A New Problem Emerges For Tesla

  • Written by Zero Hedge
  • Published in Economics

For a brief few hours last weekend, Elon Musk and his shareholders celebrated...

...as he proclaimed (albeit late for his self-imposed deadline) that thousands of Model 3's are now supposedly moving off of Tesla's production lines – whether they are being cranked out of the Fremont factory or whether they're part of the "lucky" 20% of vehicles being made in the company's super-futuristic tent, located outside of the factory.

But now a second layer of the onion has peeled back and serious questions are starting to be raised not only about the quality of these Model 3s, but how adept Tesla is in being able to service them in a quick and efficient manner for its customers.

Today, we want to take a look at the issue of Model 3 breakdowns. The reports of these breakdowns and poor quality issues seem to be accelerating, judging by Tesla forums online and complaints on Twitter. What also seems to be evident is Tesla's poor response time and overall poor ability to address these issues.

Much of the last couple of weeks for Tesla has been focused around hitting its 5,000 Model 3 per week production target. The stock and its corresponding movement has also been news. Most notably, the fact that the stock tanked from over $360 per share to near $310 per share on news of the company reaching its production target has been pointed out in the media and has caused some analysts to raise questions about whether or not a larger sentiment shift at Tesla is brewing.

On top of that, after the stock melted down to start the week last week, CEO Elon Musk himself also had a meltdown, once again lashing out at members of the media who have written even the slightest bit of critical press about his company. It has led some analysts to ask, "What the F*ck is Elon Musk Doing?" 

This isn't new, either. We have seen Musk lash out at the media over the last couple of months – blaming everybody from the Economist to Consumer Reports for being in a conspiracy to defame the company.

This latest round of attacks on journalists goes after Linette Lopez at Business Insider, who was one of the first to break the story that Tesla may have been suspending certain of its Model 3 brake tests in order to help move vehicles off the line more efficiently.

Musk's behavior even caused normally left leaning media outlets like Slate to publish articles like this one called, "Elon Musk Needs to Stop Tweeting Things He Can't Prove (And Grow Up)".

And regardless, Tesla came out and admitted that it had suspended the test in question. They also commented that it didn’t have an overall effect on the quality of the vehicles that were rolling off the line.
With that aside, and giving Tesla the benefit...

Read more from our friends at Zero Hedge

24°F

Philadelphia

Clear

Humidity: 39%

Wind: 11.18 m/h

  • 13 Nov 2019 37°F 23°F
  • 14 Nov 2019 47°F 23°F