Elon Musk, Tesla and Twitter problems

It’s the day before Thanksgiving, and Tesla is in trouble. Share prices for the electric car maker fell more than 50 percent since the beginning of the year. And now, the company’s mercurial CEO, Elon Musk, is Distracted With his shiny new $44 billion game: Twitter.

Tesla has long capitalized on its attractive reputation as a maker of luxury electric cars and an investment opportunity. However, problems are mounting at the company, and more customers and shareholders seem to be taking notice. In recent weeks, several posts criticizing Tesla build quality You have She drew attention on social mediaHundreds of thousands of Tesla cars have been recalled. (Over-the-air updates will Tabuk Problems with vehicles Backlight and the Front passenger airbagtwo recent calls from the company.) So while Musk is busy putting out fires at Twitter — and managing his other companies, SpaceX, The Boring Company, and Neuralink — Tesla’s reputation appears to have taken a hit.

Let’s start with Musk himself. In the wake of his acquisition of Twitter, some experts and analysts did concerned that New grab function It may undermine and contribute to his responsibilities as CEO of Tesla drilling Share price. Keep in mind that musk too sponsored Lots of Twitter acquisitions by Sell ​​his Tesla sharesAnd also It said He delegated more than 50 Tesla engineers to work at Twitter when he took over last month. At the same time, Tesla is currently facing a lawsuit alleging that Musk’s compensation package in 2018 was improperly affected by the Tesla board’s personal relationships with Musk. (The lawsuit also describes Musk as “Part time CEO. Several lawsuits have been filed against the company related to its place of business, including lawsuits sexual harassmentAnd the RacismAnd the “toxicWorkplace culture, over the past year or so.

The cars themselves have problems, too. Build quality has been a constant criticism of Tesla and published a reliability study Consumer Reports earlier this month found that the company continues to have problems with body hardware and steering systems, among other things. Fixing Teslas remains a major hurdle, as is achieving recoding luminous last summer. The challenge is so great that General Motors claimed in a recent investor presentation that its dealers appear to have reformed. More than 11,000 Tesla cars since last year. A TikTok video documenting the Tesla car’s build quality, including its wobbly trunk lid, was captured More than 4 million views earlier this month.

“Build quality continues to be an issue for Tesla,” Stephen Elek, data analyst at Consumer Reports, said in a statement. In the latest reliability survey, owners reported issues with body hardware, paint and finishes on the Model S, Model 3, and Model Y. Tailgates that don’t close properly, loose trim and molding, and faded paint are some of the identifiable flaws we’ve heard from Tesla owners.”

Then, there are the Tesla recalls, which Total 19 Since the beginning of this year (General Motors has released 25, Ford has released 63 for reference, although they also made several cars). In addition to last week’s recalls, the company also issued recalls of some vehicles for problems with them direct their strength In november and other cars that can be possible Ignore the stop signs in feb.

Many of these recalls are issued without the cars suffering widespread safety issues, and they don’t require physical changes for cars. Instead, they’re handled through over-the-air updates, which allow Tesla to make needed repairs mainly through internet downloads. Obviously, these repairs are easier to complete than taking a vehicle in for repair or a complete replacement. Still, as Recode previously explainedHowever, these types of recalls—because they are so easy to handle—can also create a cycle where regulators are constantly racing to catch up with risky programs.

Tesla’s plan to become a self-driving car company doesn’t seem to be going well either. Even as other companies backtrack on their Autonomous vehicle aspirations Amid the economic downturn, Elon Musk is still promoting Tesla’s so-called fully self-driving program — the beta version of the company’s system is supposed To become available to more Tesla owners by the end of this year.

And now it’s a Tesla Facing another lawsuit, in September by the owners who say Musk misled customers about how remote the technology was and how functional it was. Reuters: The government also intervened mentioned In October that the Department of Justice is investigating Tesla technology, and the Securities and Exchange Commission has done so as well Launched probe. At the same time, an initiative called the Dawn Project is calling for a ban on Tesla’s fully self-driving program. To support this effort, he launched the project videos and advertisements intended to highlight the dangers of Tesla technology, including a television campaign showing a Tesla car knocking over a child mannequin. The automaker recently sent Cease and desist letter in response.

Oh, and Tesla’s competitors are starting to pose an even bigger threat. While the company remains a darling in the nascent electric car industry, companies like Ford and GM are racing to get ahead of Tesla and expand its manufacturing range. Startups like Lucid and Rivian are also trying to take on Elon Musk’s cars in the luxury market.

These companies probably don’t mind that Musk is currently taking his time Re-account of Donald Trump’s Twitter and posting memes, where they can use the time to catch up. As Recode Editor Adam Clark Estes Wrote When news of Musk’s takeover was first announced: “But if there was ever a time to start, it’s now. The Tesla boss is away. Time to play.”

This story was first published in the Recode newsletter. Register here So do not miss the next!

Source link

Related Posts