A Christmas Eve wire transfer saved Tesla from collapse, paving the way for Daimler’s investment and the DOE loan.
Sectors & Industries
December 3, 2025
Table of Contents
In late 2008, Tesla wasn’t a titan of industry — it was a company on the edge of extinction.
The financial crisis had paralyzed global markets, and Tesla, a small, unproven electric vehicle startup, was running out of time and cash. Inside the company, chaos was mounting. The Roadster was behind schedule. Suppliers were walking away. Payroll was days from being missed. Elon Musk, the founder who had already poured nearly all of his PayPal fortune into Tesla and SpaceX, was now personally broke — borrowing just to pay rent.
Musk had already sunk over $100 million into his two startups, but both were unraveling. And this time, there was no safety net.
To keep Tesla alive, Musk made an unprecedented move: he began borrowing money not from banks, but from friends. Google co-founder Sergey Brin personally lent Musk cash to cover living expenses. Close allies like Antonio Gracias and Steve Jurvetson pitched in. Larry Page wasn’t part of the official rescue, but offered support behind the scenes. Musk maxed out credit cards and leaned on personal relationships — a risky, unglamorous hustle to keep the dream alive.
Still, it wasn’t enough.
Tesla was burning through cash and failing to secure a lifeline. Investors were in talks for an emergency round of funding, but every deal kept falling apart at the last second. By December 24, 2008, Tesla had almost no capital left. Bankruptcy was hours away.
Then, on Christmas Eve, everything changed.
The investors wired $40 million to Tesla — just enough to make payroll and stay in business. Musk later said bluntly: “If that round hadn’t closed on Christmas Eve, Tesla would have died.” That wasn’t hyperbole. It was reality.
That early 2009 survival didn’t guarantee long-term success. But a few months later, a second miracle came.
Engineers at Daimler, the parent company of Mercedes-Benz, were evaluating battery tech — and they liked what Tesla had built. In May 2009, Daimler invested $50 million for roughly 10% of the company. It wasn’t just the money. The move gave Tesla validation in an industry that still saw EVs as a joke.
Suddenly, the upstart had global credibility.
The final boost came in 2010 when Tesla received a $465 million loan from the U.S. Department of Energy. That capital funded the Model S program, expanded Tesla’s factory, and allowed the company to scale operations and talent. Years later, Tesla repaid the loan early — but without it, Tesla wouldn’t have had the fuel to become a global EV powerhouse.
Tesla’s origin story is a masterclass in survival — a case study in risk, timing, and conviction. It’s also a reminder that even today, Tesla remains an event-driven stock.
From battery innovations and factory expansions to AI integrations and product unveilings, Tesla’s stock doesn’t just follow earnings — it moves on major events. These moments shape the narrative and move markets long before the headlines catch up.
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