From $17 to $263 without a profitable product
In 2010, Tesla stock was worth $17. Even though Tesla did not have a profitable product with the Roadster, the company, current investors, and potential investors believe they could disrupt the market. The confidence was so high that they filed for an IPO.
By 2013, Tesla stock had climbed to $265 per share. Today is around $173, but the story behind the Tesla stock holds many lessons.
Investors invest in visions, not in paying customers
As an early-stage founder building a tech product, you can learn much from the Tesla story. One key takeaway is the importance of having a big vision that investors can believe in.
While having a prototype or paying customers can help prove the viability of your idea, it’s ultimately the potential for disruption that gets investors excited.
But having a big vision isn’t enough. To attract investors and build a successful company, you must effectively communicate your vision and the potential impact of your product.
Vision is about communication
As Warren Buffet famously said, “If you can’t communicate, it’s like winking at a girl in the dark – nothing happens.“
Just as Elon Musk’s unique leadership helped drive interest in Tesla, your communication skills can be critical in attracting investors and building a successful business.
So take a cue from Tesla and Warren Buffet: aim for a big vision, but don’t neglect the importance of effective communication.