During an appearance on Drink Champs on April 27, Black Eyed Peas frontman will.i.am was once again talking about his investments. This time he revealed among the companies he was an early investor Tesla.
Producer and artist will.i.am, who often recounts his early involvement in Beats By Dre before the company was sold to Apple for almost $3 billion in 2014, this time dished about his investment in Tesla –pre-Elon Musk’s leadership.
Will.i.am, the Investor
Apart from his early investment in Beats, he was also an early investor in Tesla, aligning with his engagement in Beats Electronics. The singer is an avid investor in tech he likes, whether it is music or cars, and in 2006, prior to Musk taking over the reins of the company, will.i.am invested in Tesla.
Musk, however, became Tesla’s primary shareholder in 2004, a year after the company was founded in 2003 by Martin Eberhard and Marc Tarpenning with an initial investment of $6.35 million, according to Business Model Analyst.
“I invested in Tesla in 2006 before Elon took over [the company] — around the same time,” will.i.am said on the Drink Champs. “And then, I was a part of Beats. And then, Apple bought Beats from us. So you’re talking about two companies that changed my life. So, I say both.”
However, by 2006, Tesla Motors was still in its early developmental phase and had not yet achieved profitability. Regardless, in its Series C investment round closure in 2006, Tesla secured $40 million.
Musk did not become CEO of Tesla until 2008, amid financial challenges. By 2009, Tesla had less than $10 million in cash reserves. Under Musk’s leadership, Tesla secured a $465 million loan from the U.S. Department of Energy, repaid in 2013, nearly a decade early, Forbes reported.
Will.i.am does mention how much he how much he invested, or if he is still an shareholder.
In 2012, will.i.am helped popularize Tesla by modifying a Model S through his company, I.Am.Auto, Electrek reported.
“I’m a big technology freak and a geek and I invested my money in building my own vehicle because I want to bring jobs to the ghetto that I come from,” will.i.am said, according to Drive AU.
As of May 8, 2024, Tesla, the largest U.S. electric vehicle (EV) manufacturer, has experienced a decline in its stock price, currently standing at $174.26 with a delta of -3.55, as reported by The Street. The decrease reflects a broader trend in the EV market, influenced by factors like reduced federal tax credits, a slowing global economy, and heightened competition from other EV manufacturers. Despite Tesla’s record quarterly deliveries, the company encounters challenges in producing an affordable EV priced between $30,000 to $35,000, crucial for expanding its customer base.
Moreover, Tesla’s gross profit has declined by 23.18 percent year-over-year as of Dec. 31, 2023, with its annual gross profit for 2023 reaching $17.66 billion, marking a 15.31 percent drop from 2022, according to MarcoTrends.
