Tesla, Inc. known as Tesla Motors, Inc. was integrated on July 2003 and is renowned for designing, developing and manufacturing fully compliant electric vehicles, and energy efficient systems. The main operating areas of Tesla include automotive, energy generation and storage. Tesla, under the leadership of Elon Musk has observed many successes. But, every company has their own failures and Tesla too has its downsides.
Tesla had designed and manufactured Model S sedan and Model X sport utility vehicle; fully electric vehicles! Another fully electric vehicle, Model 3 is a sedan that has been designed for the mass. The focus of Tesla and Elon Musk has always been on using alternative energy in various cases.
By July 2018, Tesla had already created a record in the production of Model 3 and had manufactured 7,000 cars within a week. Elon Musk had congratulated the employees, “We did it! What an incredible job by an amazing team. Couldn’t be more proud to work with you. It is an honour. The level of dedication and creativity was mind-blowing. We either found a way or, by will and inventiveness, created entirely new solutions that were thought impossible.”
Even though Tesla had missed the self-imposed target of manufacturing Model 3 on a large scale in December 2017, what the company has achieved in the July 2018 is noteworthy. Being able to manufacture 7,000 cars within 7 days means that the company has the capacity of producing over 300,000 all-electric cars per year – something that no other company has achieved today! It is quite an achievement in the contemporary market of electrification of transport.
Tesla seems to have seen more failures than successes till now in this year. In February 2018, the account of Amazon Web Services of Tesla was hacked in order to mine cryptocurrency. RedLock, a cybersecurity startup had related the matter to Tesla and in the process is considered to have exposed some of the proprietary data of the company.
Tesla faced a slight issue in March regarding the recall of 123,000 Model S sedans. The issue was centered in the power-steering systems of the Model S sedans manufactured before April 2016. According to Tesla, the five bolts within the power steering motor have a high chance of coming loose, corroding or breaking. This would mean the loss of power steering. However, Tesla also said that this situation is prone to mostly colder regions where a type of salt is used to reduce the amount of snow and ice on the road. Also, only 0.02% of the Model S vehicles were affected.
Another incident happened in March where Moody had shown a lower credit rating of Tesla, pushing it down from B2 to B3. The move was made in doubt of Tesla’s ability to fulfil their production targets of the Model 3. Moody giving a downgraded credit rating to Tesla had affected the company’s stock price and also grabbed the attention of the mass as to what frequency the company had spent and raised money. This issue had also reinforced concerns about whether the company would become bankrupt. At that time, Elon Musk had said that by the end of the third quarter Tesla would gain enough profits and would not require to raise money in this year.
The issue in March was not recovered in April and Elon Musk’s intended funny tweets on April Fool’s Day did not really impress the investors and analysts. Musk tweeted, “Tesla Goes Bankrupt Palo Alto, California, April 1, 2018 – Despite intense efforts to raise money, including a last-ditch mass sale of Easter Eggs, we are sad to report that Tesla has gone completely and totally bankrupt. So bankrupt, you can’t believe it.” Elon Musk probably intended it to be funny and lighten the situation but, the investors had seriously taken then CEO’s attitude toward criticism directed at the company.
The information had suggested in a report that there was tension among the upper levels of the management team of Tesla in April. The report had also claimed that Elon Musk had taken over the engineering Vice-President Doug Fields to lead the Model 3 production process. As a response Musk had tweeted, “Can’t believe you’re even writing about this. My job as CEO is to focus on what’s most critical, which is currently Model 3 production. Doug, who I regard as one of the world’s most talented engineering execs, is focused on vehicle engineering.” This had started a heated exchange with the author of the report and had an impact on the group.
Also, currently there are debates about removing Elon Musk from the position of CEO at Tesla. All these incidents have at the moment placed Tesla in a little turmoil zone. However, the company can be expected to recover fast considering its success rate even if it’s under a new leader.