more information about their line of pickup trucks. It's not a bad idea and could really prove to cause a dent in the Ford industry if Tesla can match the capabilities of Ford's trucks. What this shows is that Tesla is trying to expand into other parts of the vehicle market. Those are some smart moves if Musk is making predictions like this, especially since he is not even backing up these claims. Now, in this case, anyone can say that it's in his character since he's made Tweets in the past that have rustled some feathers.