Elon Musk's Tesla Faces Risks: Lessons from Henry Ford's Oversights

In the early 20th century, Henry Ford transformed the automotive industry by introducing assembly line production, making vehicles accessible to the general public. Similarly, Elon Musk has elevated Tesla's electric cars from niche products to mainstream popularity. However, both innovators share a common flaw that could jeopardize their legacies.

Ford became overly attached to his initial success model, the Model T, which remained in production from 1908 until 1927 with only minor updates. Despite declining sales due to increasing competition, he stubbornly continued its production until his market share plummeted. Only then did he introduce the Model A, a significant update that reflected the evolving market.

Likewise, Tesla has not introduced significant new models since the launch of the Model Y in March 2019, relying mostly on incremental updates. As competition from companies like BYD intensifies, Tesla's once-dominant position in the electric vehicle market is increasingly at risk.

The troubling trend of stagnation in new product development raises concerns that Musk might repeat Ford's historical mistake. Tesla's global sales have started to decline, signaling a potential crisis for the company if new, affordable models are not introduced soon.

Beyond their business strategies, parallels can also be drawn in the personal lives and public personas of Ford and Musk. Ford utilized his media platform, the Dearborn Independent, to disseminate his controversial views, including antisemitic conspiracy theories. Similarly, Musk has used social media, particularly his platform X (formerly Twitter), to amplify his political views and engage in divisive rhetoric. His support for certain political figures and parties has alienated potential consumers, raising questions about his focus on Tesla's core mission.

Musk's controversial actions, including his engagement with extremist political groups and the spread of misinformation on social media, echo Ford's historical missteps. As Ford eventually faced backlash for his views, leading to a retraction of his public statements and a pivot in strategy, Musk may also need to reconsider his approach to leadership and public engagement if he hopes to stabilize Tesla's future.

The mounting pressure on Musk is evident, with calls for his resignation emerging from investors and stakeholders concerned about the company's direction. The question now is whether Musk will recognize the need for change before it is too late, opting to prioritize Tesla's resurgence over his personal political pursuits.