The founder of SpaceX and Tesla Elon Musk announced that he intends to open a confectionery factory. “I’m opening a sweets company. It will be amazing, “ he wrote on Twitter . Later Musk added that he had “super-serious” intentions, and suggested creating a “cryptoconfusion”.
The entrepreneur continued his argument with the most famous American investor, Warren Buffett.
With this tweak, Musk probably continued the absentee dispute over business models with the leaders of Berkshire Hathaway holding by Warren Buffett and Charles Munger, Bloomberg writes .
As reported by vedomosti.ru, the dispute began after Musk at the Tesla shareholders meeting on May 2 criticized Buffett’s proposed idea of an “economic ditch” – a long-term competitive advantage that allows to receive higher revenues than the industry average. “If your ditch becomes the only defense against armed invasion, you will not last long, ” Musk said. According to the founder of Tesla, in the long run, business is more important than innovation.
Three days later, Warren Buffett at the Berkshire Hathaway shareholders meeting said that the model of the “economic ditch” is ideal for many companies, including his See’s Candies confectionery. “Ilon can transform any spheres of life. But I do not think that he will succeed in defeating us in the confectionery business,“Buffett said.
The opening of a confectionery factory is not the first unusual idea of Musk. In January, the businessman presented a portable flamethrower, developed by his startup Boring Company. Flamethrower from Musk is a joke product: during the presentation of the Boring Company, the millionaire joked that as soon as the company sells out all 50 thousand baseball caps with the logo, it will start making flamethrowers. Baseball caps were sold in record time.
And in December last year, Tesla launched the world’s largest lithium-ion battery in Australia, which was built on a tight schedule, because Musk in March 2017 announced that it will build a battery with a capacity of more than 100 MW for 100 days. The term expired on December 1 last year, Tesla announced the completion of construction on November 23. By early December, the battery was started.
This week, Tesla reported a record quarterly loss of $ 710 million. The company expects to break even in the third and fourth quarters.
At the end of April, Bloomberg estimated that if Tesla does not attract additional funding in the near future, then by the end of 2018. she will not have any cash left. According to the agency, the company Elon Musk is losing about $ 6,500 every minute.