Elon Musk once detailed how Tesla Inc. (NASDAQ:TSLA) nearly collapsed and why only mission-driven employees can carry a company through its most brutal moments.

Tesla’s Near-Failure Shaped Musk’s Hiring Philosophy

In 2013, while speaking at the Montana Economic Development Summit, Musk recalled just how close Tesla came to shutting down during the 2008 financial crisis.

He said the recession hit automakers especially hard and the company’s critical fundraising round fell apart as the banking system unraveled.

Trending: These five entrepreneurs are worth $223 billion – they all believe in one platform that offers a 7-9% target yield with monthly dividends

Instead of giving up, Musk said he and a handful of existing investors patched together enough money to keep operations alive. The final financing deal, he noted, was completed at the last possible hour, on Christmas Eve 2008.

Without it, Tesla would have run out of cash within days.

“While things are going really well these days, I think it’s always important to remember that when you’re creating a company, there are very dark times and it’s about getting through those dark times. That’s the difference between success and failure,” he stated then.

Why Founders Must Believe Deeply In Their Mission

Musk then said that a company is essentially a group of people aligned around a product or service that should exist. Founders, he argued, must truly believe — intellectually and emotionally — that what they are building matters.

That conviction is vital for raising capital. Musk noted that during Tesla’s darkest months, he put in all the money he had, even borrowing from friends to cover rent.

Demonstrating that level of commitment, he said, helped convince investors to back Tesla even as major automakers were entering bankruptcy.

See Also: Missed Nvidia and Tesla? RAD Intel Could Be the Next AI Powerhouse — Just $0.86 a Share

Muks Says These Employees Will Stay During The Dark Times

The Tesla CEO said this same principle applies to hiring. Founders must bring in people who care deeply about the mission. Passionate employees, he explained, will remain through setbacks and crises.

“What you’re really trying to do is convince people to join you in the endeavor,” he said. “Hire people who are also passionate about what you’re doing… Then they will stay during the dark times.”

Tesla Beats Q3 Expectations With $28 Billion Revenue

Tesla currently holds a market capitalization of $1.27 trillion. In October 2025, the company reported third-quarter revenue of $28.095 billion, a 12% increase from a year earlier and ahead of the $26.239 billion consensus estimate, according to Benzinga Pro.