Elon Musk’s bid to dominate global carmaking is taking a new turn, and dividing opinion. Some see him as Henry Ford in the age of the Model T; others, as Steve Jobs ushering in the iPhone era. But what if he’s Rick Wagoner, who steered General Motors Co. into a ditch?
Musk’s Tesla Inc. has cut prices of its electric cars at least a half-dozen times already this year, shaving almost a third of the cost off its top-selling model in the US. The strategy has no precedent—nor is there consensus as to whether it heralds more industry disruption or signals Musk’s desperation.
The camp comparing Musk to Ford includes none other than the current boss of the company that bears his name. “Look up 1913,” Ford Motor Co. Chief Executive Officer Jim Farley told reporters last week, suggesting that Musk’s actions—develop an epochal product, innovate how it’s made and drive costs down—are reminiscent of Ford’s.
