Like many start-ups, Tesla Motors has hit a few potholes along the way. Fundamental differences between Elon Musk and Tesla founder Martin Eberhard led to complications that nearly halted the company’s progress. Technical problems during development pushed back the launch of the company’s first car, the Roadster, by more than a year. In turn, the production delays caused cash flow problems. Yet, to date Tesla has raised nearly $150 million from investors; $55 million of that has come from Elon Musk.

The company burned through three CEOs before Musk took the reins in 2008. By that time, the world economy had taken a serious downturn, and the United States found itself in a deepening credit crisis. Musk ordered a layoff of nearly 25 percent of the workforce, closed one office in a Detroitsuburb, and opened a smaller one nearby. Tesla is also looking to its Roadster, now in full production, to enhance the revenue stream by trimming manufacturing costs.

While Musk is confident Tesla will weather the storm and characterizes the moves as needed belt-tightening, the recession couldn’t have come at a worse time for the firm. Tesla was already in development mode on its next model, a four-door luxury sedan called the Model S. Now, Musk has slowed the Model S program, pushing back production until mid-2011, and shelved plans to build an assembly plant.

• What attributes does Elon Musk exhibit that make him an effective manager?

• How can Musk maintain Tesla’s momentum in spite of setbacks?