Tesla's High Profile Ended A Tragic Week

- Mar 06, 2019-

Last Friday, the company delivered the first Model 3 to a Chinese customer several weeks in advance. The delivery ceremony was held in Beijing.


For a company known for missing target dates and deadlines, completing tasks ahead of time is a significant achievement.


For Tesla, China is a particularly important market. Although China’s auto sales slowed for the first time in decades, China is still the world’s largest auto sales market and electric vehicle sales market.


Tesla is building a new plant in Shanghai, the first automotive assembly line outside its headquarters in Fremont, California. This factory is the key to avoiding China's tariffs on cars imported from the United States.


Despite the success of last Friday, the rest of the week is much more difficult for Tesla.


Loss of reliability rating: Consumer Reports announced on Thursday that it has removed the “Recommended” rating from Model 3 due to rising concerns about reliability in its annual customer survey – despite the magazine's employees In the road test has achieved good results.


Tesla responded that it has solved many of the problems customers have discovered since the survey began.


Inaccurate financial statements: Earlier this week, the company’s CEO, Elon Musk, made another bold prediction, but the results could be difficult to achieve. On Tuesday afternoon, Musk announced on Twitter that he had to walk back in a few hours.


He wrote on Twitter: "Tesla produced 0 cars in 2011, but will reach 500,000 in 2019." This seems to be more than the company's announced production of 360,000 to 400,000 cars this year. There has been significant growth.


A few hours later, Musk clarified again through Twitter, "I intend to say that the annual production at the end of 2019 may be around 500,000, that is, 10,000 cars a week." The delivery volume for one year is still estimated at around 400,000.


He made a huge claim, prompting the Securities and Exchange Commission (sec) to force him to abandon Tesla's chairmanship last year and demanding that the company better monitor any claims that might affect the company's stock price. .


This means that the annual production at the end of 2019 may be around 500,000 units, that is, 10,000 cars per week. The annual delivery is estimated to be around 400,000 units.


 


- Elon Musk (@elonmusk) February 20, 2019


The lead attorney left: It is never clear who should supervise his comments and tweets at Tesla to ensure they meet the SEC settlement agreement. But it is now clear that this person will not be who - the company's general counsel Dane Butswinkas. Tesla announced on Wednesday that Butswinkas, who joined Tesla after an agreement with the US Securities and Exchange Commission (SEC), will leave after only two months in office.


This is the latest example of the company's executive revolving door. Other notable departures include the chief accountant, who left the company in September in less than a month.


Too optimistic forecast: Musk also boldly predicted when Tesla's car could become a real autonomous car this week.


He said that by the end of the year, the company's cars will be able to find passengers in the parking lot, pick them up and send them to their destinations without the intervention of drivers. But he said that by the end of next year, the "driver" will be able to take a nap while the car is driving automatically.


He added that he does not believe that the regulator will allow Tesla to open all of these features by the end of next year, allowing autopilot travel.


Some experts question his claim about Tesla's autonomous driving technology, said Shaun Kildare, head of research for the highway for highway and Auto Safety, about Tesla's capabilities. The argument is "too optimistic."